MISTRAS GROUP INC (MG) Stock Fundamental Analysis
NYSE:MG - New York Stock Exchange, Inc. - US60649T1079 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MG. MG was compared to 82 industry peers in the Professional Services industry. While MG is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on MG.
1. Profitability
1.1 Basic Checks
In the past year MG was profitable.
MG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MG reported negative net income in multiple years.
In the past 5 years MG always reported a positive cash flow from operatings.
1.2 Ratios
MG's Return On Assets of 3.62% is in line compared to the rest of the industry. MG outperforms 52.44% of its industry peers.
Looking at the Return On Equity, with a value of 9.55%, MG is in line with its industry, outperforming 51.22% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.51%, MG is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
MG had an Average Return On Invested Capital over the past 3 years of 5.62%. This is significantly below the industry average of 13.48%.
The last Return On Invested Capital (8.51%) for MG is above the 3 year average (5.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 9.55% | ||
| ROIC | 8.51% |
ROA(3y)0.53%
ROA(5y)-2.96%
ROE(3y)1.22%
ROE(5y)-8.99%
ROIC(3y)5.62%
ROIC(5y)4.42%
1.3 Margins
MG's Profit Margin of 2.60% is in line compared to the rest of the industry. MG outperforms 47.56% of its industry peers.
MG's Profit Margin has improved in the last couple of years.
The Operating Margin of MG (6.08%) is comparable to the rest of the industry.
MG's Operating Margin has improved in the last couple of years.
MG has a worse Gross Margin (29.21%) than 62.20% of its industry peers.
In the last couple of years the Gross Margin of MG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 2.6% | ||
| GM | 29.21% |
OM growth 3Y23.74%
OM growth 5Y12.48%
PM growth 3Y65.8%
PM growth 5Y26.1%
GM growth 3Y0.11%
GM growth 5Y0.12%
2. Health
2.1 Basic Checks
MG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MG has more shares outstanding
The number of shares outstanding for MG has been increased compared to 5 years ago.
Compared to 1 year ago, MG has an improved debt to assets ratio.
2.2 Solvency
MG has an Altman-Z score of 2.32. This is not the best score and indicates that MG is in the grey zone with still only limited risk for bankruptcy at the moment.
MG has a Altman-Z score of 2.32. This is comparable to the rest of the industry: MG outperforms 41.46% of its industry peers.
The Debt to FCF ratio of MG is 7.00, which is on the high side as it means it would take MG, 7.00 years of fcf income to pay off all of its debts.
MG has a Debt to FCF ratio (7.00) which is comparable to the rest of the industry.
MG has a Debt/Equity ratio of 0.87. This is a neutral value indicating MG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, MG is doing worse than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.97
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.50 indicates that MG should not have too much problems paying its short term obligations.
MG has a Current ratio of 1.50. This is comparable to the rest of the industry: MG outperforms 57.32% of its industry peers.
A Quick Ratio of 1.37 indicates that MG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.37, MG is in line with its industry, outperforming 54.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
MG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 242.86%, which is quite impressive.
The Earnings Per Share has been growing by 20.79% on average over the past years. This is a very strong growth
Looking at the last year, MG shows a small growth in Revenue. The Revenue has grown by 3.43% in the last year.
MG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.51% yearly.
EPS 1Y (TTM)242.86%
EPS 3Y44.23%
EPS 5Y20.79%
EPS Q2Q%140%
Revenue 1Y (TTM)3.43%
Revenue growth 3Y2.52%
Revenue growth 5Y-0.51%
Sales Q2Q%-5.13%
3.2 Future
MG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.80% yearly.
Based on estimates for the next years, MG will show a small growth in Revenue. The Revenue will grow by 2.80% on average per year.
EPS Next Y21.6%
EPS Next 2Y17.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.72%
Revenue Next 2Y2.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.67, which indicates a correct valuation of MG.
