# Mistras Group (MG.US)

Canonical: https://gigainvestors.com/s/MG

Analysis as of: 2026-10-16T07:30:10.748Z. Financial observations: FY2007–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $20.67 per share; close as of 2026-10-15.

Estimated value: low $8.95 per share, central $10.16 per share, high $11.76 per share. Buy at or below the central value $10.16 per share. Valuation as of 2026-10-16T07:30:10.748Z; scenarios are not confidence intervals.

Expected annual return: 6.3% at the stated quote. About 6.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 5.55×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.01×

- FY2018: 0.03×

- FY2019: 0.03×

- FY2020: -0.17×

- FY2021: 0.03×

- FY2022: 0.03×

- FY2023: -0.00×

- FY2024: 0.05×

- FY2025: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.9%

- ROIC, second-lowest year: -0.7%

- Typical minus recent gross margin: 2.0 pp

- Typical gross margin (annual median): 28.9%

- Recent gross margin (lower of latest and 3-year median): 26.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.9%

- ROIC including acquisitions, ten-year median: 4.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.5%

- FY2017: 1.5%

- FY2018: 5.4%

- FY2019: 5.8%

- FY2020: -38.0%

- FY2021: 6.0%

- FY2022: 7.2%

- FY2023: -0.7%

- FY2024: 15.6%

- FY2025: 15.1%

### economics: pass

- Owner earnings / net income, 5-yr: 3.23×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $93M

- Net income, five-year total: $29M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.6 pp

- Working capital / revenue, final three-year average: 19.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 5.05×

- FY2022: 4.06×

- FY2023: 0.40×

- FY2024: 1.53×

- FY2025: 1.48×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.4% vs 15.1%

- Per-share earnings: 0.48 to 0.53 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: 1.9%

- Market cap gain: -$368M

- Cumulative retained earnings: -$75M

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: 1.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.1%

- Per-share value change: $0.04

- Per-share value, starting three-year median: $0.48

- Per-share value, ending three-year median: $0.53

- Buybacks concentrated in cheaper years (correlation): -0.07

- Average buyback yield: 0.8%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $230M

- Cumulative net income, 10 years: -$46M

- ROIC, first three-year median: 5.4%

- ROIC, last three-year median: 15.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.48

- FY2017: -$0.08

- FY2018: $0.23

- FY2019: $0.21

- FY2020: -$3.41

- FY2021: $0.13

- FY2022: $0.21

- FY2023: -$0.58

- FY2024: $0.60

- FY2025: $0.53

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -2.8%

- Receivables to sales index (DSRI): 1.22×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 23.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.96×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.95×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.1%

- FY2017: -10.4%

- FY2018: -5.0%

- FY2019: -7.4%

- FY2020: -28.7%

- FY2021: -6.8%

- FY2022: -3.7%

- FY2023: -8.3%

- FY2024: -6.0%

- FY2025: -2.8%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 10% a year for ten years · sales -0.8%

Story as of 2026-10-16T09:59:09.280Z; price observation 2026-10-15.

Price needs cash profits to grow 10% a year for ten years

### Sales · FY2024–2025

sales -0.8%; source https://www.sec.gov/Archives/edgar/data/1436126/000162828026016765/mg-20251231.htm; observed 2026-03-11.

- FY2016: $685M 

- FY2017: $701M 

- FY2018: $742M 

- FY2019: $749M 

- FY2020: $593M 

- FY2021: $677M 

- FY2022: $687M 

- FY2023: $705M 

- FY2024: $730M 

- FY2025: $724M 

### Gross margin · FY2025

gross margin 26.8%; source https://www.sec.gov/Archives/edgar/data/1436126/000162828026016765/mg-20251231.htm; observed 2026-03-11.

- FY2016: 24.6% 

- FY2017: 26.8% 

- FY2018: 28.0% 

- FY2019: 29.0% 

- FY2020: 30.1% 

- FY2021: 29.1% 

- FY2022: 28.8% 

- FY2023: 28.9% 

- FY2024: 29.2% 

- FY2025: 26.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in security & protection services; annual sales are USD 724 million.

