MISTRAS GROUP INC (MG) Stock Fundamental Analysis
NYSE:MG - New York Stock Exchange, Inc. - US60649T1079 - Common Stock - Currency: USD
Overall MG gets a fundamental rating of 4 out of 10. We evaluated MG against 82 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
MG had positive earnings in the past year.
In the past year MG had a positive cash flow from operations.
In multiple years MG reported negative net income over the last 5 years.
In the past 5 years MG always reported a positive cash flow from operatings.
1.2 Ratios
MG has a Return On Assets (3.62%) which is in line with its industry peers.
MG has a Return On Equity (9.55%) which is comparable to the rest of the 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 13.37%.
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
The Profit Margin of MG (2.60%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MG has grown nicely.
MG's Operating Margin of 6.08% is in line compared to the rest of the industry. MG outperforms 53.66% of its industry peers.
In the last couple of years the Operating Margin of MG has grown nicely.
MG's Gross Margin of 29.21% is on the low side compared to the rest of the industry. MG is outperformed by 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.
The number of shares outstanding for MG has been increased compared to 1 year ago.
MG has more shares outstanding than it did 5 years ago.
MG has a better debt/assets ratio than last year.
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 40.24% of its industry peers.
MG has a debt to FCF ratio of 7.00. This is a slightly negative value and a sign of low solvency as MG would need 7.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.00, MG is in line with its industry, outperforming 48.78% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that 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/WACC0.96
WACC8.87%
2.3 Liquidity
MG has a Current Ratio of 1.50. This is a normal value and indicates that MG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.50, MG perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
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
The Revenue has been growing slightly by 3.43% in the past 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.
The Revenue is expected to grow by 2.80% on average over the next years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
MG is valuated correctly with a Price/Earnings ratio of 13.04.
Based on the Price/Earnings ratio, MG is valued a bit cheaper than 73.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. MG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.73, which indicates a very decent valuation of MG.
Based on the Price/Forward Earnings ratio, MG is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
MG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MG is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
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 | 10.83 | ||
| EV/EBITDA | 6.02 |
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)0.6
PEG (5Y)0.63
EPS Next 2Y17.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.39
+0.23 (+2.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners45.57%
Inst Owner Change-0.28%
Ins Owners19.51%
Ins Owner Change0.84%
Market Cap294.00M
Analysts86
Price Target15.13 (61.13%)
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%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 10.73 | ||
| P/S | 0.4 | ||
| P/FCF | 10.83 | ||
| P/OCF | 5.86 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.02 |
EPS(TTM)0.72
EY7.67%
EPS(NY)0.88
Fwd EY9.32%
FCF(TTM)0.87
FCFY9.23%
OCF(TTM)1.6
OCFY17.05%
SpS23.3
BVpS6.34
TBVpS-0.72
PEG (NY)0.6
PEG (5Y)0.63
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
WACC8.87%
ROIC/WACC0.96
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%