Education
About Us
Working with TipRanks
Follow Us
Mastech Holdings Inc (MHH)
:MHH
Top Page
Mastech Holdings
(NYSE MKT:MHH)61Neutral
Mastech Holdings (MHH) vs. S&P 500 (SPY)
Market Cap
$118.23M
Dividend YieldN/A
Average Volume (3M)25.52K
Price to Earnings (P/E)35.7
Beta (1Y)1.09
Revenue Growth-8.49%
EPS Growth-813.55%
CountryUS
Employees1,397
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding11,705,973
10 Day Avg. Volume34,785
30 Day Avg. Volume25,523
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.61
Price to Cash Flow (P/CF)9.00
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Mastech Holdings Business Overview & Revenue Model
Company DescriptionMastech Holdings, Inc. (MHH) is a provider of Digital Transformation IT Services. The company is primarily engaged in delivering data and analytics services, as well as IT staffing solutions. Its key offerings include data management and analytics services, cloud services, and staffing services for a wide range of industries. Mastech aims to help its clients harness the power of technology to improve their business operations and achieve their digital transformation goals.
How the Company Makes MoneyMastech Holdings generates revenue through its two main segments: Data and Analytics Services and IT Staffing Services. The Data and Analytics Services segment provides specialized services such as data management, data engineering, and data science solutions, helping businesses leverage their data for strategic insights and decision-making. This segment earns revenue through project-based engagements and long-term service contracts. The IT Staffing Services segment offers temporary and permanent staffing solutions to organizations in need of IT professionals. This segment earns revenue by charging clients for the hourly or project-based work performed by its IT consultants. Mastech also benefits from strategic partnerships with technology providers and continuous demand for IT professionals as organizations increasingly focus on digital transformation initiatives.
Mastech Holdings Financial Statement Overview
Summary
Mastech Holdings faces challenges with declining revenues and negative net income, impacting profitability. Despite a strong balance sheet with low leverage, cash flow issues are evident with reduced free and operating cash flow. Strategic action is needed to address revenue decline and improve cash generation.Income Statement
The income statement shows declining revenue, with a significant drop from $242M in 2022 to $194M in TTM (Trailing-Twelve-Months). Gross Profit Margin for TTM is at 26.5%, indicating moderate profitability. Net Income has turned negative at -$2.25M in TTM, resulting in a negative Net Profit Margin. The EBIT and EBITDA margins have also decreased, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet is relatively stable with a Debt-to-Equity Ratio of 0.05, showing low leverage. The Equity Ratio is strong at 77.6%, indicating a solid asset base funded by equity. However, the company's equity has seen a slight increase, which may reflect retained earnings or capital injections.65
Positive
Cash Flow
Cash flow analysis reveals a decline in Operating Cash Flow to $8.5M in TTM from $15.98M in 2023. Free Cash Flow has decreased by 51.6% from $15.64M in 2023 to $7.58M in TTM. The Operating Cash Flow to Net Income Ratio is negative due to negative net income, indicating cash flow issues.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 194.25M | 201.10M | 242.24M | 222.01M | 194.10M | 193.57M | Gross Profit |
| 51.53M | 51.04M | 63.18M | 59.44M | 51.54M | 47.98M | EBIT |
| 2.10M | -9.28M | 8.00M | 10.75M | 9.81M | 13.55M | EBITDA |
| 4.81M | -5.18M | 16.39M | 18.85M | 16.99M | 14.24M | Net Income Common Stockholders |
| -2.25M | -7.14M | 8.71M | 12.22M | 9.86M | 11.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.29M | 21.15M | 7.06M | 6.62M | 7.68M | 2.98M | Total Assets |
| 92.58M | 105.23M | 108.88M | 113.70M | 102.05M | 90.58M | Total Debt |
| 38.70M | 5.08M | 4.90M | 17.92M | 20.68M | 29.97M | Net Debt |
| 37.41M | -16.07M | -2.16M | 11.30M | 13.00M | 26.99M | Total Liabilities |
| 58.31M | 23.78M | 22.88M | 39.27M | 42.51M | 44.30M | Stockholders Equity |
| 34.28M | 81.44M | 86.00M | 74.43M | 59.53M | 46.28M |
| Cash Flow | Free Cash Flow | ||||
| 7.58M | 15.64M | 11.78M | 3.32M | 20.93M | 15.07M | Operating Cash Flow |
| 8.52M | 15.98M | 12.62M | 5.22M | 21.23M | 16.08M | Investing Cash Flow |
| -947.00K | -216.00K | -818.00K | -2.08M | -9.63M | -879.00K | Financing Cash Flow |
| 504.00K | -1.58M | -10.41M | -4.09M | -6.71M | -13.39M |
Mastech Holdings Technical Analysis
Negative
10.10
Price Trends
13.31
Negative
12.93
Negative
10.87
Negative
Market Momentum
-0.93
Positive
34.91
Neutral
11.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHH, the sentiment is Negative. The current price of 10.1 is below the 20-day moving average (MA) of 11.76, below the 50-day MA of 13.31, and below the 200-day MA of 10.87, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 34.91 is Neutral, neither overbought nor oversold. The STOCH value of 11.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MHH.
