TransDigm Group (STU:T7D) ROCE %: 21.55% (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

STU:T7D TransDigm Group Inc STU:T7D
90 GF Score
Price €1,092.00
GF Value €1,402.42
Valuation Modestly Undervalued
! 5 Warning Signs
View Full Analysis

What is TransDigm Group ROCE %?

TransDigm Group STU:T7D +0.74% 90 ROCE % is 21.55% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. TransDigm Group's annualized ROCE % for the quarter that ended in Mar. 2026 was 21.55%.

TransDigm Group  (STU:T7D) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

TransDigm Group ROCE % Related Terms

TransDigm Group ROCE % Historical Data

* Premium members only.

The historical data trend for TransDigm Group's ROCE % 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.

TransDigm Group ROCE % Chart

TransDigm Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.31 13.97 15.84 18.25 20.45

TransDigm Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.16 19.82 22.57 19.99 21.55
STU:T7D
90GF Score
TransDigm Group Inc STU:T7D
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

TransDigm Group ROCE % Calculation

TransDigm Group's annualized ROCE % for the fiscal year that ended in Sep. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Sep. 2025 )  (A: Sep. 2024 )(A: Sep. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Sep. 2025 )  (A: Sep. 2024 )(A: Sep. 2025 )
=3579.252/( ( (23052.986 - 5711.439) + (19518.468 - 1859.064) )/ 2 )
=3579.252/( (17341.547+17659.404)/ 2 )
=3579.252/17500.4755
=20.45 %

TransDigm Group's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=4096.64/( ( (20288.478 - 2164.89) + (22007.33 - 2110.6) )/ 2 )
=4096.64/( ( 18123.588 + 19896.73 )/ 2 )
=4096.64/19010.159
=21.55 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 21.55% mean?
TransDigm Group (STU:T7D) has a ROCE % of 21.55% as of Mar. 2026.
Is TransDigm Group's ROCE % too high?
TransDigm Group's current ROCE % is 21.55%. The Aerospace & Defense industry median ROCE % is 6.17. TransDigm Group's value of 21.55% is 249.3% above this industry median. 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 ROCE % compare to HONA and NOC?
TransDigm Group's ROCE % of 21.55% can be compared against companies in the Aerospace & Defense industry. The industry median ROCE % is 6.17. TransDigm Group's value of 21.55% is 249.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Aerospace & Defense company?
The median ROCE % among Aerospace & Defense companies is 6.17, based on 354 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current ROCE % of 21.55% is 249.3% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median ROCE % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current ROCE % is 21.55%. 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 ROCE % is 21.55% and 249.3% above the Aerospace & Defense industry median of 6.17. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For TransDigm Group (STU:T7D), the current ROCE % is 21.55% 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:

  • ROCE %: 21.55%
  • GF Value™: €1,402.42 vs. price of €1,092.00 (22.1% below fair value)
  • GF Score™: 90/100 with 5 warning signs
  • Industry Position: 249.3% above the Aerospace & Defense median

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 Group Business Description

Address 1350 Euclid Avenue, Suite 1600, Cleveland, OH, USA, 44115
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

Get the complete analysis for STU:T7D

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1,092.00
Price
€1,402.42
GF Value