TDG shows up on my scan. It has excellent accelerating EPS backed by strong organic Sales however it has high Debt to Equity ratio at 3.85. The other stocks in the same group has on average about 0.5 - 0.8. I'm wondering what's the story behind high debt of TDG?
Suggest you check Q4 2011 Earnings Presentation, and other presentations. TDG has 4.3X Debt/EBITDA, thru $1.6B of Sub Debt, well within industry norms. More importanlty, it is a huge cash generator with EBITDA margins of ~48-50%, vs. competitors like GR at 16%, TGI @ 12% and SPI @ 8%. Additionally, in the presentations you will note the % of OEM vs. aftermarket, Commercial vs. Military and Sole source products.
There is no doubt about TDG's strong earning but it has high Debt to equity ratio which means TDG leverages on debt to fuel its growth so I'm a bit concerned about that. I'm a CANSLIMer so I agree with IBD.