MASTECH DIGITAL INC (MHH) Stock Fundamental Analysis
NYSEARCA:MHH - US57633B1008 - Common Stock
7.99 USD
-0.1 (-1.24%)
We assign a fundamental rating of 5 out of 10 to MHH. MHH was compared to 83 industry peers in the Professional Services industry. While MHH has a great health rating, there are worries on its profitability. MHH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MHH was profitable.
In the past year MHH had a positive cash flow from operations.
Of the past 5 years MHH 4 years were profitable.
In the past 5 years MHH always reported a positive cash flow from operatings.
1.2 Ratios
MHH has a Return On Assets (1.93%) which is comparable to the rest of the industry.
MHH has a Return On Equity of 2.44%. This is comparable to the rest of the industry: MHH outperforms 43.37% of its industry peers.
With a Return On Invested Capital value of 1.99%, MHH is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 2.44% | ||
| ROIC | 1.99% |
ROA(3y)1.42%
ROA(5y)4.93%
ROE(3y)1.75%
ROE(5y)7.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MHH has a Profit Margin (1.06%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MHH has declined.
The Operating Margin of MHH (1.17%) is worse than 63.86% of its industry peers.
In the last couple of years the Operating Margin of MHH has declined.
With a Gross Margin value of 28.12%, MHH is not doing good in the industry: 62.65% of the companies in the same industry are doing better.
MHH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.17% | ||
| PM (TTM) | 1.06% | ||
| GM | 28.12% |
OM growth 3Y-34.02%
OM growth 5Y-22.17%
PM growth 3Y-32.27%
PM growth 5Y-21.56%
GM growth 3Y1.44%
GM growth 5Y2.43%
2. Health
2.1 Basic Checks
MHH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MHH has been increased compared to 1 year ago.
MHH has more shares outstanding than it did 5 years ago.
MHH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.52 indicates that MHH is not in any danger for bankruptcy at the moment.
MHH's Altman-Z score of 5.52 is amongst the best of the industry. MHH outperforms 86.75% of its industry peers.
MHH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.52 |
ROIC/WACC0.22
WACC8.87%
2.3 Liquidity
A Current Ratio of 3.32 indicates that MHH has no problem at all paying its short term obligations.
MHH has a Current ratio of 3.32. This is amongst the best in the industry. MHH outperforms 87.95% of its industry peers.
MHH has a Quick Ratio of 3.32. This indicates that MHH is financially healthy and has no problem in meeting its short term obligations.
MHH's Quick ratio of 3.32 is amongst the best of the industry. MHH outperforms 89.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.55% over the past year.
The earnings per share for MHH have been decreasing by -22.18% on average. This is quite bad
Looking at the last year, MHH shows a decrease in Revenue. The Revenue has decreased by -1.07% in the last year.
The Revenue has been growing slightly by 0.55% on average over the past years.
EPS 1Y (TTM)42.55%
EPS 3Y-16.05%
EPS 5Y-22.18%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y-3.59%
Revenue growth 5Y0.55%
Sales Q2Q%-0.88%
3.2 Future
The Earnings Per Share is expected to grow by 12.84% on average over the next years. This is quite good.
MHH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y-20.34%
EPS Next 2Y13.78%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue Next Year-1.78%
Revenue Next 2Y1.32%
Revenue Next 3Y2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MHH is valuated reasonably with a Price/Earnings ratio of 11.93.
Based on the Price/Earnings ratio, MHH is valued cheaper than 85.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of MHH to the average of the S&P500 Index (26.90), we can say MHH is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.69, the valuation of MHH can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MHH indicates a rather cheap valuation: MHH is cheaper than 86.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. MHH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHH is valued a bit cheaper than the industry average as 67.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MHH indicates a somewhat cheap valuation: MHH is cheaper than 62.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.83 | ||
| EV/EBITDA | 12.02 |
4.3 Compensation for Growth
MHH's earnings are expected to grow with 12.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.78%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
No dividends for MHH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSEARCA:MHH (9/2/2025, 8:19:10 PM)
7.99
-0.1 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners18.8%
Inst Owner Change-2.72%
Ins Owners68.35%
Ins Owner Change0%
Market Cap94.12M
Analysts0
Price Target13.97 (74.84%)
Short Float %0.49%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.04%
Min EPS beat(2)-40.59%
Max EPS beat(2)26.51%
EPS beat(4)3
Avg EPS beat(4)54.73%
Min EPS beat(4)-40.59%
Max EPS beat(4)150.82%
EPS beat(8)4
Avg EPS beat(8)19.12%
EPS beat(12)4
Avg EPS beat(12)4.09%
EPS beat(16)6
Avg EPS beat(16)3.01%
Revenue beat(2)1
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-3.3%
Max Revenue beat(2)0.23%
Revenue beat(4)3
Avg Revenue beat(4)0.71%
Min Revenue beat(4)-3.3%
Max Revenue beat(4)3.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.17%
Revenue beat(12)4
Avg Revenue beat(12)-1.83%
Revenue beat(16)6
Avg Revenue beat(16)-1.41%
PT rev (1m)0%
PT rev (3m)-5.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-20%
EPS NY rev (3m)-20%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.52%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 8.69 | ||
| P/S | 0.47 | ||
| P/FCF | 19.83 | ||
| P/OCF | 17.04 | ||
| P/B | 1.08 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)0.67
EY8.39%
EPS(NY)0.92
Fwd EY11.5%
FCF(TTM)0.4
FCFY5.04%
OCF(TTM)0.47
OCFY5.87%
SpS17.02
BVpS7.38
TBVpS4.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 2.44% | ||
| ROCE | 2.59% | ||
| ROIC | 1.99% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 6.19% | ||
| OM | 1.17% | ||
| PM (TTM) | 1.06% | ||
| GM | 28.12% | ||
| FCFM | 2.37% |
ROA(3y)1.42%
ROA(5y)4.93%
ROE(3y)1.75%
ROE(5y)7.65%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-33.48%
ROICexcg growth 5Y-23.87%
ROICexc growth 3Y-31%
ROICexc growth 5Y-20.46%
OM growth 3Y-34.02%
OM growth 5Y-22.17%
PM growth 3Y-32.27%
PM growth 5Y-21.56%
GM growth 3Y1.44%
GM growth 5Y2.43%
F-Score8
Asset Turnover1.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 22.63% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.6% | ||
| Profit Quality | 223.45% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 | ||
| Altman-Z | 5.52 |
F-Score8
WACC8.87%
ROIC/WACC0.22
Cap/Depr(3y)18.5%
Cap/Depr(5y)22.28%
Cap/Sales(3y)0.33%
Cap/Sales(5y)0.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.55%
EPS 3Y-16.05%
EPS 5Y-22.18%
EPS Q2Q%-21.05%
EPS Next Y-20.34%
EPS Next 2Y13.78%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y-3.59%
Revenue growth 5Y0.55%
Sales Q2Q%-0.88%
Revenue Next Year-1.78%
Revenue Next 2Y1.32%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y229.29%
EBIT growth 3Y-36.39%
EBIT growth 5Y-21.75%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-66.05%
FCF growth 3Y23.47%
FCF growth 5Y-16.14%
OCF growth 1Y-61.06%
OCF growth 3Y11.3%
OCF growth 5Y-14.87%