Mastech Holdings Inc (MHH)
XASE:MHH
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Mastech Holdings
(NYSE MKT:MHH)
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Rating:55Neutral
Price Target:
$6.00
▼(-23.86% Downside)
Action:ReiteratedDate:04/04/26
MHH’s score is held back primarily by deteriorating profitability/revenue trends and weak technical momentum (below key moving averages with negative MACD). These are partially offset by low financial leverage, consistently positive cash generation, and a mixed-but-constructive earnings-call backdrop (strong bookings, record bill rates, solid liquidity and continued repurchase activity), while valuation remains a notable headwind given the very high P/E.
Positive Factors
Conservative balance sheet & liquidity
Very low leverage and a conservative capital structure provide durable financial flexibility. With negligible bank debt and equity substantial versus assets, the company can fund buybacks, invest in EDGE/AI initiatives, absorb near-term revenue pressure, and minimize refinancing risk.
Negative Factors
Prolonged revenue decline
Multi-year revenue decline erodes operating leverage and scale, compressing profitability and ROE. Persistent top-line weakness limits the payoff from efficiency programs, constrains reinvestment capacity, and makes achieving durable growth targets more challenging over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet & liquidity
Very low leverage and a conservative capital structure provide durable financial flexibility. With negligible bank debt and equity substantial versus assets, the company can fund buybacks, invest in EDGE/AI initiatives, absorb near-term revenue pressure, and minimize refinancing risk.
Read all positive factors
Mastech Holdings (MHH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$74.83M
Dividend YieldN/A
Average Volume (3M)34.29K
Price to Earnings (P/E)134.6
Beta (1Y)0.96
Revenue Growth1.24%
EPS Growth97.14%
CountryUS
Employees1,525
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding11,858,401
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 Cap0.56
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit0.80
Enterprise Value/Ebitda14.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.89
Revenue Forecast (FY)$195.02M
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 Ser...
How the Company Makes Money
Mastech Holdings makes money primarily by supplying skilled professionals to client organizations and charging fees tied to those labor services. A major revenue stream is staffing/consulting services where Mastech recruits, places, and manages co...
Mastech Holdings Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful operational and strategic positives (record bill rates, strong Q4 bookings, solid cash position, share repurchase authorization, stable non-GAAP profitability and EDGE-driven efficiencies) balanced against notable revenue declines (consolidated, Data & Analytics and staffing volume), one-time transition/severance costs that depressed GAAP results, and a near-term headwind from a top-customer in-sourcing program. Management emphasized that 2025 was foundational and positioned the company to invest and execute in 2026, but near-term visibility and revenue pressures remain.Positive Updates
Strong Q4 Bookings Momentum
Q4 bookings totaled $11.3 million versus $8.2 million in the prior-year period (up ~37%), driven by strong renewals and broad-based demand across healthcare, financial services and consumer clients.
Negative Updates
Decline in Consolidated Revenue
Consolidated Q4 revenue was $45.5 million, down 10.4% year-over-year; full-year 2025 revenue was $191.4 million, down 3.8% year-over-year, reflecting continued revenue pressure in the market.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Bookings Momentum
Q4 bookings totaled $11.3 million versus $8.2 million in the prior-year period (up ~37%), driven by strong renewals and broad-based demand across healthcare, financial services and consumer clients.
