Mastech Digital Inc Common Stock (MHH)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can earn durable returns on capital and are priced with a margin of safety. Mastech is not that kind of franchise. It sells IT staffing and data/analytics consulting, a competitive field with little pricing power. Revenue has slipped from $201.1M in FY2023 to $198.9M in FY2024 and $191.4M in FY2025. The company did swing from a net loss of $7.1M in FY2023 to net income of $3.4M in FY2024 and $609K in FY2025, which is why FairStock labels it a TURNAROUND. But the recovery is thin: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $41.4M and net income was -$100,000. The balance sheet is a bright spot. Debt-to-equity is 0.02, Altman Z is 4.31 per FairStock, and trailing free cash flow is $9.5M, a 12.2% FCF yield on the $78.1M market cap. Still, returns on capital are poor: ROE 2.31%, ROCE 0.09% per FairStock. At the 2026-10-13 close of $6.50, P/B is 0.85, but P/E is 38.24 and Graham Number is $5.40, leaving a negative 20.37% margin of safety. FairStock score 37/100 and Piotroski 4/9 suggest quality is mediocre. PEG 0.17 and EV/EBITDA 9.27 only look attractive if earnings normalize. I would want to see revenue stabilize, positive net income, and cash flow persist before paying above Graham's estimate. This is a speculative turnaround, not a bargain with a moat.

In plain English: Mastech Digital provides IT staffing and data/analytics consulting. The business looks weak right now: revenue is shrinking and profits are very thin, including a small loss in the quarter ended June 30, 2026. At the October 13, 2026 closing price of $6.50, the stock looks inexpensive compared with its cash flow and accounting value, but expensive relative to its tiny earnings.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer