Latest news with #TransDigmGroup
Yahoo
28-05-2025
- Business
- Yahoo
Why Heico Stock Is Up Today
Heico beat expectations for the quarter, and said momentum should continue into the second half of the year. This stock never looks cheap, but Heico has a long history of outperforming the market. 10 stocks we like better than Heico › Component manufacturer Heico (NYSE: HEI) delivered better-than-expected quarterly results. Investors are buying in, sending Heico shares up 7% as of 11 a.m. ET. Heico is a maker of electrical components and other parts for aerospace and other industries. The company earned $1.12 per share in its fiscal second quarter ending April 30 on revenue of $1.1 billion, topping Wall Street's $1.04 per share on sales of $1.06 billion estimate. Revenue was up 15% year over year, and cash flow from operations grew by 45% to $204.7 million. In a statement, Laurans Mendelson, the company's executive chairman, and co-CEOs Eric Mendelson and Victor Mendelson said, "We remain confident in achieving net sales growth" throughout the remainder of fiscal 2025, including organic growth and the additions of recently completed acquisitions. Heico, along with TransDigm Group, have set the standard in the aerospace industry for using roll-up models to generate substantial long-term overperformance. The momentum at Heico shows no sign of stopping, with the executive team saying they see opportunities for "strategic acquisitions and organic growth" up ahead. With global commercial aviation projected to grow at a steady clip over the next decade, there should be plenty of sales opportunities for these parts businesses. Heico thanks to its track record never looks cheap and today trades at an enterprise value that is 35 times expected earnings before interest, taxes, depreciation, and amortization (EBITDA). But the company has proven it is able to live up to high expectations. For investors interested in buying into commercial aviation but don't want to pick between airlines, Heico stock is a great way to get exposure to the sector. Before you buy stock in Heico, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Heico wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Lou Whiteman has positions in TransDigm Group. The Motley Fool recommends Heico and TransDigm Group. The Motley Fool has a disclosure policy. Why Heico Stock Is Up Today was originally published by The Motley Fool 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
21-05-2025
- Business
- Yahoo
TransDigm Group's (NYSE:TDG) investors will be pleased with their splendid 299% return over the last five years
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price of TransDigm Group Incorporated (NYSE:TDG) stock is up an impressive 255% over the last five years. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, TransDigm Group achieved compound earnings per share (EPS) growth of 19% per year. This EPS growth is slower than the share price growth of 29% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This optimism is visible in its fairly high P/E ratio of 46.68. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that TransDigm Group has improved its bottom line lately, but is it going to grow revenue? Check if analysts think TransDigm Group will grow revenue in the future. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, TransDigm Group's TSR for the last 5 years was 299%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! TransDigm Group's TSR for the year was broadly in line with the market average, at 13%. We should note here that the five-year TSR is more impressive, at 32% per year. Although the share price growth has slowed, the longer term story points to a business well worth watching. It's always interesting to track share price performance over the longer term. But to understand TransDigm Group better, we need to consider many other factors. For example, we've discovered 3 warning signs for TransDigm Group (2 make us uncomfortable!) that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
17-05-2025
- Business
- Yahoo
Is It Time To Consider Buying TransDigm Group Incorporated (NYSE:TDG)?
TransDigm Group Incorporated (NYSE:TDG) saw a decent share price growth of 16% on the NYSE over the last few months. The recent jump in the share price has meant that the company is trading around its 52-week high. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's take a look at TransDigm Group's outlook and value based on the most recent financial data to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The stock seems fairly valued at the moment according to our valuation model. It's trading around 12.93% above our intrinsic value, which means if you buy TransDigm Group today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is $1260.21, there's only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because TransDigm Group's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. View our latest analysis for TransDigm Group Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. TransDigm Group's earnings over the next few years are expected to increase by 41%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in TDG's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping an eye on TDG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you want to dive deeper into TransDigm Group, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for TransDigm Group you should be mindful of and 2 of these are a bit concerning. If you are no longer interested in TransDigm Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
13-04-2025
- Business
- Yahoo
TransDigm Group (NYSE:TDG) jumps 6.1% this week, though earnings growth is still tracking behind five-year shareholder returns
When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. One great example is TransDigm Group Incorporated (NYSE:TDG) which saw its share price drive 289% higher over five years. And in the last week the share price has popped 6.1%. But this could be related to the buoyant market which is up about 5.4% in a week. Since the stock has added US$4.2b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, TransDigm Group achieved compound earnings per share (EPS) growth of 22% per year. This EPS growth is slower than the share price growth of 31% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It is of course excellent to see how TransDigm Group has grown profits over the years, but the future is more important for shareholders. This free interactive report on TransDigm Group's balance sheet strength is a great place to start, if you want to investigate the stock further. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of TransDigm Group, it has a TSR of 338% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! We're pleased to report that TransDigm Group shareholders have received a total shareholder return of 14% over one year. That's including the dividend. Having said that, the five-year TSR of 34% a year, is even better. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand TransDigm Group better, we need to consider many other factors. Take risks, for example - TransDigm Group has 3 warning signs (and 2 which can't be ignored) we think you should know about. We will like TransDigm Group better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
At US$1,232, Is It Time To Put TransDigm Group Incorporated (NYSE:TDG) On Your Watch List?
Today we're going to take a look at the well-established TransDigm Group Incorporated (NYSE:TDG). The company's stock saw significant share price movement during recent months on the NYSE, rising to highs of US$1,400 and falling to the lows of US$1,232. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether TransDigm Group's current trading price of US$1,232 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at TransDigm Group's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. TransDigm Group appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 42.02x is currently well-above the industry average of 27.18x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since TransDigm Group's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for TransDigm Group Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. TransDigm Group's earnings over the next few years are expected to increase by 59%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? TDG's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe TDG should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on TDG for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for TDG, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To that end, you should learn about the 3 warning signs we've spotted with TransDigm Group (including 2 which are concerning) . If you are no longer interested in TransDigm Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
