A Business at a Glance
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Mastech Digital, Inc.
MHH
$95M
Mkt Cap
$7.76
+0.65%
Mastech Digital, Inc. (MHH) has a 5-year average return on invested capital (ROIC) of 5.7%. This is below average and may indicate limited pricing power.
Mastech Digital, Inc. (MHH) has a market capitalization of $95M. It is classified as a small-cap stock.
Mastech Digital, Inc. (MHH) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 2.38%.
Mastech Digital, Inc. (MHH) operates in the Services-Management Consulting Services industry, within the Industrials sector.
Mastech Digital, Inc. (MHH) reported annual revenue of $191 million in its most recent fiscal year, based on SEC EDGAR filings.
Mastech Digital, Inc. (MHH) has a net profit margin of 0.3%. This is a modest margin.
Mastech Digital, Inc. (MHH) generated $11 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ITEM 1. BUSINESS Mastech Digital, Inc. (referred to in this report as “Mastech Digital”, “Mastech”, the “Company”, “us”, “our” or “we”) is a provider of Digital Transformation IT Services. The Company offers data and analytics solutions; digital learning; and IT staffing services for both digital and mainstream technologies. Headquartered near Pittsburgh, Pennsylvania, we have approximately 1,500 consultants that provide services across a broad spectrum of industry verticals. We do not sell, lease or otherwise market computer software or hardware and essentially 100% of our revenue is derived from the sale of data and analytics, IT staffing and Digital Transformation services through our two reportable segments, Data and Analytics Services and IT Staffing Services. Our Data and Analytics Services segment delivers specialized data management, data engineering, customer experience consulting, data analytics and cloud services to customers globally.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 191M | 191M | 199M | 201M | 242M | 222M |
| Net Income | 609K | 609K | 3.4M | -7.1M | 8.7M | 12M |
| EPS | $0.05 | $0.05 | $0.28 | $-0.61 | $0.72 | $1.02 |
| Free Cash Flow | 11M | 11M | 6.3M | 16M | 12M | 3.3M |
| ROIC | 0.0% | - | 4.7% | -8.5% | 10.3% | 16.4% |
| Gross Margin | 27.7% | 27.7% | 27.9% | 25.4% | 26.1% | 26.8% |
| Debt/Equity | 0.03 | 0.03 | 0.04 | 0.06 | 0.06 | 0.25 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 0 | - | 3.8M | -9.3M | 12M | 18M |
| Operating Margin | 0.0% | - | 1.9% | -4.6% | 5.0% | 7.9% |
| ROE | 0.7% | 0.7% | 4.0% | -8.5% | 10.9% | 18.2% |
| Shares Outstanding | 12M | 12M | 12M | 12M | 12M | 12M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 114M | 123M | 132M | 148M | 177M | 194M | 194M | 222M | 242M | 201M | 199M | 191M | 191M |
| Gross Margin | 18.3% | 19.3% | 19.9% | 21.4% | 24.0% | 24.8% | 26.6% | 26.8% | 26.1% | 25.4% | 27.9% | 27.7% | 27.7% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 15M | 19M | 22M | 28M | 31M | 31M | 38M | 42M | 51M | 60M | 52M | 53M | 53M |
