TDG

TransDigm Group Inc

Industrial/Transportation


Presented:04/04/2019
Price:$463.31
Cap:$24.51B
Current Price:$1,390.52
Cap:$78.02B

Presented

Date04/04/2019
Price$463.31
Market Cap$24.51B
Ent Value$29.41B
P/E Ratio31.46x
Book ValueN/A
Div Yield0%
Shares O/S52.90M
Ave Daily Vol383,513
Short Int1.15%

Current

Price$1,390.52
Market Cap$78.02B
TransDigm Group, Inc. engages in producing, designing, and supplying of engineered aerospace components, systems and subsystems. It operates through the following segments: Power and Control, Airframe, and Non-Aviation. The Power and Control segment includes operations that primarily develop, produce and market systems and components that predominately provide power to or control power of the aircraft utilizing electronic, fluid, power, and mechanical motion control technologies. The Airframe segment covers operations that primarily develop, produce and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. The Non-Aviation segment focuses on operations that primarily develop, produce, and market products for non-aviation markets. The company was founded by W. Nicholas Howley and Douglas W. Peacock on July 8, 2003 and is headquartered in Cleveland, OH.

Publicly traded companies mentioned herein: Airbus SE (AIR FP), Boeing Co/The (BA), General Electric Co (GE), TransDigm Group Inc (TDG)

Highlights

The presenter is long shares of TransDigm Group Inc (TDG), the aircraft components supplier. Although bearish investors question its M&A strategy and consider its trading multiple expensive, he is optimistic regarding the growth prospects going forward based on its strong management team, unique focus, impressive growth and M&A history, strong financials, and operational efficiencies. He views the current share price of ~$465 as undervalued and sees upside to $600+ over the next 12 – 24 months on the back of its recent acquisition of Esterline Technologies, which should drive “huge” earnings revisions over the next few years.

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Idea Discussion

Commentor 1 - 2 weeks ago

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