Morningstar Rating

Stock Research and Analysis

by Neal Dihora, CFA

Bulls Say

We estimate that around 15% of Moog's sales have a somewhat recurring nature, including aftermarket sales for aircraft, industrial machinery markets, and medical pump administration sets.
Many aircraft platforms, including the Boeing 787 and Airbus A350, are moving from development to production, which should drive strong top- and bottom-line results.
Moog completed the 4-million-share repurchase program from January in fiscal 2014, and added another 5 million in August, and we think this is a good capital allocation decision as acquisition prices have increased. Read more 

Bears Say

Moog has decided to sell its medical division, but if a buyer does not come forth, the firm may need to fix operations.
Moog has expended significant R&D resources as a supplier on the Boeing 787 Dreamliner. The company could experience a similar issue with the Airbus A350 platform.
Class A shares have one tenth the voting rights of Class B shares. There are around 40 million Class A shares and 4.5 million Class B shares outstanding. Read more 

Management

The firm is led by John Scannell, who took over from longtime CEO Robert Brady in December 2011. He has been with Moog for 22 years, but his ability to maneuver the firm through economic cycles is untested. To date, he's been active in restructuring   Read more 

Profile

Moog is a worldwide designer, manufacturer, and integrator of precision control components and systems used in military and commercial aircraft (42% of fiscal 2014 revenue),  Read more 

Wide-Moat GE Has Come a Long Way 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.