MASTECH DIGITAL INC (MHH) Fundamental Analysis & Valuation

NYSEARCA:MHHUS57633B1008

Current stock price

6.82 USD
+0.37 (+5.65%)
Last:

This MHH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. MHH Profitability Analysis

1.1 Basic Checks

  • MHH had positive earnings in the past year.
  • In the past year MHH had a positive cash flow from operations.
  • MHH had positive earnings in 4 of the past 5 years.
  • MHH had a positive operating cash flow in each of the past 5 years.
MHH Yearly Net Income VS EBIT VS OCF VS FCFMHH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M -5M 10M 15M 20M

1.2 Ratios

  • MHH has a Return On Assets of 0.54%. This is comparable to the rest of the industry: MHH outperforms 46.51% of its industry peers.
  • MHH has a Return On Equity (0.68%) which is comparable to the rest of the industry.
  • MHH has a worse Return On Invested Capital (2.22%) than 63.95% of its industry peers.
Industry RankSector Rank
ROA 0.54%
ROE 0.68%
ROIC 2.22%
ROA(3y)-1.06%
ROA(5y)3.11%
ROE(3y)-1.4%
ROE(5y)4.47%
ROIC(3y)N/A
ROIC(5y)N/A
MHH Yearly ROA, ROE, ROICMHH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • The Profit Margin of MHH (0.32%) is comparable to the rest of the industry.
  • MHH's Profit Margin has declined in the last couple of years.
  • MHH has a Operating Margin of 1.57%. This is comparable to the rest of the industry: MHH outperforms 41.86% of its industry peers.
  • In the last couple of years the Operating Margin of MHH has declined.
  • MHH's Gross Margin of 27.72% is on the low side compared to the rest of the industry. MHH is outperformed by 62.79% of its industry peers.
  • MHH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 1.57%
PM (TTM) 0.32%
GM 27.72%
OM growth 3Y-33.76%
OM growth 5Y-27.37%
PM growth 3Y-55.44%
PM growth 5Y-42.54%
GM growth 3Y2.05%
GM growth 5Y0.87%
MHH Yearly Profit, Operating, Gross MarginsMHH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

9

2. MHH Health Analysis

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 reduced compared to 1 year ago.
  • MHH has more shares outstanding than it did 5 years ago.
  • There is no outstanding debt for MHH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
MHH Yearly Shares OutstandingMHH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2M 4M 6M 8M 10M
MHH Yearly Total Debt VS Total AssetsMHH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M

2.2 Solvency

  • An Altman-Z score of 5.06 indicates that MHH is not in any danger for bankruptcy at the moment.
  • MHH has a better Altman-Z score (5.06) than 81.40% of its industry peers.
  • There is no outstanding debt for MHH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.06
ROIC/WACC0.25
WACC8.94%
MHH Yearly LT Debt VS Equity VS FCFMHH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M 40M 60M 80M

2.3 Liquidity

  • A Current Ratio of 3.26 indicates that MHH has no problem at all paying its short term obligations.
  • The Current ratio of MHH (3.26) is better than 89.53% of its industry peers.
  • A Quick Ratio of 3.26 indicates that MHH has no problem at all paying its short term obligations.
  • The Quick ratio of MHH (3.26) is better than 89.53% of its industry peers.
Industry RankSector Rank
Current Ratio 3.26
Quick Ratio 3.26
MHH Yearly Current Assets VS Current LiabilitesMHH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M

3

3. MHH Growth Analysis

3.1 Past

  • The earnings per share for MHH have decreased by 0.00% in the last year.
  • The Earnings Per Share has been decreasing by -9.51% on average over the past years.
  • The Revenue has decreased by -3.81% in the past year.
  • The Revenue has been decreasing by -0.28% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-14.6%
EPS 5Y-9.51%
EPS Q2Q%-8.7%
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y-7.56%
Revenue growth 5Y-0.28%
Sales Q2Q%-10.42%

3.2 Future

  • MHH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.29% yearly.
  • Based on estimates for the next years, MHH will show a small growth in Revenue. The Revenue will grow by 3.16% on average per year.
EPS Next Y28.03%
EPS Next 2Y29.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.42%
Revenue Next 2Y3.16%
Revenue Next 3YN/A
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.
MHH Yearly Revenue VS EstimatesMHH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M
MHH Yearly EPS VS EstimatesMHH Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

9

4. MHH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.61, which indicates a very decent valuation of MHH.
  • 87.21% of the companies in the same industry are more expensive than MHH, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.79. MHH is valued rather cheaply when compared to this.
  • MHH is valuated cheaply with a Price/Forward Earnings ratio of 7.50.
  • 94.19% of the companies in the same industry are more expensive than MHH, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 38.88. MHH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.61
Fwd PE 7.5
MHH Price Earnings VS Forward Price EarningsMHH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MHH is valued cheaper than 88.37% of the companies in the same industry.
  • MHH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MHH is cheaper than 88.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.53
EV/EBITDA 6.35
MHH Per share dataMHH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • MHH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • MHH's earnings are expected to grow with 29.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y29.29%
EPS Next 3YN/A

