Mistras Group, Inc. (MG) AI Stock Analysis
MG AI stock analysis summary
AI ResearchMistras Group, Inc. (MG) provides technology-driven asset protection solutions across energy, aerospace, and infrastructure markets. In the trailing twelve months, the company generated $739.2M in revenue with a 7.7% operating margin and $0.83 in diluted EPS. Its shares have risen 121.9% over the past year, trading at an enterprise value of $855.8M.
- Market cap
- $683.7M
- Revenue (TTM)
- $739.2M
- P/E
- 25.9x fwd 16.6x
- 1Y return
- 121.9% S&P 500 16.8%
- Avg. target
- $23.00 7.2% vs last close
Bull case
- Mistras Group demonstrated strong profit acceleration in the quarter ended June 30, 2026, with quarterly earnings growth of 139.7% year-over-year.
- The stock trades at an EV/EBITDA multiple of 10.6x, below the median of 13.9x for US-listed Industrials peers.
- Analyst projections anticipate EPS rising 23.4% to $1.26 in the next fiscal year alongside revenue growth of 5.4% to $787.2M.
Bear case
- Revenue contracted by 0.8% in FY2025 to $724.0M, accompanied by gross margin compression from 29.2% in FY2024 to 26.8%.
- The balance sheet carries total debt of $200.3M compared to just $22.0M in cash and short-term investments as of June 30, 2026.
- Free cash flow declined significantly from $27.1M in FY2024 to $8.3M in FY2025 as capital expenditures reached $24.7M.
What Mistras does
Mistras Group, Inc. delivers technology-driven asset protection solutions globally through three segments: Services, International, and Products and Systems. Its primary services include non-destructive testing, predictive maintenance assessments, and pipeline inline inspections. The company also supplies plant condition and enterprise inspection database management software, alongside maintenance services such as corrosion mitigation, insulation, and welding. Mistras designs acoustic emission sensors and automated ultrasonic systems, utilizing rope access, scaffolding, divers, and unmanned systems across oil and gas, aerospace, defense, and power generation sectors.
Growth and profitability
Mistras Group delivered a 5-year revenue compound annual growth rate of 4.1% from FY2020 to FY2025. Annual revenue expanded from $677.1M in FY2021 to $729.6M in FY2024 before dipping 0.8% to $724.0M in FY2025. Net income rebounded from -$17.5M in FY2023 to $19.0M in FY2024 and reached $16.8M in FY2025, supported by an operating margin of 7.4%. Gross margin stood at 26.8% in FY2025, down from 29.2% in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 4.2% year-over-year, while quarterly earnings surged 139.7%, bringing trailing twelve month revenue to $739.2M with a net profit margin of 3.6%.
Balance sheet and cash flow
As of June 30, 2026, Mistras Group held $22.0M in cash and short-term investments against total debt of $200.3M, resulting in net debt of $178.3M. Total assets stood at $584.1M and shareholders' equity was $240.0M, reflecting a debt-to-equity ratio of 0.83 and a current ratio of 1.71. During FY2025, operating cash flow reached $33.0M while capital expenditures were $24.7M, yielding free cash flow of $8.3M. The company's share count increased 9.2% over 5 years.
Valuation and performance
At a closing price of $21.46 on October 16, 2026, Mistras Group trades at a trailing price-to-earnings multiple of 25.9x, slightly above the 24.8x median of its US-listed Industrials peers. Its forward P/E of 16.6x and enterprise value to EBITDA multiple of 10.6x compare favorably to peer medians of 17.2x and 13.9x, respectively. The stock carries a price-to-sales multiple of 0.9x versus the peer median of 1.5x. Over the past year, the shares gained 121.9%, outperforming the 16.8% return of the S&P 500 benchmark.
What analysts expect
Wall Street coverage consists of 1 StrongBuy rating, with no Buy, Hold, Sell, or StrongSell recommendations. The mean price target is $23.00, representing 7.2% upside compared to the last close of $21.46. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $1.02, up 16.5%, on revenue of $747.1M. For the next fiscal year, two analysts project EPS of $1.26 on revenue of $787.2M. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 3, 2026.
Key risks and what to watch
- Net debt of $178.3M and a debt-to-equity ratio of 0.83 expose the company to leverage risks if operating cash flow weakens from the FY2025 level of $33.0M.
- Operating margin stands at 7.7% over the trailing twelve months, trailing the US-listed Industrials peer median of 11.7%.
- A short interest of 7.5% of the float indicates elevated market skepticism following a 121.9% 1-year share price run.
- The 5-year share count increase of 9.2% highlights historical equity dilution.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this MG AI stock analysis
This page is an AI-written research summary of Mistras Group, Inc. (MG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: MG income statement, MG balance sheet, MG key metrics, MG analyst forecast, MG chart. See the MG stock overview for the latest quote and news.
MG AI stock analysis FAQ
What does Mistras Group do?
Mistras Group, Inc. provides asset protection solutions, including non-destructive testing, inline pipeline inspections, predictive maintenance, and condition monitoring software across sectors like oil and gas, aerospace, and infrastructure.
Does Mistras Group pay a dividend?
No, Mistras Group does not currently pay a dividend, prioritizing cash flow for capital expenditures, which totaled $24.7M in FY2025.
What are the analyst expectations for Mistras Group's future earnings?
Analysts project EPS of $1.02 for the fiscal year ending December 31, 2026, followed by 23.4% growth to $1.26 in the next fiscal year on $787.2M in revenue.
How does Mistras Group's valuation compare to industry peers?
Mistras Group trades at a forward P/E of 16.6x and an EV/EBITDA of 10.6x, both lower than the US-listed Industrials peer medians of 17.2x and 13.9x, respectively.
When does Mistras Group report its next quarterly earnings?
The company is scheduled to report its next financial results on November 3, 2026.