New Risk • Aug 09
New major risk - Revenue and earnings growth Earnings have declined by 47% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 47% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (US$93.1m market cap). Reported Earnings • Aug 07
Second quarter 2026 earnings released: US$0.008 loss per share (vs US$0.011 profit in 2Q 2025) Second quarter 2026 results: US$0.008 loss per share (down from US$0.011 profit in 2Q 2025). Revenue: US$41.4m (down 16% from 2Q 2025). Net loss: US$100.0k (down 174% from profit in 2Q 2025). Revenue is forecast to stay flat during the next 2 years compared to a 6.1% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. New Risk • Aug 06
New major risk - Revenue and earnings growth Earnings have declined by 51% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 51% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (US$94.4m market cap). Aankondiging • Jul 25
Mastech Digital, Inc. to Report Q2, 2026 Results on Aug 06, 2026 Mastech Digital, Inc. announced that they will report Q2, 2026 results Pre-Market on Aug 06, 2026 Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to US$7.94, the stock trades at a forward P/E ratio of 82x. Average forward P/E is 13x in the Professional Services industry in the US. Total loss to shareholders of 22% over the past three years. Reported Earnings • May 18
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: US$0.022 (up from US$0.12 loss in 1Q 2025). Revenue: US$41.1m (down 15% from 1Q 2025). Net income: US$264.0k (up US$1.70m from 1Q 2025). Profit margin: 0.6% (up from net loss in 1Q 2025). Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) also missed analyst estimates by 69%. Revenue is forecast to grow 3.5% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. New Risk • May 17
New major risk - Revenue and earnings growth Earnings have declined by 52% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 52% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Market cap is less than US$100m (US$84.8m market cap). Aankondiging • May 02
Mastech Digital, Inc. to Report Q1, 2026 Results on May 15, 2026 Mastech Digital, Inc. announced that they will report Q1, 2026 results Pre-Market on May 15, 2026 Reported Earnings • Mar 22
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: US$0.052 (down from US$0.29 in FY 2024). Revenue: US$191.4m (down 3.8% from FY 2024). Net income: US$609.0k (down 82% from FY 2024). Profit margin: 0.3% (down from 1.7% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 23%. Revenue is forecast to grow 3.6% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Aankondiging • Mar 19
Mastech Digital, Inc., Annual General Meeting, May 13, 2026 Mastech Digital, Inc., Annual General Meeting, May 13, 2026. Reported Earnings • Feb 20
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: US$0.052 (down from US$0.29 in FY 2024). Revenue: US$191.4m (down 3.8% from FY 2024). Net income: US$609.0k (down 82% from FY 2024). Profit margin: 0.3% (down from 1.7% in FY 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 23%. Revenue is forecast to grow 3.6% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Aankondiging • Feb 19
Mastech Digital, Inc. (NYSEAM:MHH) announces an Equity Buyback for $5 million worth of its shares. Mastech Digital, Inc. (NYSEAM:MHH) announces a share repurchase program. Under the program, the company will repurchase up to $5 million worth of its common stock. Aankondiging • Feb 11
Mastech Digital, Inc. to Report Q4, 2025 Results on Feb 19, 2026 Mastech Digital, Inc. announced that they will report Q4, 2025 results Pre-Market on Feb 19, 2026 Reported Earnings • Nov 13
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: US$0.08 (down from US$0.16 in 3Q 2024). Revenue: US$48.5m (down 6.4% from 3Q 2024). Net income: US$941.0k (down 50% from 3Q 2024). Profit margin: 1.9% (down from 3.6% in 3Q 2024). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) exceeded analyst estimates by 45%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Aankondiging • Nov 03
Mastech Digital, Inc. to Report Q3, 2025 Results on Nov 12, 2025 Mastech Digital, Inc. announced that they will report Q3, 2025 results Pre-Market on Nov 12, 2025 Major Estimate Revision • Aug 20
Consensus EPS estimates fall by 61% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from US$0.155 to US$0.06 per share. Revenue forecast steady at US$196.2m. Net income forecast to grow 292% next year vs 14% growth forecast for Professional Services industry in the US. Consensus price target of US$13.00 unchanged from last update. Share price was steady at US$7.65 over the past week. Price Target Changed • Aug 18
Price target decreased by 10% to US$13.00 Down from US$14.50, the current price target is an average from 2 analysts. New target price is 69% above last closing price of US$7.71. Stock is down 23% over the past year. The company is forecast to post a net loss per share of US$0.01 compared to earnings per share of US$0.29 last year. Reported Earnings • Aug 14
