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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.3%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Mistras Group, Inc. (MG) receives a "Hold" rating with a composite score of 52.1/100, ranked #317 out of 4446 stocks. Key factor scores: Quality 50/100, Value 63/100, Momentum 66/100. This is quantitative analysis only — not investment advice.
Mistras Group, Inc. (MG) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Mistras Group, Inc. Do?
Mistras Group, Inc. provides technology-enabled asset protection solutions worldwide. The company operates through three segments: Services, International, and Products and Systems. It offers non-destructive testing services; predictive maintenance assessments of fixed and rotating assets; inline inspection for pipelines; and develops enterprise inspection database management software and plant condition management software. The company also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services primarily for process equipment, technologies, and facilities; and utilizes scaffolding and rope access to access at-height and confined assets. In addition, it offers certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; online condition-monitoring solutions; quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. Further, the company designs and installs monitoring systems, as well as provides commissioning, training, reporting, technical support, and annual maintenance services; Web-based solutions; and custom-developed software. Additionally, it designs, manufactures, and sells acoustic emission sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures, as well as automated ultrasonic systems and scanners. The company serves oil and gas, commercial aerospace and defense, fossil and nuclear power, alternative and renewable energy, industrial, public infrastructure, petrochemical, transportation, and process industries, as well as research and engineering institutions. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey. Mistras Group, Inc. (MG) is classified as a small-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO Dennis M. Bertolotti and employs approximately 5,400 people, headquartered in PRINCETON JUNCTION, New Jersey. With a market capitalization of $482M, MG is one of the notable companies in the Industrials sector.
Mistras Group, Inc. (MG) Stock Rating — Hold (April 2026)
As of April 2026, Mistras Group, Inc. receives a Hold rating with a composite score of 52.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MG ranks #317 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Mistras Group, Inc. ranks #57 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MG Stock Price and 52-Week Range
Mistras Group, Inc. (MG) currently trades at $16.70. The stock lost $0.15 (0.9%) in the most recent trading session. The 52-week high for MG is $15.84, which means the stock is currently trading 5.4% from its annual peak. The 52-week low is $7.06, putting the stock 136.5% above its annual trough. Recent trading volume was 148K shares, suggesting relatively thin trading activity.
Is MG Overvalued or Undervalued? — Valuation Analysis
Mistras Group, Inc. (MG) carries a value factor score of 63/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 25.97x, compared to the Industrials sector average of 28.33x — a discount of 8%. The price-to-book ratio stands at 2.16x, versus the sector average of 2.23x. The price-to-sales ratio is 0.70x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, MG trades at 14.17x EV/EBITDA, versus 5.70x for the sector.
Overall, MG's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Mistras Group, Inc. Profitability — ROE, Margins, and Quality Score
Mistras Group, Inc. (MG) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.3%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.4% versus the sector average of 3.3%.
On a margin basis, Mistras Group, Inc. reports gross margins of 28.5%, compared to 35.8% for the sector. The operating margin is 5.2% (sector: 6.2%). Net profit margin stands at 2.5%, versus 3.9% for the average Industrials stock. Revenue growth is running at 3.0% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MG Debt, Balance Sheet, and Financial Health
Mistras Group, Inc. has a debt-to-equity ratio of 76.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.74x, suggesting adequate working capital coverage. Total debt on the balance sheet is $178M. Cash and equivalents stand at $28M.
MG has a beta of 0.99, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Mistras Group, Inc. is 57/100, reflecting average volatility within the normal range for its sector.
Mistras Group, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Mistras Group, Inc. reported revenue of $725M and earnings per share (EPS) of $0.54. Net income for the quarter was $20M. Gross margin was 28.5%. Operating income came in at $40M.
In FY 2025, Mistras Group, Inc. reported revenue of $724M and earnings per share (EPS) of $0.54. Net income for the quarter was $17M. Gross margin was 28.2%. Revenue grew -0.8% year-over-year compared to FY 2024. Operating income came in at $41M.
