Mistras (MG)
NYSE:MG
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Mistras Group
(NYSE:MG)
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Rating:55Neutral
Price Target:
$17.00
▲(11.26% Upside)
Action:Reiterated
Date:05/21/26
MG’s score is primarily constrained by weak free-cash-flow conversion (including negative Q1 FCF) and a high P/E valuation. These are partly offset by improving profitability, guidance reaffirmation with margin expansion, and a longer-term uptrend that has softened in the near term.
Positive Factors
Profitability / Margin Expansion
Sustained margin expansion and rising adjusted EBITDA reflect improved pricing, cost control and mix. A structural shift to higher‑value work and disciplined, margin‑first execution increase earnings resilience versus pure volume plays, supporting durable operating leverage over coming quarters.
Negative Factors
Weak Free Cash Flow Conversion
Very limited free cash flow versus reported earnings constrains the firm's ability to reduce debt, fund technology rollouts, or return capital. Persistent working‑capital swings and rising CapEx make cash conversion a structural vulnerability that could limit strategic flexibility in the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability / Margin Expansion
Sustained margin expansion and rising adjusted EBITDA reflect improved pricing, cost control and mix. A structural shift to higher‑value work and disciplined, margin‑first execution increase earnings resilience versus pure volume plays, supporting durable operating leverage over coming quarters.
Read all positive factors
Mistras Group Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows operating profit or loss for each of the company’s business segments, highlighting which lines actually generate earnings after costs. Reveals margin strength, operational efficiency, and where management should focus investment or cost control to sustain profitability and reduce business risk.
Shows operating profit or loss for each of the company’s business segments, highlighting which lines actually generate earnings after costs. Reveals margin strength, operational efficiency, and where management should focus investment or cost control to sustain profitability and reduce business risk.
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The Fly
The FlyMistras Group (MG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$549.79M
Dividend YieldN/A
Average Volume (3M)180.68K
Price to Earnings (P/E)48.9
Beta (1Y)1.01
Revenue Growth3.48%
EPS Growth48.10%
CountryUS
Employees4,800
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.71
Shares Outstanding31,816,680
10 Day Avg. Volume187,382
30 Day Avg. Volume180,675
Financial Highlights & Ratios
PEG Ratio-2.06
Price to Book (P/B)1.69
Price to Sales (P/S)0.55
P/FCF Ratio47.83
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit3.74
Enterprise Value/Ebitda8.60
Forecast
1Y Price Target
$22.00Price Target Upside43.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.05
Revenue Forecast (FY)$746.02M
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 maintenanc...
How the Company Makes Money
MISTRAS primarily makes money by selling inspection, testing, monitoring, and asset-integrity services to industrial customers under contracted engagements. Key revenue streams typically include: (1) Field and laboratory services: recurring and pr...
Mistras Group Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted solid top-line growth, meaningful margin expansion and strong performances in Aerospace & Defense, Infrastructure and Power Generation, supported by strategic pricing, capacity additions and technology (PCMS) momentum. These positives were tempered by a notable decline in Oil & Gas revenue driven by customer deferments and the company's deliberate exit from low‑margin work, as well as negative free cash flow and working capital pressures in the quarter. Management reaffirmed full-year guidance, is focused on returning to stronger cash generation in H2, and is pursuing a disciplined, margin-first strategy that prioritizes higher-value work and long-term profitability.Positive Updates
Top-Line Growth
Revenue grew 4.6% year-over-year (described as "nearly 5%"), driven by strength across strategic end markets and disciplined execution of Vision2030.
Negative Updates
Oil & Gas Revenue Decline
Oil & Gas end market revenue fell by $11.1 million, or 11.5% YoY, driven by customer deferments after a ~50% spike in crude prices and intentional, strategic exits of low-margin run-and-maintain contracts to protect margins.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Growth
Revenue grew 4.6% year-over-year (described as "nearly 5%"), driven by strength across strategic end markets and disciplined execution of Vision2030.