Mastech Holdings Risk Analysis
Mastech Holdings disclosed 44 risk factors in its most recent earnings report. Mastech Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mastech Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $41.17B | 18.47 | 16.21% | 1.45% | 1.98% | 7.16% | |
75 Outperform | $81.67B | 24.74 | 33.16% | 2.10% | 3.08% | 11.92% | |
69 Neutral | $11.31B | 25.35 | 12.80% | ― | 0.80% | 10.05% | |
68 Neutral | $34.32B | 30.63 | 16.59% | 1.88% | -3.41% | 67.87% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
61 Neutral | $118.23M | 35.65 | 4.03% | ― | -8.49% | -813.55% | |
47 Neutral | $3.25B | 267.98 | -2.46% | ― | -5.65% | 78.20% |
* Industrials Sector Average
Performance Comparison
MHH
Mastech Holdings
10.10
1.34
15.30%
CTSH
Cognizant
83.23
7.46
9.85%
EPAM
Epam Systems
198.80
-106.28
-34.84%
INFY
Infosys
19.86
1.16
6.20%
WIT
Wipro
3.26
0.25
8.31%
DXC
DXC Technology
18.62
-2.38
-11.33%
Mastech Holdings Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -21.52% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and record gross margins, indicating positive momentum. However, challenges such as below-expectation order bookings and a decline in the billable consultant base suggest some market uncertainty. Overall, the highlights significantly outweigh the lowlights.Highlights
Strong Revenue Growth
Consolidated revenues for Q4 2024 totaled $50.7 million, a year-over-year increase of 10.2% compared to Q4 2023.
Data and Analytics Services Performance
The Data and Analytics Services segment reported revenues of $10.3 million, representing a 26.2% increase year-over-year and a 9.4% increase sequentially.
Record Gross Margins
Gross margin percent reached a company record of 29% in Q4 2024, with both business segments showing significant margin expansion.
Improved Profitability
GAAP net income for Q4 2024 was $0.3 million compared to a net loss of $5.4 million in Q4 2023. Non-GAAP net income for Q4 2024 was $2.8 million, a significant increase from $1.3 million in Q4 2023.
Strong Financial Position
The company ended the year with no bank debt, $27.7 million in cash, and $22.6 million in cash availability under the revolving credit facility.
Lowlights
Below-Expectation Order Bookings
Order bookings in Q4 2024 totaled $11 million, which was below expectations, indicating some uncertainty in the market.
Decline in Billable Consultant Base
The IT Staffing Services segment saw a decline of 63 consultants, which is expected to impact Q1 2025 revenue.
Company Guidance
During the Mastech Digital Q4 2024 earnings call, the company refrained from providing specific guidance for future periods. The call focused on reporting financial results, including a 10.2% year-over-year increase in consolidated revenues for the fourth quarter, totaling $50.7 million. The Data and Analytics Services segment saw significant growth with revenues of $10.3 million, a 26.2% increase from the previous year. The IT Staffing Services segment reported revenues of $40.5 million, marking a 6.8% increase year-over-year. Mastech Digital achieved a company-record gross margin of 29% for the quarter, with notable margin expansions in both business segments. Despite these positive results, the company highlighted some uncertainties in the market, affecting order bookings, which totaled $11 million in Q4. The call emphasized the company's strategic focus on AI-driven solutions and digital modernization, with no immediate plans to provide guidance in subsequent meetings or calls.Mastech Holdings Corporate Events
Executive/Board Changes
Mastech Holdings Announces Changes in Board of Directors
Neutral
Jan 7, 2025
Mastech Digital, Inc. announced that effective December 31, 2024, John Ausura and Brenda Galilee resigned from the Board of Directors, including all related committee positions. These resignations were not due to any disagreements with the company, and following their departures, Arun Nayar and Srinivas Kandula have taken over as Chairs of the Audit Committee and Compensation Committee, respectively.
Executive/Board ChangesBusiness Operations and Strategy
Mastech Holdings Announces Leadership Transition with New CEO
Positive
Dec 16, 2024
Mastech Digital announced the resignation of Vivek Gupta as President and CEO effective January 6, 2025, who will remain until February 28, 2025, to assist with the transition. Nirav Patel has been appointed as the new President and CEO, bringing his extensive experience in technology services and a strong track record of driving growth and innovation, aligning with the company’s strategic priorities to enhance shareholder value and attain leadership in AI, data, and digital engineering segments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.