Mistras Group Inc Common Stock (MG)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Mistras as a decent but unspectacular industrial services turnaround. Revenue is roughly flat: in fiscal 2025 (the year ended 2025-12-31) it was $724.0M versus $729.6M in fiscal 2024 and $705.5M in fiscal 2023. The improvement is profitability: fiscal 2023 lost $17.5M, fiscal 2024 earned $19.0M, and fiscal 2025 earned $16.8M. In fiscal Q2 2026 (the quarter ended 2026-06-30), revenue was $193.1M and net income $7.6M, or $0.23 per diluted share, after fiscal Q1 2026 net income of $2.4M. That supports the computed Lynch TURNAROUND label. But the business earns modest returns: FairStock's ROE is 11.78% and ROCE 6.35%, and debt/equity is 1.02. The Altman Z-Score of 1.80 is not a fortress balance sheet, and the FairStock Score is 31/100. Free cash flow is $23.4M TTM, a 3.5% FCF yield. At $20.84 on 2026-10-13, FairStock P/E is 25.11 and P/B 2.77. The Graham Number is $11.86, so the price carries a -75.72% margin of safety, or a large premium to conservative asset value. Piotroski 7/9 and PEG 0.14 give some encouragement, but PEG relies on the 174.95% profit-growth spike. Mistras has scale in non-destructive testing, but this is a competitive, labor-intensive field. I would want consistent margins, debt reduction, and cash returns before calling it a Buffett-quality bargain.

In plain English: Mistras Group checks and tests industrial equipment, pipelines, and plants to help prevent failures. The business has swung back to profit after losses, and recent quarters show positive earnings, though profit margins are thin. At the recent price, the stock looks expensive compared with the company's earnings, book value, and a conservative value estimate.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer