Moog (MOG.A) AI Stock Analysis

• Market Cap: $5.59B
• Dividend Yield: 0.64%
• Average Volume (3M): 166.12K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.17
• Revenue Growth: 4.50%
• EPS Growth: 9.90%
• Country: US
• Employees: 13,500
• Sector: Industrials
• Sector Strength: 77
• Industry: Aerospace & Defense
• EPS (TTM): 1.92
• Shares Outstanding: 28,290,552
• 10 Day Avg. Volume: 157,896
• 30 Day Avg. Volume: 166,119
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.80
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $210.00
• Price Target Upside: 15.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Moog shows strong financial health with solid revenue growth and stable margins, though leverage and cash flow efficiency require attention. Technical indicators are mixed, showing neutral momentum. The valuation suggests the stock may be slightly overvalued. Overall, Moog is well-positioned in its industry, but strategic improvements in cash flow and debt management will be crucial for future performance.

Positive Factors

Commercial Aircraft Segment

Moog held its Commercial Aircraft sales guide and raised its Commercial Aircraft margin guide due to a stronger aftermarket outlook.

Defense and Space Demand

Moog's defense/space portfolio continues to see strong demand given the geopolitical backdrop.

Negative Factors

Free Cash Flow

A weak free cash flow drove a formal reduction in the free cash flow conversion guide to 50%.

Tariff Exposure

Tariffs represent a $10-20 million operational profit risk, posing a 3-6% earnings per share risk to the guidance.

Moog Business Overview & Revenue Model

Company Description

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and controls systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircraft Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. Its Space and Defense Controls segment provides controls for spacecrafts, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance, and other defense applications; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers controls for steering tactical and strategic missiles, and naval surface ships and submarines; and weapons stores management systems for light attack aerial reconnaissance, ground, and sea platforms. The company's Industrial Systems segment provides components and systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; supplies electromechanical motion simulation bases for the flight simulation and training applications; and supplies solutions for power generation applications, as well as custom test systems and controls for automotive, structural, and fatigue testing. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition; and hydraulics, slip rings, rotary unions and fiber optic rotary joints, motors, and infusion and enteral pumps. The company was incorporated in 1951 and is headquartered in East Aurora, New York.

How the Company Makes Money

Moog Inc. generates revenue through the sale of its precision control components and systems, which are utilized in various applications such as aircraft flight controls, industrial automation, and medical equipment. The company operates under multiple segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, and Components. Each segment contributes to the overall revenue by delivering specialized products and services tailored to their respective markets. Moog's significant partnerships with aerospace and defense contractors, industrial manufacturers, and healthcare providers further bolster its earnings, as these collaborations often lead to long-term contracts and recurring revenue streams.

Moog Financial Statement Overview

Summary

Moog demonstrates strong financial performance with robust revenue growth and stable profitability margins. The balance sheet is solid, although increased leverage needs monitoring. Cash flow management requires improvement due to negative free cash flow in the latest period.

Income Statement

Moog has demonstrated strong revenue growth, with a 20.8% increase from 2022 to 2023 and a 9.1% growth from 2023 to 2024, reflecting robust demand in the Aerospace & Defense sector. Gross profit margins have been stable, averaging around 27%. Net profit margin has improved over the years, reaching 5.7% in TTM. EBIT and EBITDA margins indicate solid operating efficiency, with the EBIT margin at 10.4% and the EBITDA margin at 11.4% for TTM.

Balance Sheet

The balance sheet shows a stable equity base with equity ratio improving to 42.5% in TTM. The debt-to-equity ratio has increased to 0.73 in TTM from 0.47 in 2024, indicating higher leverage. However, the return on equity remains strong at 11.3% in TTM, suggesting effective management of equity to generate profits. Despite increased debt, the company maintains a healthy balance sheet position.

Cash Flow

Moog's cash flow reflects some challenges, with a negative free cash flow in TTM due to higher capital expenditures. The operating cash flow to net income ratio is low at 0.45 in TTM, indicating less cash generation efficiency. However, free cash flow was positive in 2024, showing potential for improved cash management. Continued focus on cash generation and capital expenditure control is crucial.

Breakdown
Sep 2024	Sep 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.61B	3.32B	3.04B	2.85B	2.88B
	Gross Profit
996.92M	891.53M	820.80M	775.72M	743.70M
	EBIT
389.26M	315.14M	261.57M	239.17M	92.85M
	EBITDA
423.03M	402.47M	349.96M	329.32M	179.82M
	Net Income Common Stockholders
207.22M	171.00M	155.18M	157.22M	9.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.69M	68.96M	103.89M	99.60M	84.58M
	Total Assets
4.09B	3.81B	3.43B	3.43B	3.23B
	Total Debt
874.14M	863.09M	837.79M	903.72M	930.33M
	Net Debt
812.45M	794.13M	733.89M	804.12M	845.75M
	Total Liabilities
2.23B	2.17B	2.00B	2.03B	1.98B
	Stockholders Equity
1.86B	1.64B	1.44B	1.40B	1.24B
Cash Flow		Free Cash Flow
46.33M	-37.35M	107.37M	164.49M	190.89M
	Operating Cash Flow
202.34M	135.94M	246.80M	293.23M	279.18M
	Investing Cash Flow
-159.62M	-163.15M	-83.32M	-191.16M	-146.19M
	Financing Cash Flow
-48.66M	-23.02M	-134.91M	-87.00M	-142.77M

Moog Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 181.21
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOG.A, the sentiment is Neutral. The current price of 181.21 is above the 20-day moving average (MA) of 167.72, above the 50-day MA of 169.41, and below the 200-day MA of 190.03, indicating a neutral trend. The MACD of 1.79 indicates Negative momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 89.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MOG.A.

Moog Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	72 Outperform	$5.59B	27.52	11.61%	0.64%	4.50%	9.90%
HXL	65 Neutral	$4.06B	33.07	7.87%	1.24%	5.37%	29.15%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%
MRCY	59 Neutral	$3.01B	―	-4.45%	―	5.66%	52.71%
KTOS	59 Neutral	$5.56B	336.59	1.45%	―	9.57%	―
VSEC	58 Neutral	$2.44B	68.96	4.83%	0.34%	19.84%	-50.94%
SPR	41 Neutral	$4.20B	―	81.63%	―	-2.91%	-109.95%

Moog Corporate Events

Moog Announces Major Leadership Changes by 2025

Moog Inc. is set for significant leadership changes as Brian J. Lipke, a long-serving board director, plans to retire before the 2025 annual shareholders meeting after 21 years, and COO Mark Trabert announces his retirement effective December 31, 2024, after a 40-year tenure. Post-retirement, Moog’s Operating Group Presidents will report directly to CEO Pat Roche, marking a strategic shift in the company’s leadership structure.