AMEX:MHH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with solid track record.

Risks

  • Mastech Digital is not covered by any analysts.

Similar Companies

Share Price & News

How has Mastech Digital's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.7%

AMEX:MHH

1.0%

US Professional Services

-0.02%

US Market


1 Year Return

-41.7%

AMEX:MHH

11.3%

US Professional Services

1.6%

US Market

MHH underperformed the Professional Services industry which returned 10.8% over the past year.

MHH underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

MHHIndustryMarket
7 Day-2.7%1.0%-0.02%
30 Day1.6%0.4%2.7%
90 Day18.7%5.4%1.4%
1 Year-41.7%-41.7%12.3%11.3%3.8%1.6%
3 Year50.0%50.0%50.8%45.6%45.2%35.8%
5 Year9.4%9.4%84.5%74.5%61.8%44.1%

Price Volatility Vs. Market

How volatile is Mastech Digital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mastech Digital undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Mastech Digital's share price is below the future cash flow value, and at a moderate discount (> 20%).

Mastech Digital's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Mastech Digital is good value based on earnings compared to the US Professional Services industry average.

Mastech Digital is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Mastech Digital, we can't assess if its growth is good value.


Price Based on Value of Assets

Mastech Digital is good value based on assets compared to the US Professional Services industry average.


Next Steps

Future Growth

How is Mastech Digital expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Mastech Digital is high growth as no revenue estimate data is available.

Mastech Digital's earnings are expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

Unable to compare Mastech Digital's revenue growth to the United States of America market average as no estimate data is available.

Mastech Digital's earnings growth is positive but not above the United States of America market average.

Mastech Digital's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Mastech Digital will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Mastech Digital performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mastech Digital has delivered over 20% year on year earnings growth in the past 5 years.

Mastech Digital's 1-year earnings growth exceeds its 5-year average (91.1% vs 20.3%)

Mastech Digital's earnings growth has exceeded the US Professional Services industry average in the past year (91.1% vs 37.9%).


Return on Equity

Mastech Digital has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Mastech Digital used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

Mastech Digital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Mastech Digital's financial position?


Financial Position Analysis

Mastech Digital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Mastech Digital's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Mastech Digital's level of debt (78.9%) compared to net worth is high (greater than 40%).

Unable to establish if Mastech Digital's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (26.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Mastech Digital's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Mastech Digital's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Mastech Digital has not reported any payouts.

Unable to verify if Mastech Digital's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Mastech Digital has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Mastech Digital's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Vivek Gupta (56yo)

3.5yrs

Tenure

US$661,985

Compensation

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


CEO Compensation Analysis

Vivek's remuneration is higher than average for companies of similar size in United States of America.

Vivek's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.3yrs

Average Tenure

66yo

Average Age

The average tenure for the Mastech Digital management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.0yrs

Average Tenure

66yo

Average Age

The average tenure for the Mastech Digital board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sunil Wadhwani (66yo)

    Co-Founder & Co-Chairman

    • Tenure: 10.9yrs
  • Ashok Trivedi (69yo)

    Co-Founder & Co-Chairman

    • Tenure: 10.9yrs
  • Vivek Gupta (56yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$661.99k
  • Jack Cronin (66yo)

    CFO & Corporate Secretary

    • Tenure: 11yrs
    • Compensation: US$818.66k
  • Shipra Sharma

    Head of Recruitment

    • Tenure: 0yrs
  • Jenna Lacey

    Head of Legal & Admin

    • Tenure: 0yrs
  • Donna Kijowski

    Manager of Investor Relations

    • Tenure: 22.9yrs
  • Sameer Srivastava

    Head of Alliance

    • Tenure: 0yrs
  • VV Shetty

    Head of Human Resources & Senior VP

    • Tenure: 3.2yrs
  • Mike Bryan

    Head of Direct Sales

    • Tenure: 0yrs

Board Members

  • Sunil Wadhwani (66yo)

    Co-Founder & Co-Chairman

    • Tenure: 10.9yrs
  • Ashok Trivedi (69yo)

    Co-Founder & Co-Chairman

    • Tenure: 10.9yrs
  • Brenda Galilee (66yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$90.00k
  • John Ausura (66yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$94.00k
  • Gerhard Watzinger (59yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$90.00k
  • Vivek Gupta (56yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$661.99k

Company Information

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


Key Information

  • Name: Mastech Digital, Inc.
  • Ticker: MHH
  • Exchange: AMEX
  • Founded: 1986
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$63.330m
  • Shares outstanding: 11.03m
  • Website: https://www.mastechdigital.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MHHAMEX (NYSE MKT LLC)YesCommon StockUSUSDSep 2008

Biography

Mastech Digital, Inc. provides digital transformation IT services to large, medium-sized organizations, and small companies in the United States. It operates through two segments, Data and Analytics Servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 00:02
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.