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TransDigm Group TDG

TransDigm Group scores excellent on business quality (8.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$1,108Oct 9, 2026
Business qualityExcellent
Next earningsNov 10, 2026, after the close
Insiders, 90 daysQuiet

Why it matters

  1. What TransDigm Group does

    TransDigm designs and manufactures proprietary aerospace components like valves, pumps, and ignition systems. Commercial and military aircraft builders pay steady aftermarket replacement prices because swapping certified parts is strictly regulated.

  2. What it does best

    TransDigm dominates niche proprietary aerospace parts, achieving an operating margin of 46.9% that crushes peers like Boeing at -5.4% and Lockheed Martin at 11.9%. This pricing power stems from heavy regulation and high switching costs on proprietary components.

  3. The main risk

    Debt load remains a structural vulnerability, with total debt at $30.0B against cash of $2.8B, leaving substantial net debt to service as interest rates fluctuate.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin stands at an elite 46.9% and free cash flow reached $1.9B, expanding profitability as the business scales.

MoatFair

Proprietary replacement parts create high switching costs for airlines, locking in customers and supporting an operating margin in the sector's top decile at 100th percentile rank.

GrowthFast

Revenue expanded to $10.0B with a growth rate of 11.2%, continuing a multi-year upward trajectory visible since 2021.

Financial healthStrong

Net debt sits at $27.2B with $2.8B in cash, while free cash flow reached $1.9B, keeping the financial profile sound.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on TDG

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is TDG a good business?

TransDigm Group scores excellent on the Cluenex quality check (8.1 of 10), measured against its own industry. Profitability is strong, moat fair, growth fast and financial health strong.

Are insiders buying TDG?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does TDG report earnings?

Nov 10, 2026, after the close.

For members

See TDG today

  • Today's verdict on TDG, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “TransDigm Group (TDG)”, https://cluenex.com/stocks/tdg/, data as of Oct 10, 2026.