Mastech Digital, Inc. (MHH) 10-Year Financial Performance & Capital Metrics

MHH • • Industrial / General

IndustrialsStaffing & HRSpecialized Professional StaffingIT & Technology Staffing Specialists

AboutMastech 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. It also provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social, automation, business intelligence/data warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. In addition, the company offers digital transformation services, such as digital learning services; and cloud-based enterprise application across sales, marketing, and customer service organizations. It provides its services across various industry verticals, including financial services, government, healthcare, manufacturing, retail, technology, telecommunications, and transportation. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.Show more

Revenue $199M -1.1%
EBITDA $7M +234.5%
Net Income $3M +147.7%
EPS (Diluted) 0.28 +145.9%
Gross Margin 27.95% +10.1%
EBITDA Margin 3.66% +236.0%
Operating Margin 1.91% +141.3%
Net Margin 1.71% +148.2%
ROE 4.03% +147.3%
ROIC 4.41% +147.3%
Debt/Equity 0.04 -31.2%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong Piotroski F-Score: 7/9
✓High quality earnings: Operating CF exceeds net income
✓Trading at only 1.0x book value
✓Efficient asset utilization: 1.8x turnover

✗Weaknesses

✗Weak 3Y average ROE of 2.1%
✗Profits declining 21.1% over 5 years
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y5.77%

5Y0.55%

3Y-3.59%

TTM1.24%

Profit (Net Income) CAGR

10Y-0.06%

5Y-21.13%

3Y-34.71%

TTM97.06%

EPS CAGR

10Y-3.26%

5Y-22.32%

3Y-35.01%

TTM97.78%

ROCE

10Y Avg13.29%

5Y Avg9.25%

3Y Avg2.5%

Latest4.3%

Peer Comparison

IT & Technology Staffing Specialists

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MHHMastech Digital, Inc.	85.74M	7.33	26.18	-1.07%	-0.03%	-0.07%	7.29%	0.04
KFRCKforce Inc.	627.86M	34.61	13.21	-8.26%	3.04%	30.82%	12.63%	0.31