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: US$0.011 (down from US$0.12 in 2Q 2024). Revenue: US$49.1m (flat on 2Q 2024). Net income: US$135.0k (down 90% from 2Q 2024). Profit margin: 0.3% (down from 2.8% in 2Q 2024). Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 71%. Revenue is forecast to grow 2.5% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 53 percentage points per year, which is a significant difference in performance. Aankondiging • Jul 31
Mastech Digital, Inc. to Report Q2, 2025 Results on Aug 13, 2025 Mastech Digital, Inc. announced that they will report Q2, 2025 results on Aug 13, 2025 Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$6.51, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 19x in the Professional Services industry in the US. Total loss to shareholders of 61% over the past three years. Reported Earnings • May 17
First quarter 2025 earnings released First quarter 2025 results: Net income: (up US$161.0k from 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. New Risk • May 16
New major risk - Revenue and earnings growth Earnings have declined by 44% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 44% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (12% average weekly change). Large one-off items impacting financial results. New Risk • May 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (US$92.7m market cap). Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to US$9.30, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 20x in the Professional Services industry in the US. Total loss to shareholders of 48% over the past three years. Aankondiging • May 07
Mastech Digital, Inc. to Report Q1, 2025 Results on May 16, 2025 Mastech Digital, Inc. announced that they will report Q1, 2025 results on May 16, 2025 Aankondiging • Apr 11
Mastech Digital, Inc., Annual General Meeting, May 14, 2025 Mastech Digital, Inc., Annual General Meeting, May 14, 2025. Location: 511 east john carpenter freeway, suite 500, las colinas, tx 75062, United States Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$8.62, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 18x in the Professional Services industry in the US. Total loss to shareholders of 56% over the past three years. Major Estimate Revision • Apr 02
Consensus EPS estimates fall by 40% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from US$0.585 to US$0.35 per share. Revenue forecast steady at US$199.4m. Net income forecast to grow 26% next year vs 16% growth forecast for Professional Services industry in the US. Consensus price target down from US$15.50 to US$14.50. Share price fell 3.8% to US$9.35 over the past week. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$10.75, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Professional Services industry in the US. Total loss to shareholders of 40% over the past three years. Price Target Changed • Feb 21
Price target decreased by 12% to US$15.50 Down from US$17.63, the current price target is an average from 2 analysts. New target price is 34% above last closing price of US$11.58. Stock is up 35% over the past year. The company is forecast to post earnings per share of US$0.58 for next year compared to US$0.29 last year. Reported Earnings • Feb 20
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: US$0.29 (up from US$0.61 loss in FY 2023). Revenue: US$198.9m (down 1.1% from FY 2023). Net income: US$3.40m (up US$10.5m from FY 2023). Profit margin: 1.7% (up from net loss in FY 2023). The move to profitability was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 22%. Revenue is forecast to grow 2.8% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Aankondiging • Feb 12
Mastech Digital, Inc. to Report Q4, 2024 Results on Feb 19, 2025 Mastech Digital, Inc. announced that they will report Q4, 2024 results on Feb 19, 2025 Board Change • Jan 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Arun Nayar was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Aankondiging • Jan 08
Mastech Digital, Inc. Announces Board and Committee Changes Effective December 31, 2024, John Ausura and Brenda Galilee each resigned as members of the Board of Directors of Mastech Digital, Inc., including all committees of the Board on which he or she serves. Upon the effectiveness of Mr. Ausura’s resignation from the Board, Arun Nayar, who serves as an independent member of the Board, assumed the responsibilities of the Chair of the Audit Committee. Upon the effectiveness of Ms. Galilee’s resignation from the Board, Srinivas Kandula, who serves as an independent member of the Board, assumed the responsibilities of the Chair of the Compensation Committee. New Risk • Nov 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 07
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: US$0.16 (up from US$0.011 in 3Q 2023). Revenue: US$51.8m (up 8.5% from 3Q 2023). Net income: US$1.88m (up US$1.75m from 3Q 2023). Profit margin: 3.6% (up from 0.3% in 3Q 2023). Revenue exceeded analyst estimates by 5.0%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Aankondiging • Aug 17