In Q3 2025, Mistras Group, Inc. reported revenue of $196M and earnings per share (EPS) of $0.42. Net income for the quarter was $13M. Gross margin was 29.8%. Revenue grew 7.0% year-over-year compared to Q3 2024. Operating income came in at $20M.
In Q2 2025, Mistras Group, Inc. reported revenue of $185M and earnings per share (EPS) of $0.10. Net income for the quarter was $3M. Gross margin was 29.1%. Revenue grew -2.3% year-over-year compared to Q2 2024. Operating income came in at $8M.
Over the past 8 quarters, Mistras Group, Inc. has demonstrated a growth trajectory, with revenue expanding from $190M to $725M. Investors analyzing MG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MG Dividend Yield and Income Analysis
Mistras Group, Inc. (MG) does not currently pay a dividend. This is common among smaller companies in the Business Services industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
MG Momentum and Technical Analysis Profile
Mistras Group, Inc. (MG) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 23/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MG vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing MG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MG vs S&P 500 (SPY) comparison to assess how Mistras Group, Inc. stacks up against the broader market across all factor dimensions.
MG Next Earnings Date
No upcoming earnings date has been announced for Mistras Group, Inc. (MG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MG? — Investment Thesis Summary
Mistras Group, Inc. presents a balanced picture with arguments on both sides. The value score of 63/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 66/100, suggesting the trend favors buyers.
In summary, Mistras Group, Inc. (MG) earns a Hold rating with a composite score of 52.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MG stock.
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Institutional Research Dossier
Mistras Group, Inc. (MG) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Mistras Group (MG), driven by a mixed outlook. While the company benefits from increasing demand for asset protection solutions across various industries, its relatively weak profitability metrics and high debt levels raise concerns. The current valuation appears fair, but significant improvements in operational efficiency and debt reduction are needed to justify a more bullish stance.
Mistras operates in a fragmented market with moderate growth potential, and its ability to leverage its technology-enabled solutions will be crucial for future success. The company's exposure to cyclical industries, particularly oil and gas, introduces volatility. Investors should closely monitor Mistras's ability to improve its margins, manage its debt, and capitalize on growth opportunities in its target markets.
Business Strategy & Overview
Mistras Group operates through three segments: Services, International, and Products and Systems, providing technology-enabled asset protection solutions globally. The Services segment, which likely constitutes the largest portion of revenue, offers non-destructive testing, predictive maintenance, and inline inspection services. These services are critical for industries such as oil and gas, aerospace, and power generation, where asset integrity is paramount. The International segment extends these services to markets outside the United States, while the Products and Systems segment focuses on designing, manufacturing, and selling monitoring systems and related software.
The company's strategic positioning centers on providing comprehensive asset protection solutions, integrating inspection, engineering, and monitoring services. This integrated approach aims to offer clients a one-stop shop for managing asset integrity, potentially leading to stronger customer relationships and recurring revenue streams. Mistras also leverages technology, such as unmanned aerial vehicles (drones) and online condition-monitoring systems, to enhance its service offerings and improve efficiency. The development of enterprise inspection database management software and plant condition management software further supports its integrated approach.
Mistras targets a diverse range of industries, including oil and gas, commercial aerospace and defense, fossil and nuclear power, alternative and renewable energy, industrial, public infrastructure, petrochemical, transportation, and process industries. This diversification helps mitigate risk associated with any single industry downturn. However, the company's significant exposure to the oil and gas sector makes it vulnerable to fluctuations in energy prices and capital spending in that industry.
The company's growth strategy appears to focus on expanding its service offerings, penetrating new markets, and leveraging technology to improve efficiency and customer value. Acquisitions could also play a role in expanding its capabilities and geographic reach. However, the company's high debt levels may constrain its ability to pursue aggressive acquisition strategies. The competitive landscape includes both large, diversified industrial service providers and smaller, specialized firms. Mistras's ability to differentiate itself through its integrated solutions and technology will be critical for success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
3.0%
Sector: 6.4%
-52% VS SCTR
Economic Moat Analysis
Mistras Group's economic moat is likely Narrow. While the company possesses some elements of competitive advantage, they are not strong enough to warrant a Wide moat rating. The primary source of its moat stems from switching costs and intangible assets, particularly its proprietary software and specialized expertise in non-destructive testing and asset integrity management.
