Breaking Down Mistras Group, Inc. (MG) Financial Health: Key Insights for Investors

Are you keeping a close watch on Mistras Group, Inc. (MG) and wondering about its financial stability? Did you know that in 2024, Mistras Group's revenue reached $729.64 million, marking a 3.43% increase? What's more, the company's net income soared by 208.6% to $19.0 million? With a gross debt of $169.6 million as of December 31, 2024, down from $190.4 million the previous year, how is Mistras managing its financial health? Dive in to uncover key insights into Mistras Group's financial performance and what it means for investors.

Mistras Group, Inc. (MG) Revenue Analysis

Understanding Mistras Group, Inc.'s (MG) revenue streams is crucial for investors looking to assess the company's financial health and growth potential. A detailed breakdown of revenue sources, growth rates, and segment contributions provides valuable insights.

Here's an analysis of Mistras Group, Inc.'s revenue:

• Primary Revenue Sources: Mistras Group, Inc. operates as a 'one source' multinational provider of integrated technology-enabled asset protection solutions.
• Year-over-Year Revenue Growth Rate:
  • For the full year 2024, Mistras Group, Inc. reported consolidated revenue of $729.6 million, a 3.4% increase compared to the previous year.
  • In the third quarter of 2024, the company's revenue increased by 1.9%.
  • The second quarter of 2024 saw a revenue increase of 7.8%.
• Contribution of Different Business Segments to Overall Revenue:
  The revenue is broken down by industry and geography:
  • Oil & Gas: 56.35% of total revenue
  • Aerospace & Defense: 12.39% of total revenue
  • Industrials: 11.05% of total revenue
  • Power Generation & Transmission: 6.6% of total revenue
  • Other Process Industries: 6.69% of total revenue
  • Infrastructure, Research & Engineering: 4.94% of total revenue
  • Petrochemical: 2.27% of total revenue
  • Other: 3.17% of total revenue

Geographically, the revenue is distributed as follows:

• North America: 84.86% of total revenue
  • United States: 70.33% of total revenue
• Other Americas: 15.09% of total revenue
• Europe: 16.42% of total revenue
• Asia-Pacific: 1.28% of total revenue

Selling, General and Administrative (SG&A) expenses for the full year 2024 were $156.4 million, a decrease of 6.2% compared to $166.7 million in 2023. As a percentage of revenue, SG&A was 21.4%, a 220 basis point reduction from the prior year.

Here is a table summarizing Mistras Group, Inc.'s revenue data:

For more insights into Mistras Group, Inc. and its investors, check out: Exploring Mistras Group, Inc. (MG) Investor Profile: Who’s Buying and Why?

Mistras Group, Inc. (MG) Profitability Metrics

Assessing the profitability of Mistras Group, Inc. (MG) requires examining several key financial metrics and trends. A comprehensive analysis includes gross profit, operating profit, and net profit margins, alongside a comparison with industry averages and an evaluation of operational efficiency.

For the full year 2024, Mistras Group, Inc. (MG) reported significant improvements in several key profitability metrics:

• Revenue Growth: Full year revenue grew by 3.4%.
• Net Income: Increased by 208.6% to $19.0 million.
• Adjusted EBITDA: Increased by 25.3% to $82.5 million.
• Gross Profit: Full year 2024 gross profit increased, with gross profit margin expanding by 30 basis points. The increase in gross profit margin to 29.2% was primarily due to the strong growth in the Aerospace and Defense industry business, which has higher margins.

Here's a deeper look into these metrics:

Gross Profit Margin:

In Q3 2024, the gross profit margin was 29.9%. For the first nine months of 2024, the gross profit margin was 29.1%, a 40 basis point expansion. The International segment reported a gross profit margin of 30.1%, a 270 basis point increase, attributable to improved operating leverage and sales mix.

Operating Profit Margin:

Mistras Group's Operating Margin as of March 2025 (TTM): 4.16%. At the end of 2024 the company had an Operating Margin of 3.32%.

Net Profit Margin:

The company reported a net income of $19.0 million, or $0.60 per diluted share for the year ended December 31, 2024. Full year 2024 net income excluding special items (non-GAAP) was $22.7 million or $0.72 per diluted share excluding special items (non-GAAP).

Trends in Profitability Over Time:

The income from operations of $39.8 million for the full year 2024 was the highest level for this metric since 2016. The company has shown four consecutive quarters generating Net Income growth, a function of continued annual revenue growth, gross profit expansion, and selling, general, and administrative expenses (“SG&A”) reduction.

Operational Efficiency:

SG&A for the full year 2024 was $156.4 million, down 6.2% compared to $166.7 million in 2023, as a result of ongoing cost calibration discipline. SG&A for the twelve months ended December 31, 2024 was 21.4% of revenue, a 220 basis point reduction from the prior year period.

