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Mistras Group Inc (MG)
NYSE:MG
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Mistras Group
(NYSE:MG)
Rating:67Neutral
Price Target:
$10.50
▲(8.02% Upside)
Positive Factors
International Segment Growth
Strong international growth indicates successful global expansion strategies, enhancing revenue diversification and reducing dependency on domestic markets.
Partnership with Batchelor & Kimball
The partnership expands Mistras' reach into the data center market, aligning with its diversification strategy and enhancing long-term growth potential.
Gross Profit Margin Improvement
Improved gross profit margins reflect effective cost management and operational efficiencies, contributing to sustainable profitability.
Negative Factors
Revenue Decline
Declining revenue growth indicates challenges in maintaining sales momentum, potentially impacting long-term financial performance.
Operating Cash Flow Concerns
Negative operating cash flow due to ERP issues can strain liquidity, affecting the company's ability to invest in growth and manage debt.
Midstream Business Challenges
Challenges in the midstream business could lead to sustained revenue pressure, affecting overall profitability and market competitiveness.
Mistras Group (MG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$300.56M
Dividend YieldN/A
Average Volume (3M)112.63K
Price to Earnings (P/E)26.4
Beta (1Y)1.01
Revenue Growth-4.51%
EPS GrowthN/A
CountryUS
Employees4,800
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding31,538,050
10 Day Avg. Volume91,658
30 Day Avg. Volume112,634
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.41
Price to Sales (P/S)0.38
P/FCF Ratio10.32
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit2.22
Enterprise Value/Ebitda7.23
Forecast
1Y Price Target
$10.50Price Target Upside8.02% Upside
Rating ConsensusHold
Number of Analyst Covering0
Mistras Group Business Overview & Revenue Model
Company DescriptionMistras Group, Inc. is a leading provider of integrated asset protection solutions, serving various sectors including oil and gas, power generation, aerospace, and manufacturing. The company specializes in non-destructive testing, inspection, and engineering services, offering a wide range of products and services designed to ensure the safety and reliability of critical infrastructure. Mistras leverages advanced technologies and expertise to deliver solutions that enhance operational efficiency and compliance with regulatory standards.
How the Company Makes MoneyMistras Group primarily generates revenue through its diverse range of services, which include non-destructive testing (NDT), inspection, condition monitoring, and asset integrity management. The company operates on a fee-for-service model, charging clients based on the services rendered. Key revenue streams include long-term contracts with major industrial clients, project-based contracts, and recurring service agreements for ongoing maintenance and monitoring. Additionally, Mistras benefits from strategic partnerships with key industry players and collaborations that expand its service offerings and market reach. The company also invests in technology and innovation to enhance service delivery and create new revenue opportunities.
Mistras Group Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
MISTRAS Group's earnings call highlighted strong adjusted EBITDA growth, international expansion, and successful Data Solutions initiatives, alongside challenges in the oil and gas sector, midstream business difficulties, and negative cash flow due to ERP issues. The company's strategic focus on high-margin opportunities and operational efficiencies provides a positive outlook despite revenue challenges.Q2-2025 Updates
Positive Updates
Record Adjusted EBITDA
MISTRAS Group reported a record adjusted EBITDA of $24.1 million for Q2 2025, up nearly 9% year-over-year, reflecting improvements in operating leverage and strategic execution.
International Segment Growth
The company demonstrated organic growth of over 14% in the International segment, primarily within European operations.
PCMS Service Offering Expansion
Growth of over 30% in the PCMS service offering within the Data Solutions business was reported, highlighting the success of the recent user conference and product upgrades.
Aerospace and Defense Revenue Increase
Revenue growth of 7.4% in the aerospace and defense market, with expectations of continued growth due to expanded capabilities and market momentum.
Gross Profit Margin Improvement
Overall gross profit margin improved by 200 basis points year-over-year, driven by diversification efforts and operational efficiencies.
Data Center and Power Generation Opportunities
Significant growth in the power generation and transmission end market with over 30% quarterly revenue growth, aligning with strategic priorities.
Negative Updates
Oil and Gas Market Softness
The oil and gas end market experienced softness due to macroeconomic volatility and customer project delays, impacting overall revenue.
Midstream Business Challenges
The midstream segment faced challenges with increased competition and lower prices, leading to a decline in revenue over the past six quarters.
Lab Closures and Revenue Decline
The company closed several underperforming lab operations, leading to a revenue loss of approximately $3 million in Q2 and contributing to a 2.3% year-over-year reported revenue decline.
Operating Cash Flow Concerns
Operating cash flow was negative $3.5 million in the first half of 2025, impacted by working capital timing and delays in invoicing due to an ERP system conversion.
