TDG

TransDigm Group Inc

Industrial/Transportation


Presented:10/15/2015
Price:$216.25
Cap:$12.24B
Current Price:$1,390.52
Cap:$78.02B

Presented

Date10/15/2015
Price$216.25
Market Cap$12.24B
Ent Value$20.51B
P/E Ratio29.83x
Book ValueN/A
Div Yield0%
Shares O/S56.61M
Ave Daily Vol442,772
Short Int3.49%

Current

Price$1,390.52
Market Cap$78.02B
TransDigm Group, Inc. designs, produces and supplies engineered aircraft components used in aerospace and defense applications through its wholly-owned subsidiaries. It operates through three segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that predominately provide power to control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. The Airframe segment includes 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 includes operations that primarily develop, produce and market products for non-aviation markets. The company was founded W. Nicholas Howley and Douglas W. Peacock in July 8, 2003 and is headquartered in Cleveland, OH.

Publicly traded companies mentioned herein: TransDigm Group Incorporated (TDG)

Highlights

The presenter is long shares of TransDigm Group Inc (TDG) and believes the combination of a strong management team, a long runway to continue to acquire, and significant pricing power make it an attractive investment at this time. While shares may appear to be expensive at 21x the Street’s 2016 EPS forecast and 7.5x Total Debt/ EBITDA, TDG operates in a highly fragmented industry with 1,500+ potential targets (many with $20 - $50+ million of EBITDA), and consistently generates 40% - 50% EBITDA margins and high single digit EPS growth. He sees the ~215 level as an attractive entry point following a pull back from the mid-$240s (last seen in August 2015).

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Idea Discussion

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