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	123.47M	132.01M	147.88M	177.16M	193.57M	194.1M	222.01M	242.24M	201.1M	198.94M
Revenue Growth %	0.09%	0.07%	0.12%	0.2%	0.09%	0%	0.14%	0.09%	-0.17%	-0.01%
Cost of Goods Sold+	99.67M	105.71M	116.25M	134.64M	145.59M	142.56M	162.57M	179.06M	150.06M	143.35M
COGS % of Revenue	0.81%	0.8%	0.79%	0.76%	0.75%	0.73%	0.73%	0.74%	0.75%	0.72%
Gross Profit+	23.8M	26.3M	31.63M	42.53M	47.98M	51.54M	59.44M	63.18M	51.04M	55.6M
Gross Margin %	0.19%	0.2%	0.21%	0.24%	0.25%	0.27%	0.27%	0.26%	0.25%	0.28%
Gross Profit Growth %	0.14%	0.1%	0.2%	0.34%	0.13%	0.07%	0.15%	0.06%	-0.19%	0.09%
Operating Expenses+	19.12M	21.79M	27.55M	30.9M	30.99M	38.14M	41.83M	50.98M	60.31M	51.81M
OpEx % of Revenue	0.15%	0.17%	0.19%	0.17%	0.16%	0.2%	0.19%	0.21%	0.3%	0.26%
Selling, General & Admin	19.12M	21.79M	27.55M	30.9M	22.36M	22.68M	18.5M	20.8M	23.7M	23.1M
SG&A % of Revenue	0.15%	0.17%	0.19%	0.17%	0.12%	0.12%	0.08%	0.09%	0.12%	0.12%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	8.63M	15.46M	23.33M	30.18M	36.61M	28.71M
Operating Income+	4.68M	4.51M	4.08M	11.63M	16.99M	13.4M	17.61M	12.2M	-9.28M	3.79M
Operating Margin %	0.04%	0.03%	0.03%	0.07%	0.09%	0.07%	0.08%	0.05%	-0.05%	0.02%
Operating Income Growth %	-0.15%	-0.04%	-0.09%	1.85%	0.46%	-0.21%	0.31%	-0.31%	-1.76%	1.41%
EBITDA+	5.34M	5.52M	6.02M	14.81M	20.42M	16.99M	21.59M	16.39M	-5.42M	7.29M
EBITDA Margin %	0.04%	0.04%	0.04%	0.08%	0.11%	0.09%	0.1%	0.07%	-0.03%	0.04%
EBITDA Growth %	-0.06%	0.03%	0.09%	1.46%	0.38%	-0.17%	0.27%	-0.24%	-1.33%	2.35%
D&A (Non-Cash Add-back)	660K	1.02M	1.94M	3.18M	3.43M	3.59M	3.98M	4.2M	3.85M	3.5M
EBIT	4.68M	4.51M	4.08M	10.31M	10.81M	14.05M	14.87M	13.6M	-9.03M	5.89M
Net Interest Income+	0	0	0	0	-1.81M	-987K	-675K	-358K	319K	606K
Interest Income	0	0	0	0	0	0	0	0	319K	606K
Interest Expense	0	0	0	0	1.81M	987K	675K	358K	0	0
Other Income/Expense	-257K	-487K	-1.13M	-2.21M	-1.77M	-770K	-724K	292K	244K	633K
Pretax Income+	4.42M	4.02M	2.95M	9.41M	15.22M	12.63M	16.89M	12.49M	-9.03M	4.42M
Pretax Margin %	0.04%	0.03%	0.02%	0.05%	0.08%	0.07%	0.08%	0.05%	-0.04%	0.02%
Income Tax+	1.67M	1.5M	1.32M	2.72M	4.07M	2.77M	4.67M	3.78M	-1.89M	1.02M
Effective Tax Rate %	0.62%	0.63%	0.55%	0.71%	0.73%	0.78%	0.72%	0.7%	0.79%	0.77%
Net Income+	2.75M	2.52M	1.63M	6.69M	11.14M	9.86M	12.22M	8.71M	-7.14M	3.4M
Net Margin %	0.02%	0.02%	0.01%	0.04%	0.06%	0.05%	0.06%	0.04%	-0.04%	0.02%
Net Income Growth %	-0.2%	-0.08%	-0.35%	3.12%	0.67%	-0.12%	0.24%	-0.29%	-1.82%	1.48%
Net Income (Continuing)	2.75M	2.52M	1.63M	6.69M	11.14M	9.86M	12.22M	8.71M	-7.14M	3.4M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.31	0.28	0.17	0.60	0.99	0.83	1.02	0.72	-0.61	0.28
EPS Growth %	-0.21%	-0.1%	-0.39%	2.53%	0.65%	-0.16%	0.23%	-0.29%	-1.85%	1.46%
EPS (Basic)	0.32	0.28	0.17	0.61	1.01	0.87	1.07	0.75	-0.61	0.29
Diluted Shares Outstanding	8.88M	8.96M	10M	11.16M	11.23M	11.95M	12.01M	12.08M	11.61M	12.01M
Basic Shares Outstanding	8.68M	8.79M	9.92M	10.95M	11.03M	11.29M	11.44M	11.59M	11.61M	11.67M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	20.84M	22.96M	34.67M	40.9M	36.93M	41.16M	53.91M	53.17M	56.46M	66.2M
