Transdigm Group Inc (TDG) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Industrials / Manufacturing / Defense · as of Sep 19, 2026
Transdigm Group Inc (TDG)
A forensic read on Transdigm Group Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
3.0
Distress distance
Clean
Earnings quality
4
Forensic signals
28.2
P / E (ttm)
$61.3B
Market cap
8.82%
Dividend yield
11.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Transdigm Group Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 3.0, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+34.6%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +34.6% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by receivables up +17% against revenue +11% and inventory up +12% against +8% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 0% of net operating assets, against an accruals ratio of 34.6%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
206d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 195 to 206 FY2024→FY2025 (against cost of goods sold; inventory +12% vs +8% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
0.0%/yr
FY2022–FY2025
Share count.Diluted share count changed 0% over the last 3 years to FY2025 (0.0%/yr). Roughly flat — buybacks ($500M) are about offsetting stock comp ($152M), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
-96%
FY2022→FY2023
Dividend — cut.The payout was CUT ~96% in FY2023 (from FY2022) and hasn't been restored since. It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies.
Key fundamentals
Latest Revenue$8.83B
Revenue Growth YoY+11.2%
Revenue CAGR (3yr)+17.6%
Net Margin23.5%
Free Cash Flow$1.82B
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Transdigm Group Inc's actual 10-K/10-Q/8-K filings?