MGMistras Group, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.4×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MG?
Mistras Group, Inc. earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.3 points above what the capital costs: growth creates value
- Operating margin
- 6.9%
Operating margin · Security & Protection Services median 13% · 12 months to Q2 2026
- Cash conversion
- 1.40×
Cash conversion · 1.86× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +3.9%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −17% |
| FY2021 | 2.7% |
| FY2022 | 2.9% |
| FY2023 | −0.27% |
| FY2024 | 5.5% |
| FY2025 | 5.6% |
Details›
- Gross margin12 months to Q2 2026
- 29%
- Operating margin12 months to Q2 2026
- 6.9%
- Net margin12 months to Q2 2026
- 3.6%
- Free cash flow margin
- 3.9%
- R&D as % of revenue
- 0.13%
- Revenue, trailing twelve months
- $739M
- Free cash flow, trailing twelve months
- $29M
- Net income, trailing twelve months
- $27M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Security & Protection Services
Ranks #9 of 10 by RyuScore