Mastech Holdings Inc (MHH)
XASE:MHH
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Mastech Holdings
(NYSE MKT:MHH)
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Rating:65Neutral
Price Target:
$8.50
▲(7.87% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by strong financial resilience (low leverage and dependable free cash flow) and supportive price trend (above major moving averages). It is held back by expensive valuation (P/E ~40.6) and mixed fundamentals from the latest call—continued double-digit revenue decline and headcount/billable consultant contraction despite improving profitability and encouraging Data & AI new-bookings momentum.
Positive Factors
Balance sheet strength
Very low leverage and a sizable cash balance give Mastech durable financial flexibility. Over the next 2–6 months this cushion supports capital allocation choices (investment in AI, lease expansion, share buybacks) and provides downside protection versus cyclical staffing demand.
Negative Factors
Multi-year revenue decline
Persistent top-line contraction reduces operating leverage and constrains margin expansion. If the trend persists, it will limit scale benefits from AI investments, require ongoing cost discipline, and pressure management’s ability to restore pre‑downturn revenue levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and a sizable cash balance give Mastech durable financial flexibility. Over the next 2–6 months this cushion supports capital allocation choices (investment in AI, lease expansion, share buybacks) and provides downside protection versus cyclical staffing demand.
Read all positive factors
Mastech Holdings (MHH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.83M
Dividend YieldN/A
Average Volume (3M)34.29K
Price to Earnings (P/E)39.7
Beta (1Y)1.02
Revenue Growth-8.13%
EPS Growth7.78%
CountryUS
Employees1,525
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding11,998,186
10 Day Avg. Volume46,763
30 Day Avg. Volume34,294
Financial Highlights & Ratios
PEG Ratio-1.64
Price to Book (P/B)0.92
Price to Sales (P/S)0.43
P/FCF Ratio7.62
Enterprise Value/Market Cap0.64
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit1.19
Enterprise Value/Ebitda8.91
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.46
Revenue Forecast (FY)$165.87M
Mastech Holdings Business Overview & Revenue Model
Company Description
Mastech Digital, Inc., along with its subsidiaries, is a prominent provider of digital transformation and IT solutions. It serves a diverse clientele of businesses, from small enterprises to large corporations, throughout the United States. The co...
How the Company Makes Money
Mastech Holdings makes money primarily by supplying skilled professionals to client organizations and charging fees tied to those labor services. A major revenue stream is staffing/consulting services where Mastech recruits, places, and manages co...
Mastech Holdings Earnings Call Summary
Earnings Call Date:May 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixed view: meaningful operational progress and financial improvements (turn to GAAP profitability, strong cash position, EDGE efficiencies, historic new bookings momentum in Data & AI, and a strategic healthcare win) were offset by continued top‑line pressure (consolidated revenue down 15%, Data & AI down 21.3%, Talent down 11.8%), a notable reduction in billable consultants, and persistent market uncertainty and backlog headwinds. Management emphasized momentum in bookings, realignment into two segments to enable cross‑sell, and a shift from cost savings to targeted investments in AI and data capabilities.Positive Updates
Consolidated Profitability Improvement
GAAP net income of $0.3 million ($0.02 per diluted share) vs. a net loss of $1.4 million (−$0.12) in the prior year; non‑GAAP net income of $1.3 million ($0.11 per diluted share) vs. $0.8 million ($0.06) prior year.
Negative Updates
Consolidated Revenue Decline
Consolidated revenue of $41.1 million, down 15.0% year‑over‑year, reflecting continued top‑line pressure amid market uncertainty and structural changes.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Profitability Improvement
GAAP net income of $0.3 million ($0.02 per diluted share) vs. a net loss of $1.4 million (−$0.12) in the prior year; non‑GAAP net income of $1.3 million ($0.11 per diluted share) vs. $0.8 million ($0.06) prior year.
