From Baron Funds' second quarter commentary:
TransDigm Group, Inc. (TDG, Financial), the maker of parts for commercial and military aircraft focused on the aftermarket, rose 16.0% in the quarter. The company reported stellar results highlighted by 15% organic growth.The company is digesting recent acquisitions,which along with the strength in the OEM markets are slightly depressing margins, yet deal integration and business trends are on track. TransDigm now trades at a full multiple of 12 times cash flow, but we believe cash flow will continue to grow double-digits and free cash flow will reduce debt or fund additional accretive acquisitions, so we still like the stock very much.
TransDigm Group, Inc. (TDG, Financial), the maker of parts for commercial and military aircraft focused on the aftermarket, rose 16.0% in the quarter. The company reported stellar results highlighted by 15% organic growth.The company is digesting recent acquisitions,which along with the strength in the OEM markets are slightly depressing margins, yet deal integration and business trends are on track. TransDigm now trades at a full multiple of 12 times cash flow, but we believe cash flow will continue to grow double-digits and free cash flow will reduce debt or fund additional accretive acquisitions, so we still like the stock very much.