Read all positive updates
Company Guidance
Management explicitly provided no formal forward guidance on the call, but offered directional commentary and many operational and financial metrics: they called 2026 a “year of execution” with three priorities (sustainable growth, customer value, differentiated capabilities) and said the in‑sourcing impact from a top-10 client should continue through H1 2026 while the finance transition is complete and most severance is done. Key reported metrics included Q4 consolidated revenue $45.5M (‑10.4% YoY) and FY2025 revenue $191.4M (‑3.8% YoY); Q4 IT Staffing revenue $37.7M (‑7%), Q4 Data & Analytics $7.8M (‑24%) and FY D&A $33.3M (‑9.1%); Q4 bookings $11.3M (vs. $8.2M prior year, ~+37%), Q4 gross profit $12.9M (‑12.5%) with gross margin down 70 bps, Q4 GAAP net income $1.0M ($0.08/diluted) and non‑GAAP net income $2.5M ($0.21/diluted), FY GAAP net income $0.6M ($0.05) and FY non‑GAAP $8.6M ($0.72); Q4 severance/transition costs $0.7M and FY costs $5.0M; billable headcount down 168 consultants (‑16.7%) to 840 with total employees 1,488, all‑time high average bill rate $87.32, cash $36.5M, no bank debt, $19.9M revolver availability, DSO 54 days, repurchases ~$0.7M in Q4 (avg $7.20) and ~$2.2M FY (avg $7.49), ~123,556 shares left under the expired program and a new $5.0M repurchase authorization effective Feb 16, 2026.Mastech Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
76
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 191.37M | 198.94M | 201.10M | 242.24M | 222.01M |
| Gross Profit | 53.06M | 55.60M | 51.04M | 63.18M | 59.44M |
| EBITDA | 1.00K | 9.39M | -5.18M | 17.79M | 18.85M |
| Net Income | 609.00K | 3.40M | -7.14M | 8.71M | 12.22M |
Balance Sheet | |||||
| Total Assets | 111.84M | 111.48M | 105.23M | 108.88M | 114.07M |
| Cash, Cash Equivalents and Short-Term Investments | 36.53M | 27.74M | 21.15M | 7.06M | 6.62M |
| Total Debt | 3.56M | 3.75M | 5.08M | 4.90M | 18.29M |
| Total Liabilities | 22.53M | 24.05M | 23.78M | 22.88M | 39.64M |
| Stockholders Equity | 89.31M | 87.43M | 81.44M | 86.00M | 74.43M |
Cash Flow | |||||
| Free Cash Flow | 10.76M | 6.25M | 15.64M | 11.78M | 3.32M |
| Operating Cash Flow | 11.13M | 7.19M | 15.98M | 12.62M | 5.22M |
| Investing Cash Flow | -486.00K | -941.00K | -216.00K | -818.00K | -2.08M |
| Financing Cash Flow | -1.13M | 654.00K | -1.58M | -10.41M | -4.09M |
Mastech Holdings Technical Analysis
Negative
7.88
Price Trends
6.35
Negative
6.78
Negative
7.09
Negative
Market Momentum
-0.10
Negative
46.74
Neutral
44.15
Neutral
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 7.88 is above the 20-day moving average (MA) of 5.96, above the 50-day MA of 6.35, and above the 200-day MA of 7.09, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.74 is Neutral, neither overbought nor oversold. The STOCH value of 44.15 is Neutral, 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 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $143.92M | 23.25 | 10.52% | 2.55% | -12.65% | 368.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $127.27M | -5.14 | -13.17% | ― | -9.13% | -1032.39% | |
59 Neutral | $68.25M | -6.79 | -17.82% | 41.67% | -36.79% | -507.05% | |
55 Neutral | $74.83M | 134.64 | 0.69% | ― | 1.24% | 97.14% | |
48 Neutral | $26.06M | -35.64 | -51.65% | ― | -15.43% | -43.45% | |
41 Neutral | $10.24M | -0.54 | -78.12% | ― | -7.26% | -1.37% |
* Industrials Sector Average
MHH
Mastech Holdings
6.31
-1.29
-16.97%
DHX
DHI Group
2.83
1.30
84.97%
JOB
GEE Group
0.24
0.05
30.22%
IPDN
Professional Diversity
1.00
-0.25
-20.00%
BGSF
BGSF
6.07
3.92
182.33%
HQI
HireQuest
10.28
-0.18
-1.73%
Mastech Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
Mastech CEO Takes 2025 Bonus Entirely in Stock
Positive
Apr 3, 2026
On March 30, 2026, Mastech Digital, Inc. disclosed that Chief Executive Officer and President Nirav Patel agreed to receive his earned 2025 annual performance bonus of $616,932 in restricted stock instead of cash, under the terms of his November 1...
Business Operations and Strategy
Mastech Holdings Enters Dallas Office Lease, Expanding Presence
Positive
Mar 12, 2026
On March 5, 2026, Mastech Digital, Inc. signed a lease for approximately 5,895 square feet of office space at 3300 Olympus Boulevard, Suite 560, in Dallas, Texas, with an initial five-year term beginning after a five-month abatement period startin...
Business Operations and StrategyStock BuybackFinancial Disclosures
Mastech Digital Posts Mixed 2025 Results, Adds Buyback Plan
Neutral
Feb 19, 2026
On February 19, 2026, Mastech Digital reported its fourth-quarter and full-year 2025 results, showing revenue pressure but improved profitability metrics under an ongoing transformation plan. Fourth-quarter 2025 consolidated revenue fell 10.4% yea...
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.