MISTRAS GROUP INC (MG)
US60649T1079 - Common Stock
We assign a fundamental rating of 3 out of 10 to MG. MG was compared to 81 industry peers in the Professional Services industry. Both the profitability and financial health of MG have multiple concerns. MG has a correct valuation and a medium growth rate.
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.
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
With a Return On Assets value of -3.26%, MG is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
The Return On Equity of MG (-9.18%) is worse than 76.25% of its industry peers.
MG has a Return On Invested Capital (4.27%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MG is significantly below the industry average of 12.24%.
The 3 year average ROIC (3.68%) for MG is below the current ROIC(4.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.26% | ||
| ROE | -9.18% | ||
| ROIC | 4.27% |
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
MG's Operating Margin of 3.58% is on the low side compared to the rest of the industry. MG is outperformed by 62.50% of its industry peers.
MG's Operating Margin has been stable in the last couple of years.
MG has a Gross Margin of 28.89%. This is in the lower half of the industry: MG underperforms 66.25% 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 | 3.58% | ||
| PM (TTM) | N/A | ||
| GM | 28.89% |
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
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.
The debt/assets ratio for MG is higher compared to a year ago.
2.2 Solvency
MG has an Altman-Z score of 2.01. 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 2.01 is on the low side compared to the rest of the industry. MG is outperformed by 66.25% of its industry peers.
The Debt to FCF ratio of MG is 66.74, which is on the high side as it means it would take MG, 66.74 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MG (66.74) is worse than 73.75% of its industry peers.
MG has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
MG has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: MG underperforms 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 66.74 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.5
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.55 indicates that MG should not have too much problems paying its short term obligations.
MG has a Current ratio of 1.55. This is in the better half of the industry: MG outperforms 61.25% of its industry peers.
A Quick Ratio of 1.42 indicates that MG should not have too much problems paying its short term obligations.
MG has a Quick ratio of 1.42. This is comparable to the rest of the industry: MG outperforms 57.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
MG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.00%.
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 2.63%.
Measured over the past years, MG shows a decrease in Revenue. The Revenue has been decreasing by -1.02% on average per year.
EPS 1Y (TTM)5%
EPS 3YN/A
EPS 5Y-15.59%
EPS growth Q2Q11.11%
Revenue 1Y (TTM)2.63%
Revenue growth 3Y5.98%
Revenue growth 5Y-1.02%
Revenue growth Q2Q8.24%
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 110.68% on average per year.
Based on estimates for the next years, MG will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y233.52%
EPS Next 2Y110.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.62%
Revenue Next 2Y5%
Revenue Next 3YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MG is valuated quite expensively with a Price/Earnings ratio of 43.43.
Based on the Price/Earnings ratio, MG is valued a bit more expensive than 73.75% of the companies in the same industry.
MG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.55.
A Price/Forward Earnings ratio of 13.02 indicates a correct 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 81.25% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MG to the average of the S&P500 Index (20.92), we can say MG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.43 | ||
| Fwd PE | 13.02 |
4.2 Price Multiples
85.00% of the companies in the same industry are more expensive than MG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MG is valued a bit more expensive than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.17 | ||
| EV/EBITDA | 7.71 |
4.3 Compensation for Growth
The 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 110.68% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y110.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MISTRAS GROUP INC
NYSE:MG (5/1/2024, 3:10:04 PM)
After market: 9.12 0 (0%)9.12
+0.37 (+4.23%)
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 Cap279.44M
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)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 43.43 | ||
| Fwd PE | 13.02 | ||
| 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)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.26% | ||
| ROE | -9.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.58% | ||
| PM (TTM) | N/A | ||
| GM | 28.89% | ||
| 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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.42 | ||
| 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)
Growth
EPS 1Y (TTM)5%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y233.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.63%
Revenue growth 3Y5.98%
Revenue growth 5Y
Revenue growth 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