NYSE:MG

Stock Analysis Report

Executive Summary

Mistras Group, Inc. provides technology-enabled asset protection solutions worldwide.

Rewards

Trading at 49.1% below its fair value

Earnings are forecast to grow 77.83% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (0.6%) are lower than last year (1.2%)



Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Mistras Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

MG

0.06%

US Professional Services

0.06%

US Market


1 Year Return

-37.3%

MG

29.6%

US Professional Services

19.3%

US Market

Return vs Industry: MG underperformed the US Professional Services industry which returned 30.1% over the past year.

Return vs Market: MG underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

MGIndustryMarket
7 Day4.3%0.06%0.06%
30 Day-23.1%2.8%1.7%
90 Day-22.6%13.6%9.0%
1 Year-37.3%-37.3%30.8%29.6%21.8%19.3%
3 Year-56.1%-56.1%62.8%57.6%49.5%39.9%
5 Year-46.4%-46.4%82.9%73.0%73.1%54.1%

Price Volatility Vs. Market

How volatile is Mistras Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mistras Group undervalued compared to its fair value and its price relative to the market?

49.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MG ($9.93) is trading below our estimate of fair value ($19.52)

Significantly Below Fair Value: MG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MG is poor value based on its PE Ratio (68.2x) compared to the Professional Services industry average (19.3x).

PE vs Market: MG is poor value based on its PE Ratio (68.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MG is good value based on its PB Ratio (1x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

How is Mistras Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

77.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MG's forecast earnings growth (77.8% per year) is above the savings rate (1.7%).

Earnings vs Market: MG's earnings (77.8% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MG's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MG's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MG's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Mistras Group performed over the past 5 years?

-38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MG has a large one-off loss of $5.9M impacting its September 30 2019 financial results.

Growing Profit Margin: MG's current net profit margins (0.6%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: MG's earnings have declined by -38.3% per year over the past 5 years.

Accelerating Growth: MG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MG had negative earnings growth (-52.5%) over the past year, making it difficult to compare to the Professional Services industry average (10.4%).


Return on Equity

High ROE: MG's Return on Equity (1.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mistras Group's financial position?


Financial Position Analysis

Short Term Liabilities: MG's short term assets ($193.0M) exceed its short term liabilities ($111.2M).

Long Term Liabilities: MG's short term assets ($193.0M) do not cover its long term liabilities ($338.4M).


Debt to Equity History and Analysis

Debt Level: MG's debt to equity ratio (96%) is considered high.

Reducing Debt: MG's debt to equity ratio has increased from 58% to 96% over the past 5 years.

Debt Coverage: MG's debt is well covered by operating cash flow (21.7%).

Interest Coverage: MG's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: MG has a high level of physical assets or inventory.

Debt Coverage by Assets: MG's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Mistras Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Dennis Bertolotti (59yo)

2.5yrs

Tenure

US$1,910,499

Compensation

Mr. Dennis M. Bertolotti has been the President at Mistras Group, Inc. since June 1, 2016 and its Chief Executive Officer since August 10, 2017. Mr. Bertolotti has been the Chief Operating Officer of MISTR ...


CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD1.91M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Dennis's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sotirios Vahaviolos
Founder & Executive Chairman2.5yrsUS$641.84k35.67% $104.2m
Dennis Bertolotti
President2.5yrsUS$1.91m0.30% $876.9k
Edward Prajzner
Senior VP2.1yrsUS$593.77kno data
Jonathan Wolk
Senior EVP & COO2.5yrsUS$1.21m0.22% $632.3k
Michael Keefe
Executive VP10.2yrsUS$640.95k0.070% $205.4k
Michael Lange
Senior Executive Vice President of Strategic Planning & Business Development0.8yrsUS$900.84k0.92% $2.7m
Nestor Makarigakis
Group Director of Marketing Communications0yrsno datano data

2.5yrs

Average Tenure

59yo

Average Age

Experienced Management: MG's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sotirios Vahaviolos
Founder & Executive Chairman2.5yrsUS$641.84k35.67% $104.2m
Dennis Bertolotti
President2.5yrsUS$1.91m0.30% $876.9k
James Forese
Independent Director15.1yrsUS$160.00k0.28% $809.5k
Nicholas DeBenedictis
Independent Director4.3yrsUS$150.00k0.29% $838.5k
Richard Glanton
Independent Director10.3yrsUS$157.50k0.093% $272.2k
Manuel Stamatakis
Lead Director0yrsUS$157.50k0.42% $1.2m
W. Weldon
Independent Director6.1yrsUS$150.00k0.064% $185.6k
Michelle Lohmeier
Director0.8yrsno data0.011% $31.8k

4.3yrs

Average Tenure

71.5yo

Average Age

Experienced Board: MG's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mistras Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mistras Group, Inc.
  • Ticker: MG
  • Exchange: NYSE
  • Founded: 1978
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$292.042m
  • Shares outstanding: 28.92m
  • Website: https://www.mistrasgroup.com

Number of Employees


Location

  • Mistras Group, Inc.
  • 195 Clarksville Road
  • Princeton Junction
  • New Jersey
  • 8550
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2009
MIYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2009

Biography

Mistras Group, Inc. provides technology-enabled asset protection solutions worldwide. The company operates through three segments: Services, International, and Products and Systems. It offers traditional non-destructive testing, and inspection and testing program services; and engineering consulting services. The company also provides maintenance and light mechanical services, such as corrosion removal, mitigation, and prevention; insulation installation and removal; electrical; heat tracing and industrial cleaning; pipefitting; and welding. In addition, it develops enterprise inspection database management software and plant condition management software for process industries and equipment. Further, the company utilizes scaffolding and rope access to access at-height and confined assets; certified divers for subsea inspection and maintenance; and unmanned aerial, land-based, and subsea systems for a range of inspection applications. Additionally, it offers online condition-monitoring solutions; various Web-based solutions; and custom-developed software. Furthermore, the company provides quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. The company also designs, manufactures, sells acoustic emission sensors, instruments, and turn-key systems for monitoring and testing materials, pressure components, processes, and structures, as well as automated ultrasonic systems and scanners. It serves oil and gas, commercial aerospace and defense, fossil and nuclear power, alternative and renewable energy, public infrastructure, chemicals, transportation, primary metals and metalworking, pharmaceutical/biotechnology, and food processing industries, as well as research and engineering institutions. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:41
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.