Mistras Group (MG) AI Stock Analysis

• Market Cap: $248.76M
• Dividend Yield: N/A
• Average Volume (3M): 134.57K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.04
• Revenue Growth: -2.09%
• EPS Growth: N/A
• Country: US
• Employees: 4,800
• Sector: Industrials
• Sector Strength: 86
• Industry: Security & Protection Services
• EPS (TTM): -0.01
• Shares Outstanding: 31,329,815
• 10 Day Avg. Volume: 87,104
• 30 Day Avg. Volume: 134,570
• PEG Ratio: -0.83
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.71
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 1.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $9.00 ▲(13.35%Upside)

The overall score for Mistras Group is driven by moderate financial performance and valuation, with mixed signals from technical analysis and earnings call. Challenges in revenue growth and market uncertainties pose risks, though strong cash management and strategic initiatives provide a foundation for potential recovery.

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 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 Money

Mistras Group generates revenue through a variety of service offerings centered around asset protection. The company's core revenue stream comes from non-destructive testing services, which involve inspecting and evaluating the integrity of structures without causing damage. This service is crucial for industries such as oil and gas, aerospace, and infrastructure, where maintaining the safety and functionality of assets is imperative. Additionally, Mistras offers software solutions and data analytics services that provide clients with actionable insights into asset performance and maintenance needs. The company also benefits from long-term service contracts and partnerships with major industry players, which provide stable and recurring revenue. Furthermore, Mistras sells specialized equipment and sensors used in monitoring and inspection processes, adding another layer to its revenue model.

Mistras Group Financial Statement Overview

Summary

Mistras Group shows improving profitability and cash flow generation with stable balance sheet management. The cash flow is strong, with a robust operating cash flow ratio, but revenue growth has been inconsistent, and net profit margins remain low.

Income Statement

The company shows a moderate gross profit margin of 28.36% TTM. The net profit margin is 2.09%, indicating slight profitability, although it has improved from previous losses. Revenue growth has been inconsistent, with a recent decline of 3.13% TTM. The EBIT margin is 4.79%, suggesting stable operational efficiency, and the EBITDA margin of 8.82% reflects solid cash earnings. Profitability has seen recovery, but revenue growth fluctuations remain a concern.

Balance Sheet

The debt-to-equity ratio is relatively low at 0.17 TTM, which indicates manageable leverage. The return on equity (ROE) is 7.44%, showing that the company generates moderate returns on shareholders' investments. The equity ratio is 37.72%, demonstrating a fair amount of assets funded by equity. The balance sheet is stable with manageable debt levels, but return metrics indicate moderate performance.

Cash Flow

The company has a strong operating cash flow to net income ratio of 3.73 TTM, indicating good cash conversion. The free cash flow to net income ratio is 2.27, showing efficient cash generation relative to net income. Free cash flow growth is robust at 23.63% over the past year, reflecting strong cash management. Cash flow stability and growth are key strengths, supporting overall financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	74.32M	32.20M	53.09M	53.09M	-65.51M
Net Income	18.96M	-17.45M	6.50M	3.86M	-99.47M
Balance Sheet
Total Assets	523.04M	534.78M	534.90M	562.20M	583.31M
Cash, Cash Equivalents and Short-Term Investments	18.32M	17.65M	20.49M	24.11M	25.76M
Total Debt	201.50M	245.72M	205.50M	216.08M	235.10M
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 Price: 7.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.94 is below the 20-day moving average (MA) of 8.10, above the 50-day MA of 7.85, and below the 200-day MA of 9.16, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 36.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MG.

Mistras Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	79 Outperform	$1.09B	24.86	27.48%	1.69%	-1.05%	-2.78%
MSA	78 Outperform	$7.02B	24.66	26.22%	1.16%	0.75%	7.20%
ADT	76 Outperform	$6.93B	12.49	17.13%	2.63%	3.80%	-3.18%
REZI	75 Outperform	$3.65B	72.15	2.58%	―	14.02%	-69.91%
BCO	72 Outperform	$3.67B	23.43	54.50%	1.14%	1.97%	41.88%
Sector *	67 Neutral	€8.25B	20.62	6.46%	2.88%	1.68%	-40.69%
MG	66 Neutral	$248.76M	16.89	7.70%	―	-2.09%	―

Mistras Group Corporate Events

Mistras Group Holds Annual Shareholders Meeting

On May 19, 2025, Mistras Group, Inc. held its annual shareholders meeting where shareholders elected seven nominees to the Board of Directors for one-year terms, ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the executive compensation programs. These decisions are pivotal for the company’s governance and financial oversight, ensuring continuity in leadership and financial transparency, which could influence stakeholder confidence and the company’s strategic direction.