Latest news with #TransDigmGroup
Yahoo
a day ago
- Business
- Yahoo
Is There Now An Opportunity In TransDigm Group Incorporated (NYSE:TDG)?
Today we're going to take a look at the well-established TransDigm Group Incorporated (NYSE:TDG). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$1,621 at one point, and dropping to the lows of US$1,373. 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$1,388 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. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Is TransDigm Group Still Cheap? According to our valuation model, TransDigm Group seems to be fairly priced at around 0.57% above our intrinsic value, which means if you buy TransDigm Group today, you'd be paying a relatively fair price for it. And if you believe the company's true value is $1380.06, then there isn't really any room for the share price grow beyond what it's currently trading. 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. See our latest analysis for TransDigm Group What kind of growth will TransDigm Group generate? 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 47%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. What This Means For You 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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true 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 diving deeper into other factors such as the strength of its balance sheet, 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. Be aware that TransDigm Group is showing 3 warning signs in our investment analysis and 2 of those can't be ignored... 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
03-08-2025
- Business
- Yahoo
TransDigm Group (NYSE:TDG) Could Become A Multi-Bagger
To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, the ROCE of TransDigm Group (NYSE:TDG) looks great, so lets see what the trend can tell us. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Return On Capital Employed (ROCE): What Is It? For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for TransDigm Group, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.20 = US$3.9b ÷ (US$22b - US$2.1b) (Based on the trailing twelve months to March 2025). So, TransDigm Group has an ROCE of 20%. In absolute terms that's a great return and it's even better than the Aerospace & Defense industry average of 11%. View our latest analysis for TransDigm Group In the above chart we have measured TransDigm Group's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for TransDigm Group . The Trend Of ROCE The trends we've noticed at TransDigm Group are quite reassuring. The data shows that returns on capital have increased substantially over the last five years to 20%. The amount of capital employed has increased too, by 32%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. In Conclusion... To sum it up, TransDigm Group has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. If you'd like to know more about TransDigm Group, we've spotted 3 warning signs, and 2 of them are a bit concerning. If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity. 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
Reuters
30-06-2025
- Business
- Reuters
TransDigm to acquire Simmonds Precision Products for about $765 million
June 30 (Reuters) - TransDigm Group (TDG.N), opens new tab said on Monday it will acquire Simmonds Precision Products from RTX Corp (RTX.N), opens new tab for about $765 million in cash.
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