0

5. MHH Dividend Analysis

5.1 Amount

  • No dividends for MHH!.
Industry RankSector Rank
Dividend Yield 0%

MHH Fundamentals: All Metrics, Ratios and Statistics

MASTECH DIGITAL INC

NYSEARCA:MHH (4/22/2026, 5:05:00 PM)

6.82

+0.37 (+5.65%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners18.22%
Inst Owner Change0%
Ins Owners67.81%
Ins Owner Change0%
Market Cap81.02M
Revenue(TTM)191.37M
Net Income(TTM)609.00K
Analysts0
Price Target10.2 (49.56%)
Short Float %0.08%
Short Ratio0.22
Dividend
Industry RankSector 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)2
Avg EPS beat(2)37.72%
Min EPS beat(2)1.42%
Max EPS beat(2)74.02%
EPS beat(4)3
Avg EPS beat(4)14.65%
Min EPS beat(4)-40.59%
Max EPS beat(4)74.02%
EPS beat(8)6
Avg EPS beat(8)33.45%
EPS beat(12)7
Avg EPS beat(12)16.98%
EPS beat(16)7
Avg EPS beat(16)7.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-3.42%
Revenue beat(4)2
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)1.43%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)4
Avg Revenue beat(12)-1.75%
Revenue beat(16)5
Avg Revenue beat(16)-1.86%
PT rev (1m)-20%
PT rev (3m)-24.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)-3.04%
Revenue NQ rev (3m)-11.35%
Revenue NY rev (1m)-3.52%
Revenue NY rev (3m)-6.63%
Valuation
Industry RankSector Rank
PE 9.61
Fwd PE 7.5
P/S 0.42
P/FCF 7.53
P/OCF 7.28
P/B 0.91
P/tB 1.49
EV/EBITDA 6.35
EPS(TTM)0.71
EY10.41%
EPS(NY)0.91
Fwd EY13.33%
FCF(TTM)0.91
FCFY13.28%
OCF(TTM)0.94
OCFY13.74%
SpS16.11
BVpS7.52
TBVpS4.57
PEG (NY)0.34
PEG (5Y)N/A
Graham Number10.9587 (60.68%)
Profitability
Industry RankSector Rank
ROA 0.54%
ROE 0.68%
ROCE 3.31%
ROIC 2.22%
ROICexc 3.71%
ROICexgc 10.45%
OM 1.57%
PM (TTM) 0.32%
GM 27.72%
FCFM 5.62%
ROA(3y)-1.06%
ROA(5y)3.11%
ROE(3y)-1.4%
ROE(5y)4.47%
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-26.03%
ROICexgc growth 5Y-28.59%
ROICexc growth 3Y-29.65%
ROICexc growth 5Y-23.27%
OM growth 3Y-33.76%
OM growth 5Y-27.37%
PM growth 3Y-55.44%
PM growth 5Y-42.54%
GM growth 3Y2.05%
GM growth 5Y0.87%
F-Score6
Asset Turnover1.71
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 11.31%
Cap/Sales 0.2%
Interest Coverage 250
Cash Conversion 176.05%
Profit Quality 1766.67%
Current Ratio 3.26
Quick Ratio 3.26
Altman-Z 5.06
F-Score6
WACC8.94%
ROIC/WACC0.25
Cap/Depr(3y)15.63%
Cap/Depr(5y)22.89%
Cap/Sales(3y)0.28%
Cap/Sales(5y)0.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-14.6%
EPS 5Y-9.51%
EPS Q2Q%-8.7%
EPS Next Y28.03%
EPS Next 2Y29.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y-7.56%
Revenue growth 5Y-0.28%
Sales Q2Q%-10.42%
Revenue Next Year-2.42%
Revenue Next 2Y3.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.84%
EBIT growth 3Y-38.77%
EBIT growth 5Y-27.57%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y72.12%
FCF growth 3Y-2.98%
FCF growth 5Y-12.46%
OCF growth 1Y54.82%
OCF growth 3Y-4.07%
OCF growth 5Y-12.11%

MASTECH DIGITAL INC / MHH Fundamental Analysis FAQ

What is the fundamental rating for MHH stock?

ChartMill assigns a fundamental rating of 5 / 10 to MHH.


Can you provide the valuation status for MASTECH DIGITAL INC?

ChartMill assigns a valuation rating of 9 / 10 to MASTECH DIGITAL INC (MHH). This can be considered as Undervalued.


What is the profitability of MHH stock?

MASTECH DIGITAL INC (MHH) has a profitability rating of 3 / 10.


Can you provide the expected EPS growth for MHH stock?

The Earnings per Share (EPS) of MASTECH DIGITAL INC (MHH) is expected to grow by 28.03% in the next year.


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%.