MASTECH DIGITAL INC (MHH) Stock Fundamental Analysis
USA - NYSEARCA:MHH - US57633B1008 - Common Stock
6.9032 USD
-0.25 (-3.45%)
We assign a fundamental rating of 5 out of 10 to MHH. MHH was compared to 86 industry peers in the Professional Services industry. While MHH has a great health rating, there are worries on its profitability. MHH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MHH had positive earnings in the past year.
In the past year MHH had a positive cash flow from operations.
Of the past 5 years MHH 4 years were profitable.
Each year in the past 5 years MHH had a positive operating cash flow.
1.2 Ratios
MHH has a Return On Assets (0.79%) which is comparable to the rest of the 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.
Looking at the Return On Invested Capital, with a value of 0.74%, MHH is doing worse than 63.95% of the companies in the same industry.
| 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 of 0.43%. This is comparable to the rest of the industry: MHH outperforms 44.19% of its industry peers.
MHH's Profit Margin has declined in the last couple of years.
MHH has a Operating Margin of 0.44%. This is in the lower half of the industry: MHH underperforms 62.79% of its industry peers.
In the last couple of years the Operating Margin of MHH has declined.
With a Gross Margin value of 28.10%, MHH perfoms like the industry average, outperforming 40.70% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MHH is destroying value.
The number of shares outstanding for MHH has been increased compared to 1 year ago.
Compared to 5 years ago, MHH has more shares outstanding
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 5.27 indicates that MHH is not in any danger for bankruptcy at the moment.
MHH's Altman-Z score of 5.27 is amongst the best of the industry. MHH outperforms 86.05% 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 | 5.27 |
ROIC/WACC0.09
WACC8.72%
2.3 Liquidity
A Current Ratio of 3.33 indicates that MHH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.33, MHH belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
A Quick Ratio of 3.33 indicates that MHH has no problem at all paying its short term obligations.
MHH's Quick ratio of 3.33 is amongst the best of the industry. MHH outperforms 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 3.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.55% over the past year.
MHH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.18% yearly.
MHH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.16%.
MHH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.55% yearly.
EPS 1Y (TTM)42.55%
EPS 3Y-16.05%
EPS 5Y-22.18%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)5.16%
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-2%
Revenue Next 2Y0.85%
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
With a Price/Earnings ratio of 10.30, the valuation of MHH can be described as very reasonable.
Based on the Price/Earnings ratio, MHH is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.19, MHH is valued rather cheaply.
The Price/Forward Earnings ratio is 7.51, which indicates a rather cheap valuation of MHH.
Based on the Price/Forward Earnings ratio, MHH is valued cheaper than 88.37% of the companies in the same industry.
MHH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHH is valued a bit cheaper than the industry average as 63.95% of the companies are valued more expensively.
77.91% of the companies in the same industry are more expensive than MHH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.17 | ||
| EV/EBITDA | 13.26 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MHH's earnings are expected to grow with 12.84% in the coming years.
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 (10/31/2025, 12:17:55 PM)
6.9032
-0.25 (-3.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners18.66%
Inst Owner Change0%
Ins Owners68.24%
Ins Owner Change0%
Market Cap81.32M
Revenue(TTM)200.00M
Net Income(TTM)868.00K
Analysts0
Price Target13.26 (92.08%)
Short Float %0.49%
Short Ratio1.92
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)-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)0%
PT rev (3m)-5.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-20%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 7.51 | ||
| P/S | 0.41 | ||
| P/FCF | 11.17 | ||
| P/OCF | 10.65 | ||
| P/B | 0.93 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 13.26 |
EPS(TTM)0.67
EY9.71%
EPS(NY)0.92
Fwd EY13.31%
FCF(TTM)0.62
FCFY8.95%
OCF(TTM)0.65
OCFY9.39%
SpS16.98
BVpS7.45
TBVpS4.38
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.6
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 | 5.27 |
F-Score8
WACC8.72%
ROIC/WACC0.09
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)5.16%
Revenue growth 3Y-3.59%
Revenue growth 5Y0.55%
Sales Q2Q%-0.88%
Revenue Next Year-2%
Revenue Next 2Y0.85%
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 6 / 10 to MASTECH DIGITAL INC (MHH). This can be considered as Fairly Valued.
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%.