Mastech Digital, Inc. (MHH) AI Stock Analysis

Mastech Digital, Inc. delivers digital transformation IT services to large enterprises, medium-sized companies, and small businesses across the United States. The company operates through two segments: Data and Analytics Services, and IT Staffing Services. Under Data and Analytics Services, it provides project-based consulting in master data management, enterprise data integration, big data analytics, and digital transformation initiatives using onsite and offshore resources. Under IT Staffing Services, it delivers staffing solutions covering data management, analytics, cloud computing, mobility, automation, business intelligence, enterprise resource planning, and customer relationship management. It also offers digital learning services and cloud-based enterprise application expertise.

Mastech Digital's annual revenue declined from $242.2M in FY2022 to $201.1M in FY2023, $198.9M in FY2024, and $191.4M in FY2025, resulting in a 5-year revenue CAGR of -0.3% from FY2020 to FY2025. Gross margin was 27.7% in FY2025, while operating margin fell to 0.0% from 1.9% in FY2024. Net income dropped from $3.4M in FY2024 to $609,000 in FY2025, with EPS at $0.71. In the trailing twelve months ended June 30, 2026, revenue stood at $176.5M and EPS was $0.17. In the latest quarter ended June 30, 2026, revenue fell 15.6% year-over-year, while quarterly earnings grew 281.0%.

As of June 30, 2026, Mastech Digital held $35.6M in cash and short-term investments against $2.1M in total debt, leaving net cash at $33.5M. The company reported a current ratio of 4.10, a debt-to-equity ratio of 0.02, and shareholders' equity of $91.8M on total assets of $109.6M. In FY2025, operating cash flow reached $11.1M and free cash flow was $10.8M. For capital allocation in FY2025, capital expenditures were $376,000 and share buybacks totaled $2.2M.

Mastech Digital traded at a trailing P/E of 37.4x as of October 16, 2026, above the 24.8x median of its US-listed Industrials peers. Its forward P/E of 7.6x and EV/EBITDA of 11.3x trade below peer medians of 17.2x and 13.9x, respectively. The price-to-sales ratio was 0.4x versus the peer median of 1.5x. Over the past year, the stock fell 9.7%, compared to a 16.8% gain for SPY. Over five years, the stock dropped 63.5%, while SPY rose 83.0%.

Analysts have a mean price target of $12.75 for Mastech Digital, which is 100.8% above its last close of $6.35. For the current fiscal year ending December 31, 2026, the consensus calls for revenue of $166.0M and EPS of $0.33, representing an EPS decline of 54.9%. For the next fiscal year, 2 analysts project revenue of $175.7M, reflecting 5.9% growth, and EPS of $0.96. The company beat EPS estimates in 1 of the last 4 quarters. The next earnings date is November 11, 2026.

This page is an AI-written research summary of Mastech Digital, Inc. (MHH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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