Company Guidance
During the MISTRAS Group's Q2 2025 earnings call, the company highlighted several key metrics and guidance. MISTRAS achieved a record adjusted EBITDA of $24.1 million, representing an 8.9% increase year-over-year, driven by a 200-basis point improvement in gross profit margin and a focus on operational efficiencies. Revenue for the quarter was $185.4 million, consistent with the prior year after adjusting for exited operations. The company reported organic growth of over 14% in its International segment and over 30% in its PCMS service offering within the Data Solutions business. Aerospace and defense revenue grew by 7.4%, while industrials increased by 7.2%, although these gains were partially offset by a downturn in the oil and gas sector. MISTRAS expects a stronger second half in oil and gas, supported by a robust backlog. The leverage ratio was slightly below 2.75, with a target to reduce it below 2.5 by year-end. Despite not providing full-year revenue guidance, the company anticipates exceeding 2024's adjusted EBITDA levels, demonstrating its commitment to profitability and long-term growth across diversified markets.Mistras Group Financial Statement Overview
Summary
Mistras Group shows a stable financial position with strong cash flow management but faces challenges in revenue growth and profitability. The income statement reflects declining sales and profitability, while the balance sheet shows improved leverage. Cash flow performance is robust, highlighting effective cash management.Income Statement
Mistras Group's income statement shows a mixed performance. The TTM gross profit margin is stable at 29.3%, indicating consistent cost management. However, the net profit margin has decreased to 1.6% from 2.6% in the previous year, reflecting reduced profitability. The revenue growth rate is negative at -6.18%, suggesting a decline in sales, which is a concern. EBIT and EBITDA margins have also decreased, indicating pressure on operating efficiency.65
Positive
Balance Sheet
The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.98 from 1.17, showing better leverage management. However, the return on equity has decreased to 5.6% from 9.5%, indicating lower profitability for shareholders. The equity ratio remains stable, suggesting a balanced asset structure.60
Neutral
Cash Flow
Cash flow analysis shows positive trends. Free cash flow growth is strong at 143.4%, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 0.35, reflecting good cash conversion. The free cash flow to net income ratio is robust at 75.6%, suggesting efficient cash utilization.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 702.45M | 729.64M | 705.47M | 687.37M | 677.13M | 592.57M |
| Gross Profit | 205.58M | 213.11M | 203.81M | 198.17M | 197.15M | 178.53M |
| EBITDA | 63.11M | 74.32M | 32.20M | 53.09M | 53.09M | -65.51M |
| Net Income | 11.43M | 18.96M | -17.45M | 6.50M | 3.86M | -99.47M |
Balance Sheet | ||||||
| Total Assets | 571.04M | 523.04M | 534.78M | 534.90M | 562.20M | 583.31M |
| Cash, Cash Equivalents and Short-Term Investments | 20.60M | 18.32M | 17.65M | 20.49M | 24.11M | 25.76M |
| Total Debt | 34.64M | 231.78M | 245.72M | 205.50M | 216.08M | 235.10M |
| Total Liabilities | 354.87M | 324.14M | 344.27M | 336.15M | 361.28M | 386.09M |
| Stockholders Equity | 215.85M | 198.57M | 190.19M | 198.45M | 200.68M | 197.02M |
Cash Flow | ||||||
| Free Cash Flow | 34.03M | 27.14M | 3.10M | 12.99M | 22.98M | 52.03M |
| Operating Cash Flow | 45.01M | 50.13M | 26.75M | 26.41M | 42.26M | 67.80M |
| Investing Cash Flow | -21.57M | -21.37M | -22.13M | -12.24M | -18.55M | -14.97M |
| Financing Cash Flow | -17.74M | -27.40M | -7.71M | -16.32M | -23.25M | -44.17M |
Mistras Group Technical Analysis
Positive
9.72
Price Trends
8.71
Positive
8.41
Positive
9.02
Positive
Market Momentum
0.28
Positive
64.79
Neutral
39.33
Neutral
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 9.72 is above the 20-day moving average (MA) of 9.45, above the 50-day MA of 8.71, and above the 200-day MA of 9.02, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 64.79 is Neutral, neither overbought nor oversold. The STOCH value of 39.33 is Neutral, 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 29 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.15B | 12.88 | 17.13% | 2.56% | 3.80% | -3.18% | |
75 Outperform | $5.46B | 64.31 | -26.27% | ― | 20.00% | -547.75% | |
74 Outperform | $6.63B | 24.14 | 24.23% | 1.21% | 0.55% | 1.85% | |
73 Outperform | $1.43B | 33.70 | 24.98% | 1.28% | -3.81% | -11.48% | |
67 Neutral | $300.56M | 26.36 | 5.63% | ― | -4.51% | ― | |
67 Neutral | $4.76B | 30.60 | 56.23% | 0.85% | 2.17% | 25.34% | |
64 Neutral | $10.84B | 15.28 | 7.40% | 1.99% | 2.87% | -14.59% |
* Industrials Sector Average
Performance Comparison
MG
Mistras Group
9.72
-1.05
-9.75%
BCO
Brink's Company
117.52
7.63
6.94%
MSA
MSA Safety
171.89
-2.34
-1.34%
NSSC
Napco Security Technologies
41.49
3.56
9.39%
ADT
Adt
8.85
2.04
29.96%
REZI
Resideo Technologies
36.71
17.75
93.62%
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.