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.
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.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
TransDigm Group's 5-Year ROIIC % for the quarter that ended in Sep. 2025 was 28.33%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for TransDigm Group's 5-Year ROIIC % or its related term are showing as below:
STU:T7D's 5-Year ROIIC % is ranked better than 81.4% of 285
companies
in the Aerospace & Defense industry
Industry Median: 5.24
vs STU:T7D: 28.33
TransDigm Group (STU:T7D) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
TransDigm Group 5-Year ROIIC % Related Terms
TransDigm Group 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for TransDigm Group's 5-Year ROIIC % 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.
STU:T7D vs HONA, NOC, LHX: 5-Year ROIIC % Comparison
For the Aerospace & Defense subindustry, TransDigm Group's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, TransDigm Group's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where TransDigm Group's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
TransDigm Group (STU:T7D) has a 5-Year ROIIC % of 28.33 as of Sep. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on TransDigm Group and its competitors. According to the industry distribution chart, TransDigm Group ranks #53 out of 285 companies in the Aerospace & Defense industry, placing it in the top 18.6%.
Is TransDigm Group's 5-Year ROIIC % too high?
TransDigm Group's current 5-Year ROIIC % is 28.33. The Aerospace & Defense industry median 5-Year ROIIC % is 5.24. TransDigm Group's value of 28.33 is 440.6% above this industry median. Based on the distribution chart, TransDigm Group ranks #53 out of 285 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 5-Year ROIIC % compare to HONA and NOC?
According to the Aerospace & Defense industry distribution chart, TransDigm Group ranks #53 out of 285 companies for 5-Year ROIIC %. This places TransDigm Group in the top 19% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 5.24. TransDigm Group's value of 28.33 is 440.6% 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 5-Year ROIIC % for an Aerospace & Defense company?
The median 5-Year ROIIC % among Aerospace & Defense companies is 5.24, based on 285 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TransDigm Group's current 5-Year ROIIC % of 28.33 is 440.6% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on TransDigm Group and its competitors. For the Aerospace & Defense industry, the median 5-Year ROIIC % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TransDigm Group's current 5-Year ROIIC % is 28.33. 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 5-Year ROIIC % is 28.33 and 440.6% above the Aerospace & Defense industry median of 5.24. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For TransDigm Group (STU:T7D), the current 5-Year ROIIC % is 28.33 as of Sep. 2025. 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:
5-Year ROIIC %: 28.33
GF Value™: €1,402.42 vs. price of €1,092.00 (22.1% below fair value)
Industry Position: 440.6% above the Aerospace & Defense median (#53 of 285)
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
Get the complete analysis for STU:T7D
5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:T7D has been successfully added to your 
