📊 MHH Key Takeaways
Is Mastech Digital, Inc. (MHH) a Good Investment?
Mastech Digital exhibits severe operational distress with near-zero operating income despite $191.4M revenue, indicating fundamental business model breakdown. The dramatic 82.1% YoY EPS decline and microscopic 0.3% net margin suggest profitability has collapsed while growth remains stagnant at 0.0% YoY, raising concerns about competitive positioning and operational efficiency.
Mastech Digital’s fundamentals show a clear split: the balance sheet is very strong, with sizable cash, no long-term debt, and solid liquidity, while profitability has deteriorated sharply to near break-even levels. Flat revenue, a 0.3% net margin, and an 82.1% drop in diluted EPS indicate weak earnings quality, but positive operating cash flow and free cash flow provide support while management works to restore margins.
Why Buy Mastech Digital, Inc. Stock? MHH Key Strengths
- Strong balance sheet with $36.5M cash and zero long-term debt, providing financial flexibility
- Excellent liquidity position with 3.26x current ratio, ensuring short-term operational stability
- Positive free cash flow of $10.8M demonstrates some cash generation despite profitability challenges
- Debt-free balance sheet with $36.53M in cash and strong liquidity ratios
- Positive operating cash flow and free cash flow despite weak earnings
- Large equity base and low financial risk provide resilience during margin pressure
MHH Stock Risks: Mastech Digital, Inc. Investment Risks
- Operating margin has effectively collapsed to 0.0% with only $1.0K operating income on $191.4M revenue, indicating severe operational inefficiency
- Net margin of just 0.3% shows minimal profitability and leaves no margin for error or adverse conditions
- Flat year-over-year revenue growth combined with 82.1% EPS decline signals the company is losing operational leverage and shareholder value
- Minimal ROE of 0.7% and ROA of 0.5% indicate extremely poor capital deployment and asset utilization
- Operating income is essentially break-even, leaving little cushion against business volatility
- Revenue is flat year over year, indicating limited current growth momentum
- Diluted EPS declined 82.1% year over year, signaling significant profitability deterioration
Key Metrics to Watch
- Operating margin recovery trajectory - critical to confirm if current levels are structural or temporary
- Quarterly revenue growth acceleration - need to verify if 0% growth persists or reverses
- Operating cash flow sustainability - monitor if positive FCF continues amid profitability crisis
- Gross margin stability - track whether 27.7% GM can be maintained or if further compression occurs
- Operating margin recovery
- Revenue growth and free cash flow conversion
Mastech Digital, Inc. (MHH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.26x current ratio provides a solid financial cushion.
MHH Profit Margin, ROE & Profitability Analysis
MHH vs Services Sector: How Mastech Digital, Inc. Compares
How Mastech Digital, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mastech Digital, Inc. Stock Overvalued? MHH Valuation Analysis 2026
Based on fundamental analysis, Mastech Digital, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mastech Digital, Inc. Balance Sheet: MHH Debt, Cash & Liquidity
MHH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mastech Digital, Inc.'s revenue has remained relatively flat over the 5-year period, with a 9% decline. The most recent EPS of $-0.61 indicates the company is currently unprofitable.
MHH Revenue Growth, EPS Growth & YoY Performance
MHH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $48.5M | $135.0K | $-0.03 |
| Q2 2025 | $49.1M | $135.0K | $0.01 |
| Q1 2025 | $46.8M | -$161.0K | $-0.01 |
| Q3 2024 | $47.8M | $125.0K | $0.01 |
| Q2 2024 | $49.5M | -$161.0K | $0.10 |
| Q1 2024 | $46.8M | -$161.0K | $-0.01 |
| Q3 2023 | $47.8M | $125.0K | $0.01 |
| Q2 2023 | $52.2M | $261.0K | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mastech Digital, Inc. Dividends, Buybacks & Capital Allocation
MHH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mastech Digital, Inc. (CIK: 0001437226)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MHH
What is the AI rating for MHH?
Mastech Digital, Inc. (MHH) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MHH's key strengths?
Claude: Strong balance sheet with $36.5M cash and zero long-term debt, providing financial flexibility. Excellent liquidity position with 3.26x current ratio, ensuring short-term operational stability. ChatGPT: Debt-free balance sheet with $36.53M in cash and strong liquidity ratios. Positive operating cash flow and free cash flow despite weak earnings.
What are the risks of investing in MHH?
Claude: Operating margin has effectively collapsed to 0.0% with only $1.0K operating income on $191.4M revenue, indicating severe operational inefficiency. Net margin of just 0.3% shows minimal profitability and leaves no margin for error or adverse conditions. ChatGPT: Operating income is essentially break-even, leaving little cushion against business volatility. Revenue is flat year over year, indicating limited current growth momentum.
What is MHH's revenue and growth?
Mastech Digital, Inc. reported revenue of $191.4M.
Does MHH pay dividends?
Mastech Digital, Inc. pays dividends, with $2.1M distributed to shareholders in the trailing twelve months.
Where can I find MHH SEC filings?
Official SEC filings for Mastech Digital, Inc. (CIK: 0001437226) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MHH's EPS?
Mastech Digital, Inc. has a diluted EPS of $0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MHH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Mastech Digital, Inc. has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MHH stock overvalued or undervalued?
Valuation metrics for MHH: ROE of 0.7% (sector avg: 16%), net margin of 0.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy MHH stock in 2026?
Our dual AI analysis gives Mastech Digital, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MHH's free cash flow?
Mastech Digital, Inc.'s operating cash flow is $11.1M, with capital expenditures of $376.0K. FCF margin is 5.6%.
How does MHH compare to other Services stocks?
Vs Services sector averages: Net margin 0.3% (avg: 10%), ROE 0.7% (avg: 16%), current ratio 3.26 (avg: 1.5).