Compared to the rest of the industry, the Price/Earnings ratio of MG indicates a somewhat cheap valuation: MG is cheaper than 73.17% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MG to the average of the S&P500 Index (28.98), we can say MG is valued rather cheaply.
MG is valuated reasonably with a Price/Forward Earnings ratio of 10.42.
Based on the Price/Forward Earnings ratio, MG is valued cheaper than 85.37% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. MG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MG indicates a rather cheap valuation: MG is cheaper than 89.02% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MG is valued cheaper than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.52 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
MG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MG's earnings are expected to grow with 17.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)0.61
EPS Next 2Y17.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.12
-0.21 (-2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners45.57%
Inst Owner Change-0.03%
Ins Owners19.51%
Ins Owner Change0.84%
Market Cap285.55M
Analysts86
Price Target15.13 (65.9%)
Short Float %2.65%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.79%
Min EPS beat(2)-27.19%
Max EPS beat(2)74.76%
EPS beat(4)3
Avg EPS beat(4)19.62%
Min EPS beat(4)-27.19%
Max EPS beat(4)74.76%
EPS beat(8)4
Avg EPS beat(8)-11.11%
EPS beat(12)5
Avg EPS beat(12)-19.62%
EPS beat(16)6
Avg EPS beat(16)-15.87%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-2.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)2.37%
Revenue beat(8)2
Avg Revenue beat(8)-2.93%
Revenue beat(12)2
Avg Revenue beat(12)-3.45%
Revenue beat(16)4
Avg Revenue beat(16)-2.28%
PT rev (1m)3.49%
PT rev (3m)3.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.44%
EPS NY rev (1m)0%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.07%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.39 | ||
| P/FCF | 10.52 | ||
| P/OCF | 5.7 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.99 |
EPS(TTM)0.72
EY7.89%
EPS(NY)0.88
Fwd EY9.6%
FCF(TTM)0.87
FCFY9.51%
OCF(TTM)1.6
OCFY17.56%
SpS23.3
BVpS6.34
TBVpS-0.72
PEG (NY)0.59
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 9.55% | ||
| ROCE | 10.88% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.91% | ||
| ROICexgc | 20.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 2.6% | ||
| GM | 29.21% | ||
| FCFM | 3.72% |
ROA(3y)0.53%
ROA(5y)-2.96%
ROE(3y)1.22%
ROE(5y)-8.99%
ROIC(3y)5.62%
ROIC(5y)4.42%
ROICexc(3y)5.88%
ROICexc(5y)4.64%
ROICexgc(3y)13.96%
ROICexgc(5y)11.37%
ROCE(3y)7.18%
ROCE(5y)5.65%
ROICexcg growth 3Y22.5%
ROICexcg growth 5Y16.22%
ROICexc growth 3Y29.71%
ROICexc growth 5Y21.81%
OM growth 3Y23.74%
OM growth 5Y12.48%
PM growth 3Y65.8%
PM growth 5Y26.1%
GM growth 3Y0.11%
GM growth 5Y0.12%
F-Score7
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 69.63% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 64.76% | ||
| Profit Quality | 143.17% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 2.32 |
F-Score7
WACC8.81%
ROIC/WACC0.97
Cap/Depr(3y)59.76%
Cap/Depr(5y)55.73%
Cap/Sales(3y)2.82%
Cap/Sales(5y)2.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)242.86%
EPS 3Y44.23%
EPS 5Y20.79%
EPS Q2Q%140%
EPS Next Y21.6%
EPS Next 2Y17.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.43%
Revenue growth 3Y2.52%
Revenue growth 5Y-0.51%
Sales Q2Q%-5.13%
Revenue Next Year2.72%
Revenue Next 2Y2.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y67.35%
EBIT growth 3Y26.86%
EBIT growth 5Y11.9%
EBIT Next Year106.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y775.86%
FCF growth 3Y5.7%
FCF growth 5Y-5.59%
OCF growth 1Y87.41%
OCF growth 3Y5.86%
OCF growth 5Y-3.24%