The company is continuing to invest in efficiency opportunities including internal workflow automation, and productivity enhancements.

Here is a detailed breakdown of Mistras Group, Inc. (MG)'s profitability metrics:

See also: Breaking Down Mistras Group, Inc. (MG) Financial Health: Key Insights for Investors

Mistras Group, Inc. (MG) Debt vs. Equity Structure

Understanding how Mistras Group, Inc. (MG) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity.

As of the fiscal year 2024, Mistras Group, Inc. (MG) exhibits the following debt profile:

• Long-term debt: As of December 31, 2023, Mistras Group, Inc. had $183.7 million in outstanding long-term debt.
• Short-term debt: The company's short-term debt, representing obligations due within a year, totaled $7.8 million as of December 31, 2023.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. As of December 31, 2023, Mistras Group, Inc. (MG) reported a debt-to-equity ratio of approximately 1.99. This ratio indicates the extent to which the company is using debt to finance its assets relative to equity.

Recent activities involving debt include:

• In November 2022, Mistras Group, Inc. entered into a Second Amended and Restated Credit Agreement, providing for a $225 million revolving credit facility and a $60 million term loan facility.
• As of December 31, 2023, the company had $31.9 million available under the revolving credit facility.

Mistras Group, Inc. (MG) strategically balances debt and equity to fund its operations and growth initiatives. While debt can provide financial leverage and potentially enhance returns, it also introduces financial risk. Equity financing, on the other hand, reduces financial risk but may dilute existing shareholders' ownership.

Here’s a summary of key financial data for Mistras Group, Inc. (MG):

For further insights into Mistras Group, Inc. (MG)'s financial health, you can explore: Breaking Down Mistras Group, Inc. (MG) Financial Health: Key Insights for Investors

Mistras Group, Inc. (MG) Liquidity and Solvency

Analyzing Mistras Group, Inc.'s (MG) financial health requires a close look at its liquidity and solvency, which are key indicators of its ability to meet short-term and long-term obligations. Liquidity refers to the company's capacity to cover its immediate liabilities, while solvency assesses its long-term financial viability.

Here’s an overview of Mistras Group, Inc.'s (MG) liquidity position:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: Similar to the current ratio, the quick ratio excludes inventories from current assets, providing a more conservative view of liquidity.

The analysis of working capital trends involves examining the difference between a company's current assets and current liabilities over a period. Monitoring these trends can reveal whether Mistras Group, Inc. (MG) is efficiently managing its short-term resources. Declining working capital could signal potential liquidity issues, while increasing working capital might indicate improved short-term financial health.

Overview of Mistras Group, Inc.'s (MG) cash flow statements:

• Operating Cash Flow: This indicates the cash a company generates from its normal business operations. A positive and stable operating cash flow is generally a good sign, suggesting the company can fund its operations internally.
• Investing Cash Flow: This section reflects cash spent on investments, such as purchasing property, plant, and equipment (PP&E). Negative investing cash flow is common as companies invest in their future growth.
• Financing Cash Flow: This involves cash flow related to debt, equity, and dividends. It shows how the company raises capital and returns it to investors.

Here is a sample table illustrating how these cash flows might look (Note: The data below is illustrative and not actual):

Potential liquidity concerns for Mistras Group, Inc. (MG) might arise if the company consistently shows negative operating cash flow or a declining current ratio. Strengths would be indicated by strong, positive operating cash flow and a healthy current ratio, suggesting the company is well-positioned to meet its short-term obligations.

To gain more insights into the investors of Mistras Group, Inc. (MG), check out this resource: Exploring Mistras Group, Inc. (MG) Investor Profile: Who’s Buying and Why?

Mistras Group, Inc. (MG) Valuation Analysis

Assessing whether Mistras Group, Inc. (MG) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. This approach helps provide a comprehensive view of the company's intrinsic value relative to its current market price.

Key valuation ratios to consider include:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation, relative to industry peers or historical averages.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. A P/B ratio below 1.0 might suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (market capitalization plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization. It provides a valuation metric that is capital structure-neutral.

Analyzing Mistras Group, Inc.'s (MG) stock price trends over the past year offers insights into market sentiment and company performance. As of April 2025, recent data indicates:

According to the latest information, Mistras Group Inc.'s stock demonstrated notable performance. On April 18, 2025, the stock closed at $10.88, marking a 1.12% increase from the previous day. The day's high reached $10.92, while the low was $10.65. Over the past year, the stock has fluctuated between $6.84 and $11.74, reflecting significant volatility and potential investment opportunities. The average volume has been around 117,940 shares.

Here's a snapshot of MG's stock information:

Currently, Mistras Group, Inc. does not offer a dividend yield, so dividend payout ratios are not applicable.

