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Mastech Digital

AMEX:MHH
Snowflake Description

Undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MHH
AMEX
$94M
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Mastech Digital, Inc. provides digital transformation IT services to large, medium-sized organizations, and small companies in the United States. The last earnings update was 28 days ago. More info.


Add to Portfolio Compare Print
  • Mastech Digital has significant price volatility in the past 3 months.
MHH Share Price and Events
7 Day Returns
-2.9%
AMEX:MHH
-2%
US Professional Services
-1.4%
US Market
1 Year Returns
35.2%
AMEX:MHH
22.5%
US Professional Services
14.5%
US Market
MHH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mastech Digital (MHH) -2.9% 10.7% 47% 35.2% 145.7% 62.6%
US Professional Services -2% 3% -2.1% 22.5% 49% 71.5%
US Market -1.4% 1.3% 4.6% 14.5% 35.7% 48.6%
1 Year Return vs Industry and Market
  • MHH outperformed the Professional Services industry which returned 22.5% over the past year.
  • MHH outperformed the Market in United States of America which returned 14.5% over the past year.
Price Volatility
MHH
Industry
5yr Volatility vs Market

MHH Value

 Is Mastech Digital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mastech Digital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mastech Digital.

AMEX:MHH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AMEX:MHH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.827 (1 + (1- 21%) (34.11%))
1.033
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.033 * 5.44%)
7.36%

Discounted Cash Flow Calculation for AMEX:MHH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Mastech Digital is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

AMEX:MHH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.36%)
2020 23.99 Est @ 61.97% 22.34
2021 34.52 Est @ 43.9% 29.95
2022 45.31 Est @ 31.25% 36.61
2023 55.46 Est @ 22.4% 41.74
2024 64.44 Est @ 16.2% 45.18
2025 72.08 Est @ 11.86% 47.07
2026 78.45 Est @ 8.83% 47.71
2027 83.70 Est @ 6.7% 47.42
2028 88.07 Est @ 5.21% 46.47
2029 91.74 Est @ 4.17% 45.09
Present value of next 10 years cash flows $409.00
AMEX:MHH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $91.74 × (1 + 1.74%) ÷ (7.36% – 1.74%)
$1,660.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,660.36 ÷ (1 + 7.36%)10
$816.05
AMEX:MHH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $409.00 + $816.05
$1,225.05
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,225.05 / 11.03
$111.03
AMEX:MHH Discount to Share Price
Calculation Result
Value per share (USD) From above. $111.03
Current discount Discount to share price of $8.60
= -1 x ($8.60 - $111.03) / $111.03
92.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Mastech Digital is available for.
Intrinsic value
>50%
Share price is $8.6 vs Future cash flow value of $111.03
Current Discount Checks
For Mastech Digital to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Mastech Digital's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Mastech Digital's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mastech Digital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mastech Digital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AMEX:MHH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.88
AMEX:MHH Share Price ** AMEX (2019-12-05) in USD $8.6
United States of America Professional Services Industry PE Ratio Median Figure of 37 Publicly-Listed Professional Services Companies 19.52x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mastech Digital.

AMEX:MHH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AMEX:MHH Share Price ÷ EPS (both in USD)

= 8.6 ÷ 0.88

9.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastech Digital is good value based on earnings compared to the US Professional Services industry average.
  • Mastech Digital is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Mastech Digital's expected growth come at a high price?
Raw Data
AMEX:MHH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Professional Services Industry PEG Ratio Median Figure of 31 Publicly-Listed Professional Services Companies 1.97x
United States of America Market PEG Ratio Median Figure of 2,045 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Mastech Digital, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Mastech Digital's assets?
Raw Data
AMEX:MHH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $3.97
AMEX:MHH Share Price * AMEX (2019-12-05) in USD $8.6
United States of America Professional Services Industry PB Ratio Median Figure of 59 Publicly-Listed Professional Services Companies 2.65x
United States of America Market PB Ratio Median Figure of 5,086 Publicly-Listed Companies 1.77x
AMEX:MHH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AMEX:MHH Share Price ÷ Book Value per Share (both in USD)

= 8.6 ÷ 3.97

2.17x

* Primary Listing of Mastech Digital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastech Digital is good value based on assets compared to the US Professional Services industry average.
X
Value checks
We assess Mastech Digital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Mastech Digital has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MHH Future Performance

