What are the investment strengths of Mastech Digital Inc (MHH)?

Trading at 0.94x book and 0.42x sales TTM with 32.7M cash (40% of market cap). Tangible book 52.4M exceeds EV of 52.4M - downside protected. FCF yield 12.5% (10.3M/82.4M market cap) with minimal capex (466K TTM). Cash conversion vastly exceeds profitability.

What are the investment risks for Mastech Digital Inc (MHH)?

Revenue declining 3 consecutive periods: -6.4% 1Y, -8.4% 3Y CAGR. EPS collapsed -56% 1Y, -29% 3Y, -22% 5Y CAGR - no bottom visible. Operating loss of -941K TTM with OpEx consuming 102% of gross profit. Structural unprofitability in shrinking IT staffing market.

Mastech Digital Inc

MHH

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Mastech Digital Inc AI Insights

Informational only. Not investment advice.

As of 2026-02-18

Snapshot

FCF of 10.3M TTM on -66K net income - cash generation decoupled from GAAP losses. PCF ratio 7.6x vs industry 16.9x median.[Free Cash Flow TTM]
Goodwill 27.2M is 31% of equity (88M) - manageable but revenue down 6.4% 1Y and 8.4% 3Y CAGR signals potential impairment risk.[Goodwill]
Operating margin -0.5% TTM vs industry median 5.1% - cost structure broken despite 27.9% gross margin in line with peers.[Operating Margin TTM]

Watch Triggers

Total Revenue 1Y Growth: Returns to positive growth (>0%) — Revenue stabilization prerequisite for operating leverage; 3 years of decline must reverse
Operating Margin TTM: Turns positive (>0%) — Currently -0.5% vs 5.1% industry median - profitability inflection signals turnaround
Goodwill: Any impairment charge recorded — 27.2M goodwill at risk if revenue decline continues; would hit equity directly

Bull Case

Trading at 0.94x book and 0.42x sales TTM with 32.7M cash (40% of market cap). Tangible book 52.4M exceeds EV of 52.4M - downside protected.

P/B RatioP/S RatioCash and Equivalents

FCF yield 12.5% (10.3M/82.4M market cap) with minimal capex (466K TTM). Cash conversion vastly exceeds profitability.

Free Cash Flow TTMCapital Expenditure TTMPCF Ratio

Bear Case

Revenue declining 3 consecutive periods: -6.4% 1Y, -8.4% 3Y CAGR. EPS collapsed -56% 1Y, -29% 3Y, -22% 5Y CAGR - no bottom visible.

Total Revenue 1Y GrowthEPS Growth 1YEPS Growth 3Y

Operating loss of -941K TTM with OpEx consuming 102% of gross profit. Structural unprofitability in shrinking IT staffing market.

Operating Income TTMOperating Expense TTMOperating Margin TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Turnaround potential if OpEx rationalization closes 5.6% margin gap to industry median

1-3ylow

OpEx 55.8M nearly equals gross profit 54.9M TTM
Asset turnover 1.76x is 2.2x industry median 0.78x
Near-zero debt (0.03 D/E) provides restructuring flexibility

FCF 10.3M proves cash generation capabilityCash 32.7M covers 1.5x total liabilitiesNo dilution - zero stock issuance TTM

Valuation Context

Caveats

Public Strategies Rankings

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MHH Fundamentals

Administrative and Support and Waste Management and Remediation Services → Administrative and Support Services

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$0		—
Enterprise Value	$0		—
P/E Ratio	0.00		—
Total Revenue - TTM	$191.37M	-3.8%	—
Earnings Per Share (diluted) - TTM	$0.00		—
Operating Margin - TTM	0%	-1.9%	—
Net Margin - TTM	0.32%	-1.4%	—
Free Cash Flow - TTM	$10.76M	+72.1%	—
Return on Common Equity - TTM	0.69%	-3.3%	—
Beta 5Y (Monthly)	unknown		—