Cash & Short-Term Investments	848K	829K	2.48M	1.29M	2.98M	7.68M	6.62M	7.06M	21.15M	27.74M
Cash Only	848K	829K	2.48M	1.29M	2.98M	7.68M	6.62M	7.06M	21.15M	27.74M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	19.19M	21.1M	30.66M	38.08M	32.35M	32.13M	43.39M	42.32M	29.82M	31.44M
Days Sales Outstanding	56.73	58.35	75.68	78.45	61	60.43	71.34	63.77	54.12	57.69
Inventory	0	0	-9K	208K	0	0	0	0	0	0
Days Inventory Outstanding	-	-	-	0.56	-	-	-	-	-	-
Other Current Assets	804K	52K	1.53M	1.32M	0	0	0	3.79M	5.5M	7.02M
Total Non-Current Assets+	17.64M	16.53M	63.93M	51.68M	53.65M	60.89M	60.16M	55.7M	48.76M	45.28M
Property, Plant & Equipment	656K	558K	1.9M	2.21M	7.09M	5.26M	7.93M	6.55M	7.02M	5.83M
Fixed Asset Turnover	188.22x	236.57x	77.87x	80.24x	27.29x	36.92x	27.99x	36.98x	28.65x	34.12x
Goodwill	8.43M	8.43M	35.84M	26.11M	26.11M	32.51M	32.51M	32.51M	27.21M	27.21M
Intangible Assets	8.13M	7.31M	25.46M	22.74M	20.05M	21.93M	18.76M	15.77M	13M	10.31M
Long-Term Investments	0	-280K	0	0	-1.02M	0	0	0	0	0
Other Non-Current Assets	334K	229K	255K	540K	405K	396K	961K	-49K	741K	633K
Total Assets+	38.48M	39.49M	98.6M	92.58M	90.58M	102.05M	114.07M	108.88M	105.23M	111.48M
Asset Turnover	3.21x	3.34x	1.50x	1.91x	2.14x	1.90x	1.95x	2.22x	1.91x	1.78x
Asset Growth %	0.92%	0.03%	1.5%	-0.06%	-0.02%	0.13%	0.12%	-0.05%	-0.03%	0.06%
Total Current Liabilities+	11.94M	12.26M	20.11M	17.91M	19.09M	21.97M	26.84M	19.56M	19.87M	20.58M
Accounts Payable	2.21M	1.96M	5.03M	4.13M	4.03M	2.59M	4.95M	4.47M	4.66M	4.68M
Days Payables Outstanding	8.1	6.78	15.79	11.19	10.1	6.63	11.12	9.12	11.33	11.92
Short-Term Debt	1.8M	1.8M	4M	4.58M	5.97M	4.4M	4.4M	1.1M	0	0
Deferred Revenue (Current)	1000K	849K	1000K	258K	237K	478K	544K	207K	684K	329K
Other Current Liabilities	0	0	0	0	-442K	1.05M	0	0	0	0
Current Ratio	1.75x	1.87x	1.72x	2.28x	1.93x	1.87x	2.01x	2.72x	2.84x	3.22x
Quick Ratio	1.75x	1.87x	1.72x	2.27x	1.93x	1.87x	2.01x	2.72x	2.84x	3.22x
Cash Conversion Cycle	-	-	-	67.83	-	-	-	-	-	-
Total Non-Current Liabilities+	10.74M	8.16M	51.34M	40.4M	25.21M	20.54M	12.8M	3.32M	3.91M	3.47M
Long-Term Debt	10.74M	8.08M	34.15M	34.13M	20.68M	12.88M	8.7M	0	0	0
Capital Lease Obligations	0	0	0	0	3.32M	2.33M	3.71M	2.29M	3.84M	2.49M
Deferred Tax Liabilities	0	26K	481K	741K	1.02M	2.22M	265K	920K	0	0
Other Non-Current Liabilities	0	59K	17.19M	6.27M	185K	5.34M	125K	105K	69K	987K
Total Liabilities	22.67M	20.42M	71.45M	58.31M	44.3M	42.51M	39.64M	22.88M	23.78M	24.05M
Total Debt+	12.54M	9.94M	38.15M	38.7M	31.37M	20.68M	18.29M	4.9M	5.08M	3.75M
Net Debt	11.69M	9.11M	35.67M	37.41M	28.39M	13M	11.66M	-2.16M	-16.07M	-23.99M
Debt / Equity	0.79x	0.52x	1.41x	1.13x	0.68x	0.35x	0.25x	0.06x	0.06x	0.04x
Debt / EBITDA	2.35x	1.80x	6.33x	2.61x	1.54x	1.22x	0.85x	0.30x	-	0.51x
Net Debt / EBITDA	2.19x	1.65x	5.92x	2.53x	1.39x	0.77x	0.54x	-0.13x	-	-3.29x
Interest Coverage	-	-	-	-	9.38x	13.58x	26.09x	34.08x	-	-
Total Equity+	15.8M	19.07M	27.15M	34.28M	46.28M	59.53M	74.43M	86M	81.44M	87.43M
Equity Growth %	0.23%	0.21%	0.42%	0.26%	0.35%	0.29%	0.25%	0.16%	-0.05%	0.07%
Book Value per Share	1.78	2.13	2.72	3.07	4.12	4.98	6.20	7.12	7.01	7.28
