Quality score · TDG · Industrials

Is TransDigm Group Inc. a quality business?

TransDigm Group Inc. (TDG) scored on five pillars from its reported financial statements, and ranked against 270 Industrials companies.

6.6/ 10
Solid quality
as of October 18, 2026
Profitability
8.7 Strong
Solvency
2.4 Weak
Growth
8.1 Strong
Efficiency
5.9 Average
Predictability
7.3 Strong
Strongest pillar: Profitability · Weakest: Solvency

TransDigm Group Inc. (TDG) scores 6.6 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on profitability, and solvency is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does TransDigm Group Inc. have an economic moat?

Not enough data

We cannot judge TransDigm Group Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How TransDigm Group Inc. scores

The Quality Score for TDG stands at 6.6 out of 10 as of October 18, 2026, which puts TransDigm Group Inc. in the solid quality band. This band covers companies that do several things well but not everything, so the pillar detail below matters more than the headline. It rolls TransDigm Group Inc.’s profitability, solvency, growth, efficiency and predictability into one number, each judged against the norms of its sector.

Set against 270 Industrials companies, TransDigm Group Inc. lands at the 78th percentile, inside the top quarter of the group. The median across the group is 5.6, and the top quarter begins at 6.5, so TransDigm Group Inc. is above the typical company here.

Pillar by pillar

Profitability

TransDigm Group Inc.’s profitability score is 8.7 out of 10 (strong). Against a median of 4.9 among 262 Industrials companies, that is well above the group and the 95th percentile. High profitability means each unit of capital and of sales is turning into more profit than at most of its peers, which is usually the first sign of pricing power or a cost advantage.

Solvency

On solvency, TransDigm Group Inc. scores 2.4, a weak reading. Its peers have a median of 7.1 across 241 Industrials companies, which places it well below them, at the 6th percentile. Weak solvency means debt is heavy relative to earnings or cash flow, which makes the business more sensitive to interest rates and to any fall in profits.

Growth

On growth, TransDigm Group Inc. scores 8.1, a strong reading. Its peers have a median of 5.4 across 216 Industrials companies, which places it well above them, at the 85th percentile. Strong growth means revenue, earnings and cash flow have been compounding faster than at most peers over the last few years.

Efficiency

TransDigm Group Inc.’s efficiency score is 5.9 out of 10 (average). Against a median of 6.2 among 264 Industrials companies, that is in line with the group and the 41st percentile. Efficiency near the median says the operation is neither unusually lean nor unusually capital hungry.

Predictability

Predictability scores 7.3 out of 10, which reads as strong. The median across 267 Industrials companies is 5.0, so TransDigm Group Inc. is well above its peers on this pillar and ranks at the 87th percentile. High predictability means the company’s results have moved steadily from year to year, which makes the other pillars more trustworthy as a guide.

Strongest and weakest pillar

The gap between TransDigm Group Inc.’s best and worst pillar is wide: profitability at 8.7 against solvency at 2.4, 6.3 points apart. An average of two readings this different deserves a closer look than the headline number. A profitability lead usually reflects something durable in the business model rather than a good year. When solvency is the soft spot, the question is how much of the cash flow is already spoken for by debt.

What would move the score

Closing the gap on solvency would do the most for the overall. At the median of Industrials companies, 7.1, TransDigm Group Inc. would score about 7.5 instead of 6.6. The weights add up to 100 points (profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and TransDigm Group Inc. has a reading on every pillar.

TransDigm Group Inc. and similar companies

For a fair comparison, start with companies of a similar size: the Industrials companies below are nearest to TransDigm Group Inc. by market value, each scored on the same pillars.

What each pillar measures

Profitability

8.7 / 10

How much profit the company generates from its capital and sales.

Solvency

2.4 / 10

The company’s ability to service debt and meet its obligations.

Growth

8.1 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

5.9 / 10

How well assets and earnings convert into cash and output.

Predictability

7.3 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is TransDigm Group Inc. a quality business?

On this reading TransDigm Group Inc. scores 6.6 out of 10, which reads as solid quality. Its strongest pillar is profitability, its weakest is solvency. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does TransDigm Group Inc. compare with other Industrials companies?

TransDigm Group Inc. ranks at the 78th percentile of the 270 Industrials companies Lemma publishes a score for. The median there is 5.6 and the top quarter starts at 6.5, against TransDigm Group Inc.’s 6.6.

What does the TDG quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 18, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for TDG are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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