NYSE: TDG
TransDigm Group Incorporated
Industrials · Aerospace & Defense
Market Cap
$69.41B
52w High
$1,623.83
52w Low
$1,123.61
P/E
35.70
Volume
367.07K
Outstanding Shares
55.93M
Price vs Fundamentals
Why The Stock Is Moving
What changed
The stock fell 14.64% over the last year. Revenue grew 13.29% over the trailing twelve months. Operating margin moved from 45.8% to 46.51%. Free cash flow declined 2.68% over the trailing twelve months.
What the market seems to be pricing
Visible fundamentals weakened far less than the stock price. The market appears to be discounting durability, risk, or trust rather than just the latest reported numbers.
What would invalidate this read
This read changes if operating margin (currently 46.51%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.
Company profile
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally.
Valuation
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Analyst consensus
22
Buy
17
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 4, 2026
Q3 FY26 · EPS est $10.22 · Revenue est $2.67B
View
Dividends
$90.00/shareAnnual3yr growth streakAt RiskTDG pays a dividend with a 7.25% dividend yield, 3 consecutive years of growth, growing at 6.27% annually, covered 0.2× by free cash flow.
Dividend Yield
7.25%
Annual Div / Share
$90.00
5yr CAGR
+6.27%
Doubles every ~11.4yr
Payout Ratio
261.59%
At Risk
Dividend Growth Rate
3yr CAGR
+69.44%
5yr CAGR
+6.27%
10yr CAGR
+12.35%
Dividend History
Annual dividends paid per share
Income Projection
Today
$6/mo
In 5 yrs
$8/mo
In 10 yrs
$11/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$73/yr $6/mo | $98/yr+36% $8/mo | $133/yr+84% $11/mo |
Yield-on-cost grows from 7.25% → 13.32% over 10yr
Analysis
Dividend Strengths
Strong dividend growth rate
The 5-year CAGR of 6.27% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
High payout ratio
With 261.59% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.
Dividend exceeds free cash flow
Free cash flow covers only 0.19× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.