Mastech Holdings AI Stock Analysis
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Mastech Holdings (MHH) AI Stock Analysis
Mastech Holdings
(NYSE MKT:MHH)
The score is held up by a conservative, low-debt balance sheet and continued positive free cash flow, plus constructive (though early) Data & AI traction discussed on the earnings call. It is constrained by weak price/momentum signals and an expensive earnings multiple, while core operating performance remains pressured with declining revenue and very thin margins.
Mastech Holdings (MHH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $74.70M
- Dividend Yield
- ―
- Average Volume (3M)
- 8,316
- Price to Earnings (P/E)
- 63.6
- Beta (1Y)
- 0.72
- Revenue Growth
- -13.57%
- EPS Growth
- ―
- Country
- US
- Employees
- 1,288
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Staffing & Employment Services
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 compa...
How the Company Makes Money
Mastech Holdings makes money primarily by providing staffing services and earning revenue tied to the labor hours worked by its placed consultants and professionals. In its staffing business, the company typically bills clients at agreed hourly or pr...
Mastech Holdings Earnings Call Summary
The call presented a mixed but constructive picture. Mastech reported significant year-over-year declines in consolidated revenue, Talent revenue, gross profit, and quarterly and nine-month non-GAAP earnings, while Talent headcount also fell and fourth-quarter seasonality is expected. However, the company highlighted record bill rates, two consecutive quarters of sequential Data and AI growth, 29% year-over-year bookings growth, its largest AI deal to date, improving gross margin, solid liquidity, and continued investment in a new AI-focused strategy. The positive strategic and operational developments were meaningful but were balanced by weaker reported financial results.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Mastech said it will not provide guidance during this call or in any subsequent one-on-one meetings or calls; it plans to continue to invest significantly in talent, competencies, and expanding its data and AI business, with a multi-year view and a goal of building capability ahead of demand, while noting it has $38 million roughly of cash and no debt. For the fourth quarter, it expects seasonal effects typical to the talent industry, including holiday related slowdowns and year-end completions, contract completions; beyond that, it said it does not necessarily provide guidance.
Mastech Holdings Financial Statement Overview
Summary
Financials are mixed: the balance sheet is a clear strength with very low leverage (debt-to-equity ~0.03) and solid equity, and cash flow is positive (TTM FCF ~$5.7M) though down sharply (-28%) and volatile. The main drag is operating performance—TTM revenue fell (-3.7%) and profitability remains thin (net margin ~0.7%, EBIT margin ~1.2%), keeping returns depressed (TTM ROE ~1.3%).
Income Statement
52NeutralBalance Sheet
78PositiveCash Flow
64Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 169.98M | 191.37M | 198.94M | 201.10M | 242.24M | 222.01M |
| Gross Profit | 47.96M | 53.06M | 55.60M | 51.04M | 63.18M | 59.44M |
| EBITDA | 5.28M | 4.39M | 9.39M | -5.18M | 17.79M | 18.85M |
| Net Income | 1.14M | 609.00K | 3.40M | -7.14M | 8.71M | 12.22M |
Balance Sheet | ||||||
| Total Assets | 110.65M | 111.84M | 111.48M | 105.23M | 108.88M | 114.07M |
| Cash, Cash Equivalents and Short-Term Investments | 37.94M | 36.53M | 27.74M | 21.15M | 7.06M | 6.62M |
| Total Debt | 2.75M | 3.56M | 3.75M | 5.08M | 4.90M | 18.29M |
| Total Liabilities | 18.13M | 22.53M | 24.05M | 23.78M | 22.88M | 39.64M |
| Stockholders Equity | 92.52M | 89.31M | 87.43M | 81.44M | 86.00M | 74.43M |
Cash Flow | ||||||
| Free Cash Flow | 5.70M | 10.76M | 6.25M | 15.64M | 11.78M | 3.32M |
| Operating Cash Flow | 6.08M | 11.13M | 7.19M | 15.98M | 12.62M | 5.22M |
| Investing Cash Flow | -485.00K | -486.00K | -941.00K | -216.00K | -818.00K | -2.08M |
| Financing Cash Flow | 690.00K | -1.13M | 654.00K | -1.58M | -10.41M | -4.09M |
Mastech Holdings Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHH, the sentiment is Negative. The current price of 6.21 is below the 20-day moving average (MA) of 6.34, below the 50-day MA of 6.82, and below the 200-day MA of 6.91, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 39.60 is Neutral, neither overbought nor oversold. The STOCH value of 16.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
3 New RisksMastech Holdings Peers Comparison
Overall Rating
HQI79Outperform
DHX65Neutral- MHH56Neutral
BGSF50Neutral
JOB43Neutral
IPDN40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HQI | 79Outperform | $248.67M | 30.93 | 11.98% | 1.26% | -7.54% | 237.08% |
| DHX | 65Neutral | $191.14M | 23.55 | 8.42% | ― | -5.02% | ― |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| MHH | 56Neutral | $75.90M | 63.63 | 1.25% | ― | -13.57% | ― |
| BGSF | 50Neutral | $43.28M | -17.88 | -6.48% | ― | -49.26% | 69.72% |
| JOB | 43Neutral | $20.88M | -331.00 | -0.17% | ― | -18.54% | 99.77% |
| IPDN | 40Underperform | $719.08K | -0.02 | -72.62% | 3.26% | -5.10% | -16.73% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MHH | Mastech | 6.21 | -0.91 | -12.78% | |
| DHX | DHI Group Inc | 4.43 | 2.57 | 138.17% | |
| JOB | GEE Group | 6.62 | 0.96 | 17.06% | |
| IPDN | Professional Diversity Network | 0.96 | -61.73 | -98.46% | |
| BGSF | BGSF Inc. | 3.75 | -0.25 | -6.25% | |
| HQI | HireQuest, Inc. | 18.25 | 8.95 | 96.28% |
Mastech Holdings Corporate Events
Mastech Holdings Grants RSUs to Key Finance Executive
PositiveOn August 10, 2026, Mastech Digital, Inc. granted 20,000 restricted stock units to Chief Financial and Operations Officer Kannan Sugantharaman under a new Restricted Stock Unit Agreement. The award vests in three annual tranches over three years, ali...
Mastech Digital Updates Bylaws and Governance Framework
NegativeOn August 1, 2026, Mastech Digital granted Chief Executive and President Nirav Patel 50,000 restricted stock units, vesting in three equal tranches over three years, in a move that further aligns executive incentives with shareholder value. On August...
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.
Date of analysis: Oct 31, 2026