Mastech Digital, Inc. Announces Board Changes Effective August 12, 2024, the Board of Directors of Mastech Digital, Inc. increased the size of the Board to nine members and appointed Srinivas Kandula, Arun Nayar and Bonnie K. Smith as independent members of the Board. Each of Mr. Kandula and Mr. Nayar will serve as a Class III Director until the Company’s 2026 Annual Meeting of Shareholders and until his successor is selected and qualified. Ms. Smith will serve as a Class II Director until the Company’s 2025 Annual Meeting of Shareholders and until her successor is selected and qualified. Mr. Kandula, Mr. Nayar and Ms. Smith will each also serve on the Board’s three standing committees: (i) the Audit Committee, (ii) the Compensation Committee, and (iii) the Nominating & Corporate Governance Committee. Mr. Kandula currently serves as an Executive Director on the board of directors of Cigniti Technologies. Mr. Kandula was formerly the chairman of board of directors and Chief Executive Officer of Capgemini Technology Services India Ltd., where he was responsible for leading Capgemini’s operations across India. Previously, Mr. Kandula held the roles of Chief People Officer, Executive Vice President and Member of the Executive Council at IGATE Global Solutions. Mr. Nayar currently serves on the board of directors of GFL Environmental Inc., the board of directors of Amcor PLC and the board of directors of Rite Aid Corporation. Mr. Nayar is also Senior Advisor to McKinsey and Company and serves on the Americas Advisory Council of ServiceNow, Inc. Previously, Mr. Nayar served as Executive Vice President and Chief Financial Officer of Tyco International, an over $10 billion fire protection and security company, where he was responsible for managing financial risks and overseeing its global finance functions, including tax, treasury, mergers and acquisitions, audit and investor relations. Ms. Smith is currently an Executive Vice President and Chief Information Officer at TD SYNNEX, where she is responsible for all aspects of Information Technology (IT) strategy through delivery for their 90 in-market countries. Previously, Ms. Smith held the roles of Vice President and Chief Information Officer of Lear Corporation and Senior Vice-President and Industrial Sector Chief Information Officer of Eaton Corporation. Through these and other roles, Ms. Smith has held global IT leadership positions throughout her career and has on-the-ground experience in a dozen European countries leading IT for six Fortune 250 companies and served Fortune 100 Clients at McKinsey & Company. On August 13, 2024, John Ausura and Brenda Galilee each notified the Company of his or her resignation from the Board, including all committees of the Board on which he or she serves (the “Board Committees”), effective December 31, 2024. Neither decision to resign was the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. New Risk • Aug 08
New major risk - Revenue and earnings growth Earnings have declined by 34% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. New Risk • May 09
New major risk - Revenue and earnings growth Earnings have declined by 26% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 26% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$98.8m market cap). Reported Earnings • May 08
First quarter 2024 earnings: EPS misses analyst expectations First quarter 2024 results: US$0.014 loss per share (down from US$0.022 profit in 1Q 2023). Revenue: US$46.8m (down 15% from 1Q 2023). Net loss: US$161.0k (down 162% from profit in 1Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 1.3% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 54 percentage points per year, which is a significant difference in performance. Aankondiging • Apr 24
Mastech Digital, Inc. to Report Q1, 2024 Results on May 08, 2024 Mastech Digital, Inc. announced that they will report Q1, 2024 results on May 08, 2024 New Risk • Apr 24
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: US$98.7m This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Aankondiging • Apr 13
Mastech Digital, Inc., Annual General Meeting, May 15, 2024 Mastech Digital, Inc., Annual General Meeting, May 15, 2024, at 09:00 US Eastern Standard Time. Location: 1305 Cherrington Parkway, Building 210, Suite 400, Moon Township, PA United States Agenda: To consider the election of two Class I directors to serve for three-year term or until their respective successors shall have been selected or qualified; to vote to approve the amendment and restatement of the Company’s Stock Incentive Plan originally effective as of October 1, 2008 and amended and restated effective as of May 14, 2014; to consider Advisory vote to approve named executive officer compensation; and to consider the transaction of such other business as may properly come before the meeting and any adjournment or postponement thereof. Reported Earnings • Mar 18
