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MG Stock Analysis 2026 - Mistras Group, Inc. AI Rating

MG NYSE Services-Engineering Services DE CIK: 0001436126
Recently Updated • Analysis: Apr 1, 2026 • SEC Data: 2025-12-31
HOLD
62% Conf
Pending
Analysis scheduled

📊 MG Key Takeaways

Revenue: $724.0M
Net Margin: 2.3%
Free Cash Flow: $8.3M
Current Ratio: 1.74x
Debt/Equity: 0.76x
EPS: $0.53
AI Rating: HOLD with 62% confidence

Is MG a Good Investment? Thesis Analysis

Claude

Mistras Group demonstrates stable operational liquidity with a healthy 1.74x current ratio and solid interest coverage of 9.2x, supporting its serviceable debt load of $178M. However, stagnant revenue (-0.8% YoY) and declining diluted EPS (-11.7% YoY) amid compressed margins (2.3% net margin) suggest operational challenges and limited organic growth momentum. The company's weak free cash flow conversion (1.1% FCF margin) relative to $724M revenue indicates capital intensity and reinvestment pressures that constrain shareholder returns.

Why Buy MG? Key Strengths

Claude
  • + Strong liquidity position with 1.74x current ratio and 1.63x quick ratio providing operational flexibility
  • + Solid debt serviceability with 9.2x interest coverage and manageable 0.76x debt-to-equity ratio
  • + Gross margin of 28.2% indicates reasonable pricing power and cost management in service delivery

MG Investment Risks to Consider

Claude
  • ! Revenue stagnation (-0.8% YoY) signals weak organic growth and potential market share pressures in engineering services
  • ! Declining profitability with diluted EPS down 11.7% YoY despite stable revenue suggests rising operational costs and margin compression
  • ! Weak free cash flow generation ($8.3M FCF on $724M revenue = 1.1% margin) limits capital allocation flexibility and growth investments

Key Metrics to Watch

Claude
  • * Revenue growth trajectory and order backlog trends
  • * Operating margin expansion/contraction and labor cost efficiency
  • * Free cash flow generation and conversion rate improvement

MG Financial Metrics

Revenue
$724.0M
Net Income
$16.8M
EPS (Diluted)
$0.53
Free Cash Flow
$8.3M
Total Assets
$578.8M
Cash Position
$28.0M

💡 AI Analyst Insight

The relatively thin 1.1% FCF margin may limit capital allocation flexibility.

MG Profitability Ratios

Gross Margin 28.2%
Operating Margin 5.6%
Net Margin 2.3%
ROE 7.2%
ROA 2.9%
FCF Margin 1.1%

MG vs Default Sector

How Mistras Group, Inc. compares to Default sector averages

Net Margin
MG 2.3%
vs
Sector Avg 12.0%
MG Sector
ROE
MG 7.2%
vs
Sector Avg 15.0%
MG Sector
Current Ratio
MG 1.7x
vs
Sector Avg 1.8x
MG Sector
Debt/Equity
MG 0.8x
vs
Sector Avg 0.7x
MG Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is MG Overvalued or Undervalued?

Based on fundamental analysis, Mistras Group, Inc. shows some fundamental concerns relative to the Default sector in 2026.

Return on Equity
7.2%
Sector avg: 15%
Net Profit Margin
2.3%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.76x
Sector avg: 0.7x

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.

MG Balance Sheet & Liquidity

Current Ratio
1.74x
Quick Ratio
1.63x
Debt/Equity
0.76x
Debt/Assets
59.3%
Interest Coverage
9.16x
Long-term Debt
$178.0M

MG 5-Year Financial Trend & Growth Analysis

MG 5-year financial data: Year 2021: Revenue $748.6M, Net Income -$5.3M, EPS $0.21. Year 2022: Revenue $687.4M, Net Income -$98.5M, EPS $-3.41. Year 2023: Revenue $705.5M, Net Income -$5.4M, EPS N/A. Year 2024: Revenue $729.6M, Net Income $6.5M, EPS N/A. Year 2025: Revenue $729.6M, Net Income -$17.5M, EPS $-0.58.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
1.1%
Free cash flow / Revenue

MG Quarterly Performance

Quarterly financial performance data for Mistras Group, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $176.0M $337.0K N/A

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

MG Capital Allocation

Operating Cash Flow
$33.0M
Cash generated from operations
Capital Expenditures
$24.7M
Investment in assets
Dividends
None
No dividend program

MG SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for Mistras Group, Inc. (CIK: 0001436126)

📋 Recent SEC Filings

Date Form Document Action
Mar 26, 2026 4 xslF345X06/form4.xml View →
Mar 23, 2026 4 xslF345X06/form4.xml View →
Mar 17, 2026 4 xslF345X05/form4.xml View →
Mar 11, 2026 10-K mg-20251231.htm View →
Mar 10, 2026 4 xslF345X05/form4.xml View →

Frequently Asked Questions about MG

What is the AI rating for MG?

Mistras Group, Inc. (MG) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are MG's key strengths?

Claude: Strong liquidity position with 1.74x current ratio and 1.63x quick ratio providing operational flexibility. Solid debt serviceability with 9.2x interest coverage and manageable 0.76x debt-to-equity ratio.

What are the risks of investing in MG?

Claude: Revenue stagnation (-0.8% YoY) signals weak organic growth and potential market share pressures in engineering services. Declining profitability with diluted EPS down 11.7% YoY despite stable revenue suggests rising operational costs and margin compression.

What is MG's revenue and growth?

Mistras Group, Inc. reported revenue of $724.0M.

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 $0.53.

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 rating reflects both perspectives for balanced insights.

Is MG a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Mistras Group, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is MG stock overvalued or undervalued?

Valuation metrics for MG: ROE of 7.2% (sector avg: 15%), net margin of 2.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy MG stock in 2026?

Our dual AI analysis gives Mistras Group, Inc. a combined HOLD rating 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 $33.0M, with capital expenditures of $24.7M. FCF margin is 1.1%.

How does MG compare to other Default stocks?

Vs Default sector averages: Net margin 2.3% (avg: 12%), ROE 7.2% (avg: 15%), current ratio 1.74 (avg: 1.8).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 1, 2026 | Data as of: 2025-12-31 | Powered by Claude AI