Total Shareholders' Equity	15.8M	19.07M	27.15M	34.28M	46.28M	59.53M	74.43M	86M	81.44M	87.43M
Common Stock	52K	53K	63K	126K	127K	130K	131K	133K	133K	135K
Retained Earnings	6.78M	9.3M	10.92M	17.61M	28.76M	38.62M	50.84M	59.55M	52.41M	55.82M
Treasury Stock	-4.12M	-4.13M	-4.15M	-4.17M	-4.19M	-4.19M	-4.19M	-4.19M	-4.8M	-4.88M
Accumulated OCI	-19K	-7K	17K	-119K	-358K	-539K	-607K	-1.55M	-1.64M	-1.91M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	3.03M	2.29M	3.36M	-471K	16.08M	21.23M	5.22M	12.62M	15.98M	7.19M
Operating CF Margin %	0.02%	0.02%	0.02%	-0%	0.08%	0.11%	0.02%	0.05%	0.08%	0.04%
Operating CF Growth %	-0.07%	-0.24%	0.46%	-1.14%	35.15%	0.32%	-0.75%	1.42%	0.27%	-0.55%
Net Income	2.75M	2.52M	1.63M	6.69M	11.14M	9.86M	12.22M	8.71M	-7.14M	3.4M
Depreciation & Amortization	660K	1.02M	1.94M	3.18M	3.43M	3.59M	3.98M	4.2M	3.85M	3.5M
Stock-Based Compensation	262K	408K	381K	470K	936K	0	2.21M	2.23M	3.08M	2.2M
Deferred Taxes	-1K	55K	-166K	307K	1.3M	-1.82M	1.02M	635K	-1.75M	-578K
Other Non-Cash Items	85K	113K	123K	-1.2M	-5.79M	2.31M	-2.49M	-256K	5.42M	935K
Working Capital Changes	-732K	-1.82M	-549K	-9.92M	5.05M	7.29M	-11.73M	-2.9M	12.51M	-2.27M
Change in Receivables	-4.02M	-1.99M	-3.32M	-7.43M	5.65M	2.13M	-11.39M	1.02M	12.54M	-1.41M
Change in Inventory	2.4M	0	854K	-1.42M	-5.65M	0	0	0	0	0
Change in Payables	699K	-250K	1.69M	-901K	-100K	-1.61M	2.37M	-479K	186K	39K
Cash from Investing+	-17.12M	-38K	-35.93M	-1.06M	-879K	-9.63M	-2.08M	-818K	-216K	-941K
Capital Expenditures	-168K	-105K	-1.13M	-771K	-1.01M	-298K	-1.9M	-835K	-335K	-941K
CapEx % of Revenue	0%	0%	0.01%	0%	0.01%	0%	0.01%	0%	0%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	31K	67K	-8K	-285K	135K	9K	-189K	17K	119K	0
Cash from Financing+	12.38M	-2.27M	34.23M	550K	-13.39M	-6.71M	-4.09M	-10.41M	-1.58M	654K
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	45K	342K	-365K	47K	7K	0	6K	1.32M	-64K	511K
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	2.86M	2.19M	2.23M	-1.24M	15.07M	20.93M	3.32M	11.78M	15.64M	6.25M
FCF Margin %	0.02%	0.02%	0.02%	-0.01%	0.08%	0.11%	0.01%	0.05%	0.08%	0.03%
FCF Growth %	0.11%	-0.24%	0.02%	-1.56%	13.13%	0.39%	-0.84%	2.55%	0.33%	-0.6%
FCF per Share	0.32	0.24	0.22	-0.11	1.34	1.75	0.28	0.98	1.35	0.52
FCF Conversion (FCF/Net Income)	1.10x	0.91x	2.06x	-0.07x	1.44x	2.15x	0.43x	1.45x	-2.24x	2.11x
Interest Paid	243K	430K	925K	2.06M	1.78M	0	623K	324K	43K	0
Taxes Paid	309K	2.3M	1.51M	2.03M	2.63M	0	3.83M	2.16M	1.36M	2.23M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	19.2%	14.45%	7.04%	21.78%	27.67%	18.64%	18.25%	10.86%	-8.53%	4.03%
Return on Invested Capital (ROIC)	18.58%	12.14%	6.73%	12.96%	17.41%	13.66%	16.65%	10.77%	-9.32%	4.41%
Gross Margin	19.28%	19.92%	21.39%	24%	24.79%	26.55%	26.78%	26.08%	25.38%	27.95%
Net Margin	2.23%	1.91%	1.1%	3.78%	5.76%	5.08%	5.5%	3.6%	-3.55%	1.71%
Debt / Equity	0.79x	0.52x	1.41x	1.13x	0.68x	0.35x	0.25x	0.06x	0.06x	0.04x
Interest Coverage	-	-	-	-	9.38x	13.58x	26.09x	34.08x	-	-
FCF Conversion	1.10x	0.91x	2.06x	-0.07x	1.44x	2.15x	0.43x	1.45x	-2.24x	2.11x
Revenue Growth	8.76%	6.92%	12.03%	19.8%	9.26%	0.27%	14.38%	9.11%	-16.98%	-1.07%

