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Mistras Group
(NYSE:MG)
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Rating:70Outperform
Price Target:
$22.00
▲(14.29% Upside)
Action:Upgraded
Date:09/19/26
MG scores well overall primarily due to improving fundamentals (profitability recovery, deleveraging, positive but uneven free cash flow) and a strong earnings-call update that included raised guidance and better cash flow/leverage trends. Technicals are supportive with a clear uptrend and healthy momentum. Valuation is the main restraint, as a ~23.5 P/E and no dividend yield provided offer less cushion given net margins remain thin.
Positive Factors
Strategic End-Market Growth
Strong growth across infrastructure, aerospace and defense, and power generation indicates improving exposure to attractive industrial demand pools. This diversification can support durable revenue expansion and reduce reliance on slower or more cyclical portions of the portfolio over the next several quarters.
Negative Factors
Oil and Gas Weakness
The decline in oil and gas activity remains a meaningful headwind because maintenance and project deferrals can reduce utilization and revenue in a core service market. Management expects flat to moderate performance in the second half, limiting the pace of consolidated growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic End-Market Growth
Strong growth across infrastructure, aerospace and defense, and power generation indicates improving exposure to attractive industrial demand pools. This diversification can support durable revenue expansion and reduce reliance on slower or more cyclical portions of the portfolio over the next several 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.
Data provided by:
The Fly
The FlyMistras Group (MG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$670.98M
Dividend YieldN/A
Average Volume (3M)405.04K
Price to Earnings (P/E)24.4
Beta (1Y)0.90
Revenue Growth5.23%
EPS Growth130.36%
CountryUS
Employees4,800
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.85
Shares Outstanding31,860,352
10 Day Avg. Volume762,360
30 Day Avg. Volume405,038
Financial Highlights & Ratios
PEG Ratio-2.04
Price to Book (P/B)1.69
Price to Sales (P/S)0.55
P/FCF Ratio47.83
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.01
Revenue Forecast (FY)$748.99M
Mistras Group Business Overview & Revenue Model
Company Description
Mistras Group, Inc. delivers advanced, technology-driven asset protection solutions across the globe. The company structures its operations into three main divisions: Services, International, and Products and Systems. Its extensive service portfol...
How the Company Makes Money
MISTRAS primarily makes money by selling services and technology-enabled solutions that help industrial customers inspect, monitor, and manage the integrity of critical assets. Key revenue streams include: (1) Field and lab services for nondestruc...
Mistras Group Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented multiple meaningful positives: revenue growth for the fourth straight quarter, record second-quarter adjusted EBITDA, strong outperformance in strategic end markets (infrastructure, aerospace & defense, power), improved free cash flow and reduced leverage, and an upward revision to full-year guidance. These achievements were tempered by weakness in oil & gas (an 8.2% decline driven by exited programs and customer deferrals), ongoing technician labor constraints, and timing lags between capacity investments and revenue realization. On balance, the strength and momentum in higher-margin, faster-growing end markets combined with operational improvements and guidance raise outweigh the headwinds.Positive Updates
Revenue Growth and Quarterly Momentum
Revenue increased 4.2% year-over-year to $193.0 million in Q2 2026, marking the fourth consecutive quarter of year-over-year growth.
Negative Updates
Oil & Gas Revenue Pressure
Oil & gas revenue declined $8.5 million or 8.2% YoY, driven by programs exited in 2025 and customer deferrals of maintenance and project activity amid elevated commodity prices. Management noted that after adjusting for turnarounds and exited programs, oil & gas was up ~1% in Q2, but expects flat to moderate performance in H2 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Quarterly Momentum
Revenue increased 4.2% year-over-year to $193.0 million in Q2 2026, marking the fourth consecutive quarter of year-over-year growth.
