TransDigm Group Incorporated (TDG) Stock Analysis & Winston Score

TransDigm Group makes parts that go inside commercial and military aircraft. These are things like pumps, valves, actuators, and cockpit controls — small but critical components that keep planes flying safely. The company sells to major aircraft manufacturers like Boeing and Airbus, as well as directly to airlines and the U.S. military.

TransDigm makes most of its money by selling proprietary parts that only it is allowed to manufacture, which gives it strong pricing power. It operates primarily in the United States but sells globally, and with roughly $7 billion in annual revenue it is one of the largest aerospace components suppliers in the world. A key risk is that TransDigm carries a very high level of debt from years of acquiring smaller companies, which could become a problem if aerospace demand slows or interest rates stay elevated.

Winston Score History

Politician Trades

26 trades / 12mo

20 Congressional buys and 6 sells on TDG in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+11.6% YoY

YoY Growth Rate

Steady EPS growth

Insider Activity

0.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$3.9B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

TransDigm Group Incorporated is a rare growth stock that's already generating positive cash flow while growing at 18%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

59.4%

Premium pricing power — 59.4% gross margin

Operating Margin

46.3%

Excellent — 46.3% operating margin

ROCE

5.2%

Weak — 5.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+11.0%

Steady sales growth (11.0% YoY)

EPS YoY

+23.1%

Earnings growing fast (23.1% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

67%

Modest — 67% of profit becomes cash

FCF Margin

12.5%

Converts sales into free cash efficiently (12.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

2.60x

Tight — interest eats into profit (2.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

38.4x

no trend

Pricey — P/E 38.4

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+13.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (38.4 → 24.6)

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Dividends

Dividend Yield

6.77%

no trend

Healthy income — 6.77% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

+101.4%

no trend

Dividend growing fast (101.4% YoY)

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