Switching costs arise from the integration of Mistras's services into clients' operations. Replacing Mistras's systems and expertise would require time, resources, and potential disruption to operations, creating a degree of stickiness. The company's enterprise inspection database management software and plant condition management software further enhance switching costs by embedding Mistras's solutions into clients' workflows.
Intangible assets, such as its proprietary technology and specialized knowledge, also contribute to the moat. Mistras's expertise in non-destructive testing, predictive maintenance, and inline inspection requires significant training and experience, creating a barrier to entry for new competitors. The company's acoustic emission sensors, instruments, and turnkey systems further differentiate its offerings.
However, the moat is not particularly wide due to the fragmented nature of the industry and the presence of numerous competitors. While Mistras offers a comprehensive suite of services, clients may choose to source individual services from different providers. The company's relatively low gross margins (28.5% vs. sector average of 35.8%) suggest limited pricing power and intense competition. Furthermore, the company's high debt levels may constrain its ability to invest in innovation and maintain its competitive edge.
The absence of strong network effects or cost advantages further limits the moat. While Mistras's reputation and track record may attract new clients, the benefits of scale are not significant enough to create a dominant market position. The company's reliance on skilled labor and specialized equipment also limits its ability to achieve significant cost advantages over competitors.
Financial Health & Profitability
Mistras Group's financial health presents a mixed picture. Revenue has shown modest growth, with FY2025 revenue at $724.02 million compared to $705.47 million in FY2023. However, revenue growth of 3.0% is significantly below the sector average of 6.6%, indicating potential challenges in gaining market share. Net income has fluctuated, with a net loss of $17.45 million in FY2023 followed by a net income of $16.92 million in FY2025. This volatility raises concerns about the company's ability to consistently generate profits.
Gross margins have remained relatively stable, hovering around 28-30% over the past few years. However, these margins are significantly lower than the sector average of 35.8%, suggesting potential inefficiencies or pricing pressures. Operating margins have also been volatile, ranging from -0.3% in FY2023 to 5.6% in FY2025. The company's operating margin of 5.2% is below the sector average of 6.2%, indicating room for improvement in operational efficiency.
The balance sheet reveals a significant debt burden. Total debt stands at $177.99 million, while total cash is only $27.80 million. The debt-to-equity ratio of 76.00 is slightly higher than the sector average of 70.00, indicating a higher level of financial leverage. While the current ratio of 1.74 suggests adequate short-term liquidity, the high debt levels pose a risk, particularly in the event of an economic downturn or a decline in demand for the company's services.
Free cash flow data is unavailable, making it difficult to assess the company's ability to generate cash from its operations. However, the company's net income and EBITDA figures suggest that it is generating some cash flow. The company's ROE of 8.3% is slightly below the sector average of 9.2%, indicating that it is generating slightly lower returns on equity compared to its peers.
The quarterly financial history reveals some positive trends, particularly in Q3 FY2025, where the company reported a net income of $13.20 million and an operating margin of 10.4%. However, the inconsistent performance across quarters highlights the need for improved operational consistency and cost management. The negative net income in Q1 FY2025 is concerning and warrants further investigation.
Valuation Assessment
Mistras Group's valuation presents a mixed picture. The company's P/E ratio of 26.0x is slightly below the sector average of 27.7x, suggesting that the stock may be slightly undervalued relative to its earnings. However, the P/E ratio is based on trailing twelve-month earnings, which may not be representative of future performance. The company's EV/EBITDA ratio of 3.2x is significantly below the sector average of 5.7x, indicating that the stock may be undervalued relative to its enterprise value and operating cash flow. This could suggest that the market is not fully appreciating the company's potential or that there are concerns about its future growth prospects.
