Huge Competitive Moat & Acquisitions Yield Consistent Outperformance
- TransDigm should again exceed management/street expectations for EPS growth, as it has done for each of the last ten years, as benefits are realized from $1.8 billion in acquisitions made over the past year.
- With an approximate 90% proprietary product mix and 80% from sole-source sales, TransDigm benefits from a significant barrier to entry.
- Approximately 90% of commercial aftermarket revenue is generated from products with less than $2 million in annual sales, resulting in pricing power and discouraging competition.
- A special dividend of $24 per share will be paid on November 1st to shareholders of record on October 24th
TransDigm Group is a holding company. Through its subsidiaries, the company designs, produces and supplies aircraft components for use on commercial and military aircraft. The company's segments are: Power and Control, which develops, produces and markets systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies; Airframe, which develops, produces and markets systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies; and Non-aviation, which develops, produces and markets products for non-aviation markets.
Great Lakes Review is located in Cleveland, Ohio, was founded in 1981 and became a division of Wellington Shields & Co. LLC in 2011. Great Lakes Review is a research boutique focused on the fundamentally-oriented investor seeking companies that dominate their respective specialty niche regardless of industry. The objective is to make money for the long-term by gradually accumulating a diversified portfolio from a universe of no more than 30 companies. Although short-term-oriented accounts will be alerted to trading opportunities, aggressive sell recommendations are triggered only by a deterioration in long-term fundamentals, not by short-term blips or investor fancy. Coverage of those names that lose their earnings momentum or earnings predictability may be dropped and replaced with more vital candidates.
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