TDG

TransDigm is significantly invested in by the firm and exemplifies a successful strategy of focusing on high-value, differentiated products in the industrial sector. Their strong pricing power and cus

TransDigm is attractively priced at 11x normalized free cash flow, with expected intrinsic value growth of 20-30% per year driven by volumes, pricing, margin expansion, and capital allocation. Insider

TransDigm is a high-quality aerospace parts manufacturer that has seen its stock price decline significantly due to panic surrounding the coronavirus pandemic. The company derives over 75% of its EBIT

TransDigm operates in the aftermarket aerospace components sector, which has extremely high barriers to entry due to FAA regulations. This creates a subscription-like revenue model as they provide par

Yen Liow mentioned TransDigm as a durable compounder, reflecting confidence in its business model and growth trajectory in the aerospace sector.

While TransDigm is a great business run by competent management, the investor has become uncomfortable with the company's focus on shorter-term profitability at the expense of long-term resilience, le

TransDigm has significant pricing power due to regulatory barriers in the aerospace parts industry, allowing it to generate predictable revenue streams despite the erratic nature of individual parts.

Nick Howley at TransDigm is a disciplined buyer and strong operator who focuses on acquiring companies that are sole suppliers of aftermarket airplane parts, allowing them to squeeze costs year after