MISTRAS Group (MG, Financial) has introduced MISTRAS Data Solutions, a newly consolidated brand that unifies the company's diverse data-focused services, software offerings, and technological innovations. This move aims to streamline its capabilities under a singular identity.
The MISTRAS Data Solutions brand encompasses a wide range of tools and expertise, bringing together well-regarded brands such as PCMS, New Century Software, Integrity Plus, Onstream, and others. This includes their proprietary platforms like MISTRAS OneSuite and Sensoria, as well as advanced technologies such as CALIPERAY, VPACII, and the Triple 5 suite.
By consolidating these resources, MISTRAS Group seeks to enhance its service delivery and technological offerings, positioning itself as a stronger player in the data solutions market. The integration under one brand promises to deliver a more cohesive and efficient experience for clients seeking comprehensive data management and analysis services.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for MISTRAS Group Inc (MG, Financial) is $14.83 with a high estimate of $16.00 and a low estimate of $13.50. The average target implies an upside of 61.41% from the current price of $9.19. More detailed estimate data can be found on the MISTRAS Group Inc (MG) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, MISTRAS Group Inc's (MG, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MISTRAS Group Inc (MG, Financial) in one year is $7.26, suggesting a downside of 21% from the current price of $9.19. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MISTRAS Group Inc (MG) Summary page.
MG Key Business Developments
Release Date: March 06, 2025
- Full Year Revenue: $729.6 million, a 3.4% increase over 2023.
- Adjusted EBITDA: $82.5 million, up 25.3% from the prior year.
- Operating Income: $39.8 million for the full year 2024, highest since 2016.
- Net Income: $19 million or $0.60 per diluted share for the year ended December 31, 2024.
- Free Cash Flow: $27.1 million for full year 2024, compared to $3.1 million in the prior year.
- Gross Profit Margin: Increased to 29.2%, up 30 basis points from the prior year.
- SG&A Expenses: $156.4 million, down 6.2% from 2023.
- Interest Expense: $3.9 million for the fourth quarter, down from $4.7 million in the prior year quarter.
- Effective Income Tax Rate: 21.8% for the full year 2024.
- Gross Debt: $169.6 million as of December 31, 2024, a decrease of $20.8 million from the prior year.
- International Segment Revenue: $35 million in Q4 2024, up 3.6% from the prior year.
- Products and Systems Segment Revenue: $13.7 million in 2024, a 5.2% increase from 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MISTRAS Group Inc (MG, Financial) exceeded its revised annual guidance for 2024, with significant bottom-line expansion.
- Revenue increased across all reported segments and industries, demonstrating market diversification.
- Adjusted EBITDA rose by over 25% compared to the previous year, with a 200 basis point margin expansion.
- The company achieved its highest EBITDA margin and operating income since 2016.
- MISTRAS Group Inc (MG) successfully reduced SG&A expenses to the lowest level in over five years, enhancing operating leverage.
Negative Points
- The North American segment experienced a 7.5% revenue decline in Q4 2024, primarily due to a decrease in the midstream industry.
- Gross profit margin for the North American segment decreased by 600 basis points due to sales mix changes.
- Data analytics solutions revenue was down in 2024 due to project timing and implementation delays.
- The company is facing uncertainties related to foreign tariffs and exchange rates, impacting future guidance.
- The oil and gas segment has been down for three consecutive quarters, with midstream experiencing project delays.