Read all positive updates
Company Guidance
MISTRAS reaffirmed full‑year 2026 guidance of revenue $730–$750 million and adjusted EBITDA $91–$93 million, noting the range is driven primarily by timing and spending in Oil & Gas (Q1 Oil & Gas down $11.1M, -11.5%) which may remain pressured into Q2; in Q1 the company delivered 4.6% revenue growth, income from operations $4.7M, GAAP net income $2.4M (EPS $0.07), adjusted EBITDA $14.3M (+18.7% YoY) with an adjusted EBITDA margin of 8.5% (up 110 bps) and gross margin expansion of 120 bps. Cash metrics included negative free cash flow of $4.5M (down $4.3M YoY), accounts receivable easing from $154.7M to $151.4M, CapEx up ~$1.4M, and interest expense of $2.9M (down $0.4M); Q1 tax rate was 13.8% (reflecting a $1.7M discrete benefit) with an expected full‑year rate of ~25%. The balance‑sheet/leveraging posture shows a bank‑defined leverage ratio of ~2.4x (down from 2.5x), well below the 3.75x covenant, with a goal to reach ~2.0x by the end of 2026.Mistras Group Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
63
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 731.44M | 724.02M | 729.64M | 705.47M | 687.37M | 677.13M |
| Gross Profit | 198.47M | 194.13M | 213.11M | 203.81M | 198.17M | 197.15M |
| EBITDA | 86.19M | 85.98M | 74.32M | 32.20M | 53.09M | 53.09M |
| Net Income | 22.41M | 16.84M | 18.96M | -17.45M | 6.50M | 3.86M |
Balance Sheet | ||||||
| Total Assets | 572.67M | 578.78M | 523.04M | 534.78M | 534.90M | 562.20M |
| Cash, Cash Equivalents and Short-Term Investments | 24.99M | 28.01M | 18.32M | 17.65M | 20.49M | 24.11M |
| Total Debt | 216.70M | 242.62M | 201.50M | 217.50M | 215.87M | 226.12M |
| Total Liabilities | 339.07M | 343.14M | 324.14M | 344.27M | 336.15M | 361.28M |
| Stockholders Equity | 233.23M | 235.65M | 198.57M | 190.19M | 198.45M | 200.68M |
Cash Flow | ||||||
| Free Cash Flow | 3.03M | 8.31M | 27.14M | 3.10M | 12.99M | 22.98M |
| Operating Cash Flow | 30.14M | 32.98M | 50.13M | 26.75M | 26.41M | 42.26M |
| Investing Cash Flow | -25.27M | -25.12M | -21.37M | -22.13M | -12.24M | -18.55M |
| Financing Cash Flow | -242.00K | -595.00K | -27.40M | -7.71M | -16.32M | -23.25M |
Mistras Group Technical Analysis
Positive
15.28
Price Trends
16.74
Positive
15.54
Positive
13.05
Positive
Market Momentum
-0.05
Positive
48.67
Neutral
42.87
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 15.28 is below the 20-day moving average (MA) of 17.91, below the 50-day MA of 16.74, and above the 200-day MA of 13.05, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 42.87 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 32 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.60B | 22.35 | 22.02% | 1.30% | 5.56% | 2.16% | |
71 Outperform | $1.34B | -861.44 | 20.86% | 1.29% | 8.83% | -16.34% | |
70 Outperform | $5.50B | 7.97 | 16.74% | 2.73% | 3.29% | 22.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $549.79M | 48.92 | 9.83% | ― | 3.48% | 48.10% | |
51 Neutral | $1.12B | -53.46 | -33.53% | ― | 40.54% | 20.94% | |
47 Neutral | $4.36B | 34.41 | -17.64% | ― | 8.08% | -1039.66% |
* Industrials Sector Average
MG
Mistras Group
18.21
10.61
139.61%
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Mistras Group Corporate Events
Executive/Board ChangesShareholder Meetings
Mistras Group Shareholders Reaffirm Board and Governance Practices
Positive
May 20, 2026
At its 2026 annual shareholders meeting held on May 19, 2026, Mistras Group, Inc. shareholders elected seven directors to one-year terms on the company’s board, reaffirming the existing leadership slate. Investors also ratified Pricewaterhou...
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.