Is TransDigm Group Incorporated (TDG) a Warren Buffett Stock?
Partial Buffett fit - meets 5/9 key criteria, but with reservations.
5/9 criteria passed
+8 sector-quality lift. Top-quintile within its sector on 4 of 5 quality metrics. Raw pillar score 57 → lifted to 65 before grade derivation.
Capped from B to C. Net debt is more than 5x EBITDA - balance sheet is stretched What are deal-breaker caps?
Warren Buffett's Criteria, Applied to TDG
ROIC ≥ 15%
Gross margin ≥ 40%
Owner earnings yield ≥ 5%
5y profitable
Net Debt / EBITDA ≤ 3
Revenue CAGR ≥ 8%
EPS CAGR ≥ 8%
FCF / Net income ≥ 0.8
Debt / Equity ≤ 1
How TDG Scores on Other Strategies
Live Financial Snapshot
Market cap
$69.27B
P/E (TTM)
33.1x
ROIC (TTM)
14.51%
Gross margin
59.02%
Other Warren Buffett fit reports
Frequently Asked Questions
What is TDG's Warren Buffett fit score?
Does Warren Buffett actually own TDG?
How often is this score updated?
Key terms in this analysis
Educational tool, not investment advice. Scores are computed from publicly-available financial data against published investing-strategy criteria. We do not claim that Warren Buffett personally owns or recommends TDG.