Mastech DigitalMHH +0.39%66 Return-on-Tangible-Equity is 1.90% as of Mar. 2026, which is 93% below its 10-year median of 28.62. GuruFocus rates MHH with a GF Score™ of 66/100 and a GF Value™ of $7.15 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,009 Business Services companies, Mastech Digital ranks worse than 68.68% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Mastech Digital's annualized net income for the quarter that ended in Mar. 2026 was $1.1 Mil. Mastech Digital's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $55.5 Mil. Therefore, Mastech Digital's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1.90%.
The historical rank and industry rank for Mastech Digital's Return-on-Tangible-Equity or its related term are showing as below:
MHH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -18.08 Med: 28.62 Max: 378.03
Current: 4.36
During the past 13 years, Mastech Digital's highest Return-on-Tangible-Equity was 378.03%. The lowest was -18.08%. And the median was 28.62%.
MHH's Return-on-Tangible-Equity is ranked worse than 68.68% of 1009
companies
in the Business Services industry
Industry Median: 10.56
vs MHH: 4.36
Mastech Digital (AMEX:MHH) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Mastech Digital Return-on-Tangible-Equity Related Terms
Mastech Digital Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mastech Digital's Return-on-Tangible-Equity 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 ATLN, BGSF, NIXX: Return-on-Tangible-Equity Comparison
For the Staffing & Employment Services subindustry, Mastech Digital's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, Mastech Digital's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mastech Digital's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 1.90% mean?
Mastech Digital (MHH) has a Return-on-Tangible-Equity of 1.90% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mastech Digital and its competitors. This is 93% below median its historical median of 28.62. According to the industry distribution chart, Mastech Digital ranks #693 out of 1009 companies in the Business Services industry, placing it in the top 68.7%.
Is Mastech Digital's Return-on-Tangible-Equity too high?
Mastech Digital's current Return-on-Tangible-Equity of 1.90% is 93% below median its 10-year median of 28.62. The Business Services industry median Return-on-Tangible-Equity is 10.56. Mastech Digital's value of 1.90% is 82% below this industry median. Based on the distribution chart, Mastech Digital ranks #693 out of 1009 companies in the Business Services industry, which is below the industry midpoint. Overall, Mastech Digital has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mastech Digital's Return-on-Tangible-Equity compare to ATLN and BGSF?
According to the Business Services industry distribution chart, Mastech Digital ranks #693 out of 1009 companies for Return-on-Tangible-Equity. This places Mastech Digital in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.56. Mastech Digital's value of 1.90% is 82% below this benchmark. While the company's 10-year median is 28.62 vs. the industry median of 10.56, 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 Return-on-Tangible-Equity for a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.56, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mastech Digital's current Return-on-Tangible-Equity of 1.90% is 82% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mastech Digital and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mastech Digital's current Return-on-Tangible-Equity is 1.90%, which is 93% below median its own 10-year median of 28.62. 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 Fairly Valued. The stock's GF Value™ is $7.15, compared to a current price of $7.89 — trading 10.3% above its estimated fair value. The current Return-on-Tangible-Equity is 1.90%, which is 93% below median its 10-year median of 28.62 and 82% below the Business Services industry median of 10.56. Mastech Digital's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Mastech Digital (MHH), the current Return-on-Tangible-Equity is 1.90% as of Mar. 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 $7.89 is trading 10.3% above its estimated GF Value™ of $7.15.
GuruFocus considers Mastech Digital to be Fairly Valued.
Key valuation signals for MHH:
Return-on-Tangible-Equity: 1.90% (93% below median its 10-year median of 28.62)
GF Value™: $7.15 vs. price of $7.89 (10.3% above fair value)
Industry Position: 82% below the Business Services median (#693 of 1009)
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.
66GF Score
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