MISTRAS GROUP INC (MG)
US60649T1079 - Common Stock
We assign a fundamental rating of 4 out of 10 to MG. MG was compared to 81 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.
In multiple years MG reported negative net income over the last 5 years.
MG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MG's Return On Assets of 2.04% is in line compared to the rest of the industry. MG outperforms 49.35% of its industry peers.
MG has a Return On Equity of 5.49%. This is comparable to the rest of the industry: MG outperforms 50.65% of its industry peers.
MG has a Return On Invested Capital (6.80%) which is comparable to the rest of the 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 12.35%.
The 3 year average ROIC (3.68%) for MG is below the current ROIC(6.80%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 1.52%, MG perfoms like the industry average, outperforming 44.16% of the companies in the same industry.
MG has a Operating Margin (5.68%) which is comparable to the rest of the industry.
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 68.83% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MG is destroying value.
MG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MG has been increased compared to 5 years ago.
Compared to 1 year ago, MG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 indicates that MG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MG (2.21) is worse than 64.94% of its industry peers.
MG has a debt to FCF ratio of 13.69. This is a negative value and a sign of low solvency as MG would need 13.69 years to pay back of all of its debts.
With a Debt to FCF ratio value of 13.69, MG is not doing good in the industry: 64.94% of the companies in the same industry are doing better.
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/WACC0.78
WACC8.68%
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 62.34% of its industry peers.
A Quick Ratio of 1.55 indicates that MG should not have too much problems paying its short term obligations.
MG has a Quick ratio (1.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 190.00% over the past year.
MG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.59% yearly.
MG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.85%.
The Revenue has been decreasing by -1.02% on average over the past years.
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
Based on estimates for the next years, MG will show a very strong growth in Earnings Per Share. The EPS will grow by 67.61% on average per year.
MG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.52% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.78, MG is valued correctly.
Based on the Price/Earnings ratio, MG is valued a bit cheaper than the industry average as 79.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. MG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.58, which indicates a very decent valuation of MG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MG indicates a rather cheap valuation: MG is cheaper than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, MG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
MG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MG is cheaper than 92.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MG is valued a bit cheaper than 70.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.9 | ||
| EV/EBITDA | 6.17 |
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.
A more expensive valuation may be justified as MG's earnings are expected to grow with 67.61% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3Y67.61%
5. Dividend
5.1 Amount
No dividends for MG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MISTRAS GROUP INC
NYSE:MG (11/21/2024, 8:04:00 PM)
After market: 9.15 0 (0%)9.15
+0.13 (+1.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap283.74M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 10.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 5.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.68% | ||
| PM (TTM) | 1.52% | ||
| GM | 29.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)190%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y200.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.85%
Revenue growth 3Y5.98%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y