TransDigm (TDG) is a supplier for airlines and OEM producers like Boeing (BA) and Airbus (EADSY). It also produces and sells military aircraft parts. Actually, the pace of growth in the defense segment is a bit higher than for commercial sales.
Source: Company's data
TransDigm is known for its strategy of finding small targets for acquisition with a room for improving their margins. In 2019, there was a relatively very big acquisition of Esterline with substantially lower operating margins, which decreased overall EBITDA profitability to the low 30s level. Management is certain in