NYSE:MOG.A

Stock Analysis Report

Executive Summary

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide.

Rewards

Trading at 31.1% below its fair value

Earnings are forecast to grow 7.39% per year

Earnings grew by 86.3% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Moog's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MOG.A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

MOG.A

-0.9%

US Aerospace & Defense

0.03%

US Market


1 Year Return

15.8%

MOG.A

26.6%

US Aerospace & Defense

18.6%

US Market

Return vs Industry: MOG.A underperformed the US Aerospace & Defense industry which returned 26.6% over the past year.

Return vs Market: MOG.A underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

MOG.AIndustryMarket
7 Day4.2%-0.9%0.03%
30 Day2.0%0.4%1.7%
90 Day8.2%1.3%5.7%
1 Year17.1%15.8%29.0%26.6%21.1%18.6%
3 Year31.1%28.3%47.9%40.0%45.6%36.2%
5 Year33.1%30.3%93.1%74.6%71.1%52.3%

Price Volatility Vs. Market

How volatile is Moog's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Moog undervalued compared to its fair value and its price relative to the market?

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MOG.A ($89.48) is trading below our estimate of fair value ($129.83)

Significantly Below Fair Value: MOG.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MOG.A is good value based on its PE Ratio (17.4x) compared to the Aerospace & Defense industry average (21.3x).

PE vs Market: MOG.A is good value based on its PE Ratio (17.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MOG.A is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: MOG.A is good value based on its PB Ratio (2.3x) compared to the US Aerospace & Defense industry average (2.6x).


Next Steps

Future Growth

How is Moog forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOG.A's forecast earnings growth (7.4% per year) is above the savings rate (1.7%).

Earnings vs Market: MOG.A's earnings (7.4% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: MOG.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: MOG.A's revenue (3.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: MOG.A's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MOG.A's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Moog performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOG.A has high quality earnings.

Growing Profit Margin: MOG.A's current net profit margins (6.2%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: MOG.A's earnings have declined by -0.3% per year over the past 5 years.

Accelerating Growth: MOG.A's earnings growth over the past year (86.3%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: MOG.A earnings growth over the past year (86.3%) exceeded the Aerospace & Defense industry 8.7%.


Return on Equity

High ROE: MOG.A's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Moog's financial position?


Financial Position Analysis

Short Term Liabilities: MOG.A's short term assets ($1.6B) exceed its short term liabilities ($727.7M).

Long Term Liabilities: MOG.A's short term assets ($1.6B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: MOG.A's debt to equity ratio (63%) is considered high.

Reducing Debt: MOG.A's debt to equity ratio has reduced from 65.1% to 63% over the past 5 years.

Debt Coverage: MOG.A's debt is well covered by operating cash flow (21.8%).

Interest Coverage: MOG.A's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

Inventory Level: MOG.A has a high level of physical assets or inventory.

Debt Coverage by Assets: MOG.A's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Moog's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: MOG.A's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: MOG.A's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MOG.A has been paying a dividend for less than 10 years.

Growing Dividend: MOG.A has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.4%), MOG.A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MOG.A's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Moog's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

John Scannell (56yo)

8yrs

Tenure

US$3,271,727

Compensation

Mr. John R. Scannell has been Chief Executive Officer of Moog Inc. since December 1, 2011. Mr. Scannell served as the President and Chief Operating Officer of Moog Inc., since December 2, 2010. He was app ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD3.27M) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.5yrs

Average Tenure

60yo

Average Age

Experienced Management: MOG.A's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

60yo

Average Age

Experienced Board: MOG.A's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: MOG.A insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$389,52114 Nov 19
R. Burghardt
EntityIndividual
Role
Senior Key Executive
Executive
Shares4,245
Max PriceUS$91.76
SellUS$62,76518 Sep 19
Patrick Roche
EntityIndividual
Shares705
Max PriceUS$89.03
SellUS$44,14716 Sep 19
R. Burghardt
EntityIndividual
Role
Senior Key Executive
Executive
Shares500
Max PriceUS$88.29
BuyUS$50,31414 Aug 19
Brenda Reichelderfer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares650
Max PriceUS$77.41
BuyUS$77,43709 Aug 19
Bradley Lawrence
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$77.44
SellUS$27,02408 Mar 19
Patrick Roche
EntityIndividual
Shares300
Max PriceUS$90.08
SellUS$166,38026 Feb 19
Mark Trabert
EntityIndividual
Role
Senior Key Executive
VP & President of Aircraft Controls
Shares1,752
Max PriceUS$94.97
SellUS$283,50021 Feb 19
Donald Fishback
EntityIndividual
Role
Member of the Board of Directors
VP, CFO & Director
Shares3,000
Max PriceUS$94.50
SellUS$46,60219 Feb 19
Patrick Roche
EntityIndividual
Shares500
Max PriceUS$93.20

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Donald Fishback (63yo)

    VP, CFO & Director

    • Tenure: 4.9yrs
    • Compensation: US$1.83m
  • Timothy Balkin (60yo)

    Treasurer & Assistant Secretary

    • Tenure: 19.5yrs
  • John Scannell (56yo)

    Chairman & CEO

    • Tenure: 8yrs
    • Compensation: US$3.27m
  • Mark Trabert (60yo)

    VP & President of Aircraft Controls

    • Tenure: 4.3yrs
    • Compensation: US$1.16m
  • R. Burghardt (60yo)

    Executive

    • Tenure: 0.6yrs
    • Compensation: US$1.18m
  • Paul DellaNeve

    Vice President of Corporate Development

    • Tenure: 4.8yrs
  • Ann Luhr

    Head of Investor Relations

    • Tenure: 0yrs
  • Paul Wilkinson (39yo)

    VP & Chief HR Officer

    • Tenure: 2yrs
  • Michael Swope (34yo)

    Principal Accounting Officer & Controller

    • Tenure: 0.8yrs

Board Members

  • Donald Fishback (63yo)

    VP, CFO & Director

    • Tenure: 4.9yrs
    • Compensation: US$1.83m
  • Kraig Kayser (58yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: US$160.01k
  • Brian Lipke (67yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$160.01k
  • Peter Gundermann (56yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$160.01k
  • Brenda Reichelderfer (60yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$160.01k
  • Bill Gisel (66yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$160.01k
  • John Scannell (56yo)

    Chairman & CEO

    • Tenure: 8yrs
    • Compensation: US$3.27m
  • Brad Lawrence (72yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$160.01k
  • Janet Coletti (55yo)

    Director

    • Tenure: 0.08yrs

Company Information

Moog Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Moog Inc.
  • Ticker: MOG.A
  • Exchange: NYSE
  • Founded: 1951
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$2.912b
  • Shares outstanding: 34.65m
  • Website: https://www.moog.com

Number of Employees


Location

  • Moog Inc.
  • 400 Jamison Road
  • East Aurora
  • New York
  • 14052
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOG.BNYSE (New York Stock Exchange)Class B Common StockUSUSDJan 1968
MOG.ANYSE (New York Stock Exchange)YesClass A Common StockUSUSDMay 1980
MO7ADB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 1980

Biography

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:38
End of Day Share Price2019/12/06 00:00
Earnings2019/09/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.