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: US$0.61 loss per share (down from US$0.75 profit in FY 2022). Revenue: US$201.1m (down 17% from FY 2022). Net loss: US$7.14m (down 182% from profit in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates significantly. Revenue is expected to decline by 1.2% p.a. on average during the next 2 years, while revenues in the Professional Services industry in the US are expected to grow by 6.4%. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Price Target Changed • Feb 10
Price target decreased by 38% to US$14.95 Down from US$24.00, the current price target is an average from 2 analysts. New target price is 76% above last closing price of US$8.51. Stock is down 33% over the past year. The company is forecast to post earnings per share of US$0.31 next year compared to a net loss per share of US$0.61 last year. Reported Earnings • Feb 08
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: US$0.61 loss per share (down from US$0.75 profit in FY 2022). Revenue: US$201.1m (down 17% from FY 2022). Net loss: US$7.14m (down 182% from profit in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates significantly. Revenue is expected to decline by 1.2% p.a. on average during the next 2 years, while revenues in the Professional Services industry in the US are expected to grow by 6.4%. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Aankondiging • Jan 31
Gerhard Watzinger Announces Not to Stand for Reelection to the Board of Mastech Digital, Inc On January 24, 2024, Gerhard Watzinger, a member of the Board of Directors (the Board") of Mastech Digital, Inc. (the Company"), notified the Company of his decision not to seek reelection as a Class I director at the Company's 2024 Annual Meeting of Shareholders (the 2024 Annual Meeting"). In addition to currently serving as a Class I director on the Board, Mr. Watzinger currently serves as a member of the Audit, Compensation and Nominating and Corporate Governance Committees of the Board. Mr. Watzinger will continue to serve in such roles at the Company until his term as a Class I director on the Board expires at the 2024 Annual Meeting. Mr. Watzinger's decision not to seek reelection did not arise or result from any disagreement with the Company, but rather due to his desire to focus on personal commitments. Aankondiging • Dec 03
Michael Fleishman Resigns as Chief Executive Officer of Mastech InfoTrellis, Inc On November 27, 2023, Michael Fleishman resigned as Chief Executive Officer of Mastech InfoTrellis, Inc. (“Mastech InfoTrellis”), a wholly owned subsidiary of Mastech Digital, Inc. (the “Company”), effective immediately. Reported Earnings • Nov 02
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: US$0.011 (down from US$0.21 in 3Q 2022). Revenue: US$47.8m (down 24% from 3Q 2022). Net income: US$125.0k (down 95% from 3Q 2022). Profit margin: 0.3% (down from 3.8% in 3Q 2022). Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 78%. Revenue is forecast to stay flat during the next 2 years compared to a 6.8% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. New Risk • Oct 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: US$99.6m This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Market cap is less than US$100m (US$99.6m market cap). Major Estimate Revision • Aug 09
Consensus EPS estimates have been downgraded. The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$223.3m to US$205.5m. Now expected to report a loss of US$0.07 per share instead of US$0.335 per share profit previously forecast. Professional Services industry in the US expected to see average net income growth of 10.0% next year. Consensus price target broadly unchanged at US$25.25. Share price fell 8.9% to US$9.90 over the past week. New Risk • Aug 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 23% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Reported Earnings • Aug 03
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: US$0.19 loss per share (down from US$0.21 profit in 2Q 2022). Revenue: US$52.2m (down 16% from 2Q 2022). Net loss: US$2.17m (down 189% from profit in 2Q 2022). Revenue missed analyst estimates by 5.0%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 4.1% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has fallen by 21% per year, which means it is performing significantly worse than earnings. Price Target Changed • May 17
Price target decreased by 12% to US$25.00 Down from US$28.50, the current price target is an average from 2 analysts. New target price is 166% above last closing price of US$9.40. Stock is down 50% over the past year. The company is forecast to post earnings per share of US$0.39 for next year compared to US$0.75 last year. Reported Earnings • May 05
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: US$0.022 (down from US$0.20 in 1Q 2022). Revenue: US$55.1m (down 7.9% from 1Q 2022). Net income: US$261.0k (down 89% from 1Q 2022). Profit margin: 0.5% (down from 3.9% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.6%. Earnings per share (EPS) also missed analyst estimates by 88%. Revenue is forecast to grow 4.1% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Aankondiging • May 04
