Added to YB: 2026-03-30
Pitch date: 2026-03-26
TDG [neutral]
TransDigm Group Incorporated
+1.03%
current return
Author Info
Company Info
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally.
Market Cap
$65.3B
Pitch Price
$1.1K
Price Target
N/A
Dividend
7.78%
EV/EBITDA
19.99
P/E
37.21
EV/Sales
10.19
Sector
Aerospace and Defense
Category
growth
TransDigm: Mini-Monopolies at 30,000 Feet
TDG (overview): Aviation parts serial acquirer w/ 100+ niche subsidiaries holding 80% monopoly positions in mission-critical products (seatbelts, soap dispensers, engine parts). 5-6% annual price increases via value-based pricing + cost discipline = 59.6% gross margin, 22.2% net margin. 13.9% rev CAGR, 35.5% EPS CAGR past 5yrs. Howley (co-founder) won Singleton Prize, 50-82 acquisitions all >15% IRR. 17% ROIC despite 5.9x debt/EBITDA. 1000+ targets remain. FWD PE 28.2x vs 34.9x 5yr avg. 12.1% expected return but no margin of safety at current price. Would buy at $1,010 (25x PE, -12.5%).
Read full article (13 min)