MISTRAS GROUP INC (MG)
US60649T1079 - Common Stock
Overall MG gets a fundamental rating of 4 out of 10. We evaluated MG against 80 industry peers in the Professional Services industry. There are concerns on the financial health of MG while its profitability can be described as average. MG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year MG was profitable.
MG had a positive operating cash flow in the past year.
In multiple years MG reported negative net income over the last 5 years.
Each year in the past 5 years MG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MG (2.04%) is comparable to the rest of the industry.
MG has a Return On Equity of 5.49%. This is comparable to the rest of the industry: MG outperforms 48.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.80%, MG is in line with its industry, outperforming 48.05% of the companies in the same industry.
MG had an Average Return On Invested Capital over the past 3 years of 3.68%. This is significantly below the industry average of 17.88%.
The last Return On Invested Capital (6.80%) for MG is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 5.49% | ||
| ROIC | 6.8% |
ROA(3y)-0.45%
ROA(5y)-3.51%
ROE(3y)-1.33%
ROE(5y)-10.47%
ROIC(3y)3.68%
ROIC(5y)3.04%
1.3 Margins
MG has a Profit Margin (1.52%) which is in line with its industry peers.
MG has a Operating Margin (5.68%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MG has remained more or less at the same level.
MG's Gross Margin of 29.15% is on the low side compared to the rest of the industry. MG is outperformed by 67.53% of its industry peers.
MG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.68% | ||
| PM (TTM) | 1.52% | ||
| GM | 29.15% |
OM growth 3Y38.99%
OM growth 5Y1.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.38%
GM growth 5Y0.62%
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.
The number of shares outstanding for MG has been increased compared to 1 year ago.
Compared to 5 years ago, MG has more shares outstanding
MG has a worse debt/assets ratio than last year.
2.2 Solvency
MG has an Altman-Z score of 2.21. 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 worse Altman-Z score (2.21) than 63.64% of its industry peers.
The Debt to FCF ratio of MG is 13.69, which is on the high side as it means it would take MG, 13.69 years of fcf income to pay off all of its debts.
MG has a worse Debt to FCF ratio (13.69) than 66.23% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that MG is somewhat dependend on debt financing.
MG's Debt to Equity ratio of 0.93 is on the low side compared to the rest of the industry. MG is outperformed by 70.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 13.69 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.72
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.68 indicates that MG should not have too much problems paying its short term obligations.
MG has a better Current ratio (1.68) than 64.94% of its industry peers.
A Quick Ratio of 1.55 indicates that MG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.55, MG is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
MG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 190.00%, which is quite impressive.
Measured over the past years, MG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.59% on average per year.
MG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.85%.
MG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.02% yearly.
EPS 1Y (TTM)190%
EPS 3YN/A
EPS 5Y-15.59%
EPS Q2Q%11.11%
Revenue 1Y (TTM)6.85%
Revenue growth 3Y5.98%
Revenue growth 5Y-1.02%
Sales Q2Q%1.86%
3.2 Future
The Earnings Per Share is expected to grow by 67.61% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.52% on average over the next years.
EPS Next Y200.82%
EPS Next 2Y102.98%
EPS Next 3Y67.61%
EPS Next 5YN/A
Revenue Next Year4.56%
Revenue Next 2Y3.65%
Revenue Next 3Y3.52%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 15.62 indicates a correct valuation of MG.
72.73% of the companies in the same industry are more expensive than MG, based on the Price/Earnings ratio.
MG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.48.
With a Price/Forward Earnings ratio of 10.47, the valuation of MG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MG indicates a rather cheap valuation: MG is cheaper than 88.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, MG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
92.21% of the companies in the same industry are more expensive than MG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MG is valued a bit cheaper than 68.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.72 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
The 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 67.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3Y67.61%
5. Dividend
5.1 Amount
MG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MISTRAS GROUP INC
NYSE:MG (1/6/2025, 4:10:02 PM)
After market: 9.06 0 (0%)9.06
-0.04 (-0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners44.42%
Inst Owner Change0%
Ins Owners19.55%
Ins Owner Change-0.91%
Market Cap280.95M
Analysts86
Price Target14.62 (61.37%)
Short Float %0.89%
Short Ratio1.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-4.78%
Min EPS beat(2)-27.19%
Max EPS beat(2)17.63%
EPS beat(4)2
Avg EPS beat(4)-7.52%
Min EPS beat(4)-33.81%
Max EPS beat(4)17.63%
EPS beat(8)4
Avg EPS beat(8)-19.3%
EPS beat(12)4
Avg EPS beat(12)-30.3%
EPS beat(16)6
Avg EPS beat(16)2.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-0.84%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)2.37%
Revenue beat(8)2
Avg Revenue beat(8)-3.03%
Revenue beat(12)3
Avg Revenue beat(12)-3%
Revenue beat(16)5
Avg Revenue beat(16)-1.67%
PT rev (1m)0%
PT rev (3m)4.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.62 | ||
| Fwd PE | 10.47 | ||
| P/S | 0.38 | ||
| P/FCF | 18.72 | ||
| P/OCF | 6.93 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.2 |
EPS(TTM)0.58
EY6.4%
EPS(NY)0.87
Fwd EY9.55%
FCF(TTM)0.48
FCFY5.34%
OCF(TTM)1.31
OCFY14.43%
SpS23.83
BVpS6.62
TBVpS-0.71
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 5.49% | ||
| ROCE | 9.61% | ||
| ROIC | 6.8% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 15.72% | ||
| OM | 5.68% | ||
| PM (TTM) | 1.52% | ||
| GM | 29.15% | ||
| FCFM | 2.03% |
ROA(3y)-0.45%
ROA(5y)-3.51%
ROE(3y)-1.33%
ROE(5y)-10.47%
ROIC(3y)3.68%
ROIC(5y)3.04%
ROICexc(3y)3.86%
ROICexc(5y)3.18%
ROICexgc(3y)9.79%
ROICexgc(5y)8.31%
ROCE(3y)5.2%
ROCE(5y)4.3%
ROICexcg growth 3Y48.41%
ROICexcg growth 5Y1.19%
ROICexc growth 3Y52.87%
ROICexc growth 5Y7.5%
OM growth 3Y38.99%
OM growth 5Y1.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.38%
GM growth 5Y0.62%
F-Score8
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 13.69 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 76.53% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 2.47 | ||
| Cash Conversion | 53.82% | ||
| Profit Quality | 133.32% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 2.21 |
F-Score8
WACC9.4%
ROIC/WACC0.72
Cap/Depr(3y)54.95%
Cap/Depr(5y)53.7%
Cap/Sales(3y)2.72%
Cap/Sales(5y)2.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)190%
EPS 3YN/A
EPS 5Y-15.59%
EPS Q2Q%11.11%
EPS Next Y200.82%
EPS Next 2Y102.98%
EPS Next 3Y67.61%
EPS Next 5YN/A
Revenue 1Y (TTM)6.85%
Revenue growth 3Y5.98%
Revenue growth 5Y-1.02%
Sales Q2Q%1.86%
Revenue Next Year4.56%
Revenue Next 2Y3.65%
Revenue Next 3Y3.52%
Revenue Next 5YN/A
EBIT growth 1Y81.07%
EBIT growth 3Y47.31%
EBIT growth 5Y0.25%
EBIT Next Year183.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.9%
FCF growth 3Y-60.95%
FCF growth 5Y-31.49%
OCF growth 1Y33.68%
OCF growth 3Y-26.66%
OCF growth 5Y-8.48%