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TransDigm GroupMEX:TDG 91 Return-on-Tangible-Asset is 22.01% as of Mar. 2026, which is 24% above its 10-year median of 17.69. 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 361 Aerospace & Defense companies, TransDigm Group ranks better than 96.12% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. TransDigm Group's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN38,590 Mil. TransDigm Group's average total tangible assets for the quarter that ended in Mar. 2026 was MXN175,329 Mil. Therefore, TransDigm Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 22.01%.
The historical rank and industry rank for TransDigm Group's Return-on-Tangible-Asset or its related term are showing as below:
MEX:TDG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 8.58 Med: 17.69 Max: 28.57
Current: 23.07
During the past 13 years, TransDigm Group's highest Return-on-Tangible-Asset was 28.57%. The lowest was 8.58%. And the median was 17.69%.
MEX:TDG's Return-on-Tangible-Asset is ranked better than 96.12% of 361
companies
in the Aerospace & Defense industry
Industry Median: 3.05
vs MEX:TDG: 23.07
TransDigm Group (MEX:TDG) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
TransDigm Group Return-on-Tangible-Asset Related Terms
TransDigm Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for TransDigm Group's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Aerospace & Defense subindustry, TransDigm Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where TransDigm Group's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 22.01% mean?
TransDigm Group (MEX:TDG) has a Return-on-Tangible-Asset of 22.01% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on TransDigm Group and its competitors. This is 24% above median its historical median of 17.69. Over the past decade, TransDigm Group's Return-on-Tangible-Asset has ranged from 8.58 to 28.57. According to the industry distribution chart, TransDigm Group ranks #14 out of 361 companies in the Aerospace & Defense industry, placing it in the top 3.9%.
Is TransDigm Group's Return-on-Tangible-Asset too high?
TransDigm Group's current Return-on-Tangible-Asset of 22.01% is 24% above median its 10-year median of 17.69. Over the past 10 years, this metric has ranged from a low of 8.58 to a high of 28.57. The Aerospace & Defense industry median Return-on-Tangible-Asset is 3.05. TransDigm Group's value of 22.01% is 621.6% above this industry median. Based on the distribution chart, TransDigm Group ranks #14 out of 361 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 Return-on-Tangible-Asset compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #14 out of 361 companies for Return-on-Tangible-Asset. This places TransDigm Group in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.05. TransDigm Group's value of 22.01% is 621.6% above this benchmark. Historically, TransDigm Group's own Return-on-Tangible-Asset has ranged from 8.58 to 28.57 over the past decade. While the company's 10-year median is 17.69 vs. the industry median of 3.05, 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 Return-on-Tangible-Asset for an Aerospace & Defense company?
The median Return-on-Tangible-Asset among Aerospace & Defense companies is 3.05, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current Return-on-Tangible-Asset of 22.01% is 621.6% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Asset is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current Return-on-Tangible-Asset is 22.01%, which is 24% above median its own 10-year median of 17.69. 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 Return-on-Tangible-Asset is 22.01%, which is 24% above median its 10-year median of 17.69 and 621.6% above the Aerospace & Defense industry median of 3.05. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For TransDigm Group (MEX:TDG), the current Return-on-Tangible-Asset is 22.01% 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:
Return-on-Tangible-Asset: 22.01% (24% above median its 10-year median of 17.69)
GF Value™: MXN28,253.89 vs. price of MXN22,000.00 (22.1% below fair value)
Industry Position: 621.6% above the Aerospace & Defense median (#14 of 361)
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
Get the complete analysis for MEX:TDG
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