TransDigm’s fiscal fourth-quarter revenue grew 23% year over year to $3 billion, while adjusted EBITDA grew 20% to $1.58 billion. Sales growth was led by 15% and 17% increases in commercial equipment and aftermarket sales, respectively, while recent acquisitions brought aggregate margin down.
Roughly three-fourths of TransDigm’s sales are sole-source, which gives it immense pricing power.
TransDigm may not be able to find appropriate acquisition targets at reasonable prices, which would limit its addressable market or make it pay higher multiples.
Metric | TDG | PH | RTX |
|---|---|---|---|
Price/Earnings (Normalized) | 31.96 | 28.44 | 29.05 |
Price/Book Value | — | 7.62 | 3.90 |
Price/Sales | 6.69 | 5.51 | 2.85 |
Price/Cash Flow | 24.91 | 26.00 | 19.62 |
Metric | TDG | PH | RTX |
|---|---|---|---|
Quick Ratio | 1.64 | 0.49 | 0.67 |
Current Ratio | 2.90 | 0.94 | 1.05 |
Interest Coverage | 2.38 | 11.43 | 7.67 |
Metric | TDG | PH | RTX |
|---|---|---|---|
Return on Assets (Normalized) | 8.95% | 13.21% | 5.72% |
Return on Equity (Normalized) | — | 29.36% | 14.84% |
Return on Invested Capital (Normalized) | 16.92% | 18.08% | 10.33% |
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