Mistras Group (MG) AI Stock Analysis

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Mistras Group

(NYSE:MG)

Rating:56Neutral

Price Target:

$8.00

▲(3.36%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

$240.30M

Dividend YieldN/A

Average Volume (3M)153.38K

Price to Earnings (P/E)16.3

Beta (1Y)1.03

Revenue Growth-2.09%

EPS GrowthN/A

CountryUS

Employees4,800

SectorIndustrials

Sector Strength85

IndustrySecurity & Protection Services

Share Statistics

EPS (TTM)-0.01

Shares Outstanding31,329,815

10 Day Avg. Volume144,232

30 Day Avg. Volume153,382

Financial Highlights & Ratios

PEG Ratio0.33

Price to Book (P/B)0.74

Price to Sales (P/S)0.00

P/FCF Ratio11.35

Enterprise Value/Market Cap2.78

Enterprise Value/Revenue0.23

Enterprise Value/Gross Profit3.33

Enterprise Value/Ebitda2.61

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. is a global leader in providing technology-enabled asset protection solutions, primarily serving the oil and gas, aerospace, and infrastructure sectors. The company specializes in non-destructive testing (NDT), mechanical integrity, and predictive maintenance services. Mistras offers a comprehensive suite of products and services aimed at ensuring the structural integrity and safety of critical assets, thus helping clients minimize risk and maximize operational efficiency.

How the Company Makes MoneyMistras 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 Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: -18.01%|

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 Financial Statement Overview

Summary

Mistras Group demonstrates improving profitability and cash flow generation, with stable balance sheet management. Despite revenue growth challenges, recovery in net profitability and strong cash flow ratios provide a solid financial foundation. Ongoing revenue growth and margin improvements are critical for future performance enhancement.

Income Statement

Positive

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

Neutral

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
706.81M	729.64M	705.47M	687.37M	677.13M	592.57M
	Gross Profit
200.52M	213.11M	203.81M	198.17M	197.15M	178.53M
	EBIT
33.84M	39.83M	-1.90M	19.80M	18.17M	5.18M
	EBITDA
62.34M	74.32M	32.20M	53.09M	53.09M	-65.51M
	Net Income Common Stockholders
14.78M	18.96M	-17.45M	6.50M	3.86M	-99.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.54M	18.32M	17.65M	20.49M	24.11M	25.76M
	Total Assets
526.79M	523.04M	534.78M	534.90M	562.20M	583.31M
	Total Debt
33.98M	201.50M	245.72M	205.50M	216.08M	235.10M
	Net Debt
15.44M	183.18M	228.08M	185.01M	191.97M	209.34M
	Total Liabilities
327.79M	324.14M	344.27M	336.15M	361.28M	386.09M
	Stockholders Equity
198.66M	198.57M	190.19M	198.45M	200.68M	197.02M
Cash Flow		Free Cash Flow
33.55M	27.14M	3.10M	12.99M	22.98M	52.03M
	Operating Cash Flow
55.17M	50.13M	26.75M	26.41M	42.26M	67.80M
	Investing Cash Flow
-21.13M	-21.37M	-22.13M	-12.24M	-18.55M	-14.97M
	Financing Cash Flow
-33.23M	-27.40M	-7.71M	-16.32M	-23.25M	-44.17M

Mistras Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price7.74

Price Trends

50DMA

8.41

Negative

100DMA

9.24

Negative

200DMA

9.64

Negative

Market Momentum

MACD

-0.19

Negative

RSI

44.29

Neutral

STOCH

72.26

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 7.74 is above the 20-day moving average (MA) of 7.61, below the 50-day MA of 8.41, and below the 200-day MA of 9.64, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 72.26 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 0 New Risks

Mistras Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	81 Outperform	$984.12M	22.47	27.48%	2.03%	-1.05%	-2.78%
MSA	79 Outperform	$6.37B	22.38	26.22%	1.31%	0.75%	7.20%
REZI	76 Outperform	$3.13B	53.38	2.58%	―	14.02%	-69.91%
ADT	72 Outperform	$6.92B	14.15	16.26%	2.71%	-5.44%	-16.05%
BCO	68 Neutral	$3.61B	23.04	54.50%	1.21%	1.97%	41.88%
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%
MG	56 Neutral	$240.30M	16.32	7.70%	―	-2.09%	―

* Industrials Sector Average

Performance Comparison

Mistras Group

7.74

-0.29

-3.61%

BCO

Brink's Company

85.87

-13.56

-13.64%

MSA

MSA Safety

165.93

-13.65

-7.60%

NSSC

Napco Security Technologies

28.51

-23.62

-45.31%

ADT

Adt

8.27

1.31

18.82%

REZI

Resideo Technologies

21.10

1.75

9.04%

Mistras Group Corporate Events

Executive/Board ChangesShareholder Meetings

Mistras Group Holds Annual Shareholders Meeting

Neutral

May 23, 2025

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.

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.