Mistras Group (MG) AI Stock Analysis

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Mistras Group

(NYSE:MG)

Rating:61Neutral

Price Target:

$9.50

▲(2.93% Upside)

Mistras Group's overall stock score reflects a stable financial position with strong cash flow management but challenges in revenue growth and profitability. The earnings call provided positive insights into EBITDA growth and international expansion, yet technical indicators suggest caution due to overbought conditions. The valuation appears high, limiting attractiveness.

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

Market Cap

$286.68M

Dividend YieldN/A

Average Volume (3M)113.61K

Price to Earnings (P/E)25.4

Beta (1Y)0.97

Revenue Growth-4.51%

EPS GrowthN/A

CountryUS

Employees4,800

SectorIndustrials

Sector Strength83

IndustrySecurity & Protection Services

Share Statistics

EPS (TTM)0.19

Shares Outstanding31,538,050

10 Day Avg. Volume158,588

30 Day Avg. Volume113,610

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.59

Enterprise Value/Revenue0.65

Enterprise Value/Gross Profit2.22

Enterprise Value/Ebitda7.23

Forecast

1Y Price Target

$9.50

Price Target Upside2.93% Upside

Rating ConsensusHold

Number of Analyst Covering1

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: 15.81%|

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 improving profitability and strong 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.

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	210.99M	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	-22.01M	-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

Technical Analysis Sentiment

Positive

Last Price9.23

Price Trends

50DMA

8.21

Positive

100DMA

8.41

Positive

200DMA

8.97

Positive

Market Momentum

MACD

0.31

Negative

RSI

70.55

Negative

STOCH

82.28

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 9.23 is above the 20-day moving average (MA) of 8.59, above the 50-day MA of 8.21, and above the 200-day MA of 8.97, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 70.55 is Negative, neither overbought nor oversold. The STOCH value of 82.28 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 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 (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	79 Outperform	$1.10B	25.08	27.48%	1.71%	-1.05%	-2.78%
ADT	78 Outperform	$7.34B	13.23	17.13%	2.52%	3.80%	-3.18%
MSA	75 Outperform	$6.70B	24.42	24.23%	1.22%	0.55%	1.85%
REZI	75 Outperform	$4.83B	64.31	-26.27%	―	20.00%	-547.75%
BCO	67 Neutral	$4.61B	29.66	56.23%	0.91%	2.17%	25.34%
MG	61 Neutral	$286.68M	25.39	5.63%	―	-4.51%	―
Sector *	59 Neutral	C$7.23B	-0.68	4.17%	2.34%	9.14%	-33.97%

* Industrials Sector Average

Performance Comparison

Mistras Group

9.23

-2.59

-21.91%

BCO

Brink's Company

109.95

1.89

1.75%

MSA

MSA Safety

170.71

-4.00

-2.29%

NSSC

Napco Security Technologies

30.39

-24.17

-44.30%

ADT

Adt

8.64

1.37

18.84%

REZI

Resideo Technologies

32.11

11.96

59.35%

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.Date of analysis: Aug 14, 2025