Mistras Group, Inc. (MG) stock analysis

P/E above its 5-year median

Mistras's P/E of 32.0 is above its own 5-year median of 28.8.

P/E above the industry

Mistras's P/E of 32.0 is above the Engineering, Accounting, Research, Management, and Related Services median of 25.2.

EV/EBITDA above its 5-year median

Mistras's EV/EBITDA of 12.0 is above its 5-year median of 8.3.

P/B below the industry

Mistras's price-to-book of 2.59 is below the Engineering, Accounting, Research, Management, and Related Services median of 2.71.

Trading above fair value

The share price of $20.18 is above our fair value estimate of $16.15.

Margin of safety under 20%

The price is 25.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 36.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 4.6% over the last twelve months; the Engineering, Accounting, Research, Management, and Related Services median is 0.2%.

Guidance raised

Mistras raised its full-year revenue outlook on Aug 10, 2026.

Gross margin improving

Gross margin was 28.7% over the last twelve months, against 27.8% a year earlier.

Return on equity under 15%

Return on equity was 8.8% over the last twelve months and averaged 2.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Mistras's return on equity of 8.8% is below the Engineering, Accounting, Research, Management, and Related Services median of 10.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 2.8% over the last twelve months, against a 5-year average of 0.8%.

Net margin below the industry

Mistras's net margin of 2.8% is below the Engineering, Accounting, Research, Management, and Related Services median of 5.1%.

High debt

Debt is 70.0% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 112% five years ago to 70.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 35.4% of total debt.

Interest not well covered

Operating income covers interest expense 3.2 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.74 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.86; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Mistras has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.