Latest news with #TDG
Yahoo
3 days ago
- Business
- Yahoo
Servotronics Deal Rewrite Ignites Shareholder Value
Servotronics, Inc. (NYSE:SVT) announced that the company, along with TransDigm Group Incorporated (NYSE:TDG), has made adjustments to the Agreement and Plan of Merger, raising the tender offer price to $47 per share from $38 per share in cash for all outstanding shares. This decision was taken soon after the company received an unsolicited takeover proposal from a third party. While the external offer is not the one that can be prioritized, it signals enhanced shareholder value. A close-up of a scientist's hands manipulating a high-powered microscope to view cells. The servo-control components provider, encompassing manufacturing capabilities for aircraft, jet engines, and missiles, signifies a specialized acquisition prey in the aerospace supply chain. Although the transaction still faces the regulatory approval process and closing conditions, among other challenges, the acquisition perfectly syncs with TransDigm's portfolio expansion plans. This is a major factor in the current stock movement, with investors reacting positively to this update, translating to a stock rise. Now that the news is out, investors are staying tuned for the next move, hoping the tender offer delivers even more attractive returns. SVT has surged by nearly 328% since the start of 2025. While we acknowledge the potential of SVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SVT and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Yahoo
23-05-2025
- Business
- Yahoo
1 Profitable Stock on Our Buy List and 2 to Avoid
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow. A business making money today isn't necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. Keeping that in mind, here is one profitable company that generates reliable profits without sacrificing growth and two that may face some trouble. Trailing 12-Month GAAP Operating Margin: 9% Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals. Why Is ADUS Not Exciting? Modest revenue base of $1.21 billion gives it less fixed cost leverage and fewer distribution channels than larger companies Free cash flow margin has shown no improvement over the last five years At $111.53 per share, Addus HomeCare trades at 18.1x forward P/E. To fully understand why you should be careful with ADUS, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 7.5% With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ:SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches. Why Do We Pass on SAIC? Sales tumbled by 1.5% annually over the last two years, showing market trends are working against its favor during this cycle Estimated sales growth of 2.7% for the next 12 months is soft and implies weaker demand Low returns on capital reflect management's struggle to allocate funds effectively SAIC's stock price of $120.08 implies a valuation ratio of 13.5x forward P/E. Read our free research report to see why you should think twice about including SAIC in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 45.8% Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation. Why Are We Backing TDG? Average organic revenue growth of 14.9% over the past two years demonstrates its ability to expand independently without relying on acquisitions Additional sales over the last two years increased its profitability as the 30.8% annual growth in its earnings per share outpaced its revenue TDG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute TransDigm is trading at $1,405 per share, or 35.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
TransDigm Agrees to Buy Servotronics for $110M, Expands Portfolio
TransDigm Group, Inc. TDG revealed that it signed a definitive merger agreement with Servotronics, Inc., resulting in the latter becoming an indirect, fully-owned subsidiary of TransDigm. The transaction is worth nearly $110 million in cash, including certain tax cash consideration reflects a 274% premium over Servotronics' closing share price on May 16, 2025. Servotronics serves the global aerospace and defense industry through the supply of its servo valves, which play a key role in supporting the manufacturing of commercial airplanes and business jets. It also provides essential components for various defense Servotronics holding long-term contracts with prime defense contractors of the U.S. Government for military programs and original equipment manufacturers (OEM) for commercial programs, its acquisition should help TDG expand its customer base, product offerings and market share in both the commercial aerospace OEM and defense industries. This, in turn, should bolster TransDigm's revenue generation prospects, profitability and operational efficiency in the coming the fact that a significant portion of Servotronics' sales is tied to aftermarket services within the commercial aerospace sector, this merger aligns with TransDigm's long-term strategy of acquiring highly developed components with strong aftermarket demand. The aerospace and defense industry has been witnessing a significant increasein mergers and acquisitions lately due to several factors like cost-reduction goals, portfolio diversification, achieving economies of scale, and enhancing operational efficiency for long-term growth. Through these transactions, industry players aim to strengthen their position in high-margin aftermarket services, tackle