| EBIT | 5.5M | 4.7M | 4.5M | 4.1M | 12M | 17M | 13M | 18M | 12M | -9.3M | 3.8M | N/A | 0 |
| Op. Margin | 4.9% | 3.8% | 3.4% | 2.8% | 6.6% | 8.8% | 6.9% | 7.9% | 5.0% | -4.6% | 1.9% | N/A | 0.0% |
| Net Income | 3.4M | 2.8M | 2.5M | 1.6M | 6.7M | 11M | 9.9M | 12M | 8.7M | -7.1M | 3.4M | 609K | 609K |
| Net Margin | 3.0% | 2.2% | 1.9% | 1.1% | 3.8% | 5.8% | 5.1% | 5.5% | 3.6% | -3.5% | 1.7% | 0.3% | 0.3% |
| Non-Recurring | -9K | 305K | 780K | -4K | 9.7M | 0 | -4K | -9K | 990K | 7.6M | 2.1M | -4K | -4K |
| Returns on Capital | |||||||||||||
| ROIC | 33.5% | 11.9% | 7.2% | 4.2% | 10.6% | 14.9% | 13.6% | 16.4% | 10.3% | -8.5% | 4.7% | N/A | 0.0% |
| ROE | 30.7% | 19.2% | 14.5% | 7.0% | 21.8% | 27.7% | 18.6% | 18.2% | 10.9% | -8.5% | 4.0% | 0.7% | 0.7% |
| ROA | 18.5% | 9.4% | 6.5% | 2.4% | 7.0% | 12.2% | 10.2% | 11.3% | 7.8% | -6.7% | 3.1% | 0.5% | 0.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 3.3M | 3.0M | 2.3M | 3.3M | -471K | 16M | 21M | 5.2M | 13M | 16M | 7.2M | 11M | 11M |
| Free Cash Flow | 2.6M | 2.9M | 2.2M | 2.2M | -1.2M | 15M | 21M | 3.3M | 12M | 16M | 6.3M | 11M | 11M |
| Owner Earnings | 2.8M | 2.5M | 1.7M | 1.1M | -2.8M | 13M | 16M | -909K | 5.3M | 6.9M | -1.6M | 834K | 834K |
| CapEx | 679K | 168K | 105K | 1.1M | 771K | 1.0M | 298K | 1.9M | 835K | 335K | 941K | 376K | 376K |
| Maint. CapEx | 143K | 219K | 203K | 1.8M | 1.9M | 2.6M | 3.3M | 3.9M | 5.0M | 6.0M | 6.6M | 7.2M | 7.2M |
| Growth CapEx | 536K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 143K | 219K | 203K | 1.8M | 1.9M | 2.6M | 3.3M | 3.9M | 5.0M | 6.0M | 6.6M | 7.2M | 7.2M |
| CapEx/OCF | 20.9% | 5.6% | 4.6% | 33.7% | N/A | 6.3% | 1.4% | 36.3% | 6.6% | 2.1% | 13.1% | N/A | 3.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 784K | 206K | 13K | 20K | 20K | 13K | 0 | 0 | 0 | 618K | 80K | 2.2M | 2.2M |
| Buyback Yield | 1.6% | 0.6% | 0.0% | 0.0% | 0.0% | 0.0% | N/A | N/A | N/A | 0.6% | 0.0% | 0.0% | 2.4% |
| Stock-Based Comp | 330K | 262K | 408K | 381K | 470K | 936K | 2.0M | 2.2M | 2.2M | 3.1M | 2.2M | 3.1M | 3.1M |
| Debt Repayment | 12K | 900K | 1.8M | 7.3M | 4.0M | 9.6M | 16M | 4.4M | 12M | 1.1M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -2.6M | 23M | 21M | 49M | 46M | 40M | 13M | 12M | -2.2M | -16M | -24M | -34M | -34M |
| Cash & Equiv. | 2.6M | 848K | 829K | 2.5M | 1.3M | 3.0M | 7.7M | 6.6M | 7.1M | 21M | 28M | 37M | 37M |
| Long-Term Debt | N/A | 11M | 8.1M | 34M | 34M | 21M | 13M | 8.7M | 0 | 0 | N/A | N/A | 2.4M |
| Debt/Equity | -0.00 | 1.49 | 1.15 | 1.88 | 1.39 | 0.93 | 0.35 | 0.25 | 0.06 | 0.06 | 0.04 | 0.03 | 0.03 |
| Interest Coverage | 66.0 | 48.3 | 76.4 | 10.3 | 31.7 | 64.6 | 0.1 | 48.1 | 41.6 | -32.7 | 20.1 | N/A | N/A |
| Equity | 13M | 16M | 19M | 27M | 34M | 46M | 60M | 74M | 86M | 81M | 87M | 89M | 89M |
| Total Assets | 20M | 38M | 39M | 99M | 93M | 91M | 102M | 114M | 109M | 105M | 111M | 112M | 112M |
| Total Liabilities | 7.2M | 23M | 20M | 71M | 58M | 44M | 43M | 40M | 23M | 24M | 24M | 23M | 23M |