Mastech Digital, Inc. Reports Impairment Charges for the First Quarter Ended March 31, 2023 Mastech Digital, Inc. reported impairment charges for the first quarter ended March 31, 2023. For the quarter, the company reported goodwill, net of impairment of $32,510,000. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$10.06, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 21x in the Professional Services industry in the US. Total loss to shareholders of 19% over the past three years. Reported Earnings • Mar 28
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: US$0.75 (down from US$1.07 in FY 2021). Revenue: US$242.2m (up 9.1% from FY 2021). Net income: US$8.71m (down 29% from FY 2021). Profit margin: 3.6% (down from 5.5% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 2.5% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 3% per year. Price Target Changed • Feb 09
Price target decreased by 8.1% to US$28.50 Down from US$31.00, the current price target is an average from 2 analysts. New target price is 131% above last closing price of US$12.36. Stock is down 32% over the past year. The company is forecast to post earnings per share of US$0.80 for next year compared to US$0.75 last year. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improved over the past week After last week's 16% share price gain to US$14.00, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the Professional Services industry in the US. Total returns to shareholders of 14% over the past three years. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improved over the past week After last week's 18% share price gain to US$13.95, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the Professional Services industry in the US. Total returns to shareholders of 32% over the past three years. Reported Earnings • Nov 16
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: US$0.21 (down from US$0.30 in 3Q 2021). Revenue: US$63.2m (up 6.1% from 3Q 2021). Net income: US$2.41m (down 29% from 3Q 2021). Profit margin: 3.8% (down from 5.7% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 1 experienced director. 5 highly experienced directors. Independent Director Vlad Rak was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment deteriorated over the past week After last week's 17% share price decline to US$12.73, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 19x in the Professional Services industry in the US. Total returns to shareholders of 50% over the past three years. Reported Earnings • Nov 03
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: US$0.21 (down from US$0.30 in 3Q 2021). Revenue: US$63.2m (up 6.1% from 3Q 2021). Net income: US$2.41m (down 29% from 3Q 2021). Profit margin: 3.8% (down from 5.7% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Nov 02
Price target decreased to US$26.65 Down from US$32.00, the current price target is an average from 2 analysts. New target price is 74% above last closing price of US$15.31. Stock is down 18% over the past year. The company is forecast to post earnings per share of US$0.98 for next year compared to US$1.07 last year. Reported Earnings • Aug 04
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: US$0.21 (down from US$0.33 in 2Q 2021). Revenue: US$62.1m (up 16% from 2Q 2021). Net income: US$2.44m (down 35% from 2Q 2021). Profit margin: 3.9% (down from 7.0% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) missed analyst estimates by 22%. Over the next year, revenue is forecast to grow 8.3%, compared to a 6.8% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Apr 30
Price target decreased to US$33.00 Down from US$40.50, the current price target is an average from 2 analysts. New target price is 79% above last closing price of US$18.42. Stock is up 17% over the past year. The company is forecast to post earnings per share of US$1.18 for next year compared to US$1.07 last year. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: US$0.20 (up from US$0.10 in 1Q 2021). Revenue: US$59.8m (up 20% from 1Q 2021). Net income: US$2.33m (up 95% from 1Q 2021). Profit margin: 3.9% (up from 2.4% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 21%. Over the next year, revenue is forecast to grow 9.8%, compared to a 9.8% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. President, CEO & Director Vivek Gupta was the last director to join the board, commencing their role in 2016. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 17
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: US$1.07 (up from US$0.87 in FY 2020). Revenue: US$222.0m (up 14% from FY 2020). Net income: US$12.2m (up 24% from FY 2020). Profit margin: 5.5% (up from 5.1% in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.0%. Over the next year, revenue is forecast to grow 11%, compared to a 9.8% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Mar 08
