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Mastech Holdings
(MHH)
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Rating:69Neutral
Price Target:
$8.50
▲(9.54% Upside)
Action:Reiterated
Date:08/07/26
MHH’s score is primarily supported by financial resilience (low leverage and steady free cash flow) and improving—but still uneven—operational performance. Technicals are favorable with price above major moving averages, while valuation is a meaningful offset due to the high P/E and lack of dividend support. The latest earnings call reinforces a cautious recovery story: better bookings and margins, but material YoY revenue pressure and no guidance.
Positive Factors
Low leverage / strong balance sheet
Extremely low leverage and a sizeable equity cushion reduce solvency risk and increase financial flexibility. With no material debt and ample liquidity, the company can fund working capital swings, invest in growth initiatives, and withstand staffing-cycle volatility without forcing distress sales or dilutive financing.
Negative Factors
Multi-year revenue decline
Material, multi-year top-line contraction erodes operating leverage and makes margin recovery harder. Persistent revenue declines reduce scale benefits, constrain reinvestment capacity, and mean cash flow and profitability remain sensitive to small demand shifts unless secular growth or new logo wins offset the trend.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Extremely low leverage and a sizeable equity cushion reduce solvency risk and increase financial flexibility. With no material debt and ample liquidity, the company can fund working capital swings, invest in growth initiatives, and withstand staffing-cycle volatility without forcing distress sales or dilutive financing.
Read all positive factors
Mastech Holdings (MHH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.11M
Dividend YieldN/A
Average Volume (3M)34.29K
Price to Earnings (P/E)39.3
Beta (1Y)1.04
Revenue Growth-8.13%
EPS Growth7.78%
CountryUS
Employees1,488
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding11,998,186
10 Day Avg. Volume46,763
30 Day Avg. Volume34,294
Financial Highlights & Ratios
PEG Ratio-1.64
Price to Book (P/B)0.92
Price to Sales (P/S)0.43
P/FCF Ratio7.62
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.46
Revenue Forecast (FY)$165.87M
Mastech Holdings Business Overview & Revenue Model
Company Description
Mastech Digital, Inc., along with its subsidiaries, is a prominent provider of digital transformation and IT solutions. It serves a diverse clientele of businesses, from small enterprises to large corporations, throughout the United States. The co...
How the Company Makes Money
Mastech Holdings makes money primarily by providing staffing services and charging clients for labor it supplies, plus related placement fees. Its core revenue stream comes from IT staffing: the company recruits and employs (or contracts with) con...
Mastech Holdings Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful near-term headwinds with material year‑over‑year revenue declines, reduced billable headcount largely due to a single client's insourcing, and a small GAAP quarterly loss. Offsetting those negatives were encouraging signs of recovery and strategic positioning — sequential consolidated and data & AI revenue growth, a strong bookings increase (+~51% YoY), improved bill rates and gross margins, solid liquidity (no debt, $35.6M cash), and investments in a growth office and partner program. Management emphasized redeploying EDGE efficiencies into growth initiatives and expects continued investment through H2 2026. Given the balance of significant operational challenges alongside clear early indicators of a turnaround, the tone is constructive but cautious.Positive Updates
Sequential Revenue Growth
Consolidated revenue grew sequentially by 0.9%, marking the first quarter of sequential growth since 2024.
Negative Updates
Material Year‑over‑Year Revenue Decline
Consolidated revenue declined 15.6% year-over-year to $41.4M. Talent segment revenue fell 16.2% YoY to $28.0M; Data & AI segment declined 14.4% YoY to $13.5M.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Revenue Growth
Consolidated revenue grew sequentially by 0.9%, marking the first quarter of sequential growth since 2024.