 How is Mastech Digital expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mastech Digital has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
32.5%
Expected Professional Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mastech Digital expected to grow at an attractive rate?
  • Unable to compare Mastech Digital's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Mastech Digital's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Mastech Digital's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
AMEX:MHH Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 32.5%
United States of America Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AMEX:MHH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AMEX:MHH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 188 16 10
2019-06-30 183 9 9
2019-03-31 179 3 6
2018-12-31 177 0 7
2018-09-30 173 2 7
2018-06-30 168 2 5
2018-03-31 158 5 3
2017-12-31 148 3 2
2017-09-30 140 4 1
2017-06-30 135 4 2
2017-03-31 133 2 3
2016-12-31 132 2 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Mastech Digital is high growth as no earnings estimate data is available.
  • Unable to determine if Mastech Digital is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AMEX:MHH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Mastech Digital Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AMEX:MHH Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.88
2019-06-30 0.86
2019-03-31 0.57
2018-12-31 0.61
2018-09-30 0.61
2018-06-30 0.45
2018-03-31 0.27
2017-12-31 0.16
2017-09-30 0.15
2017-06-30 0.27
2017-03-31 0.31
2016-12-31 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Mastech Digital will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Mastech Digital is trading at Mastech Digital'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Mastech Digital's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Commercial Services companies here
  3. Mastech Digital's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Mastech Digital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mastech Digital has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MHH Past Performance

  How has Mastech Digital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mastech Digital's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mastech Digital has delivered over 20% year on year earnings growth in the past 5 years.
  • Mastech Digital's 1-year earnings growth exceeds its 5-year average (45.8% vs 26.9%)
  • Mastech Digital's earnings growth has exceeded the US Professional Services industry average in the past year (45.8% vs 23.5%).
Earnings and Revenue History
Mastech Digital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mastech Digital Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AMEX:MHH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 187.86 9.75 33.71
2019-06-30 182.61 9.42 32.58
2019-03-31 179.03 6.28 31.00
2018-12-31 177.16 6.69 29.84
2018-09-30 172.99 6.68 27.98
2018-06-30 167.92 4.93 26.96
2018-03-31 158.12 2.81 25.36
2017-12-31 147.88 1.63 23.83
2017-09-30 139.82 1.40 22.89
2017-06-30 134.85 2.46 21.44
2017-03-31 133.39 2.71 20.83
2016-12-31 132.01 2.52 20.22
2016-09-30 132.15 3.17 19.86
2016-06-30 132.45 3.13 19.89
2016-03-31 128.12 2.57 19.18
2015-12-31 123.47 2.75 17.79
2015-09-30 119.48 2.25 17.39
2015-06-30 113.55 2.24 16.05
2015-03-31 111.90 2.75 15.42
2014-12-31 113.52 3.42 15.25
2014-09-30 113.46 3.60 15.22
2014-06-30 113.11 3.72 15.09
2014-03-31 111.59 3.59 15.16
2013-12-31 106.90 3.27 14.82
2013-09-30 101.89 3.05 14.16
2013-06-30 96.38 2.61 14.01
2013-03-31 90.32 2.25 13.43
2012-12-31 90.77 2.06 13.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mastech Digital has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Mastech Digital used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.
  • Mastech Digital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mastech Digital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mastech Digital has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MHH Health

 How is Mastech Digital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mastech Digital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mastech Digital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mastech Digital's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Mastech Digital's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mastech Digital Company Filings, last reported 2 months ago.

AMEX:MHH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 43.82 27.12 1.96
2019-06-30 41.73 32.94 3.87
2019-03-31 35.45 38.24 1.60
2018-12-31 34.28 38.70 1.40
2018-09-30 33.17 42.30 2.39
2018-06-30 31.52 37.77 0.93
2018-03-31 28.69 39.16 1.40
2017-12-31 27.15 38.15 2.49
2017-09-30 26.11 43.41 3.16
2017-06-30 20.25 9.59 0.63
2017-03-31 19.39 13.28 0.88
2016-12-31 19.07 9.88 0.83
2016-09-30 18.12 16.06 0.74
2016-06-30 16.92 13.71 0.74
2016-03-31 15.91 15.39 0.83
2015-12-31 15.80 12.54 0.85
2015-09-30 14.53 16.33 0.70
2015-06-30 13.57 13.87 0.49
2015-03-31 13.11 0.00 2.85
2014-12-31 12.87 0.00 2.57
2014-09-30 12.19 0.00 2.55
2014-06-30 11.52 0.00 1.25
2014-03-31 10.49 1.63 0.51
2013-12-31 9.46 0.01 0.42
2013-09-30 9.99 0.00 1.61
2013-06-30 8.38 3.48 0.62
2013-03-31 7.57 2.67 0.63
2012-12-31 6.89 2.61 0.66
  • Mastech Digital's level of debt (61.9%) compared to net worth is high (greater than 40%).
  • Unable to establish if Mastech Digital's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (58.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess Mastech Digital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mastech Digital has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MHH Dividends

 What is Mastech Digital's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Mastech Digital dividends.
If you bought $2,000 of Mastech Digital shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Mastech Digital's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Mastech Digital's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AMEX:MHH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 1.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1958 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Mastech Digital has not reported any payouts.
  • Unable to verify if Mastech Digital's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Mastech Digital's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Mastech Digital has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Mastech Digital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mastech Digital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mastech Digital has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MHH Management

