Mastech Digital, Inc.
Mastech Digital, Inc. Fundamental Analysis
Mastech Digital, Inc. (MHH) shows weak financial fundamentals with a PE ratio of 114.94, profit margin of 0.32%, and ROE of 0.69%. The company generates $0.2B in annual revenue with weak year-over-year growth of -1.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MHH's fundamental strength across five key dimensions:
Efficiency Score
WeakMHH struggles to generate sufficient returns from assets.
Valuation Score
ModerateMHH shows balanced valuation metrics.
Growth Score
WeakMHH faces weak or negative growth trends.
Financial Health Score
ExcellentMHH maintains a strong and stable balance sheet.
Profitability Score
ModerateMHH maintains healthy but balanced margins.
Key Financial Metrics
Is MHH Expensive or Cheap?
P/E Ratio
MHH trades at 114.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MHH's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Mastech Digital, Inc. at 0.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 35.22 times EBITDA. This signals the market has high growth expectations.
How Well Does MHH Make Money?
Net Profit Margin
For every $100 in sales, Mastech Digital, Inc. keeps $0.32 as profit after all expenses.
Operating Margin
Core operations generate 0.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.69 in profit for every $100 of shareholder equity.
ROA
Mastech Digital, Inc. generates $0.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mastech Digital, Inc. generates limited operating cash flow of $10.89M, signaling weaker underlying cash strength.
Free Cash Flow
Mastech Digital, Inc. produces free cash flow of $10.42M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.88 in free cash annually.
FCF Yield
MHH converts 14.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
114.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.007
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How MHH Stacks Against Its Sector Peers
| Metric | MHH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 114.94 | 27.03 | Worse (Expensive) |
| ROE | 0.69% | 1290.00% | Weak |
| Net Margin | 0.32% | -29392.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 3.26 | 10.88 | Strong Liquidity |
| ROA | 0.54% | -1541816.00% (disorted) | Weak |
MHH outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mastech Digital, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.86%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-71.15%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-57.74%
Industry Style: Cyclical, Value, Infrastructure
Declining