Price target increased to US$54.00 Up from US$40.50, the current price target is an average from 2 analysts. New target price is 206% above last closing price of US$17.67. Stock is down 0.1% over the past year. The company is forecast to post earnings per share of US$1.18 for next year compared to US$1.07 last year. Reported Earnings • Feb 11
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: US$1.07 (up from US$0.87 in FY 2020). Revenue: US$222.0m (up 14% from FY 2020). Net income: US$12.2m (up 24% from FY 2020). Profit margin: 5.5% (up from 5.1% in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.0%. Over the next year, revenue is forecast to grow 13%, compared to a 9.3% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions Derivative • Nov 23
Chief Executive of Mastech InfoTrellis notifies of intention to sell stock Paul Burton intends to sell 76k shares in the next 90 days after lodging an Intent To Sell Form on the 17th of November. If the sale is conducted around the recent share price of US$19.45, it would amount to US$1.5m. Since March 2021, Paul has not owned shares directly (This sale likely refers to shares that have not yet been received). There have been no trades via on-market transactions or options from company insiders in the last 12 months. Reported Earnings • Oct 29
Third quarter 2021 earnings released: EPS US$0.30 (vs US$0.26 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: US$59.5m (up 26% from 3Q 2020). Net income: US$3.41m (up 14% from 3Q 2020). Profit margin: 5.7% (down from 6.3% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jul 30
Second quarter 2021 earnings released: EPS US$0.33 (vs US$0.26 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$53.7m (up 13% from 2Q 2020). Net income: US$3.74m (up 26% from 2Q 2020). Profit margin: 7.0% (up from 6.2% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 19% per year. Major Estimate Revision • Jul 29
Consensus EPS estimates increase to US$0.91 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from US$216.4m to US$220.8m. EPS estimate increased from US$0.74 to US$0.91 per share. Net income forecast to grow 31% next year vs 17% growth forecast for Professional Services industry in the US. Consensus price target of US$33.62 unchanged from last update. Share price was steady at US$17.20 over the past week. Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment improved over the past week After last week's 16% share price gain to US$18.70, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 21x in the Professional Services industry in the US. Total returns to shareholders of 82% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$33.42 per share. Major Estimate Revision • May 05
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from US$0.97 to US$0.74 per share. Revenue forecast steady at US$216.4m. Net income forecast to grow 17% next year vs 20% growth forecast for Professional Services industry in the US. Consensus price target of US$36.75 unchanged from last update. Share price fell 4.3% to US$16.00 over the past week. Reported Earnings • May 01
First quarter 2021 earnings released: EPS US$0.10 (vs US$0.17 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$49.8m (down 1.3% from 1Q 2020). Net income: US$1.19m (down 36% from 1Q 2020). Profit margin: 2.4% (down from 3.7% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 28% per year. Reported Earnings • Mar 18
Full year 2020 earnings released: EPS US$0.87 (vs US$1.01 in FY 2019) The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: US$194.1m (flat on FY 2019). Net income: US$9.86m (down 12% from FY 2019). Profit margin: 5.1% (down from 5.8% in FY 2019). Over the last 3 years on average, earnings per share has increased by 36% per year whereas the company’s share price has increased by 32% per year. Reported Earnings • Feb 12
Full year 2020 earnings released: EPS US$0.87 (vs US$1.01 in FY 2019) The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: US$194.1m (flat on FY 2019). Net income: US$9.86m (down 12% from FY 2019). Profit margin: 5.1% (down from 5.8% in FY 2019). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has increased by 47% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue and earnings miss expectations Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 21%, compared to a 8.8% growth forecast for the Professional Services industry in the US. Is New 90 Day High Low • Feb 09
New 90-day high: US$19.45 The company is up 3.0% from its price of US$18.94 on 10 November 2020. The American market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$29.21 per share. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improved over the past week After last week's 16% share price gain to US$19.45, the stock is trading at a trailing P/E ratio of 21.6x, up from the previous P/E ratio of 18.6x. This compares to an average P/E of 27x in the Professional Services industry in the US. Total returns to shareholders over the past three years are 289%. Is New 90 Day High Low • Jan 05
New 90-day low: US$15.40 The company is down 21% from its price of US$19.57 on 06 October 2020. The American market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$28.99 per share.