 What is the CEO of Mastech Digital's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vivek Gupta
COMPENSATION $661,985
AGE 56
TENURE AS CEO 3.8 years
CEO Bio

Mr. Vivek Gupta has been the Chief Executive Officer and President of Mastech Digital, Inc. since March 01, 2016 and Mastech, Inc. since March 09, 2016. Mr. Gupta serves as Chief Executive Officer and Chairman at Zensar Technologies IM, Inc. and Chief Executive of Global Infrastructure Management Services at Zensar Technologies Limited. He served as the Chief Executive of Americas, RPG Group at RPG Enterprises since October 2015. Mr. Gupta served as Head of Global Infrastructure Management Services and Chief Executive of Infrastructure Management at Zensar Technologies Limited from 2011 to October 21, 2015 and served as its Executive Chairman of Akibia, an Infrastructure Management Services company acquired by Zensar in December 2010 and served as the Chief Executive of Infrastructure & Business Services (IBS) of Zensar Technologies Limited. Mr. Gupta served as Vice Chairman of Akibia and the Chief Executive of Global Transformation Services at Zensar Technologies Limited. He served as an Executive Vice President and Head of Global Transformation Services at Zensar Technologies Ltd. He served as a Senior Vice President of Administrative, Head of Global Outsourcing Services and Head of Americas at Zensar Technologies Ltd. and also served as its Head of TWU, Telecom Utilities, & Financial Services. He served as the Head of North & Latin American operations at Zensar Technologies Ltd. and served as its Head of FSIG. Mr. Gupta started his career in India with Zensar Technologies Ltd. as an IIT Delhi campus recruit in 1984 and moved overseas to England in 1993. Over the years, he successfully grew Zensar Technologies Ltd.'s business virtually from its inception to a mature Europetwide operation spread across the UK, Central & Eastern Europe and the Nordic countries. Mr. Gupta served as the Head of Zensar's European operations. He grew the European business virtually from its inception to a mature operation spread across the UK, Central & Eastern Europe and the Nordic countries. In his role as senior Vice President, Americas in 2001, he turned around the US operation into a growth engine delivering significant profits. He has been a Director of Mastech Digital, Inc. since March 01, 2016 and Mastech, Inc. since March 09, 2016. Mr. Gupta holds a B.Tech degree from India's premier engineering college, the Indian Institute of Technology, Delhi.

CEO Compensation
  • Vivek's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Vivek's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Mastech Digital management team in years:

3.8
Average Tenure
66
Average Age
  • The tenure for the Mastech Digital management team is about average.
Management Team

Vivek Gupta

TITLE
President
COMPENSATION
$662K
AGE
56
TENURE
3.8 yrs

Jack Cronin

TITLE
CFO & Corporate Secretary
COMPENSATION
$819K
AGE
66
TENURE
11.3 yrs

Sunil Wadhwani

TITLE
Co-Founder & Co-Chairman
AGE
66

Ashok Trivedi

TITLE
Co-Founder & Co-Chairman
AGE
69

Jenna Lacey

TITLE
Head of Legal & Admin

Donna Kijowski

TITLE
Manager of Investor Relations
TENURE
23.2 yrs

VV Shetty

TITLE
Head of Human Resources & Senior VP
TENURE
3.4 yrs

Shipra Sharma

TITLE
Head of Recruiting - IT Staffing

Sameer Srivastava

TITLE
Head of Alliance Business - IT Staffing

Mike Bryan

TITLE
Head of Enterprise Business - IT Staffing
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the Mastech Digital board of directors in years:

11.2
Average Tenure
66
Average Age
  • The average tenure for the Mastech Digital board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Vivek Gupta

TITLE
President
COMPENSATION
$662K
AGE
56
TENURE
3.8 yrs

Sunil Wadhwani

TITLE
Co-Founder & Co-Chairman
AGE
66
TENURE
11.2 yrs

Ashok Trivedi

TITLE
Co-Founder & Co-Chairman
AGE
69
TENURE
11.2 yrs

Gerhard Watzinger

TITLE
Independent Director
COMPENSATION
$90K
AGE
59
TENURE
11.3 yrs

John Ausura

TITLE
Independent Director
COMPENSATION
$94K
AGE
66
TENURE
11.3 yrs

Brenda Galilee

TITLE
Independent Director
COMPENSATION
$90K
AGE
66
TENURE
11.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Mastech Digital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mastech Digital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MHH News

Simply Wall St News

Does Mastech Digital, Inc. (NYSEMKT:MHH) Create Value For Shareholders?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Mastech Digital: 0.12 = US$9.2m ÷ (US$96m - US$21m) (Based on the trailing twelve months to June 2019.) Therefore, Mastech Digital has an ROCE of 12%. … What Are Current Liabilities, And How Do They Affect Mastech Digital's ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Volatility 101: Should Mastech Digital (NYSEMKT:MHH) Shares Have Dropped 46%?

