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TransDigm GroupLTS:0REK +1.37%86 ROC (Joel Greenblatt) % is 103.00% as of Mar. 2026, which is 4% below its 10-year median of 107.83. GuruFocus rates LTS:0REK with a GF Score™ of 86/100 and a GF Value™ of $1,620.59 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 359 Aerospace & Defense companies, TransDigm Group ranks better than 94.71% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. TransDigm Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 103.00%.
The historical rank and industry rank for TransDigm Group's ROC (Joel Greenblatt) % or its related term are showing as below:
LTS:0REK'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 69.74 Med: 107.83 Max: 143.9
Current: 100.7
During the past 13 years, TransDigm Group's highest ROC (Joel Greenblatt) % was 143.90%. The lowest was 69.74%. And the median was 107.83%.
LTS:0REK's ROC (Joel Greenblatt) % is ranked better than 94.71% of 359
companies
in the Aerospace & Defense industry
Industry Median: 10.68
vs LTS:0REK: 100.70
TransDigm Group's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 15.30% per year.
TransDigm Group (LTS:0REK) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
TransDigm Group ROC (Joel Greenblatt) % Related Terms
TransDigm Group ROC (Joel Greenblatt) % Historical Data
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The historical data trend for TransDigm Group's ROC (Joel Greenblatt) % 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.
LTS:0REK vs HONA, NOC, LHX: ROC (Joel Greenblatt) % Comparison
For the Aerospace & Defense subindustry, TransDigm Group's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where TransDigm Group's ROC (Joel Greenblatt) % falls into.
TransDigm Group ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 103.00% mean?
TransDigm Group (LTS:0REK) has a ROC (Joel Greenblatt) % of 103.00% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on TransDigm Group and its competitors. This is near median its historical median of 107.83. Over the past decade, TransDigm Group's ROC (Joel Greenblatt) % has ranged from 69.74 to 143.90. According to the industry distribution chart, TransDigm Group ranks #19 out of 359 companies in the Aerospace & Defense industry, placing it in the top 5.3%.
Is TransDigm Group's ROC (Joel Greenblatt) % too high?
TransDigm Group's current ROC (Joel Greenblatt) % of 103.00% is near median its 10-year median of 107.83. Over the past 10 years, this metric has ranged from a low of 69.74 to a high of 143.90. The Aerospace & Defense industry median ROC (Joel Greenblatt) % is 10.68. TransDigm Group's value of 103.00% is 864.4% above this industry median. Based on the distribution chart, TransDigm Group ranks #19 out of 359 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 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does TransDigm Group's ROC (Joel Greenblatt) % compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #19 out of 359 companies for ROC (Joel Greenblatt) %. This places TransDigm Group in the top 5% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 10.68. TransDigm Group's value of 103.00% is 864.4% above this benchmark. Historically, TransDigm Group's own ROC (Joel Greenblatt) % has ranged from 69.74 to 143.90 over the past decade. While the company's 10-year median is 107.83 vs. the industry median of 10.68, 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 ROC (Joel Greenblatt) % for an Aerospace & Defense company?
The median ROC (Joel Greenblatt) % among Aerospace & Defense companies is 10.68, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current ROC (Joel Greenblatt) % of 103.00% is 864.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median ROC (Joel Greenblatt) % is 10.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current ROC (Joel Greenblatt) % is 103.00%, which is near median its own 10-year median of 107.83. 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 (LTS:0REK) is currently considered Modestly Undervalued. The stock's GF Value™ is $1,620.59, compared to a current price of $1,261.88 — trading 22.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 103.00%, which is near median its 10-year median of 107.83 and 864.4% above the Aerospace & Defense industry median of 10.68. TransDigm Group's overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For TransDigm Group (LTS:0REK), the current ROC (Joel Greenblatt) % is 103.00% 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 (LTS:0REK) Overvalued in 2026?
Based on GuruFocus' analysis, TransDigm Group stock appears to be undervalued.
The current stock price of $1,261.88 is trading 22.1% below its estimated GF Value™ of $1,620.59.
GuruFocus considers TransDigm Group to be Modestly Undervalued.
Key valuation signals for LTS:0REK:
ROC (Joel Greenblatt) %: 103.00% (near median its 10-year median of 107.83)
GF Value™: $1,620.59 vs. price of $1,261.88 (22.1% below fair value)
Industry Position: 864.4% above the Aerospace & Defense median (#19 of 359)
No single metric tells the full story. See the LTS:0REK 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.
86GF Score
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