Mastech Digital, Inc.

MHHdata completeness 88%17 fiscal years on file
The thesis, from the filings

Mastech Digital, Inc. earns about 4% on invested capital, below its ~9% cost of capital, with a roughly flat share count — no moat visible in the numbers. The estimate methods put fair value between $2.95 and $15.92 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$222M1$242.2M2$201.1M3$198.9M3$191.4M3
Net income$12.2M4$8.71M5−$7.14M6$3.4M6$609,0006
Operating cash flow$5.22M7$12.6M8$16M9$7.19M9$11.1M9
Capital expenditure$1.9M10$835,00011$335,00012$941,00012$376,00012
Free cash flow (derived)$3.32M7$11.8M8$15.6M9$6.25M9$10.8M9
Total debt$13.1M13$1.1M13$014
Cash & equivalents$6.62M15$7.06M16$21.1M17$27.7M18$36.5M18
Diluted shares12.0M12.1M11.6M12.0M11.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$74.73
your share of equity
Profit it earned you last year
$0.51
Free cash flow it threw off
$9
Debt you’d be carrying

10 shares is a claim on $74.73 of net worth that earned you $0.51 and generated $9 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 15%FY22 11%FY23 -12%FY24 6%FY25 1%

It earned about 4% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
−0% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $2.95 and $15.92 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$14.95
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$10.8M
DCF · Growth Exit 5Y
$15.92
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$10.8M
Earnings Power Value
$2.95
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.4M
  • growthAssumed0.0%
Graham Number
$2.9
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $15.92
The three cases
Bear0.0%$15.92
Base0.0%$15.92
Bull5.0%$19.03

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001193125-23-079936 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001193125-25-054447 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-112845 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001193125-24-068609 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001193125-25-054447 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001193125-26-112845 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001193125-24-068609 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001193125-25-054447 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001193125-26-112845 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001193125-24-068609 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001193125-25-054447 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001193125-26-112845 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001193125-23-079936 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-12-31 · accession 0001193125-24-068609 (LongTermDebtCurrent)
  15. 10-K · period ending 2021-12-31 · accession 0001193125-23-079936 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001193125-24-068609 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001193125-25-054447 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-12-31 · accession 0001193125-26-112845 (CashAndCashEquivalentsAtCarryingValue)