Read all positive updates
Company Guidance
The company explicitly said it provided no forward-looking guidance on the call (and will not do so in subsequent 1-on-1s); instead management discussed operating priorities and reported results: consolidated Q1 revenue $41.1M (down 15% YoY) with Talent $28.5M (down 11.8%) and Data & AI $12.6M (down 21.3%), Q1 bookings TCV $13.6M (vs $15.3M prior year) and new bookings a historic-high $7.0M (vs $3.7M), gross profit $11.0M (down 14.5%) with gross margin +10 bps, GAAP net income $0.3M ($0.02 diluted) vs a $1.4M loss a year ago, non‑GAAP net income $1.3M ($0.11) vs $0.8M ($0.06), bill rate a company high $90.91 (vs $87.82), available consultants down 163 (619 billable vs 782 a year ago, total headcount 1,420 at 3/31 vs 1,750 a year ago and 1,460 in April), cash $33.6M, $21.3M available on the revolver, DSO 60 days, a $5.0M share‑repurchase authorization fully available, and management said Edge efficiencies have been realized and will be redeployed (noting a one‑time prior $1.4M severance), with SG&A expected to step up from Q2 as they disproportionately invest in AI engineering and modern data platform capabilities; normalized tax rate projected ~24–25% (Q1 included a one‑time effect).Mastech Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 184.14M | 191.37M | 198.94M | 201.10M | 242.24M | 222.01M |
| Gross Profit | 50.54M | 53.06M | 55.60M | 51.04M | 63.18M | 59.44M |
| EBITDA | 6.78M | 4.39M | 9.39M | -5.18M | 17.79M | 18.85M |
| Net Income | 2.31M | 609.00K | 3.40M | -7.14M | 8.71M | 12.22M |
Balance Sheet | ||||||
| Total Assets | 107.99M | 111.84M | 111.48M | 105.23M | 108.88M | 114.07M |
| Cash, Cash Equivalents and Short-Term Investments | 33.55M | 36.53M | 27.74M | 21.15M | 7.06M | 6.62M |
| Total Debt | 2.12M | 3.56M | 3.75M | 5.08M | 4.90M | 18.29M |
| Total Liabilities | 16.93M | 22.53M | 24.05M | 23.78M | 22.88M | 39.64M |
| Stockholders Equity | 91.06M | 89.31M | 87.43M | 81.44M | 86.00M | 74.43M |
Cash Flow | ||||||
| Free Cash Flow | 10.64M | 10.76M | 6.25M | 15.64M | 11.78M | 3.32M |
| Operating Cash Flow | 10.97M | 11.13M | 7.19M | 15.98M | 12.62M | 5.22M |
| Investing Cash Flow | -434.00K | -486.00K | -941.00K | -216.00K | -818.00K | -2.08M |
| Financing Cash Flow | -469.00K | -1.13M | 654.00K | -1.58M | -10.41M | -4.09M |
Mastech Holdings Technical Analysis
Positive
7.88
Price Trends
6.86
Positive
6.59
Positive
6.92
Positive
Market Momentum
0.33
Negative
62.85
Neutral
78.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHH, the sentiment is Positive. The current price of 7.88 is above the 20-day moving average (MA) of 7.05, above the 50-day MA of 6.86, and above the 200-day MA of 6.92, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 78.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MHH.
Mastech Holdings Risk Analysis
Mastech Holdings disclosed 43 risk factors in its most recent earnings report. Mastech Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mastech Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $174.03M | 26.86 | 9.69% | 2.55% | -11.77% | 90.48% | |
65 Neutral | $93.83M | 39.74 | 2.60% | ― | -8.13% | 7.78% | |
65 Neutral | $152.92M | -77.63 | -2.30% | ― | -9.39% | 72.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | $22.59M | -20.77 | -51.65% | ― | -18.78% | 98.07% | |
47 Neutral | $59.91M | -5.43 | -17.82% | 41.67% | -65.05% | -154.86% | |
41 Neutral | $7.85M | -0.33 | -78.12% | ― | 1.26% | -4.09% |
* Industrials Sector Average
MHH
Mastech Holdings
7.82
1.02
15.00%
DHX
DHI Group
3.54
0.61
20.82%
JOB
GEE Group
0.21
0.00
0.00%
IPDN
Professional Diversity
0.61
-0.95
-60.64%
BGSF
BGSF
5.59
1.58
39.23%
HQI
HireQuest
12.52
2.73
27.86%
Mastech Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Mastech Holdings Shareholders Approve Board and Incentive Plan
Positive
May 18, 2026
At its Annual Meeting held on May 13, 2026, Mastech Digital shareholders elected two Class III directors, Arun Nayar and Srinivas Kandula, to three-year terms, reinforcing continuity in the company’s board leadership. The vote results showed...
Business Operations and StrategyExecutive/Board Changes
Mastech CEO Takes 2025 Bonus Entirely in Stock
Positive
Apr 3, 2026
On March 30, 2026, Mastech Digital, Inc. disclosed that Chief Executive Officer and President Nirav Patel agreed to receive his earned 2025 annual performance bonus of $616,932 in restricted stock instead of cash, under the terms of his November 1...
Business Operations and Strategy
Mastech Holdings Enters Dallas Office Lease, Expanding Presence
Positive
Mar 12, 2026
On March 5, 2026, Mastech Digital, Inc. signed a lease for approximately 5,895 square feet of office space at 3300 Olympus Boulevard, Suite 560, in Dallas, Texas, with an initial five-year term beginning after a five-month abatement period startin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.