Yahoo Finance If You Invested $1000 in TransDigm Group a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in TransDigm Group (TDG) ten years ago? It may not have been easy to hold on to TDG for all that time, but if you did, how much would your investment be worth today?
TransDigm Group's Business In-Depth
With that in mind, let's take a look at TransDigm Group's main business drivers.
Incepted in 1993, TransDigm Group is a leading global designer, producer and supplier of highly engineered aerospace components that are used in commercial and military aircraft. The company, through its well-diversified business, offers a broad range of products to its customers. TransDigm currently has four reportable segments:
The Airframe segment produces systems and components like engineered latching and locking devices, security components and systems, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered interior surfaces and related components, military personnel parachutes and cargo delivery systems. These are used in non-power airframe applications utilizing airframe and cabin structure technologies. It contributed 44.1% to the company's total sales in fiscal 2022.
The Power & Control segment develops products like mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, and lifting devices and cargo loading and handling systems. These are used in controlling power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. It contributed 52.9% to the company's total sales in fiscal 2022.
The Non-aviation segment's products include seat belts and safety restraints for ground transportation applications, mechanical/electro-mechanical actuators and controls for space applications, and refueling systems for heavy equipment used in mining, construction and other industries. It contributed 3% to the company's total sales in fiscal 2022.
Esterline Technologies became a reportable segment of TransDigm, post its acquisition in March 2019. Notably, Esterline includes a collection of approximately 20 reporting units that primarily develop, produce and market products for the aerospace and defense industry. Each Esterline reporting unit is included in one of TransDigm's segments.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in TransDigm Group ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in May 2013 would be worth $5,131.71, or a gain of 413.17%, as of May 8, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 156.21% and the price of gold went up 31.59% over the same time frame.
Going forward, analysts are expecting more upside for TDG.
TransDigm Group ended first-quarter fiscal 2023 on a solid note, with both earnings and revenues surpassing estimates. The company has been enjoying significant growth opportunities in the defense space, driven by the U.S. administration’s expansionary budgetary policy. TransDigm also boasts a solid solvency position, at least in the near term. In the past year, the company’s shares have outperformed the industry. However, rising fuel prices, affecting the airline industry, may continue to hurt its prospects. A comparative analysis of TransDigm’s12-month trailing P/E ratio reflects a gloomy picture. Moreover, the company expects that consistent supply chain issues, particularly in electronic components and casting, might reduce the production rate for its commercial OEM products in the short term.
The stock is up 5.92% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
