7.28 USD
+0.23 (+3.26%)
6.85 USD
-0.43 (-5.91%)
Overall MHH gets a fundamental rating of 5 out of 10. We evaluated MHH against 86 industry peers in the Professional Services industry. While MHH has a great health rating, there are worries on its profitability. MHH may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MHH was profitable.
MHH had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 0.79%, MHH is in line with its industry, outperforming 45.35% of the companies in the same industry.
MHH has a Return On Equity of 0.99%. This is comparable to the rest of the industry: MHH outperforms 43.02% of its industry peers.
The Return On Invested Capital of MHH (0.74%) is worse than 63.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 0.99% | ||
| ROIC | 0.74% |
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 (0.43%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MHH has declined.
MHH's Operating Margin of 0.44% is on the low side compared to the rest of the industry. MHH is outperformed by 63.95% of its industry peers.
MHH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 28.10%, MHH is not doing good in the industry: 61.63% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MHH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.44% | ||
| PM (TTM) | 0.43% | ||
| GM | 28.1% |
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.
MHH has more shares outstanding than it did 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
MHH has an Altman-Z score of 5.29. This indicates that MHH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.29, MHH belongs to the top of the industry, outperforming 87.21% of the companies in the same industry.
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 | 5.29 |
ROIC/WACC0.08
WACC8.78%
2.3 Liquidity
A Current Ratio of 3.33 indicates that MHH has no problem at all paying its short term obligations.
MHH has a Current ratio of 3.33. This is amongst the best in the industry. MHH outperforms 88.37% of its industry peers.
MHH has a Quick Ratio of 3.33. This indicates that MHH is financially healthy and has no problem in meeting its short term obligations.
MHH has a Quick ratio of 3.33. This is amongst the best in the industry. MHH outperforms 89.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 3.33 |
3. Growth
3.1 Past
MHH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.73%, which is quite impressive.
The earnings per share for MHH have been decreasing by -22.18% on average. This is quite bad
MHH shows a decrease in Revenue. In the last year, the revenue decreased by -1.07%.
The Revenue has been growing slightly by 0.55% on average over the past years.
EPS 1Y (TTM)23.73%
EPS 3Y-16.05%
EPS 5Y-22.18%
EPS Q2Q%26.09%
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y-3.59%
Revenue growth 5Y0.55%
Sales Q2Q%-6.45%
3.2 Future
The Earnings Per Share is expected to grow by 12.84% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y1.71%
EPS Next 2Y20.75%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue Next Year-3.67%
Revenue Next 2Y0.34%
Revenue Next 3Y2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.97, which indicates a very decent valuation of MHH.
Based on the Price/Earnings ratio, MHH is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.92. MHH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.03 indicates a rather cheap valuation of MHH.
90.70% of the companies in the same industry are more expensive than MHH, based on the Price/Forward Earnings ratio.
MHH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MHH indicates a somewhat cheap valuation: MHH is cheaper than 65.12% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MHH indicates a rather cheap valuation: MHH is cheaper than 83.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.7 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as MHH's earnings are expected to grow with 12.84% in the coming years.
PEG (NY)5.83
PEG (5Y)N/A
EPS Next 2Y20.75%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
No dividends for MHH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.28
+0.23 (+3.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners17.62%
Inst Owner Change-4.13%
Ins Owners68.74%
Ins Owner Change0%
Market Cap85.18M
Revenue(TTM)198.94M
Net Income(TTM)868.00K
Analysts0
Price Target13.46 (84.89%)
Short Float %0.7%
Short Ratio1.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-8.42%
Min EPS beat(2)-40.59%
Max EPS beat(2)23.76%
EPS beat(4)3
Avg EPS beat(4)22.96%
Min EPS beat(4)-40.59%
Max EPS beat(4)82.18%
EPS beat(8)5
Avg EPS beat(8)25.51%
EPS beat(12)5
Avg EPS beat(12)7.13%
EPS beat(16)6
Avg EPS beat(16)2.94%
Revenue beat(2)2
Avg Revenue beat(2)0.83%
Min Revenue beat(2)0.23%
Max Revenue beat(2)1.43%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-3.3%
Max Revenue beat(4)3.93%
Revenue beat(8)4
Avg Revenue beat(8)-0.26%
Revenue beat(12)4
Avg Revenue beat(12)-1.74%
Revenue beat(16)6
Avg Revenue beat(16)-1.41%
PT rev (1m)1.54%
PT rev (3m)1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)27.68%
EPS NY rev (3m)27.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.7%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 7.03 | ||
| P/S | 0.43 | ||
| P/FCF | 11.7 | ||
| P/OCF | 11.15 | ||
| P/B | 0.97 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)0.73
EY10.03%
EPS(NY)1.04
Fwd EY14.22%
FCF(TTM)0.62
FCFY8.55%
OCF(TTM)0.65
OCFY8.97%
SpS17.09
BVpS7.51
TBVpS4.41
PEG (NY)5.83
PEG (5Y)N/A
Graham Number11.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 0.99% | ||
| ROCE | 0.97% | ||
| ROIC | 0.74% | ||
| ROICexc | 1.08% | ||
| ROICexgc | 2.55% | ||
| OM | 0.44% | ||
| PM (TTM) | 0.43% | ||
| GM | 28.1% | ||
| FCFM | 3.64% |
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
ROICexgc growth 3Y-33.48%
ROICexgc 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 Turnover1.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 10.63% | ||
| Cap/Sales | 0.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 179.93% | ||
| Profit Quality | 838.71% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 3.33 | ||
| Altman-Z | 5.29 |
F-Score8
WACC8.78%
ROIC/WACC0.08
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)23.73%
EPS 3Y-16.05%
EPS 5Y-22.18%
EPS Q2Q%26.09%
EPS Next Y1.71%
EPS Next 2Y20.75%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.07%
Revenue growth 3Y-3.59%
Revenue growth 5Y0.55%
Sales Q2Q%-6.45%
Revenue Next Year-3.67%
Revenue Next 2Y0.34%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y323.98%
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-69.2%
FCF growth 3Y23.47%
FCF growth 5Y-16.14%
OCF growth 1Y-67.89%
OCF growth 3Y11.3%
OCF growth 5Y-14.87%
MASTECH DIGITAL INC / MHH FAQ
What is the fundamental rating for MHH stock?
ChartMill assigns a fundamental rating of 5 / 10 to MHH.
What is the valuation status of MASTECH DIGITAL INC (MHH) stock?
ChartMill assigns a valuation rating of 7 / 10 to MASTECH DIGITAL INC (MHH). This can be considered as Undervalued.
Can you provide the profitability details for MASTECH DIGITAL INC?
MASTECH DIGITAL INC (MHH) has a profitability rating of 3 / 10.
Can you provide the financial health for MHH stock?
The financial health rating of MASTECH DIGITAL INC (MHH) is 8 / 10.
Is the dividend of MASTECH DIGITAL INC sustainable?
The dividend rating of MASTECH DIGITAL INC (MHH) is 0 / 10 and the dividend payout ratio is 0%.