MHH Dividend History

2 dividends

2013

$0.2500

12/05/13$0.2500

2012

$0.8000

12/18/12$0.8000

MHH Stock Splits

2 stock splits

08/27/181:2 split

12/02/130.8:1 split

MHH SEC Filings

Filing Date	Report Date	Report Type	Filing Link
03/18/26	12/31/25	10-K	0001193125-26-112845
11/13/25	09/30/25	10-Q	0001193125-25-279079
08/13/25	06/30/25	10-Q	0001193125-25-179470
05/15/25	03/31/25	10-Q	0001193125-25-120845
03/14/25	12/31/24	Unknown	0001193125-25-054447
11/13/24	09/30/24	10-Q	0001193125-24-256589
08/12/24	06/30/24	10-Q	0001193125-24-198344
05/13/24	03/31/24	10-Q	0001193125-24-136683
03/15/24	12/31/23	10-K	0001193125-24-068609
11/13/23	09/30/23	10-Q	0001193125-23-275231
08/10/23	06/30/23	10-Q	0001193125-23-208571
05/12/23	03/31/23	10-Q	0001193125-23-142700
03/27/23	12/31/22	10-K	0001193125-23-079936
11/14/22	09/30/22	10-Q	0001193125-22-283634
08/15/22	06/30/22	10-Q	0001193125-22-220571
05/11/22	03/31/22	10-Q	0001193125-22-146905
03/14/22	12/31/21	10-K	0001193125-22-074092
11/08/21	09/30/21	10-Q	0001193125-21-322279
08/06/21	06/30/21	10-Q	0001193125-21-238361
05/07/21	03/31/21	10-Q	0001193125-21-154024
03/16/21	12/31/20	10-K	0001193125-21-082076
11/09/20	09/30/20	10-Q	0001193125-20-288470
08/07/20	06/30/20	10-Q	0001193125-20-212453
05/14/20	03/31/20	10-Q	0001193125-20-142209
03/30/20	12/31/19	10-K	0001193125-20-090186
11/08/19	09/30/19	10-Q	0001193125-19-287806
08/09/19	06/30/19	10-Q	0001193125-19-217406
05/14/19	03/31/19	10-Q	0001193125-19-146182
03/29/19	12/31/18	10-K	0001193125-19-091669
11/09/18	09/30/18	10-Q	0001193125-18-323390
08/10/18	06/30/18	10-Q	0001193125-18-245237
05/11/18	03/31/18	10-Q	0001193125-18-159870
03/23/18	12/31/17	10-K	0001193125-18-093873
11/14/17	09/30/17	10-Q	0001193125-17-342027
08/11/17	06/30/17	10-Q	0001193125-17-255104
05/10/17	03/31/17	10-Q	0001193125-17-165028
03/24/17	12/31/16	10-K	0001193125-17-094899
11/10/16	09/30/16	10-Q	0001193125-16-765260
08/12/16	06/30/16	10-Q	0001193125-16-679956
05/11/16	03/31/16	10-Q	0001193125-16-586480
03/25/16	12/31/15	10-K	0001193125-16-517521
11/10/15	09/30/15	10-Q	0001193125-15-372693
08/14/15	06/30/15	10-Q	0001193125-15-290599
05/12/15	03/31/15	10-Q	0001193125-15-183261
03/20/15	12/31/14	10-K	0001193125-15-099707
10/31/14	09/30/14	10-Q	0001193125-14-391350
07/30/14	06/30/14	10-Q	0001193125-14-285605
05/06/14	03/31/14	10-Q	0001193125-14-183547
03/21/14	12/31/13	10-K	0001193125-14-110155
11/08/13	09/30/13	10-Q	0001193125-13-434372
07/31/13	06/30/13	10-Q	0001193125-13-311555
05/06/13	03/31/13	10-Q	0001193125-13-200522
03/22/13	12/31/12	10-K	0001193125-13-121179
11/09/12	09/30/12	10-Q	0001193125-12-461941
08/10/12	06/30/12	10-Q	0001193125-12-348840
05/09/12	03/31/12	10-Q	0001193125-12-220671
03/23/12	12/31/11	10-K	0001193125-12-129593
11/02/11	09/30/11	10-Q	0001193125-11-291905
08/02/11	06/30/11	10-Q	0001193125-11-206050
05/02/11	03/31/11	10-Q	0001193125-11-120770
03/17/11	12/31/10	10-K	0001193125-11-070032
10/29/10	09/30/10	10-Q	0001193125-10-240630
08/03/10	06/30/10	10-Q	0001193125-10-174899
05/10/10	03/31/10	10-Q	0001193125-10-114261
03/08/10	12/31/09	10-K	0001193125-10-050106
11/06/09	09/30/09	10-Q	0001193125-09-226872
08/14/09	06/30/09	10-Q	0001193125-09-175366
05/13/09	03/30/09	10-Q	0001193125-09-109449
03/19/09	12/31/08	10-K	0001193125-09-058360
11/12/08	09/30/08	8-K	0001193125-08-204587
06/30/08	06/30/08	Unknown	--
03/31/08	03/30/08	Unknown	--
12/31/07	12/31/07	Unknown	--
11/12/08	09/30/07	10-Q	0001193125-08-233191
08/19/08	06/30/07	10-Q	--