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.


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

3.7%

MHH

1.4%

US Professional Services

2.3%

US Market


1 Year Return

-13.6%

MHH

16.7%

US Professional Services

5.6%

US Market

Return vs Industry: MHH underperformed the US Professional Services industry which returned 16.7% over the past year.

Return vs Market: MHH underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

MHHIndustryMarket
7 Day3.7%1.4%2.3%
30 Day1.2%-0.8%-1.0%
90 Day14.9%0.5%-0.7%
1 Year-13.6%-13.6%17.8%16.7%7.9%5.6%
3 Year55.4%55.4%50.7%45.4%45.6%36.3%
5 Year8.4%8.4%86.7%76.8%65.8%47.6%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MHH ($5.96) is trading below our estimate of fair value ($27.36)

Significantly Undervalued: 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 (7x) compared to the Professional Services industry average (19.2x).

PE vs Market: MHH is good value based on its PE Ratio (7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate MHH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MHH is good value based on its PB Ratio (1.6x) compared to the US Professional Services industry average (2.4x).


Next Steps

Future Growth

How is Mastech Digital forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHH's forecast earnings growth (3.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MHH's earnings (3.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: MHH's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if MHH's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if MHH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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

Earnings Trend: MHH's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: MHH's earnings growth over the past year (91.1%) exceeds its 5-year average (20.3% per year).

Earnings vs Industry: MHH earnings growth over the past year (91.1%) exceeded the Professional Services industry 36.8%.


Return on Equity

High ROE: MHH's Return on Equity (22.6%) is considered high.


Return on Assets

ROA vs Industry: MHH has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: MHH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Mastech Digital's financial position?


Financial Position Analysis

Short Term Liabilities: MHH's short term assets ($41.0M) exceeds its short term liabilities ($21.2M)

Long Term Liabilities: MHH's short term assets (41.0M) exceeds its long term liabilities (33.5M)


Debt to Equity History and Analysis

Debt Level: MHH's debt to equity ratio (78.9%) is considered high

Reducing Debt: Insufficient data to determine if MHH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MHH's debt is well covered by operating cash flow (26.9%).

Interest Coverage: MHH's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: MHH has a low level of unsold assets or inventory.

Debt Coverage by Assets: MHH's debt is covered by short term assets (assets are 1.244920x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MHH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


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)

3.6yrs

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

Compensation vs. Market: Vivek's total compensation ($USD661.99K) is about average for companies of similar size in the US market ($USD493.00K).

Compensation vs Earnings: Vivek's compensation has increased by more than 20% in the past year.


Management Age and Tenure

7.3yrs

Average Tenure

66yo

Average Age

Experienced Management: MHH's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

11.0yrs

Average Tenure

66yo

Average Age

Experienced Board: MHH's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Sunil Wadhwani (66yo)

    Co-Founder & Co-Chairman

    • Tenure: 11yrs
  • Ashok Trivedi (69yo)

    Co-Founder & Co-Chairman

    • Tenure: 11yrs
  • Vivek Gupta (56yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$661.99k
  • Jack Cronin (66yo)

    CFO & Corporate Secretary

    • Tenure: 11.1yrs
    • 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: 23yrs
  • Sameer Srivastava

    Head of Alliance

    • Tenure: 0yrs
  • VV Shetty

    Head of Human Resources & Senior VP

    • Tenure: 3.3yrs
  • Mike Bryan

    Head of Direct Sales

    • Tenure: 0yrs

Board Members

  • Sunil Wadhwani (66yo)

    Co-Founder & Co-Chairman

    • Tenure: 11yrs
  • Ashok Trivedi (69yo)

    Co-Founder & Co-Chairman

    • Tenure: 11yrs
  • Brenda Galilee (66yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$90.00k
  • John Ausura (66yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$94.00k
  • Gerhard Watzinger (59yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$90.00k
  • Vivek Gupta (56yo)

    President

    • Tenure: 3.6yrs
    • 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$65.758m
  • 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 Analysis2019/10/17 00:04
End of Day Share Price2019/10/16 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.