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
In the past year MG was profitable.
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
With a Return On Assets value of 2.81%, MG perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
The Return On Equity of MG (7.44%) is comparable to the rest of the industry.
MG has a Return On Invested Capital (7.63%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MG is significantly below the industry average of 12.61%.
The last Return On Invested Capital (7.63%) for MG is above the 3 year average (5.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 7.44% | ||
| ROIC | 7.63% |
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 has a Profit Margin (2.09%) which is in line with its industry peers.
MG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.65%, MG is in line with its industry, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Operating Margin of MG has grown nicely.
MG has a Gross Margin of 28.71%. This is in the lower half of the industry: MG underperforms 60.98% of its industry peers.
MG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.65% | ||
| PM (TTM) | 2.09% | ||
| GM | 28.71% |
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
MG has more shares outstanding than it did 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 2.12. 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's Altman-Z score of 2.12 is in line compared to the rest of the industry. MG outperforms 41.46% of its industry peers.
MG has a debt to FCF ratio of 5.99. This is a neutral value as MG would need 5.99 years to pay back of all of its debts.
The Debt to FCF ratio of MG (5.99) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.88 indicates that MG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.88, MG is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.85
WACC8.95%
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 (1.50) which is comparable to the rest of the industry.
MG has a Quick Ratio of 1.38. This is a normal value and indicates that MG is financially healthy and should not expect problems in meeting its short term obligations.
MG has a Quick ratio (1.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.00% over the past year.
Measured over the past years, MG shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.79% on average per year.
Looking at the last year, MG shows a decrease in Revenue. The Revenue has decreased by -2.09% in the last year.
The Revenue has been decreasing by -0.51% on average over the past years.
EPS 1Y (TTM)60%
EPS 3Y44.23%
EPS 5Y20.79%
EPS Q2Q%-114.29%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y2.52%
Revenue growth 5Y-0.51%
Sales Q2Q%-12.38%
3.2 Future
The Earnings Per Share is expected to grow by 10.92% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.39% on average over the next years.
EPS Next Y2.05%
EPS Next 2Y10.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.09%
Revenue Next 2Y0.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 11.80, which indicates a very decent valuation of MG.
MG's Price/Earnings ratio is rather cheap when compared to the industry. MG is cheaper than 80.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. MG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.52, the valuation of MG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MG is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MG to the average of the S&P500 Index (21.03), we can say MG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MG is valued cheaper than 91.46% of the companies in the same industry.
MG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MG is cheaper than 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MG does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.77
PEG (5Y)0.57
EPS Next 2Y10.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.55
+0.02 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners47.34%
Inst Owner Change5.24%
Ins Owners7.43%
Ins Owner Change1.58%
Market Cap236.54M
Analysts86
Price Target13.43 (77.88%)
Short Float %3.31%
Short Ratio3.67
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)-16.26%
Min EPS beat(2)-107.28%
Max EPS beat(2)74.76%
EPS beat(4)2
Avg EPS beat(4)-10.52%
Min EPS beat(4)-107.28%
Max EPS beat(4)74.76%
EPS beat(8)4
Avg EPS beat(8)-16.21%
EPS beat(12)5
Avg EPS beat(12)-20.71%
EPS beat(16)6
Avg EPS beat(16)-22.16%
Revenue beat(2)0
Avg Revenue beat(2)-7.91%
Min Revenue beat(2)-13.08%
Max Revenue beat(2)-2.74%
Revenue beat(4)0
Avg Revenue beat(4)-5.32%
Min Revenue beat(4)-13.08%
Max Revenue beat(4)-0.84%
Revenue beat(8)2
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-4.4%
Revenue beat(16)4
Avg Revenue beat(16)-2.99%
PT rev (1m)-11.24%
PT rev (3m)-8.14%
EPS NQ rev (1m)-12.5%
EPS NQ rev (3m)-29.11%
EPS NY rev (1m)-11.93%
EPS NY rev (3m)-15.08%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)-1.96%
Revenue NY rev (3m)-4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 8.52 | ||
| P/S | 0.33 | ||
| P/FCF | 7.33 | ||
| P/OCF | 4.29 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.69 |
EPS(TTM)0.64
EY8.48%
EPS(NY)0.89
Fwd EY11.73%
FCF(TTM)1.03
FCFY13.65%
OCF(TTM)1.76
OCFY23.32%
SpS22.56
BVpS6.34
TBVpS-0.7
PEG (NY)5.77
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 7.44% | ||
| ROCE | 9.75% | ||
| ROIC | 7.63% | ||
| ROICexc | 7.99% | ||
| ROICexgc | 18.37% | ||
| OM | 5.65% | ||
| PM (TTM) | 2.09% | ||
| GM | 28.71% | ||
| FCFM | 4.57% |
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-Score6
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.99 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 70.66% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 76.31% | ||
| Profit Quality | 218.47% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.12 |
F-Score6
WACC8.95%
ROIC/WACC0.85
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)60%
EPS 3Y44.23%
EPS 5Y20.79%
EPS Q2Q%-114.29%
EPS Next Y2.05%
EPS Next 2Y10.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y2.52%
Revenue growth 5Y-0.51%
Sales Q2Q%-12.38%
Revenue Next Year-2.09%
Revenue Next 2Y0.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.49%
EBIT growth 3Y26.86%
EBIT growth 5Y11.9%
EBIT Next Year93.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y51.27%
FCF growth 3Y5.7%
FCF growth 5Y-5.59%
OCF growth 1Y52.24%
OCF growth 3Y5.86%
OCF growth 5Y-3.24%