Mistras Group (MG) AI Stock Analysis

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Mistras Group

(NYSE:MG)

Rating:56Neutral

Price Target:

$8.00

▲( 8.11% Upside)

Mistras Group's stock score reflects a balance of improving financial performance and cash flow management against the backdrop of technical weakness and mixed earnings call results. The company's profitability recovery and strategic initiatives offer potential, but significant revenue declines and market uncertainties weigh on the overall outlook.

Mistras Group (MG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$231.84M

Dividend YieldN/A

Average Volume (3M)142.11K

Price to Earnings (P/E)15.7

Beta (1Y)0.98

Revenue Growth-2.09%

EPS GrowthN/A

CountryUS

Employees4,800

SectorIndustrials

Sector Strength90

IndustrySecurity & Protection Services

Share Statistics

EPS (TTM)-0.01

Shares Outstanding31,329,815

10 Day Avg. Volume204,845

30 Day Avg. Volume142,108

Financial Highlights & Ratios

PEG Ratio0.19

Price to Book (P/B)1.22

Price to Sales (P/S)0.00

P/FCF Ratio9.02

Enterprise Value/Market Cap1.85

Enterprise Value/Revenue0.15

Enterprise Value/Gross Profit2.05

Enterprise Value/Ebitda1.86

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Mistras Group Business Overview & Revenue Model

Company DescriptionMistras 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 maintenance assessments of fixed and rotating assets; inline inspection for pipelines; and develops enterprise inspection database management software and plant condition management software. The company also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, it offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, the company designs and installs monitoring systems, as well as provides commissioning, training, reporting, technical support, and annual maintenance services; Web-based solutions; and custom-developed software. Additionally, it designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures, as well as automated ultrasonic systems and scanners. The company serves oil and gas, commercial aerospace and defense, fossil and nuclear power, alternative and renewable energy, industrial, public infrastructure, petrochemical, transportation, and process industries, as well as research and engineering institutions. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.

How the Company Makes MoneyMistras Group makes money through a diversified revenue model primarily driven by service contracts and equipment sales. Key revenue streams include fees for non-destructive testing services, which help clients maintain the safety and performance of their infrastructure, and sales of proprietary equipment and software that facilitate asset monitoring and data management. The company also establishes significant partnerships with industry leaders in energy and industrial sectors, which help in expanding its market reach and generating additional revenue. Mistras Group's focus on innovation and development of advanced technologies further enhances its ability to attract and retain clients in a competitive marketplace.

Mistras Group Financial Statement Overview

Summary

Mistras Group has shown substantial improvements in profitability and operational efficiency with a notable recovery in net income and EBIT margin. The balance sheet indicates better leverage management, but the equity ratio suggests some reliance on liabilities. Cash flow has improved, but historical volatility remains a concern.

Income Statement

Positive

The company shows a strong recovery with a significant improvement in net income from a loss of $17.45 million in 2023 to a profit of $19.04 million in TTM 2024. Gross profit margin remains stable at around 28.5%, and net profit margin improved to 2.61% in TTM 2024. Revenue growth rate from 2023 to TTM 2024 is 3.43%, indicating moderate growth. However, EBIT margin improved to 5.76% in TTM 2024 from negative in 2023, showing operational efficiency improvements.

Balance Sheet

Neutral

The balance sheet reflects a manageable debt-to-equity ratio of 0.16 in TTM 2024, down from previous years, indicating reduced leverage. Return on equity improved significantly to 9.59% in TTM 2024, highlighting better profitability. However, the equity ratio of 37.95% suggests that a higher portion of assets is funded by liabilities, which could pose some financial risks.

Cash Flow

Neutral

Operating cash flow remains positive, albeit slightly reduced to $24.47 million in TTM 2024 from $26.75 million in 2023. Free cash flow has increased to $6.32 million in TTM 2024, showing an improvement in cash generation. The free cash flow to net income ratio is healthy, but the overall cash flow situation shows some volatility in recent years.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
729.64M	705.47M	687.37M	677.13M	592.57M
	Gross Profit
213.11M	203.81M	198.17M	197.15M	178.53M
	EBIT
39.83M	-1.90M	19.80M	18.17M	5.18M
	EBITDA
74.32M	32.20M	53.09M	53.09M	-65.51M
	Net Income Common Stockholders
18.96M	-17.45M	6.50M	3.86M	-99.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.32M	17.65M	20.49M	24.11M	25.76M
	Total Assets
523.04M	534.78M	534.90M	562.20M	583.31M
	Total Debt
201.50M	245.72M	205.50M	216.08M	235.10M
	Net Debt
183.18M	228.08M	185.01M	191.97M	209.34M
	Total Liabilities
324.14M	344.27M	336.15M	361.28M	386.09M
	Stockholders Equity
198.57M	190.19M	198.45M	200.68M	197.02M
Cash Flow		Free Cash Flow
27.14M	3.10M	12.99M	22.98M	52.03M
	Operating Cash Flow
50.13M	26.75M	26.41M	42.26M	67.80M
	Investing Cash Flow
-21.37M	-22.13M	-12.24M	-18.55M	-14.97M
	Financing Cash Flow
-27.40M	-7.71M	-16.32M	-23.25M	-44.17M

Mistras Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price7.40

Price Trends

50DMA

9.29

Negative

100DMA

9.49

Negative

200DMA

9.91

Negative

Market Momentum

MACD

-0.49

Positive

RSI

28.76

Positive

STOCH

21.52

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MG, the sentiment is Negative. The current price of 7.4 is below the 20-day moving average (MA) of 8.49, below the 50-day MA of 9.29, and below the 200-day MA of 9.91, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 28.76 is Positive, neither overbought nor oversold. The STOCH value of 21.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MG.

