MISTRAS GROUP INC (MG) Stock Fundamental Analysis
NYSE:MG - US60649T1079 - Common Stock
9.61 USD
+0.38 (+4.12%)
9.61 USD
0 (0%)
Taking everything into account, MG scores 4 out of 10 in our fundamental rating. 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. MG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MG was profitable.
MG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MG reported negative net income in multiple years.
MG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MG has a Return On Assets (2.00%) which is comparable to the rest of the industry.
MG's Return On Equity of 5.29% is in line compared to the rest of the industry. MG outperforms 49.38% of its industry peers.
MG has a Return On Invested Capital (6.94%) 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 12.68%.
The 3 year average ROIC (5.62%) for MG is below the current ROIC(6.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 5.29% | ||
| ROIC | 6.94% |
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
Looking at the Profit Margin, with a value of 1.63%, MG is in line with its industry, outperforming 46.91% of the companies in the same industry.
In the last couple of years the Profit Margin of MG has grown nicely.
MG's Operating Margin of 5.59% is in line compared to the rest of the industry. MG outperforms 51.85% of its industry peers.
MG's Operating Margin has improved in the last couple of years.
The Gross Margin of MG (28.58%) is worse than 61.73% of its industry peers.
MG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.59% | ||
| PM (TTM) | 1.63% | ||
| GM | 28.58% |
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
The number of shares outstanding for MG has been increased compared to 5 years ago.
MG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.12 indicates that MG is not a great score, but indicates only limited risk for bankruptcy at the moment.
MG's Altman-Z score of 2.12 is on the low side compared to the rest of the industry. MG is outperformed by 60.49% of its industry peers.
MG has a debt to FCF ratio of 11.64. This is a negative value and a sign of low solvency as MG would need 11.64 years to pay back of all of its debts.
The Debt to FCF ratio of MG (11.64) is worse than 60.49% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that MG is somewhat dependend on debt financing.
MG has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: MG underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 11.65 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.81
WACC8.61%
2.3 Liquidity
MG has a Current Ratio of 1.66. This is a normal value and indicates that MG is financially healthy and should not expect problems in meeting its short term obligations.
MG's Current ratio of 1.66 is fine compared to the rest of the industry. MG outperforms 66.67% of its industry peers.
MG has a Quick Ratio of 1.54. This is a normal value and indicates that MG is financially healthy and should not expect problems in meeting its short term obligations.
MG's Quick ratio of 1.54 is in line compared to the rest of the industry. MG outperforms 58.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.71% over the past year.
MG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.79% yearly.
Looking at the last year, MG shows a decrease in Revenue. The Revenue has decreased by -4.51% in the last year.
The Revenue has been decreasing by -0.51% on average over the past years.
EPS 1Y (TTM)10.71%
EPS 3Y44.23%
EPS 5Y20.79%
EPS Q2Q%-9.52%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y2.52%
Revenue growth 5Y-0.51%
Sales Q2Q%-2.3%
3.2 Future
The Earnings Per Share is expected to grow by 11.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.54% on average over the next years.
EPS Next Y0.85%
EPS Next 2Y11.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.68%
Revenue Next 2Y0.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 15.50 indicates a correct valuation of MG.
Based on the Price/Earnings ratio, MG is valued a bit cheaper than 74.07% of the companies in the same industry.
MG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 10.79 indicates a reasonable valuation of MG.
Based on the Price/Forward Earnings ratio, MG is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.81. MG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MG indicates a rather cheap valuation: MG is cheaper than 88.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MG is valued a bit cheaper than the industry average as 64.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.73 | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)18.15
PEG (5Y)0.75
EPS Next 2Y11.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.61
+0.38 (+4.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners47.28%
Inst Owner Change4.73%
Ins Owners7.43%
Ins Owner Change1.64%
Market Cap303.10M
Analysts86
Price Target13.43 (39.75%)
Short Float %3.97%
Short Ratio4.85
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)0
Avg EPS beat(2)-54.23%
Min EPS beat(2)-107.28%
Max EPS beat(2)-1.18%
EPS beat(4)1
Avg EPS beat(4)-15.22%
Min EPS beat(4)-107.28%
Max EPS beat(4)74.76%
EPS beat(8)4
Avg EPS beat(8)-6.82%
EPS beat(12)5
Avg EPS beat(12)-18.26%
EPS beat(16)5
Avg EPS beat(16)-26.88%
Revenue beat(2)0
Avg Revenue beat(2)-12.09%
Min Revenue beat(2)-21.09%
Max Revenue beat(2)-3.09%
Revenue beat(4)0
Avg Revenue beat(4)-7.88%
Min Revenue beat(4)-21.09%
Max Revenue beat(4)-2.74%
Revenue beat(8)2
Avg Revenue beat(8)-4.16%
Revenue beat(12)2
Avg Revenue beat(12)-4.9%
Revenue beat(16)3
Avg Revenue beat(16)-3.96%
PT rev (1m)0%
PT rev (3m)-11.24%
EPS NQ rev (1m)1.72%
EPS NQ rev (3m)22.92%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-12.96%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.43 | ||
| P/FCF | 16.73 | ||
| P/OCF | 7.32 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)0.62
EY6.45%
EPS(NY)0.89
Fwd EY9.27%
FCF(TTM)0.57
FCFY5.98%
OCF(TTM)1.31
OCFY13.66%
SpS22.27
BVpS6.84
TBVpS-0.28
PEG (NY)18.15
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 5.29% | ||
| ROCE | 8.87% | ||
| ROIC | 6.94% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 15.57% | ||
| OM | 5.59% | ||
| PM (TTM) | 1.63% | ||
| GM | 28.58% | ||
| FCFM | 2.58% |
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-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 11.65 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 73.18% | ||
| Cap/Sales | 3.31% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 58.24% | ||
| Profit Quality | 158.58% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 2.12 |
F-Score5
WACC8.61%
ROIC/WACC0.81
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)10.71%
EPS 3Y44.23%
EPS 5Y20.79%
EPS Q2Q%-9.52%
EPS Next Y0.85%
EPS Next 2Y11.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y2.52%
Revenue growth 5Y-0.51%
Sales Q2Q%-2.3%
Revenue Next Year-1.68%
Revenue Next 2Y0.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.41%
EBIT growth 3Y26.86%
EBIT growth 5Y11.9%
EBIT Next Year85.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.27%
FCF growth 3Y5.7%
FCF growth 5Y-5.59%
OCF growth 1Y12.13%
OCF growth 3Y5.86%
OCF growth 5Y-3.24%