TDGTransDigm Group INC

Aircraft Parts & Auxiliary Equipment, NEC

Revenue: $8.8B; 11% YoY
Operating margin: 47.2%; 6.1% YoY
EBITDA: $4.5B; 18% YoY
Market cap: $59.8B
Employees: —
Net debt / EBITDA: 6.6×; $29.8B net debt
AI in 10-K: 0.6; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 1 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
98% of net income
Cash flow under 80% of net income
Dilutive SBCNo
2% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
32% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyYes
45% of assets
Over 40% of assets
Shareholder dissentNo
95% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
—
Bottom quartile of its SIC industry
Quiet on AIYes
0.6 per 10K words · 25th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
6.6× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$59.8B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$488M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$4.8B	$5.4B	$6.6B	$7.9B	$8.8B	11%
Operating income	$1.7B	$2.2B	$2.9B	$3.5B	$4.2B	18%
Net income	$680M	$866M	$1.3B	$1.7B	$2.1B	21%
Operating cash flow	$913M	$948M	$1.4B	$2.0B	$2.0B	0.3%
Capex	$105M	$119M	$139M	$165M	$222M	35%
Stock-based comp	$129M	$153M	$135M	$188M	$152M	19%
Buybacks	$0	$912M	$0	$0	$500M
Dividends	$73M	$1.1B	$38M	$2.0B	$159M	92%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Nov 26, 2019	Berkshire Partners Holdings LLC	SC 13D/A	—	Passive
Aug 29, 2019	Berkshire Partners Holdings LLC	SC 13D/A	4.4%	Passive

Insider trading

Open-market buys, 12 mo: $4M · 8
Open-market sells, 12 mo: $492M · 546
Net: −$488M

Pay vs performance

No pay-versus-performance disclosure yet.