Read all positive updates
Company Guidance
Management explicitly stated they are not providing guidance on the call (and will not do so in subsequent one‑on‑one meetings), but discussed Q2 metrics and near‑term plans: consolidated revenue $41.4M (−15.6% YoY, +0.9% sequential), talent revenue $28.0M (−16.2% YoY) with a record bill rate of $92.17 (vs. $88.36 a year ago) and 170 fewer billable consultants (−22.3% YoY), data & AI revenue $13.5M (−14.4% YoY, +7.2% sequential), bookings $13.6M TCV (vs. $9.0M prior‑year), gross profit $12.0M (−13.2% YoY) with gross margin +90 bps YoY; GAAP Q2 net loss $0.1M (−$0.01/diluted share) vs. prior‑year GAAP net income $0.1M ($0.01/sh), Q2 non‑GAAP net income $1.0M ($0.08/sh) vs. $1.8M ($0.15/sh) prior, YTD GAAP income $0.2M ($0.01/sh) vs. prior‑year loss $1.3M (−$0.11/sh), YTD non‑GAAP $2.2M ($0.19/sh) vs. $2.6M ($0.21/sh); liquidity of $35.6M cash, no debt, $20.4M available on revolver, DSO 61 days, and $5.0M remaining in the share repurchase program—while noting EDGE efficiencies are being redeployed into talent, competencies and growth investments that will continue through H2 2026.Mastech Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 184.14M | 191.37M | 198.94M | 201.10M | 242.24M | 222.01M |
| Gross Profit | 50.54M | 53.06M | 55.60M | 51.04M | 63.18M | 59.44M |
| EBITDA | 6.78M | 4.39M | 9.39M | -5.18M | 17.79M | 18.85M |
| Net Income | 2.31M | 609.00K | 3.40M | -7.14M | 8.71M | 12.22M |
Balance Sheet | ||||||
| Total Assets | 107.99M | 111.84M | 111.48M | 105.23M | 108.88M | 114.07M |
| Cash, Cash Equivalents and Short-Term Investments | 33.55M | 36.53M | 27.74M | 21.15M | 7.06M | 6.62M |
| Total Debt | 2.12M | 3.56M | 3.75M | 5.08M | 4.90M | 18.29M |
| Total Liabilities | 16.93M | 22.53M | 24.05M | 23.78M | 22.88M | 39.64M |
| Stockholders Equity | 91.06M | 89.31M | 87.43M | 81.44M | 86.00M | 74.43M |
Cash Flow | ||||||
| Free Cash Flow | 10.64M | 10.76M | 6.25M | 15.64M | 11.78M | 3.32M |
| Operating Cash Flow | 10.97M | 11.13M | 7.19M | 15.98M | 12.62M | 5.22M |
| Investing Cash Flow | -434.00K | -486.00K | -941.00K | -216.00K | -818.00K | -2.08M |
| Financing Cash Flow | -469.00K | -1.13M | 654.00K | -1.58M | -10.41M | -4.09M |
Mastech Holdings Technical Analysis
Positive
7.76
Price Trends
7.41
Positive
6.92
Positive
6.95
Positive
Market Momentum
0.12
Negative
56.06
Neutral
82.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHH, the sentiment is Positive. The current price of 7.76 is above the 20-day moving average (MA) of 7.70, above the 50-day MA of 7.41, and above the 200-day MA of 6.95, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 82.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MHH.
Mastech Holdings Risk Analysis
Mastech Holdings disclosed 43 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $93.11M | 39.28 | 2.60% | ― | -8.13% | 7.78% | |
68 Neutral | $179.59M | 27.72 | 9.69% | 1.86% | -11.77% | 90.48% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $181.87M | -92.32 | 1.28% | ― | -9.39% | 72.47% | |
51 Neutral | $59.48M | -5.39 | -17.43% | ― | -65.05% | -154.86% | |
48 Neutral | $23.06M | -21.20 | -2.14% | ― | -18.78% | 98.07% | |
41 Neutral | $4.26M | -0.18 | -77.60% | ― | 1.26% | -4.09% |
* Industrials Sector Average
MHH
Mastech Holdings
7.87
0.41
5.50%
DHX
DHI Group
4.18
1.69
67.87%
JOB
GEE Group
0.21
<0.01
0.48%
IPDN
Professional Diversity
0.43
-1.76
-80.50%
BGSF
BGSF
5.64
1.28
29.36%
HQI
HireQuest
12.81
3.28
34.45%
Mastech Holdings Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresRegulatory Filings and Compliance
Mastech Digital Updates Bylaws and Governance Framework
Negative
Aug 6, 2026
On August 1, 2026, Mastech Digital granted Chief Executive and President Nirav Patel 50,000 restricted stock units, vesting in three equal tranches over three years, in a move that further aligns executive incentives with shareholder value. On Aug...
Executive/Board ChangesShareholder Meetings
Mastech Holdings Shareholders Approve Board and Incentive Plan
Positive
May 18, 2026
At its Annual Meeting held on May 13, 2026, Mastech Digital shareholders elected two Class III directors, Arun Nayar and Srinivas Kandula, to three-year terms, reinforcing continuity in the company’s board leadership. The vote results showed...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.