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Even though the Mastech Digital share price is down over the year, its EPS actually improved. … A Different Perspective Mastech Digital shareholders are down 46% for the year, but the market itself is up 1.0%.

Simply Wall St -

Did Mastech Digital, Inc. (NYSEMKT:MHH) Insiders Sell Shares?

So we'll take a look at whether insiders have been buying or selling shares in Mastech Digital, Inc. … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Mastech Digital Mastech Digital Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the CFO & Corporate Secretary, John Cronin, sold US$129k worth of shares at a price of US$10.74 per share. … While we feel good about high insider ownership of Mastech Digital, we can't say the same about the selling of shares.

Simply Wall St -

Should You Be Excited About Mastech Digital, Inc.'s (NYSEMKT:MHH) 18% Return On Equity?

Our data shows Mastech Digital has a return on equity of 18% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Mastech Digital: 18% = US$6.3m ÷ US$35m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Mastech Digital's Debt And Its 18% Return On Equity Mastech Digital clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.08.

Simply Wall St -

Should You Be Adding Mastech Digital (NYSEMKT:MHH) To Your Watchlist Today?

In contrast to all that, I prefer to spend time on companies like Mastech Digital (NYSEMKT:MHH), which has not only revenues, but also profits. … See our latest analysis for Mastech Digital How Quickly Is Mastech Digital Increasing Earnings Per Share? … For growth investors like me, Mastech Digital's raw rate of earnings growth is a beacon in the night.

Simply Wall St -

Does Mastech Digital (NYSEMKT:MHH) Have A Healthy Balance Sheet?

AMEX:MHH Historical Debt, July 3rd 2019 How Strong Is Mastech Digital's Balance Sheet? … Either way, since Mastech Digital does have more debt than cash, it's worth keeping an eye on its balance sheet. … Our View Mastech Digital's conversion of EBIT to free cash flow and net debt to EBITDA definitely weigh on it, in our esteem.

Simply Wall St -

Should You Worry About Mastech Digital, Inc.'s (NYSEMKT:MHH) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for Mastech Digital How Does Vivek Gupta's Compensation Compare With Similar Sized Companies? … If you want to buy a stock that is better than Mastech Digital, this free list of high return, low debt companies is a great place to look.

Simply Wall St -

If You Had Bought Mastech Digital (NYSEMKT:MHH) Stock Three Years Ago, You Could Pocket A 47% Gain Today

(NYSEMKT:MHH) shareholders might be concerned after seeing the share price drop 29% in the last quarter. … However, it's unlikely many shareholders are elated with the share price gain of 47% over that time, given the rising market. … Mastech Digital was able to grow its EPS at 25% per year over three years, sending the share price higher.

Simply Wall St -

What Kind Of Share Price Volatility Should You Expect For Mastech Digital, Inc. (NYSEMKT:MHH)?

Volatility is considered to be a measure of risk in modern finance theory. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.

Simply Wall St -

Does Mastech Digital (NYSEMKT:MHH) Deserve A Spot On Your Watchlist?

So if you're like me, you might be more interested in profitable, growing companies, like Mastech Digital (NYSEMKT:MHH). … How Quickly Is Mastech Digital Increasing Earnings Per Share. … Mastech Digital maintained stable EBIT margins over the last year, all while growing revenue 20% to US$177m.

Simply Wall St -

MHH Company Info

Description

Mastech Digital, Inc. provides digital transformation IT services to large, medium-sized organizations, and small companies in the United States. It operates through two segments, Data and Analytics Services, and IT Staffing Services. The company offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources. It also provides a range of IT staffing services in the areas of cloud, mobility, social, automation, business intelligence/data warehousing, Web services, enterprise resource planning and customer resource management, and e-business solutions. In addition, the company offers digital transformation services through Salesforce.com and digital learning methods. It provides its services across various industry verticals, such as financial services, government, healthcare, manufacturing, retail, technology, telecommunications, consumer products, transportation, and education. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.

Details
Name: Mastech Digital, Inc.
MHH
Exchange: AMEX
Founded: 1986
$94,443,892
11,033,165
Website: http://www.mastechdigital.com
Address: Mastech Digital, Inc.
Building 210,
Suite 400,
Pittsburgh,
Pennsylvania, 15108,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AMEX MHH Common Stock NYSE MKT LLC US USD 16. Sep 2008
Number of employees
Current staff
Staff numbers
1,500
Mastech Digital employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/06 00:11
End of day share price update: 2019/12/05 00:00
Last earnings filing: 2019/11/08
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.