Read all positive updates
Company Guidance
Mistras raised its 2026 guidance to revenue of $740–$755 million and adjusted EBITDA of $92–$95 million, driven by strength in aerospace & defense, infrastructure and power despite subdued oil & gas activity; the raise is anchored by Q2 results of $193.0M revenue (+4.2% YoY), record Q2 adjusted EBITDA of $25.8M (13.3% margin, +30 bps YoY), gross margin expansion of 10 bps, operating income of $12.9M (+53.6% YoY), GAAP EPS $0.23 and non‑GAAP EPS $0.28. Management reiterated expectations for meaningful free cash flow and improved cash conversion (Q2 free cash flow improved by $23.9M QoQ), a full‑year effective tax rate of ~25%, a goal to reduce leverage to ~2.0x by year‑end (bank‑defined leverage ~2.2x at 6/30 vs. 2.4x at 3/31, well below the 3.75x covenant and the lowest since 2018), extended the credit facility by one year, and noted quarter interest expense of $4.1M (down $0.1M YoY) while continuing to invest in high‑return growth opportunities.Mistras Group Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 739.17M | 724.02M | 729.64M | 705.47M | 687.37M | 677.13M |
| Gross Profit | 203.47M | 194.13M | 213.11M | 203.81M | 198.17M | 197.15M |
| EBITDA | 81.62M | 69.87M | 74.32M | 32.20M | 53.09M | 53.09M |
| Net Income | 26.98M | 16.84M | 18.96M | -17.45M | 6.50M | 3.86M |
Balance Sheet | ||||||
| Total Assets | 584.12M | 578.78M | 523.04M | 534.78M | 534.90M | 562.20M |
| Cash, Cash Equivalents and Short-Term Investments | 21.99M | 28.01M | 18.32M | 17.65M | 20.49M | 24.11M |
| Total Debt | 200.34M | 242.62M | 201.50M | 217.50M | 215.87M | 226.12M |
| Total Liabilities | 343.95M | 343.14M | 324.14M | 344.27M | 336.15M | 361.28M |
| Stockholders Equity | 239.96M | 235.65M | 198.57M | 190.19M | 198.45M | 200.68M |
Cash Flow | ||||||
| Free Cash Flow | 26.69M | 8.31M | 27.14M | 3.10M | 12.99M | 22.98M |
| Operating Cash Flow | 54.32M | 32.98M | 50.13M | 26.75M | 26.41M | 42.26M |
| Investing Cash Flow | -25.57M | -25.12M | -21.37M | -22.13M | -12.24M | -18.55M |
| Financing Cash Flow | -26.74M | -595.00K | -27.40M | -7.71M | -16.32M | -23.25M |
Mistras Group Technical Analysis
Positive
19.25
Price Trends
18.53
Positive
17.97
Positive
16.54
Positive
Market Momentum
0.72
Positive
56.96
Neutral
44.72
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 19.25 is below the 20-day moving average (MA) of 20.31, above the 50-day MA of 18.53, and above the 200-day MA of 16.54, indicating a bullish trend. The MACD of 0.72 indicates Positive momentum. The RSI at 56.96 is Neutral, neither overbought nor oversold. The STOCH value of 44.72 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.27B | 30.07 | 23.59% | 1.69% | 11.39% | 0.75% | |
72 Outperform | $6.86B | 22.29 | 23.15% | 1.20% | 6.48% | 14.55% | |
72 Outperform | $4.44B | 8.07 | 16.83% | 3.53% | 2.10% | 6.68% | |
70 Outperform | $670.98M | 24.36 | 11.52% | ― | 5.23% | 130.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $842.24M | -183.28 | -4.53% | ― | 41.67% | 94.89% | |
54 Neutral | $2.76B | 7.48 | 14.70% | ― | 3.42% | ― |
* Industrials Sector Average
MG
Mistras Group
20.63
10.67
107.13%
MSA
MSA Safety
179.03
7.45
4.34%
NSSC
Napco Security Technologies
36.19
-5.84
-13.90%
ADT
Adt
6.23
-2.25
-26.53%
REZI
Resideo Technologies
18.17
-11.82
-39.42%
EVLV
Evolv Technologies Holdings
4.71
-2.80
-37.28%
Mistras Group Corporate Events
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Mistras Group to Be Taken Private by H.I.G.
Positive
Sep 18, 2026
On September 17, 2026, Mistras Group agreed to be acquired by affiliates of H.I.G. Capital via a merger that will take the industrial asset integrity specialist private at $20.35 per share in cash, valuing the business at about $866 million includ...
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.