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Mastech DigitalMHH +1.94%70 Gross Margin % is 28.95% as of Jun. 2026, which is 13% above its 10-year median of 25.73. GuruFocus rates MHH with a GF Score™ of 70/100 and a GF Value™ of $6.96 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,004 Business Services companies, Mastech Digital ranks worse than 61.65% on this metric.
Mastech Digital (AMEX:MHH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Mastech Digital had a gross margin of 28.95% for the quarter that ended in Jun. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Mastech Digital Gross Margin % Related Terms
Mastech Digital Gross Margin % Historical Data
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The historical data trend for Mastech Digital's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MHH vs CIRC, BGSF, NIXX: Gross Margin % Comparison
For the Staffing & Employment Services subindustry, Mastech Digital's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mastech Digital Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Mastech Digital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mastech Digital's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Mastech Digital (MHH) has a Gross Margin % of 28.95% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mastech Digital and its competitors. This is 13% above median its historical median of 25.73. Over the past decade, Mastech Digital's Gross Margin % has ranged from 19.92 to 27.97. According to the industry distribution chart, Mastech Digital ranks #619 out of 1004 companies in the Business Services industry, placing it in the top 61.7%.
Is Mastech Digital's Gross Margin % too high?
Mastech Digital's current Gross Margin % of 28.95% is 13% above median its 10-year median of 25.73. Over the past 10 years, this metric has ranged from a low of 19.92 to a high of 27.97. The Business Services industry median Gross Margin % is 34.46. Mastech Digital's value of 28.95% is 16% below this industry median. Based on the distribution chart, Mastech Digital ranks #619 out of 1004 companies in the Business Services industry, which is below the industry midpoint. Overall, Mastech Digital has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mastech Digital's Gross Margin % compare to CIRC and BGSF?
According to the Business Services industry distribution chart, Mastech Digital ranks #619 out of 1004 companies for Gross Margin %. This places Mastech Digital in the lower half of its industry. The industry median Gross Margin % is 34.46. Mastech Digital's value of 28.95% is 16% below this benchmark. Historically, Mastech Digital's own Gross Margin % has ranged from 19.92 to 27.97 over the past decade. While the company's 10-year median is 25.73 vs. the industry median of 34.46, Mastech Digital has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mastech Digital's current Gross Margin % of 28.95% is 16% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Mastech Digital and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mastech Digital's current Gross Margin % is 28.95%, which is 13% above median its own 10-year median of 25.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mastech Digital stock overvalued right now?
Based on GuruFocus' analysis, Mastech Digital (MHH) is currently considered Modestly Overvalued. The stock's GF Value™ is $6.96, compared to a current price of $7.87 — trading 13.1% above its estimated fair value. The current Gross Margin % is 28.95%, which is 13% above median its 10-year median of 25.73 and 16% below the Business Services industry median of 34.46. Mastech Digital's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Mastech Digital (MHH), the current Gross Margin % is 28.95% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mastech Digital (MHH) Overvalued in 2026?
Based on GuruFocus' analysis, Mastech Digital stock appears to be overvalued.
The current stock price of $7.87 is trading 13.1% above its estimated GF Value™ of $6.96.
GuruFocus considers Mastech Digital to be Modestly Overvalued.
Key valuation signals for MHH:
Gross Margin %: 28.95% (13% above median its 10-year median of 25.73)
GF Value™: $6.96 vs. price of $7.87 (13.1% above fair value)
Industry Position: 16% below the Business Services median (#619 of 1004)
No single metric tells the full story. See the MHH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mastech Digital Inc is a provider of Digital Transformation IT Services. The Company offers data & analytics solutions & IT staffing services for both digital & mainstream technologies. The Group has two segments. Its Data & Analytics Services segment delivers specialized data management, data engineering, customer experience consulting, data analytics & cloud services to customers globally. The IT Staffing Services segment combines technical expertise with business process experience to deliver a broad range of services in digital & mainstream technologies. The company derives a majority of its revenue from IT staffing services. Geographically, the majority of revenue is generated from the United States.
70GF Score
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