Given the absence of free cash flow data, it is difficult to assess the company's valuation based on discounted cash flow analysis. However, the company's net income and EBITDA figures can be used to estimate its potential cash flow generation. The company's revenue growth of 3.0% is relatively modest, suggesting that its future earnings growth may be limited. The company's high debt levels also pose a risk to its valuation, as they could constrain its ability to invest in growth and generate cash flow.
Compared to its historical valuation, Mistras's current valuation appears to be in line with its past performance. The company's stock price has fluctuated significantly over the past few years, reflecting the volatility in its earnings and the cyclical nature of its business. The current valuation may be considered fair, given the company's current financial performance and growth prospects.
However, the company's valuation could improve if it is able to improve its operational efficiency, reduce its debt levels, and accelerate its revenue growth. The company's ability to capitalize on growth opportunities in its target markets and leverage its technology-enabled solutions will be crucial for improving its valuation. Conversely, the company's valuation could decline if it experiences a slowdown in revenue growth, a decline in profitability, or an increase in its debt burden.
Overall, Mistras Group's valuation appears to be fair, but not particularly compelling. The company's P/E and EV/EBITDA ratios suggest that the stock may be slightly undervalued, but its modest revenue growth and high debt levels limit its upside potential. Investors should closely monitor the company's financial performance and growth prospects before making an investment decision.
Risk & Uncertainty
Mistras Group faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its exposure to cyclical industries, particularly oil and gas. A downturn in the oil and gas industry could lead to a decline in demand for the company's services, resulting in lower revenue and profitability. Fluctuations in energy prices and capital spending in the oil and gas sector can significantly impact Mistras's financial results.
Another risk is the intense competition in the asset protection solutions market. The industry is fragmented, with numerous competitors offering similar services. This competition could lead to pricing pressures and reduced margins for Mistras. The company's ability to differentiate itself through its integrated solutions and technology will be crucial for maintaining its competitive edge.
The company's high debt levels also pose a significant risk. The debt burden could constrain its ability to invest in growth, pursue acquisitions, and weather economic downturns. A rise in interest rates could increase the company's debt servicing costs, further straining its financial resources. The company's ability to manage its debt effectively will be critical for its long-term financial health.
Operational risks, such as project delays, cost overruns, and safety incidents, could also negatively impact the company's financial performance. The company's reliance on skilled labor and specialized equipment makes it vulnerable to disruptions in its operations. Effective project management and safety protocols are essential for mitigating these risks.
Finally, regulatory changes and environmental concerns could also pose a risk to the company's business. Stricter regulations regarding asset integrity and environmental protection could increase compliance costs for Mistras and its clients. The company's ability to adapt to these changes and provide solutions that meet evolving regulatory requirements will be crucial for its long-term success.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMistras is well-positioned to benefit from increasing demand for asset protection solutions, driven by aging infrastructure and stricter safety regulations.
BULL VIEWThe company's integrated service offerings and technology-enabled solutions provide a competitive advantage, leading to stronger customer relationships and recurring revenue streams.
BULL VIEWMistras's undervaluation relative to its peers, as indicated by its lower EV/EBITDA ratio, presents an attractive investment opportunity.
The Bear Case
BEAR VIEWMistras's high debt levels and relatively weak profitability metrics raise concerns about its financial health and ability to generate sustainable returns.
BEAR VIEWThe company's significant exposure to the cyclical oil and gas industry makes it vulnerable to fluctuations in energy prices and capital spending.
BEAR VIEWMistras operates in a fragmented market with intense competition, limiting its pricing power and growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MG and 4,400+ other equities.
Mistras Group, Inc. exhibits a 44% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.4%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
28.5%
Sector: 35.8%
Operating Margin
Core business profitability
5.2%
Sector: 6.2%
Net Margin
Bottom-line profitability
2.5%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