- Source: https://www.sec.gov/Archives/edgar/data/1436126/000162828026016765/mg-20251231.htm (filed 2026-03-11); FY2025: revenue 724024000; grossProfit 194130000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); MG.US: Mistras Group, Inc. provides technology-enabled industrial asset integrity and laboratory testing solutions in the United States, Europe, the Middle East, Africa, Asia, and South America. The company offers non-destructive testing (NDT) services; pipeline inspections; Plant Condition Management Software; maintenance planning; and specialized engineering solutions. It also provides maintenance and light mechanical services, such as corrosion removal, mitigation and prevention, insulation installation and removal, electrical services, heat tracing, industrial cleaning, pipefitting, and welding; engineering consulting services, including plant operations and management support, turnaround/shutdown planning, profit improvement, facilities planning studies, engineering design, process safety reviews, energy optimization evaluations, benchmarking/key performance indicator development, and technical training. In addition, the company offers scaffolding and rope access forb at-height and confined assets; certified divers for subsea inspection and maintenance; unmanned aerial, land-based, and subsea systems for inspection applications; portable, handheld, wireless and turnkey NDT equipment; acoustic emission products and sensors, instruments, and turnkey systems for monitoring and testing materials, pressure components, processes, and structures; and ultrasonic testing equipment. Further, it provides asset protection solutions to detect, mitigate, and prevent degradation mechanisms, such as corrosion, cracking, leaks, and manufacturing defects; inspection, maintenance, and monitoring and data services; and quality assurance and quality control solutions for new and existing metal and alloy components, materials, and composites. It serves renewable energy, alternative power generation, natural gas transportation, data centers, pipeline integrity, and additive manufacturing industries. The company was founded in 1978 and is headquartered in Princeton Junction, New Jersey.

### Why customers stay

Margins ranged from 26.8% to 29.2% during 2023–25; it earns 5.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2023: grossProfit / revenue = 28.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2024: grossProfit / revenue = 29.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1436126/000162828026016765/mg-20251231.htm (filed 2026-03-11); FY2025: grossProfit / revenue = 26.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); 10-year return on capital observations [[2016,0.08496119033365568],[2017,0.014861778764623685],[2018,0.05355232081746759],[2019,0.05801820158570499],[2020,-0.37950910549272177],[2021,0.05987397088048019],[2022,0.07211424510724947],[2023,-0.007420731436577749],[2024,0.15557045217102075],[2025,0.15126430703981625]]; median 0.05894608623309259. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 29% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1436126/000162828026016765/mg-20251231.htm (filed 2026-03-11); Gross margin observations: [[2021,0.2911504568539913],[2022,0.28830489414044486],[2023,0.2888941178471749]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 1 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2016: growth capex 0; upkeep 15873000; owner earnings 31502653. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2017: growth capex 0; upkeep 20569000; cash acquisitions 83424000; owner earnings 8639000. Growth capex plus acquisitions / owner earnings = 9.656673226067833.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2018: growth capex 0; upkeep 21125000; cash acquisitions 139980000; owner earnings 20124000. Growth capex plus acquisitions / owner earnings = 6.95587358378056.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2019: growth capex 0; upkeep 22920000; cash acquisitions 4228000; owner earnings 21673000. Growth capex plus acquisitions / owner earnings = 0.19508143773358558.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2021: growth capex 0; upkeep 19276000; cash acquisitions 440000; owner earnings 19505000. Growth capex plus acquisitions / owner earnings = 0.02255831837990259.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2022: growth capex 0; upkeep 13416000; cash acquisitions 0; owner earnings 26377000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); FY2024: growth capex 0; upkeep 22986000; owner earnings 28982000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1436126/000162828026016765/mg-20251231.htm (filed 2026-03-11); FY2025: growth capex 0; upkeep 24674000; owner earnings 24913999. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,3166000],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 48% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); MG.US SharesStats.PercentInsiders = 47.982 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits grow 10% yearly over ten years; actual growth was 3.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-11); Ten-year compound average after fade. Initial solved rate 0.13059287645849416. Price 20.67; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.5433871730756235 → FY2025 0.777153877347308. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $20.94 per share

