NYSE:MG

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 36.6% below its fair value

Earnings are forecast to grow 77.11% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

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



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Barnes Group

NYSE:B

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

MG

1.8%

US Professional Services

1.7%

US Market


1 Year Return

-8.3%

MG

33.3%

US Professional Services

23.2%

US Market

Return vs Industry: MG underperformed the US Professional Services industry which returned 35.7% over the past year.

Return vs Market: MG underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MGIndustryMarket
7 Day5.3%1.8%1.7%
30 Day-2.2%6.8%4.2%
90 Day-5.8%8.8%11.9%
1 Year-8.3%-8.3%34.5%33.3%25.8%23.2%
3 Year-39.8%-39.8%66.5%61.2%52.8%42.9%
5 Year-33.4%-33.4%90.1%79.7%75.2%55.8%

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?

34.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MG ($13.24) is trading below our estimate of fair value ($20.87)

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 (90.9x) compared to the Professional Services industry average (20.5x).

PE vs Market: MG is poor value based on its PE Ratio (90.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: MG is good value based on its PB Ratio (1.4x) compared to the US Professional Services industry average (2.9x).


Next Steps

Future Growth

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

77.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MG's forecast earnings growth (77.1% per year) is above the savings rate (1.7%).

Earnings vs Market: MG's earnings (77.1% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: MG's revenue (3.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: MG's revenue (3.9% 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 (7.8%).


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 (23.5%).


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%3.6%industryaverage1.0%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

What is the CEO of Mistras Group's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Dennis Bertolotti (59yo)

2.4yrs

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 ($USD1.91M) is about average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

2.4yrs

Average Tenure

59yo

Average Age

Experienced Management: MG's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

72yo

Average Age

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


Insider Trading

Insider Buying: MG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$73,00012 Nov 19
Manuel Stamatakis
EntityIndividual
Role
Lead Director
Lead Director
Shares5,000
Max PriceUS$14.60
BuyUS$48,73105 Jun 19
Jonathan Wolk
EntityIndividual
Role
Chief Operating Officer
Senior EVP & COO
Shares3,546
Max PriceUS$13.82
BuyUS$13,85003 Jun 19
Nicholas DeBenedictis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$13.85
BuyUS$28,08028 May 19
Nicholas DeBenedictis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,010
Max PriceUS$13.99
BuyUS$97,08222 May 19
Nicholas DeBenedictis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,990
Max PriceUS$14.15
BuyUS$70,20022 May 19
Manuel Stamatakis
EntityIndividual
Role
Lead Director
Lead Director
Shares5,000
Max PriceUS$14.04
BuyUS$66,25014 May 19
Manuel Stamatakis
EntityIndividual
Role
Lead Director
Lead Director
Shares5,000
Max PriceUS$13.25
BuyUS$278,54018 Mar 19
Nicholas DeBenedictis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$13.99
BuyUS$207,75018 Mar 19
Manuel Stamatakis
EntityIndividual
Role
Lead Director
Lead Director
Shares15,000
Max PriceUS$13.85

Ownership Breakdown

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


Management Team

  • Sotirios Vahaviolos (73yo)

    Founder & Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: US$641.84k
  • Jon Wolk (58yo)

    Senior EVP & COO

    • Tenure: 2.4yrs
    • Compensation: US$1.21m
  • Ed Prajzner (52yo)

    Senior VP

    • Tenure: 2yrs
    • Compensation: US$593.77k
  • Dennis Bertolotti (59yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.91m
  • Michael Keefe (62yo)

    Executive VP

    • Tenure: 10.1yrs
    • Compensation: US$640.95k
  • Michael Lange (59yo)

    Senior Executive Vice President of Strategic Planning & Business Development

    • Tenure: 0.7yrs
    • Compensation: US$900.84k
  • Nestor Makarigakis

    Group Director of Marketing Communications


    Board Members

    • James Forese (83yo)

      Independent Director

      • Tenure: 15yrs
      • Compensation: US$160.00k
    • Nick DeBenedictis (74yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$150.00k
    • Richard Glanton (72yo)

      Independent Director

      • Tenure: 10.3yrs
      • Compensation: US$157.50k
    • Sotirios Vahaviolos (73yo)

      Founder & Executive Chairman

      • Tenure: 2.4yrs
      • Compensation: US$641.84k
    • Manuel Stamatakis (70yo)

      Lead Director

      • Compensation: US$157.50k
    • Dennis Bertolotti (59yo)

      President

      • Tenure: 2.4yrs
      • Compensation: US$1.91m
    • W. Weldon (72yo)

      Independent Director

      • Tenure: 6yrs
      • Compensation: US$150.00k
    • Michelle Lohmeier (56yo)

      Director

      • Tenure: 0.7yrs

    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$404.522m
    • 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 Analysis2020/01/17 02:05
    End of Day Share Price2020/01/16 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.