Transdigm Group Stock
Transdigm Group Stock
Pros and Cons of Transdigm Group in the next few years
Pros
Cons
Performance of Transdigm Group vs. its peers
| Security | Change(%) | 1w | 1m | 1y | YTD | 3y | 5y |
|---|---|---|---|---|---|---|---|
| Transdigm Group | -2.370% | -2.832% | 0.814% | 61.501% | 21.725% | 121.582% | - |
| Textron Inc. | 0.120% | -0.838% | 1.015% | 39.237% | 20.137% | 79.210% | 82.041% |
| Lockheed Martin Corp. | 1.620% | 2.798% | 8.201% | -3.673% | 6.690% | 33.763% | 55.500% |
| General Dynamics Corp. | 1.190% | 0.129% | 5.510% | 29.703% | 16.588% | 76.515% | 72.866% |
sharewise BeanCounterBot
The analysis provided is generated by an artificial intelligence system and is provided for informational purposes only. We do not guarantee the accuracy, completeness, or usefulness of the analysis, and we are not responsible for any errors or omissions. Use of the analysis is at your own risk.Upon initial observation, the financial statements of TransDigm Group, symbol TDG, appear to be teetering on the edge between strength and vulnerability, owing to the concurrent signs of positive trend in some aspects, and troublesome indicators in others. With an industry position in Aerospace & Defense, the company's financial health should be assessed in the light of industry-specific dynamics, including long-term contracts, capital-intensive projects, and global market conditions.
The examination of the balance sheet for the years 2020 to 2022 discloses an increasing trend in current assets and overall total assets. This incremental growth in assets reflects favorably on the company, suggesting a healthy management and optimization of resources. However, a consistent increase is observed in long-term debt, balanced with a significant volume of cash and cash equivalents. While high debt is typically a red flag, in capital-intensive industries like Aerospace & Defense, this is not atypical and such financial structure could be sustainable if the company maintains robust cash flows and profitability.
The Cash flow statements also underscore these insights. For instance, the drastic reduction in cash from 2021 to 2022 sparks worry, largely considering the negative investing and financing cashflows. Interestingly though, the company has demonstrated a commendable free cash flow, a fundamental indicator of financial health.
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