Mistras Group Inc (MG)
NYSE:MG
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Mistras Group
(NYSE:MG)
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Rating:61Neutral
Price Target:
$16.50
▲(7.98% Upside)
Action:ReiteratedDate:03/05/26
The score reflects improving earnings and constructive 2026 guidance, but is held back by weak cash conversion/working-capital pressure and limited top-line growth. Technicals are supportive (price above major averages), while valuation looks only fair given a ~23.6 P/E and no dividend yield support.
Positive Factors
Recurring Data & Labs growth
Significant growth in Data Solutions and a surge in laboratory work indicate a structural shift toward recurring, higher‑margin software/analytics and in‑lab services. That diversifies revenue away from purely time‑and‑materials field work, improving margin sustainability and reducing cyclical exposure over the medium term.
Negative Factors
Elevated accounts receivable
A materially higher AR balance lengthens the cash conversion cycle and directly pressures near‑term liquidity. Unless AR is reduced, working‑capital strain can impede targeted debt reduction and limit free‑cash‑flow availability for strategic investments, making balance‑sheet repair harder over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Data & Labs growth
Significant growth in Data Solutions and a surge in laboratory work indicate a structural shift toward recurring, higher‑margin software/analytics and in‑lab services. That diversifies revenue away from purely time‑and‑materials field work, improving margin sustainability and reducing cyclical exposure over the medium term.
Read all positive factors
Mistras Group (MG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$527.65M
Dividend YieldN/A
Average Volume (3M)165.04K
Price to Earnings (P/E)25.6
Beta (1Y)0.97
Revenue Growth-3.20%
EPS Growth60.03%
CountryUS
Employees4,800
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.25
Shares Outstanding31,595,562
10 Day Avg. Volume131,747
30 Day Avg. Volume165,043
Financial Highlights & Ratios
PEG Ratio-2.06
Price to Book (P/B)1.69
Price to Sales (P/S)0.55
P/FCF Ratio47.83
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit3.82
Enterprise Value/Ebitda9.96
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1
Revenue Forecast (FY)$741.31M
Mistras Group Business Overview & Revenue Model
Company Description
Mistras Group, Inc. provides technology-enabled asset protection solutions worldwide. The company operates through three segments: Services, International, and Products and Systems. It offers non-destructive testing services; predictive maintenanc...
How the Company Makes Money
Mistras Group generates revenue primarily through the provision of its core services, which include non-destructive testing, inspection services, and engineering solutions. The company's revenue model is largely based on service contracts, project...
Mistras Group Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows operating profit or loss for each of the company’s business segments, highlighting which lines actually generate earnings after costs. Reveals margin strength, operational efficiency, and where management should focus investment or cost control to sustain profitability and reduce business risk.
Shows operating profit or loss for each of the company’s business segments, highlighting which lines actually generate earnings after costs. Reveals margin strength, operational efficiency, and where management should focus investment or cost control to sustain profitability and reduce business risk.
Data provided by:
The Fly
The FlyMistras Group Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlights a strong operational turnaround and margin recovery: record adjusted EBITDA, substantial Q4 margin expansion, double-digit growth in strategic end markets (notably aerospace & defense and power generation), and substantial growth in labs and data solutions. These positive operational outcomes are tempered by tangible near-term cash conversion and working capital challenges (sharp drop in full‑year free cash flow, rising accounts receivable), elevated restructuring and CapEx investments, and continued dependence on oil & gas demand for revenue upside. Management provided a clear 2026 plan and guidance, emphasizing targeted, ROI-focused investments while aiming to reduce leverage, which supports a constructive outlook despite the near-term liquidity headwinds.Positive Updates
Quarterly Revenue Growth and Market Wins
Consolidated revenue grew 5.1% in Q4 2025 vs prior year, driven by double-digit growth in key end markets and new contract wins (e.g., Bechtel/Woodside LNG project and data center engagements). Aerospace & defense grew $4.5M (+21.9% Q/QY), power generation grew $3.3M (+33.2% Q/QY), industrials +6.7% and infrastructure +26.8% in the quarter.