| Intangibles | N/A | 8.1M | 7.3M | 25M | 23M | 20M | 22M | 19M | 16M | 13M | 10M | 7.8M | 7.8M |
| Retained Earnings | 4.0M | 6.8M | 9.3M | 11M | 18M | 29M | 39M | 51M | 60M | 52M | 56M | 56M | 56M |
| Working Capital | 12M | 8.9M | 10M | 15M | 23M | 18M | 19M | 27M | 34M | 37M | 46M | 48M | 48M |
| Current Assets | 19M | 21M | 23M | 35M | 41M | 37M | 41M | 54M | 53M | 56M | 66M | 69M | 69M |
| Current Liabilities | 7.2M | 12M | 12M | 20M | 18M | 19M | 22M | 27M | 20M | 20M | 21M | 21M | 21M |
| Per Share Data | |||||||||||||
| EPS | 0.39 | 0.31 | 0.14 | 0.08 | 0.60 | 0.99 | 0.83 | 1.02 | 0.72 | -0.61 | 0.28 | 0.05 | 0.05 |
| Owner EPS | 0.31 | 0.29 | 0.09 | 0.06 | -0.25 | 1.11 | 1.34 | -0.08 | 0.44 | 0.59 | -0.13 | 0.07 | 0.07 |
| Book Value | 1.45 | 1.78 | 1.06 | 1.34 | 3.07 | 4.11 | 5.01 | 6.21 | 7.11 | 6.96 | 7.20 | 7.33 | 7.33 |
| Cash Flow/Share | 0.37 | 0.34 | 0.13 | 0.16 | -0.04 | 1.43 | 1.79 | 0.44 | 1.04 | 1.37 | 0.59 | 0.91 | 0.64 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 8.9M | 8.9M | 18.0M | 20.3M | 11.2M | 11.3M | 11.9M | 12.0M | 12.1M | 11.7M | 12.2M | 12.2M | 12.2M |
| Valuation | |||||||||||||
| P/E Ratio | 14.5 | 11.7 | 12.3 | 30.3 | 10.4 | 11.1 | 20.0 | 16.7 | 16.4 | N/A | 53.6 | N/A | 155.2 |
| P/FCF | 19.3 | 11.3 | 28.4 | 44.3 | N/A | 8.2 | 9.4 | 61.4 | 12.1 | 6.2 | 29.2 | N/A | 8.8 |
| EV/EBIT | N/A | 9.4 | 8.9 | 20.8 | 9.2 | 8.6 | 15.4 | 11.9 | 11.3 | N/A | N/A | N/A | N/A |
| Price/Book | 3.9 | 2.0 | 1.6 | 1.8 | 2.0 | 2.7 | 3.3 | 2.7 | 1.7 | 1.2 | 2.1 | N/A | 1.1 |
| Price/Sales | 0.5 | 0.3 | 0.2 | 0.3 | 0.5 | 0.4 | 1.1 | 0.9 | 0.8 | 0.6 | 0.6 | N/A | 0.5 |
| FCF Yield | 5.2% | 8.9% | 7.0% | 4.5% | -1.8% | 12.2% | 10.6% | 1.6% | 8.3% | 16.2% | 3.4% | N/A | 11.4% |
| Market Cap | 50M | 32M | 31M | 49M | 70M | 124M | 197M | 204M | 143M | 97M | 182M | 0 | 95M |
| Avg. Price | 6.67 | 4.36 | 3.61 | 4.20 | 7.37 | 6.43 | 17.34 | 17.00 | 16.26 | 10.35 | 9.59 | 0.00 | 7.76 |
| Year-End Price | 5.60 | 3.63 | 3.45 | 4.84 | 6.25 | 10.99 | 16.58 | 17.01 | 11.80 | 8.27 | 15.00 | 0.00 | 7.76 |
Mastech Digital, Inc. passes 1 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 8.8x vs a median of 20.3x. The company's 5-year average ROIC is 5.7% with a gross margin of 26.8%. Total shareholder yield (buybacks) is 2.4%. At current prices, the estimated annualized return to fair value is -1.6%.
Mastech Digital, Inc. (MHH) has a debt-to-equity ratio of 0.03. This indicates a conservatively financed balance sheet.
Mastech Digital, Inc. (MHH) reported earnings per share (EPS) of $0.05 in its most recent fiscal year.
Mastech Digital, Inc. (MHH) has a return on equity (ROE) of 0.7%. This indicates moderate shareholder returns.
Mastech Digital, Inc. (MHH) has a 5-year average gross margin of 26.8%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for Mastech Digital, Inc. (MHH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Mastech Digital, Inc. (MHH) has a book value per share of $7.33, based on its most recent annual SEC filing.