Mastech Holdings (MHH) AI Stock Analysis

• Market Cap: $95.18M
• Dividend Yield: N/A
• Average Volume (3M): 18.16K
• Price to Earnings (P/E): 46.3
• Beta (1Y): 0.92
• Revenue Growth: 3.93%
• EPS Growth: N/A
• Country: US
• Employees: 1,525
• Sector: Industrials
• Sector Strength: 94
• Industry: Staffing & Employment Services
• EPS (TTM): 0.06
• Shares Outstanding: 11,764,649
• 10 Day Avg. Volume: 10,192
• 30 Day Avg. Volume: 18,160
• PEG Ratio: -1.29
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.93
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 3.19
• 1Y Price Target: $15.00
• Price Target Upside: 85.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $8.50 ▲(5.07%Upside)

Mastech Holdings' stable financial foundation and strategic initiatives provide a supportive backdrop, but challenges in profitability and valuation pose risks. The stock's current technical position shows some positive momentum, yet potential resistance and overvaluation concerns limit upside potential. The earnings call reflects cautious optimism with a focus on strategic growth, balancing short-term uncertainties with long-term opportunities.

Mastech Holdings Business Overview & Revenue Model

Company Description

Mastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States. It operates through two segments, Data and Analytics Services, and IT Staffing Services. The company offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources. It also provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social, automation, business intelligence/data warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. In addition, the company offers digital transformation services, such as digital learning services; and cloud-based enterprise application across sales, marketing, and customer service organizations. It provides its services across various industry verticals, including financial services, government, healthcare, manufacturing, retail, technology, telecommunications, and transportation. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Mastech Holdings generates revenue primarily through its IT staffing services, which provide skilled IT professionals to clients on a temporary or project basis. The company also earns from digital transformation services, including data management, analytics, and cloud services, which help clients optimize their business processes and technological frameworks. Significant partnerships with technology providers and a strong client base across various sectors contribute to Mastech's earnings, allowing it to address diverse client needs and maintain a competitive edge in the IT services industry.

Mastech Holdings Financial Statement Overview

Summary

Mastech Holdings exhibits a stable financial position with strong balance sheet metrics, such as a low debt-to-equity ratio and robust equity ratio. However, net profit margins are under pressure, and revenue growth has been inconsistent, impacting overall financial performance.

Income Statement

Mastech Holdings has demonstrated stable gross profit margins with the TTM (Trailing-Twelve-Months) gross profit margin at approximately 27.8%. However, the net profit margin has seen fluctuations, currently at about 1.1% for the TTM, indicating challenges in converting revenue into net income. Revenue growth has been inconsistent, with recent periods showing a decline. EBIT and EBITDA margins are relatively low, indicating potential issues with operational efficiency.

Balance Sheet

The company's balance sheet shows strength with a low debt-to-equity ratio of approximately 0.04, indicating minimal financial leverage and risk. The equity ratio stands robust at around 79.0%, reflecting a solid capital structure. However, return on equity (ROE) has been subdued, currently at about 2.4% for the TTM, suggesting limited profitability on shareholder equity.

Cash Flow

Operating cash flow is positive, with the TTM operating cash flow to net income ratio at 2.6, indicating strong cash generation relative to net income. Free cash flow has grown, but at a slower pace, with a free cash flow to net income ratio of approximately 2.2. The company's ability to generate cash flows shows stability, although growth rates could improve.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	198.94M	201.10M	242.24M	222.01M	194.10M
Gross Profit	55.60M	51.04M	63.18M	59.44M	51.54M
EBITDA	7.29M	-5.18M	16.39M	18.85M	16.99M
Net Income	3.40M	-7.14M	8.71M	12.22M	9.86M
Balance Sheet
Total Assets	111.48M	105.23M	108.88M	113.70M	102.05M
Cash, Cash Equivalents and Short-Term Investments	27.74M	21.15M	7.06M	6.62M	7.68M
Total Debt	3.75M	5.08M	4.90M	17.92M	20.68M
Total Liabilities	24.05M	23.78M	22.88M	39.27M	42.51M
Stockholders Equity	87.43M	81.44M	86.00M	74.43M	59.53M
Cash Flow
Free Cash Flow	6.25M	15.64M	11.78M	3.32M	20.93M
Operating Cash Flow	7.19M	15.98M	12.62M	5.22M	21.23M
Investing Cash Flow	-941.00K	-216.00K	-818.00K	-2.08M	-9.63M
Financing Cash Flow	654.00K	-1.58M	-10.41M	-4.09M	-6.71M

Mastech Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 8.09 is above the 20-day moving average (MA) of 7.55, above the 50-day MA of 7.24, and below the 200-day MA of 10.46, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 63.93 is Neutral, neither overbought nor oversold. The STOCH value of 78.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MHH.

Mastech Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHH	68 Neutral	$95.18M	46.31	2.52%	―	3.93%	―
HQI	66 Neutral	$144.90M	43.23	5.67%	2.32%	-7.66%	-34.08%
DHX	61 Neutral	$138.94M	268.89	-7.21%	―	-7.42%	-567.61%
BGSF	60 Neutral	$70.32M	―	-3.95%	4.69%	-12.93%	-159.19%
Sector *	59 Neutral	AU$1.65B	10.34	11.24%	3.42%	6.75%	3.18%
HSON	52 Neutral	$25.18M	―	-8.66%	―	-9.28%	-244.22%
TBI	52 Neutral	$219.50M	―	-36.98%	―	-16.76%	-1127.93%

Mastech Holdings Corporate Events

Mastech Holdings Approves Stock Incentive Plan Expansion

On May 14, 2025, Mastech Digital, Inc. held its Annual Meeting where shareholders elected two Class II directors, approved an amendment to increase the number of shares in the stock incentive plan by 800,000, and endorsed the compensation of executive officers. The meeting also included advisory votes on executive compensation and its frequency, which are non-binding.

The most recent analyst rating on (MHH) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Mastech Holdings stock, see the MHH Stock Forecast page.