Forensic Analysis · Consulting & Engineering Services · as of Nov 9, 2026
Mistras Group, Inc. (MG)
A forensic read on Mistras Group, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Grey Zone
Financial health
2.3
Distress distance
Clean
Earnings quality
4
Forensic signals
7.8%
ROE
-0.8%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Mistras Group, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 2.3, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
7.3%
FY2025
Return on invested capital.Return on invested capital is 7.3% in the latest fiscal year and rising across FY2023–FY2025 from -0.4%. After-tax operating profit was ($2M) in FY2023 and $31M in FY2025, with operating income at -0.3% of revenue in FY2023, 5.5% in FY2024 and 5.6% in FY2025. The capital base behind it went from $410M in FY2023 to $420M in FY2025 (+3%), while the revenue it carried went from $705M to $724M. FY2023's operating profit carried a $14M asset write-down and a $14M goodwill write-off that alone took about 5.3 points off that year's return, so about 5.3 of the 7.7-point rise across FY2023–FY2025 is that charge leaving the base year rather than the capital earning more. A non-cash write-down lowers the reported return in the year it lands.
+2.8%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +6% over the last 2 years to FY2025 (+2.8%/yr). The count is growing — 30.3M shares in FY2023, 32.1M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~2.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~5%.
1.1% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 1.1% of revenue and 94% of free cash flow in FY2025 — about $0.24 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 2.8% a year across FY2023–FY2025, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
$14M
FY2023
Goodwill impairments.Took $14M of goodwill writedowns across 1 year (FY2023 ($14M)). Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$724.0M
Revenue Growth YoY-0.8%
Revenue CAGR (2yr)+1.3%
Net Margin2.3%
Free Cash Flow$8.3M
Return on Equity7.8%
Debt / Equity0.76x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Mistras Group, Inc.'s actual 10-K/10-Q/8-K filings?