Mistras Group Risk Analysis

Mistras Group disclosed 28 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 2 New Risks

Social, political and economic changes or instability, or other circumstances beyond our control could affect our business operations. Q4, 2024

Currency exchange rate fluctuations in various currencies in which we do business, especially the Euro and the U.S. dollar, could have a material adverse effect on our business, results of operations and financial condition. Q4, 2024

Mistras Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	80 Outperform	$1.00B	22.88	27.48%	1.67%	-1.05%	-2.78%
MSA	79 Outperform	$6.20B	21.77	26.22%	1.29%	0.75%	7.20%
REZI	76 Outperform	$3.00B	51.05	2.58%	―	14.02%	-69.91%
ADT	72 Outperform	$6.82B	13.94	16.26%	2.70%	-5.44%	-16.05%
BCO	68 Neutral	$3.50B	22.37	54.50%	1.16%	1.97%	41.88%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
MG	56 Neutral	$231.84M	15.74	7.70%	―	-2.09%	―

* Industrials Sector Average

Performance Comparison

Mistras Group

7.39

-1.22

-14.17%

BCO

Brink's Company

82.37

-17.92

-17.87%

MSA

MSA Safety

158.31

-27.03

-14.58%

NSSC

Napco Security Technologies

28.49

-21.09

-42.54%

ADT

Adt

8.22

1.22

17.43%

REZI

Resideo Technologies

19.89

-1.86

-8.55%

Mistras Group Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: -21.61%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook for Mistras Group, Inc., with significant revenue declines and market uncertainties overshadowing some positive achievements in cost management and specific segment growth. While the company is optimistic about future recovery in turnaround revenue and improving cash flow, the current challenges indicate a cautious approach is necessary.

Q1-2025 Updates

Positive Updates

PCMS Offering Revenue Growth

The PCMS offering within the data solutions group achieved a 6% revenue growth compared to the prior year period, demonstrating strong performance in data analytics.

Improved Free Cash Flow

Free cash flow improved by over $5 million in the first quarter of 2025 compared to the prior year, indicating better cash management.

International Segment Growth

The international segment achieved nearly 4% organic growth in local currency, despite adverse FX translation, showcasing resilience outside the U.S. market.

Interest Expense Reduction

Interest expense decreased by $1.1 million or 25% from the prior year due to lower average debt balance and interest rates.

Focus on Cost Management

The company successfully calibrated costs and reduced SG&A expenses by $0.6 million or 1.7% from the prior year, maintaining a disciplined approach to cost management.

Anticipated Growth in Turnaround Revenue

The company expects to recover a gap in turnaround revenue and exceed 2024 levels by approximately $6.5 million in the oil and gas sector by the end of 2025.

Negative Updates

Significant Revenue Decline

Overall revenue declined by over 12% year-over-year, primarily due to a $16.6 million decrease in the oil and gas end market and a $1.7 million decline in aerospace and defense.

Market Uncertainty and Project Delays

Market uncertainties and customer budget reductions led to project pushouts and spending reductions, affecting revenue expectations.

GAAP Net Loss

The company reported a GAAP net loss of $3.2 million or $0.10 per share for the first quarter, indicating financial challenges.

Adverse FX Impact on International Revenue

International segment growth in local currency was offset by adverse FX translation, impacting overall revenue figures.

Supply Chain Disruptions

Supply chain disruptions and global market conditions caused delays and deferrals in the aerospace and defense market.

Company Guidance

During the Q1 2025 earnings call, Mistras Group highlighted several key metrics and strategic initiatives aimed at improving profitability despite experiencing a year-over-year revenue decline of over 12%. The company attributed the decrease to factors such as market uncertainty, with a $16.6 million decline in the oil and gas sector and a $1.7 million decrease in aerospace and defense. Mistras aims to offset these challenges by focusing on cost management, talent acquisition, and service delivery optimization. The company reported adjusted EBITDA of $12 million, the second highest in the past five years, despite project delays and market uncertainties. Mistras anticipates recovering a $6.5 million gap in turnaround revenues and expects to meet or exceed 2024's adjusted EBITDA levels for 2025. The company's data solutions segment, particularly PCMS, achieved a 6% revenue growth, showcasing its strategic focus on integrated solutions and data analytics.

Mistras Group Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Mistras Group Announces Passing of Founder

Neutral

Feb 7, 2025

On February 6, 2025, MISTRAS Group announced the passing of its founder and Chairman Emeritus, Dr. Sotirios J. Vahaviolos. Dr. Vahaviolos was a visionary leader in non-destructive testing and acoustic emission, dedicating over four decades to building MISTRAS into a global leader in testing and asset protection solutions. The company honors his legacy and assures stakeholders of a seamless transition with no changes to its management or strategic direction.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.