Negative Updates
Full-Year Free Cash Flow Decline
Full-year free cash flow declined materially to $3.8M in 2025 from $27.1M in 2024, driven by elevated DSO during ERP stabilization, higher restructuring activity, and growth-related CapEx — a significant deterioration in cash conversion vs prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth and Market Wins
Consolidated revenue grew 5.1% in Q4 2025 vs prior year, driven by double-digit growth in key end markets and new contract wins (e.g., Bechtel/Woodside LNG project and data center engagements). Aerospace & defense grew $4.5M (+21.9% Q/QY), power generation grew $3.3M (+33.2% Q/QY), industrials +6.7% and infrastructure +26.8% in the quarter.
Read all positive updates
Company Guidance
Management guided 2026 full‑year revenue of $730–$750 million and adjusted EBITDA of $91–$93 million (with adjusted EBITDA margins expected to remain resilient versus 2025’s $91.1M and 12.6% margin), while increasing CapEx to ~4.5% of revenue (up from a ~3% five‑year average) through 2027, targeting net income and EPS above 2025 levels (2025 GAAP NI $16.8M / $0.53; non‑GAAP NI $28.1M / $0.88), an effective tax rate in the mid‑20% range, no assumed contribution from acquisitions or a macro oil & gas rebound, a planned ~$20M debt paydown in 2026 to target a bank leverage ratio of ~2.0x (from ~2.5x at 12/31/25), and operational priorities to improve cash‑flow conversion and lower accounts receivable (AR was $154.7M at 12/31/25).Mistras Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 724.02M | 729.64M | 705.47M | 687.37M | 677.13M |
| Gross Profit | 194.13M | 213.11M | 203.81M | 198.17M | 197.15M |
| EBITDA | 85.98M | 74.32M | 32.20M | 53.09M | 53.09M |
| Net Income | 16.84M | 18.96M | -17.45M | 6.50M | 3.86M |
Balance Sheet | |||||
| Total Assets | 578.78M | 523.04M | 534.78M | 534.90M | 562.20M |
| Cash, Cash Equivalents and Short-Term Investments | 28.01M | 18.32M | 17.65M | 20.49M | 24.11M |
| Total Debt | 242.62M | 201.50M | 217.50M | 215.87M | 226.12M |
| Total Liabilities | 343.14M | 324.14M | 344.27M | 336.15M | 361.28M |
| Stockholders Equity | 235.65M | 198.57M | 190.19M | 198.45M | 200.68M |
Cash Flow | |||||
| Free Cash Flow | 8.31M | 27.14M | 3.10M | 12.99M | 22.98M |
| Operating Cash Flow | 32.98M | 50.13M | 26.75M | 26.41M | 42.26M |
| Investing Cash Flow | -25.12M | -21.37M | -22.13M | -12.24M | -18.55M |
| Financing Cash Flow | -595.00K | -27.40M | -7.71M | -16.32M | -23.25M |
Mistras Group Technical Analysis
Positive
15.28
Price Trends
14.83
Positive
13.84
Positive
11.57
Positive
Market Momentum
0.45
Negative
71.30
Negative
90.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MG, the sentiment is Positive. The current price of 15.28 is above the 20-day moving average (MA) of 15.02, above the 50-day MA of 14.83, and above the 200-day MA of 11.57, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 71.30 is Negative, neither overbought nor oversold. The STOCH value of 90.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MG.
Mistras Group Risk Analysis
Mistras Group disclosed 32 risk factors in its most recent earnings report. Mistras Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mistras Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.52B | 27.53 | 27.45% | 1.29% | -2.28% | -9.94% | |
72 Outperform | $6.68B | 22.52 | 21.82% | 1.30% | 3.31% | 2.58% | |
70 Outperform | $5.52B | 10.53 | 16.19% | 2.73% | 4.77% | -22.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $527.65M | 25.59 | 7.67% | ― | -3.20% | 60.03% | |
59 Neutral | $1.07B | -36.39 | -30.45% | ― | 41.61% | -1.76% | |
56 Neutral | $5.69B | 9.68 | -18.10% | ― | 15.45% | -488.24% |
* Industrials Sector Average
MG
Mistras Group
16.70
7.37
78.99%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.