TransDigm Group Incorporated


SKU: TDG Category:


This is our first report on airline component manufacturer, TransDigm. The company has a monopolistic position in its domain and had a solid quarter with an all-around beat. The management is encouraged by the trends in air traffic and the continued recovery in the commercial aerospace market. Although their results have improved, they are still negatively impacted compared to pre-pandemic levels due to the ongoing decline in air travel demand. However, the steady increase in air traffic around the world is encouraging. After a busy December holiday travel period, there was a slight decline in in-flight traffic in January due to the Omicron variant, but the trend has since continued. Despite these factors, TransDigm’s total commercial aftermarket revenues and bookings increased by about 10% over Q1 of fiscal 2022, marking another quarter of sequential improvement. In other key developments, the company reached an agreement to purchase DART Aerospace for about $360 million in cash. Overall, we initiate coverage on TransDigm with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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