Professional
Added to YB: 2021-07-15
Pitch date: 2021-07-15
MHH [bullish]
Mastech Digital, Inc.
-56.62%
current return
Author Info
1 Main Capital is a long-biased investment partnership that invests primarily in high-quality, attractively valued, growing businesses. Visit their fund website.
Company Info
Mastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States.
Market Cap
$84.3M
Pitch Price
$16.00
Price Target
N/A
Dividend
N/A
EV/EBITDA
5.92
P/E
97.12
EV/Sales
0.30
Sector
Professional Services
Category
growth
1 Main Holdings top position: Mastech Digital (MHH)
MHH: Transforming from IT staffing to higher margin consulting. Staffing (2/3 profit) growing 10% pre-COVID, billable consultants rebounding. D&A (1/3 profit) to grow 15%+ with 20%+ margins post-investments. Accretive M&A at 5x EBIT/EBITDA. Adjusted EPS may 3x to $3 by 2025 as mix shifts to D&A. Aging co-founders own 60%, sold iGate for $4B in 2015, may sell MHH.
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