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TransDigm GroupMEX:TDG 91 Gross Margin % is 59.39% as of Mar. 2026, which is 4% above its 10-year median of 56.86. GuruFocus rates MEX:TDG with a GF Score™ of 91/100 and a GF Value™ of MXN28,253.89 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 346 Aerospace & Defense companies, TransDigm Group ranks better than 88.15% on this metric.
TransDigm Group (MEX:TDG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
TransDigm Group had a gross margin of 59.39% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
TransDigm Group Gross Margin % Related Terms
TransDigm Group Gross Margin % Historical Data
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The historical data trend for TransDigm Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:TDG vs HONA, NOC, LHX: Gross Margin % Comparison
For the Aerospace & Defense subindustry, TransDigm Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TransDigm Group Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TransDigm Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
TransDigm Group (MEX:TDG) has a Gross Margin % of 59.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on TransDigm Group and its competitors. This is near median its historical median of 56.86. Over the past decade, TransDigm Group's Gross Margin % has ranged from 51.87 to 60.14. According to the industry distribution chart, TransDigm Group ranks #41 out of 346 companies in the Aerospace & Defense industry, placing it in the top 11.8%.
Is TransDigm Group's Gross Margin % too high?
TransDigm Group's current Gross Margin % of 59.39% is near median its 10-year median of 56.86. Over the past 10 years, this metric has ranged from a low of 51.87 to a high of 60.14. The Aerospace & Defense industry median Gross Margin % is 26.77. TransDigm Group's value of 59.39% is 121.9% above this industry median. Based on the distribution chart, TransDigm Group ranks #41 out of 346 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, TransDigm Group has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's Gross Margin % compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #41 out of 346 companies for Gross Margin %. This places TransDigm Group in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.77. TransDigm Group's value of 59.39% is 121.9% above this benchmark. Historically, TransDigm Group's own Gross Margin % has ranged from 51.87 to 60.14 over the past decade. While the company's 10-year median is 56.86 vs. the industry median of 26.77, TransDigm Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.77, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current Gross Margin % of 59.39% is 121.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current Gross Margin % is 59.39%, which is near median its own 10-year median of 56.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TransDigm Group stock overvalued right now?
Based on GuruFocus' analysis, TransDigm Group (MEX:TDG) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN28,253.89, compared to a current price of MXN22,000.00 — trading 22.1% below its estimated fair value. The current Gross Margin % is 59.39%, which is near median its 10-year median of 56.86 and 121.9% above the Aerospace & Defense industry median of 26.77. TransDigm Group's overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For TransDigm Group (MEX:TDG), the current Gross Margin % is 59.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TransDigm Group (MEX:TDG) Overvalued in 2026?
Based on GuruFocus' analysis, TransDigm Group stock appears to be undervalued.
The current stock price of MXN22,000.00 is trading 22.1% below its estimated GF Value™ of MXN28,253.89.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for MEX:TDG:
Gross Margin %: 59.39% (near median its 10-year median of 56.86)
GF Value™: MXN28,253.89 vs. price of MXN22,000.00 (22.1% below fair value)
Industry Position: 121.9% above the Aerospace & Defense median (#41 of 346)
No single metric tells the full story. See the MEX:TDG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft. The firm organizes itself in three segments: power and control, airframes, and a small non-aviation segment, which serves mostly off-road vehicles and mining equipment. It operates as an acquisitive holding company that focuses on buying up smaller firms that make proprietary aerospace products with substantial aftermarket demand. TransDigm regularly employs financial leverage to amplify its operating results.
91GF Score
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