increasing performance and pricing demands from OEMs, and change geopolitical dynamics and heightened industry latest decision to acquire Servotronics seems to have been motivated by some or all of the aforementioned aerospace-defense companies that have recently indulged in acquisition deals are as January 2025, Curtiss-Wright Corporation CW announced the acquisition of Ultra Energy for $200 million in cash. The buyout should expand Curtiss-Wright's portfolio with highly complementary, crucial measurement and control solutions for upgrading current commercial nuclear power plants and designing new and advanced power plants, such as compact modular has a long-term (three to five years) earnings growth rate of 12%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 8.3%.In February 2025, HEICO Corporation HEI declared that its Flight Support Group acquired 90% of Millennium International, a leader in providing business and regional jet avionics repair has a long-term earnings growth rate of 17%. The Zacks Consensus Estimate for its fiscal 2025 sales implies an improvement of 11.4%.In February 2025, Teledyne Technologies, Inc. TDY announced that it completed the acquisition of some selected aerospace and defense electronics businesses from Excelitas Technologies Corp. for nearly $710 has a long-term earnings growth rate of 9.9%. The Zacks Consensus Estimate for its 2025 sales implies a year-over-year improvement of 6.2%. In the past six months, shares of TransDigm have gained 11.7% compared with the industry's growth of 1.3%. Image Source: Zacks Investment Research TDG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report Curtiss-Wright Corporation (CW) : Free Stock Analysis Report Heico Corporation (HEI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
TransDigm Group Incorporated (TDG) to Acquire Servotronics, Inc. (SVT) in Newly Announced Merger Deal
TransDigm Group Incorporated (NYSE:TDG) and Servotronics, Inc. (NYSEAmerican:SVT) have announced a definitive agreement under which Servotronics will become an indirect wholly owned subsidiary of TransDigm. TransDigm Group Incorporated (NYSE:TDG) is mainly known for designing and supplying a broad range of specialized aerospace components used in nearly all commercial and military aircraft. The company plans to acquire all outstanding shares of Servotronics through a tender offer of $38.50 per share in cash. This offer values the deal at around $110 million, including certain tax benefits, and represents a premium of roughly 274% over Servotronics' closing share price on May 16, 2025. Once the tender offer is completed, TransDigm Group Incorporated (NYSE:TDG) intends to finalize the acquisition through a merger at the same price for any remaining shares. The transaction will be financed using TransDigm's existing cash reserves and does not depend on external financing. Servotronics, Inc. (NYSEAmerican:SVT)'s Board of Directors has unanimously approved the deal. This acquisition aligns with TransDigm Group Incorporated (NYSE:TDG)'s strategy of acquiring proprietary aerospace businesses with strong aftermarket potential. Over the past few years, the Cleveland-based company has pursued this approach with acquisitions including DART Aerospace for $360 million in 2022, Calspan for $725 million and CPI's electron device division for $1.4 billion in 2023, and Raptor Scientific for $655 million in 2024. TDG has surged by nearly 15% since the start of 2025. While we acknowledge the potential of TDG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TDG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
TransDigm Group Incorporated (TDG) to Acquire Servotronics, Inc. (SVT) in Newly Announced Merger Deal
TransDigm Group Incorporated (NYSE:TDG) and Servotronics, Inc. (NYSEAmerican:SVT) have announced a definitive agreement under which Servotronics will become an indirect wholly owned subsidiary of TransDigm. TransDigm Group Incorporated (NYSE:TDG) is mainly known for designing and supplying a broad range of specialized aerospace components used in nearly all commercial and military aircraft. The company plans to acquire all outstanding shares of Servotronics through a tender offer of $38.50 per share in cash. This offer values the deal at around $110 million, including certain tax benefits, and represents a premium of roughly 274% over Servotronics' closing share price on May 16, 2025. Once the tender offer is completed, TransDigm Group Incorporated (NYSE:TDG) intends to finalize the acquisition through a merger at the same price for any remaining shares. The transaction will be financed using TransDigm's existing cash reserves and does not depend on external financing. Servotronics, Inc. (NYSEAmerican:SVT)'s Board of Directors has unanimously approved the deal. This acquisition aligns with TransDigm Group Incorporated (NYSE:TDG)'s strategy of acquiring proprietary aerospace businesses with strong aftermarket potential. Over the past few years, the Cleveland-based company has pursued this approach with acquisitions including DART Aerospace for $360 million in 2022, Calspan for $725 million and CPI's electron device division for $1.4 billion in 2023, and Raptor Scientific for $655 million in 2024. TDG has surged by nearly 15% since the start of 2025. While we acknowledge the potential of TDG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TDG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None.
