📊 MG Key Takeaways
Is Mistras Group, Inc. (MG) a Good Investment?
Mistras Group exhibits critical financial distress with interest coverage of only 1.1x, leaving minimal buffer to service $181.4M in long-term debt. Negative free cash flow (-$3.2M) despite positive operating cash flow indicates the company is not self-sustaining, while profitability is deteriorating faster than revenue contraction (net income down 10.8% YoY vs. revenue down 0.8% YoY). Razor-thin operating margins of 2.8% and net margins of 1.4% provide insufficient cushion against further operational headwinds.
Mistras Group shows stable but low-quality profitability, with modest operating margins, flat revenue, and essentially unchanged net income despite a tougher EPS comparison. The balance sheet is serviceable with solid liquidity and manageable interest coverage, but weak free cash flow generation and limited top-line growth constrain the fundamental outlook.
Mistras Group, Inc. Key Strengths (MG)
- Adequate short-term liquidity with current ratio of 1.81x and quick ratio of 1.67x
- Reasonable gross margin of 26.5% indicating product-level pricing power
- Moderate debt-to-equity ratio of 0.78x provides some structural stability
- Solid liquidity profile with 1.74x current ratio and 1.63x quick ratio
- Manageable leverage with debt/equity of 0.76x and interest coverage of 9.2x
- Positive operating income and cash from operations support financial stability
MG Stock Risks: Mistras Group, Inc. Investment Risks
- Critically low interest coverage of 1.1x creates imminent debt service risk with minimal margin for error
- Negative free cash flow of -$3.2M indicates company is cash flow negative and unable to internally fund operations or debt service
- Profitability declining faster than revenue (net income -10.8% YoY vs. revenue -0.8% YoY) signals operational deterioration and cost control issues
- Extremely thin operating margins of 2.8% and net margins of 1.4% leave almost no buffer for business disruption
- Long-term debt of $181.4M is substantial relative to weak cash generation and declining earnings
- Revenue declined 0.8% year over year, indicating weak growth momentum
- Net margin of 2.3% and FCF margin of 1.1% leave little room for execution mistakes
- Diluted EPS fell 11.7% year over year, suggesting pressure from costs, financing, or share count dynamics
Key Metrics to Watch
- Interest coverage ratio - any decline below 1.1x would signal imminent default risk
- Free cash flow - must return to positive territory for sustainability
- Operating margin trend - stabilization required to prevent further margin compression
- Long-term debt levels and refinancing obligations - monitor for covenant compliance issues
- Free cash flow conversion from operating cash flow
- Operating margin trend versus revenue growth
Mistras Group, Inc. (MG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Mistras Group, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
MG Profit Margin, ROE & Profitability Analysis
MG vs Services Sector: How Mistras Group, Inc. Compares
How Mistras Group, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mistras Group, Inc. Stock Overvalued? MG Valuation Analysis 2026
Based on fundamental analysis, Mistras Group, Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mistras Group, Inc. Balance Sheet: MG Debt, Cash & Liquidity
MG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mistras Group, Inc.'s revenue has remained relatively flat over the 5-year period, with a 3% decline. The most recent EPS of $-0.58 indicates the company is currently unprofitable.
MG Revenue Growth, EPS Growth & YoY Performance
MG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $161.6M | $2.4M | $0.07 |
| Q3 2025 | $182.7M | $6.4M | $0.20 |
| Q2 2025 | $185.4M | -$169.0K | $0.00 |
| Q1 2025 | $161.6M | $995.0K | $0.03 |
| Q3 2024 | $179.4M | $6.4M | N/A |
| Q2 2024 | $176.0M | $337.0K | N/A |
| Q1 2024 | $168.0M | $995.0K | $0.03 |
| Q3 2023 | $178.5M | $3.7M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mistras Group, Inc. Dividends, Buybacks & Capital Allocation
MG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mistras Group, Inc. (CIK: 0001436126)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MG
What is the AI rating for MG?
Mistras Group, Inc. (MG) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MG's key strengths?
Claude: Adequate short-term liquidity with current ratio of 1.81x and quick ratio of 1.67x. Reasonable gross margin of 26.5% indicating product-level pricing power. ChatGPT: Solid liquidity profile with 1.74x current ratio and 1.63x quick ratio. Manageable leverage with debt/equity of 0.76x and interest coverage of 9.2x.
What are the risks of investing in MG?
Claude: Critically low interest coverage of 1.1x creates imminent debt service risk with minimal margin for error. Negative free cash flow of -$3.2M indicates company is cash flow negative and unable to internally fund operations or debt service. ChatGPT: Revenue declined 0.8% year over year, indicating weak growth momentum. Net margin of 2.3% and FCF margin of 1.1% leave little room for execution mistakes.
What is MG's revenue and growth?
Mistras Group, Inc. reported revenue of $169.0M.
Does MG pay dividends?
Mistras Group, Inc. does not currently pay dividends.
Where can I find MG SEC filings?
Official SEC filings for Mistras Group, Inc. (CIK: 0001436126) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MG's EPS?
Mistras Group, Inc. has a diluted EPS of $0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Mistras Group, Inc. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MG stock overvalued or undervalued?
Valuation metrics for MG: ROE of 1.0% (sector avg: 16%), net margin of 1.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is MG's AI grade for 2026?
Our dual AI analysis gives Mistras Group, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MG's free cash flow?
Mistras Group, Inc.'s operating cash flow is $2.8M, with capital expenditures of $6.0M. FCF margin is -1.9%.
How does MG compare to other Services stocks?
Vs Services sector averages: Net margin 1.4% (avg: 10%), ROE 1.0% (avg: 16%), current ratio 1.81 (avg: 1.5).