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MHH

Mastech Digital NYSEAM:MHH Stock Report

Last Price

US$18.67

Market Cap

US$209.0m

7D

3.4%

1Y

14.6%

Updated

17 May, 2022

Data

Company Financials +
MHH fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends0/6

MHH Stock Overview

Mastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States.

Mastech Digital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mastech Digital
Historical stock prices
Current Share PriceUS$18.67
52 Week HighUS$21.83
52 Week LowUS$14.00
Beta0.53
1 Month Change-10.20%
3 Month Change-0.37%
1 Year Change14.61%
3 Year Change259.04%
5 Year Change449.12%
Change since IPO418.61%

Recent News & Updates

Shareholder Returns

MHHUS Professional ServicesUS Market
7D3.4%1.3%2.7%
1Y14.6%-13.6%-8.1%

Return vs Industry: MHH exceeded the US Professional Services industry which returned -16.1% over the past year.

Return vs Market: MHH exceeded the US Market which returned -10.8% over the past year.

Price Volatility

Is MHH's price volatile compared to industry and market?
MHH volatility
MHH Average Weekly Movement7.6%
Professional Services Industry Average Movement6.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: MHH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MHH's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19861,663Vivek Guptahttps://www.mastechdigital.com

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.

Mastech Digital Fundamentals Summary

How do Mastech Digital's earnings and revenue compare to its market cap?
MHH fundamental statistics
Market CapUS$209.02m
Earnings (TTM)US$13.36m
Revenue (TTM)US$231.99m

16.2x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MHH income statement (TTM)
RevenueUS$231.99m
Cost of RevenueUS$169.42m
Gross ProfitUS$62.57m
Other ExpensesUS$49.21m
EarningsUS$13.36m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.15
Gross Margin26.97%
Net Profit Margin5.76%
Debt/Equity Ratio14.9%

How did MHH perform over the long term?

See historical performance and comparison

Valuation

Is Mastech Digital undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MHH ($18.67) is trading below our estimate of fair value ($84.92)

Significantly Below Fair Value: MHH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MHH is good value based on its PE Ratio (16.2x) compared to the US Professional Services industry average (16.9x).

PE vs Market: MHH is poor value based on its PE Ratio (16.2x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: MHH is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: MHH is overvalued based on its PB Ratio (2.8x) compared to the US Professional Services industry average (2.6x).


Future Growth

How is Mastech Digital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


24.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHH's forecast earnings growth (24.7% per year) is above the savings rate (1.9%).

Earnings vs Market: MHH's earnings (24.7% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MHH's revenue (9.3% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: MHH's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MHH's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Mastech Digital performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


28.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MHH has high quality earnings.

Growing Profit Margin: MHH's current net profit margins (5.8%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: MHH's earnings have grown significantly by 28.4% per year over the past 5 years.

Accelerating Growth: MHH's earnings growth over the past year (45.4%) exceeds its 5-year average (28.4% per year).

Earnings vs Industry: MHH earnings growth over the past year (45.4%) exceeded the Professional Services industry 32.6%.


Return on Equity

High ROE: MHH's Return on Equity (17.1%) is considered low.


Financial Health

How is Mastech Digital's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MHH's short term assets ($57.2M) exceed its short term liabilities ($26.8M).

Long Term Liabilities: MHH's short term assets ($57.2M) exceed its long term liabilities ($11.9M).


Debt to Equity History and Analysis

Debt Level: MHH's net debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: MHH's debt to equity ratio has reduced from 68.3% to 14.9% over the past 5 years.

Debt Coverage: MHH's debt is well covered by operating cash flow (51.5%).

Interest Coverage: MHH's interest payments on its debt are well covered by EBIT (27.5x coverage).


Balance Sheet


Dividend

What is Mastech Digital current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MHH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MHH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MHH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MHH's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MHH has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Vivek Gupta (58 yo)

6.17yrs

Tenure

US$1,139,252

Compensation

Mr. Vivek Gupta has been the Chief Executive Officer and President of Mastech Digital, Inc. since March 01, 2016 and Mastech Digital Technologies, Inc. since March 09, 2016. Mr. Gupta serves as Chief Execu...


CEO Compensation Analysis

Compensation vs Market: Vivek's total compensation ($USD1.14M) is below average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Vivek's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MHH's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: MHH's board of directors are seasoned and experienced ( 13.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mastech Digital, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Mastech Digital, Inc.
  • Ticker: MHH
  • Exchange: NYSEAM
  • Founded: 1986
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Implied Market Cap: US$209.020m
  • Shares outstanding: 11.60m
  • Website: https://www.mastechdigital.com

Number of Employees


Location

  • Mastech Digital, Inc.
  • Building 210
  • Suite 400
  • Pittsburgh
  • Pennsylvania
  • 15108
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.