Mistras Group (MG) AI Stock Analysis

• Market Cap: $388.36M
• Dividend Yield: N/A
• Average Volume (3M): 171.74K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.86
• Revenue Growth: -3.20%
• EPS Growth: 60.03%
• Country: US
• Employees: 4,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.46
• Shares Outstanding: 31,548,153
• 10 Day Avg. Volume: 166,284
• 30 Day Avg. Volume: 171,741
• PEG Ratio: -0.07
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 10.32
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.48
• Enterprise Value/Ebitda: 7.47
• 1Y Price Target: $16.00
• Price Target Upside: 27.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.85
• Revenue Forecast (FY): $719.07M

• Rating: 66 Neutral
• Price Target: $12.50 ▼(-0.24% Downside)

Mistras Group's overall stock score is driven by strong earnings performance and positive technical indicators. However, challenges in profitability, cash flow management, and increased debt levels present risks. The strategic alignment of leadership interests through stock awards is a positive long-term factor.

Positive Factors

Revenue Growth

The company's consistent revenue growth across key sectors like energy and aerospace indicates strong market demand and strategic positioning, supporting long-term business sustainability.

Operational Efficiency

Improved EBITDA reflects enhanced operational efficiency and cost management, which can lead to sustained profitability and competitive advantage.

Strategic Leadership Alignment

Aligning CEO incentives with shareholder interests promotes long-term strategic focus and leadership stability, potentially enhancing company performance.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues can hinder investment in growth opportunities and affect financial flexibility, posing a risk to long-term stability.

Debt Levels

Rising debt levels may increase financial risk and interest expenses, limiting the company's ability to invest in strategic initiatives and growth.

Field Services Revenue Decline

A decline in field services revenue suggests potential challenges in maintaining market share and competitiveness in this segment, impacting overall revenue growth.

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 primarily through the provision of its core services, which include non-destructive testing, inspection services, and engineering solutions. The company's revenue model is largely based on service contracts, project-based work, and long-term agreements with clients in various industries. Key revenue streams include inspections for infrastructure integrity, maintenance services, and consulting on asset reliability. Additionally, Mistras Group benefits from strategic partnerships with major corporations and government entities, which enhance its market reach and service offerings. The company also invests in technology development and innovation, allowing it to offer advanced solutions that meet evolving industry standards and client needs, further contributing to its earnings.

Mistras Group Financial Statement Overview

Summary

Mistras Group shows stable revenue growth and improved operational efficiency, but faces challenges in profitability and cash flow management. The reduction in leverage is a positive sign, enhancing financial stability. Continued focus on improving profitability and cash flow generation will be crucial for future growth.

Income Statement

Mistras Group shows a stable revenue growth trend with a TTM growth rate of 1.83%. The gross profit margin is consistent around 28-29%, indicating efficient cost management. However, the net profit margin is relatively low at 2.53% TTM, suggesting limited profitability. The EBIT and EBITDA margins have improved over time, reflecting better operational efficiency.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio from 1.17 to 0.15 TTM, enhancing financial stability. The return on equity is modest at 8.63% TTM, indicating decent returns for shareholders. The equity ratio is stable, showing a balanced capital structure.

Cash Flow

Free cash flow has declined sharply by 80.17% TTM, posing a risk to liquidity. The operating cash flow to net income ratio is low at 0.21, indicating potential cash flow challenges. However, the free cash flow to net income ratio remains positive, suggesting some ability to generate cash relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	715.30M	729.64M	705.47M	687.37M	677.13M	592.57M
Gross Profit	209.89M	213.11M	203.81M	198.17M	197.15M	178.53M
EBITDA	69.71M	74.32M	32.20M	53.09M	53.09M	-65.51M
Net Income	18.13M	18.96M	-17.45M	6.50M	3.86M	-99.46M
Balance Sheet
Total Assets	596.26M	523.04M	534.78M	534.90M	562.20M	583.31M
Cash, Cash Equivalents and Short-Term Investments	27.80M	18.32M	17.65M	20.49M	24.11M	25.76M
Total Debt	234.37M	201.50M	217.50M	215.87M	226.12M	245.44M
Total Liabilities	368.43M	324.14M	344.27M	336.15M	361.28M	386.09M
Stockholders Equity	227.40M	198.57M	190.19M	198.45M	200.68M	197.02M
Cash Flow
Free Cash Flow	2.10M	27.14M	3.10M	12.99M	22.98M	52.03M
Operating Cash Flow	26.50M	50.13M	26.75M	26.41M	42.26M	67.80M
Investing Cash Flow	-23.18M	-21.37M	-22.13M	-12.24M	-18.55M	-14.97M
Financing Cash Flow	5.07M	-27.40M	-7.71M	-16.32M	-23.25M	-44.17M

Mistras Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 12.53 is above the 20-day moving average (MA) of 11.88, above the 50-day MA of 11.01, and above the 200-day MA of 9.42, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 82.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MG.

Mistras Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	80 Outperform	$1.50B	34.27	25.03%	1.31%	-2.28%	-9.94%
MSA	75 Outperform	$6.36B	22.88	23.35%	1.31%	3.31%	2.58%
ADT	69 Neutral	$6.69B	11.65	17.24%	2.69%	4.77%	-22.78%
MG	66 Neutral	$388.36M	21.96	8.42%	―	-3.20%	60.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REZI	51 Neutral	$5.42B	―	-20.90%	―	15.45%	-488.24%
EVLV	48 Neutral	$1.22B	-18.52	-51.67%	―	41.61%	-1.76%

Mistras Group Corporate Events

Mistras Group Awards CEO Stock Units and Options

On September 8, 2025, Mistras Group awarded its CEO, Natalia Shuman, 25,000 restricted stock units and options to purchase 35,000 shares of common stock. These awards are part of a strategic decision by the Compensation Committee to align the CEO’s interests with shareholders and promote long-term company performance. The RSUs vest over three years, and the options can be exercised starting in 2026, reflecting the company’s commitment to incentivizing its leadership.