- 2016-11: $23.64 per share

- 2016-12: $25.68 per share

- 2017-01: $23.08 per share

- 2017-02: $22.52 per share

- 2017-03: $21.38 per share

- 2017-04: $22.50 per share

- 2017-05: $20.92 per share

- 2017-06: $21.97 per share

- 2017-07: $20.15 per share

- 2017-08: $18.91 per share

- 2017-09: $20.50 per share

- 2017-10: $21.01 per share

- 2017-11: $22.95 per share

- 2017-12: $23.47 per share

- 2018-01: $21.31 per share

- 2018-02: $19.72 per share

- 2018-03: $18.94 per share

- 2018-04: $19.47 per share

- 2018-05: $19.25 per share

- 2018-06: $18.88 per share

- 2018-07: $21.04 per share

- 2018-08: $22.81 per share

- 2018-09: $21.67 per share

- 2018-10: $19.90 per share

- 2018-11: $17.19 per share

- 2018-12: $14.38 per share

- 2019-01: $14.71 per share

- 2019-02: $15.78 per share

- 2019-03: $13.81 per share

- 2019-04: $13.71 per share

- 2019-05: $13.82 per share

- 2019-06: $14.37 per share

- 2019-07: $15.16 per share

- 2019-08: $14.60 per share

- 2019-09: $16.40 per share

- 2019-10: $15.50 per share

- 2019-11: $13.24 per share

- 2019-12: $14.27 per share

- 2020-01: $11.07 per share

- 2020-02: $7.85 per share

- 2020-03: $4.26 per share

- 2020-04: $4.75 per share

- 2020-05: $4.04 per share

- 2020-06: $3.95 per share

- 2020-07: $3.53 per share

- 2020-08: $4.76 per share

- 2020-09: $3.91 per share

- 2020-10: $3.72 per share

- 2020-11: $5.22 per share

- 2020-12: $7.76 per share

- 2021-01: $6.91 per share

- 2021-02: $7.96 per share

- 2021-03: $11.41 per share

- 2021-04: $11.13 per share

- 2021-05: $10.41 per share

- 2021-06: $9.83 per share

- 2021-07: $10.50 per share

- 2021-08: $10.61 per share

- 2021-09: $10.16 per share

- 2021-10: $9.82 per share

- 2021-11: $7.97 per share

- 2021-12: $7.43 per share

- 2022-01: $6.72 per share

- 2022-02: $6.67 per share

- 2022-03: $6.61 per share

- 2022-04: $5.69 per share

- 2022-05: $5.79 per share

- 2022-06: $5.94 per share

- 2022-07: $6.17 per share

- 2022-08: $5.53 per share

- 2022-09: $4.46 per share

- 2022-10: $4.60 per share

- 2022-11: $3.94 per share

- 2022-12: $4.93 per share

- 2023-01: $5.30 per share

- 2023-02: $5.52 per share

- 2023-03: $6.78 per share

- 2023-04: $8.12 per share

- 2023-05: $7.02 per share

- 2023-06: $7.72 per share

- 2023-07: $7.74 per share

- 2023-08: $5.34 per share

- 2023-09: $5.45 per share

- 2023-10: $5.47 per share

- 2023-11: $6.62 per share

- 2023-12: $7.32 per share

- 2024-01: $7.77 per share

- 2024-02: $8.65 per share

- 2024-03: $9.56 per share

- 2024-04: $8.75 per share

- 2024-05: $8.55 per share

- 2024-06: $8.29 per share

- 2024-07: $10.00 per share

- 2024-08: $11.96 per share

- 2024-09: $11.37 per share

- 2024-10: $8.45 per share

- 2024-11: $9.31 per share

- 2024-12: $9.06 per share

- 2025-01: $9.92 per share

- 2025-02: $9.84 per share

- 2025-03: $10.58 per share

- 2025-04: $9.12 per share

- 2025-05: $7.55 per share

- 2025-06: $8.01 per share

- 2025-07: $7.94 per share

- 2025-08: $9.56 per share

- 2025-09: $9.84 per share

- 2025-10: $9.54 per share

- 2025-11: $11.99 per share

- 2025-12: $12.65 per share

- 2026-01: $14.14 per share

- 2026-02: $15.28 per share

- 2026-03: $14.78 per share

- 2026-04: $18.88 per share

- 2026-05: $17.58 per share

- 2026-06: $17.47 per share

- 2026-07: $15.21 per share

- 2026-08: $18.76 per share

- 2026-09: $21.06 per share

- 2026-10: $20.67 per share

## Annual estimated value (USD per share)

- FY2016: low $11.68 per share, central $13.26 per share, high $15.36 per share

- FY2017: low $6.57 per share, central $7.41 per share, high $8.53 per share

- FY2018: low $8.05 per share, central $9.38 per share, high $10.85 per share

- FY2019: low $7.85 per share, central $9.20 per share, high $10.70 per share

- FY2020: low $6.50 per share, central $7.33 per share, high $8.44 per share

- FY2021: low $7.01 per share, central $7.93 per share, high $9.15 per share

- FY2022: low $7.38 per share, central $8.37 per share, high $9.68 per share

- FY2023: low $7.44 per share, central $8.45 per share, high $9.79 per share

- FY2024: low $7.39 per share, central $8.39 per share, high $9.72 per share

- FY2025: low $8.92 per share, central $10.09 per share, high $11.65 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1436126/000162828026016765/mg-20251231.htm); period 2025-12-31, filed 2026-03-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.