Revenue by Segment

	2017	2018	2019	2020	2021	2022	2023	2024
IT staffing services	138.7M	153.36M	166.91M	163.88M	183.67M	201.64M	166.74M	162.32M
IT staffing services Growth	-	10.57%	8.84%	-1.82%	12.08%	9.78%	-17.31%	-2.65%
Data and analytics services	9.19M	23.8M	26.66M	30.23M	38.34M	40.59M	34.36M	36.63M
Data and analytics services Growth	-	159.15%	12.02%	13.36%	26.84%	5.88%	-15.36%	6.60%

Revenue by Geography

	2017	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	145.51M	172.61M	188.71M	189.89M	212.36M	236.19M	197.25M	195.46M
UNITED STATES Growth	-	18.62%	9.33%	0.63%	11.83%	11.22%	-16.49%	-0.91%
India and other	-	1.43M	1.95M	608K	3.09M	1.84M	1.38M	2.45M
India and other Growth	-	-	36.18%	-68.76%	408.22%	-40.58%	-24.95%	77.58%
CANADA	1.73M	3.13M	2.92M	3.6M	6.57M	4.21M	2.47M	1.04M
CANADA Growth	-	80.74%	-6.62%	23.47%	82.24%	-35.81%	-41.30%	-57.92%
INDIA	640K	-	-	-	-	-	-	-
INDIA Growth	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Mastech Digital, Inc. (MHH) has a price-to-earnings (P/E) ratio of 26.2x. This suggests investors expect higher future growth.

Growth & Financials

Mastech Digital, Inc. (MHH) reported $196.7M in revenue for fiscal year 2024. This represents a 120% increase from $89.4M in 2011.

Mastech Digital, Inc. (MHH) saw revenue decline by 1.1% over the past year.

Mastech Digital, Inc. (MHH) reported a net loss of $0.1M for fiscal year 2024.

Dividend & Returns

Mastech Digital, Inc. (MHH) has a return on equity (ROE) of 4.0%. This is below average, suggesting room for improvement.

Mastech Digital, Inc. (MHH) generated $10.3M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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