Analyst consensus plays a crucial role in determining stock valuation. Based on the latest analyst ratings, recommendations range from 'buy' to 'hold' or 'sell'. These ratings are derived from detailed analyses, incorporating factors such as financial performance, growth prospects, and industry trends.

To further understand the dynamics of Mistras Group, Inc.'s (MG) investor base, consider exploring: Exploring Mistras Group, Inc. (MG) Investor Profile: Who’s Buying and Why?

Mistras Group, Inc. (MG) Risk Factors

Mistras Group, Inc. (MG) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in their financial reports.

Here's an overview of key risk areas:

• Industry Competition: The inspection, testing, and certification (ITC) industry is highly competitive. Larger, more established firms, as well as smaller, specialized companies, vie for market share. Increased competition could lead to pricing pressures, reduced profit margins, and loss of market share for Mistras Group, Inc. (MG).
• Regulatory Changes: Changes in regulations and standards governing the industries Mistras Group, Inc. (MG) serves (e.g., aerospace, energy, infrastructure) can create both opportunities and challenges. Stricter regulations may drive demand for inspection services, but also increase compliance costs. Failure to adapt to changing regulatory landscapes could adversely affect Mistras Group, Inc. (MG)’s operations and financial performance.
• Market Conditions: Economic downturns, fluctuations in commodity prices (especially oil and gas), and infrastructure spending patterns can significantly impact Mistras Group, Inc. (MG)’s revenue streams. Reduced capital expenditures by clients in key industries can lead to decreased demand for inspection and testing services.

Operational, financial, and strategic risks detailed in recent earnings reports and filings may include:

• Project Execution Risks: Mistras Group, Inc. (MG) undertakes complex projects that may be subject to delays, cost overruns, or technical challenges. Poor project management can negatively impact profitability and client relationships.
• Financial Risks: These include risks related to debt levels, liquidity, and access to capital markets. High debt levels can constrain Mistras Group, Inc. (MG)’s ability to invest in growth opportunities or weather economic downturns.
• Strategic Risks: Strategic risks involve potential missteps in strategic planning, mergers and acquisitions, or market expansion efforts. For example, unsuccessful integration of acquired businesses or failure to capitalize on emerging market trends could harm Mistras Group, Inc. (MG)’s long-term growth prospects.

Mitigation strategies and plans employed by Mistras Group, Inc. (MG) to address these risks might involve:

• Diversification: Expanding service offerings and targeting new industries to reduce reliance on specific sectors or clients.
• Operational Efficiency: Implementing measures to improve project management, reduce costs, and enhance productivity.
• Financial Management: Actively managing debt levels, maintaining adequate liquidity, and accessing capital markets on favorable terms.
• Compliance Programs: Investing in robust compliance programs to adhere to regulatory requirements and industry standards.

Understanding these risks and mitigation strategies is crucial for investors assessing Mistras Group, Inc. (MG)’s financial health and future prospects. More details can be found here: Breaking Down Mistras Group, Inc. (MG) Financial Health: Key Insights for Investors

Mistras Group, Inc. (MG) Growth Opportunities

Mistras Group, Inc. (MG) faces a landscape of potential growth drivers, including product innovations, strategic market expansions, and possible acquisitions. These elements collectively shape the trajectory of its future revenue and earnings.

Key growth drivers for Mistras Group, Inc. (MG) include:

• Product Innovations: Continuous development and introduction of new technologies and services in Non-Destructive Testing (NDT) and asset monitoring.
• Market Expansions: Extending its reach into new geographic regions and industries, leveraging its expertise to capture additional market share.
• Acquisitions: Strategic acquisitions to broaden its service offerings, enhance technological capabilities, and expand its customer base.

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Future revenue growth projections and earnings estimates are critical for investors. While specific figures fluctuate based on market conditions and company performance, monitoring analyst forecasts and company guidance provides insight. These projections often consider factors such as:

• Increased demand for asset protection and inspection services.
• Adoption of advanced technologies like AI and robotics in NDT.
• Growth in key end markets such as oil and gas, aerospace, and infrastructure.

Strategic initiatives and partnerships can significantly influence Mistras Group, Inc. (MG)'s growth. These may include:

• Collaborations with technology providers to integrate new solutions.
• Partnerships with industry leaders to offer comprehensive service packages.
• Investments in research and development to stay ahead of technological advancements.

Competitive advantages that position Mistras Group, Inc. (MG) for growth often stem from its:

• Technical Expertise: A deep understanding of NDT methodologies and asset integrity management.
• Comprehensive Service Portfolio: A wide array of services ranging from inspection to data analysis and consulting.
• Strong Customer Relationships: Long-standing relationships with key clients across diverse industries.

These advantages enable Mistras Group, Inc. (MG) to effectively compete and capitalize on growth opportunities in the asset protection and inspection market.