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TransDigm GroupSTU:T7D +0.74%90 ROA % is 8.75% as of Mar. 2026, which is 41% above its 10-year median of 6.21. GuruFocus rates STU:T7D with a GF Score™ of 90/100 and a GF Value™ of €1,402.42 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 361 Aerospace & Defense companies, TransDigm Group ranks better than 84.21% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. TransDigm Group's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,851 Mil.
TransDigm Group's average Total Assets over the quarter that ended in Mar. 2026 was €21,148 Mil. Therefore, TransDigm Group's annualized ROA % for the quarter that ended in Mar. 2026 was 8.75%.
The historical rank and industry rank for TransDigm Group's ROA % or its related term are showing as below:
STU:T7D'
s ROA % Range Over the Past 10 Years
Min: 3.61 Med: 6.21 Max: 8.92
Current: 8.92
During the past 13 years, TransDigm Group's highest ROA % was 8.92%. The lowest was 3.61%. And the median was 6.21%.
STU:T7D's ROA % is ranked better than 84.21% of 361
companies
in the Aerospace & Defense industry
Industry Median: 2.47
vs STU:T7D: 8.92
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
TransDigm Group ROA % Related Terms
TransDigm Group ROA % Historical Data
* Premium members only.
The historical data trend for TransDigm Group's ROA % 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.
For the Aerospace & Defense subindustry, TransDigm Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's ROA % distribution charts can be found below:
* The bar in red indicates where TransDigm Group's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
TransDigm Group (STU:T7D) has a ROA % of 8.75% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on TransDigm Group and its competitors. This is 41% above median its historical median of 6.21. Over the past decade, TransDigm Group's ROA % has ranged from 3.61 to 8.92. According to the industry distribution chart, TransDigm Group ranks #57 out of 361 companies in the Aerospace & Defense industry, placing it in the top 15.8%.
Is TransDigm Group's ROA % too high?
TransDigm Group's current ROA % of 8.75% is 41% above median its 10-year median of 6.21. Over the past 10 years, this metric has ranged from a low of 3.61 to a high of 8.92. The Aerospace & Defense industry median ROA % is 2.47. TransDigm Group's value of 8.75% is 254.3% above this industry median. Based on the distribution chart, TransDigm Group ranks #57 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 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's ROA % compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #57 out of 361 companies for ROA %. This places TransDigm Group in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 2.47. TransDigm Group's value of 8.75% is 254.3% above this benchmark. Historically, TransDigm Group's own ROA % has ranged from 3.61 to 8.92 over the past decade. While the company's 10-year median is 6.21 vs. the industry median of 2.47, 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 ROA % for an Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.47, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current ROA % of 8.75% is 254.3% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current ROA % is 8.75%, which is 41% above median its own 10-year median of 6.21. 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 (STU:T7D) is currently considered Modestly Undervalued. The stock's GF Value™ is €1,402.42, compared to a current price of €1,092.00 — trading 22.1% below its estimated fair value. The current ROA % is 8.75%, which is 41% above median its 10-year median of 6.21 and 254.3% above the Aerospace & Defense industry median of 2.47. TransDigm Group's overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For TransDigm Group (STU:T7D), the current ROA % is 8.75% 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 (STU:T7D) Overvalued in 2026?
Based on GuruFocus' analysis, TransDigm Group stock appears to be undervalued.
The current stock price of €1,092.00 is trading 22.1% below its estimated GF Value™ of €1,402.42.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for STU:T7D:
ROA %: 8.75% (41% above median its 10-year median of 6.21)
GF Value™: €1,402.42 vs. price of €1,092.00 (22.1% below fair value)
Industry Position: 254.3% above the Aerospace & Defense median (#57 of 361)
No single metric tells the full story. See the STU:T7D 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.
90GF Score
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