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TARGET HOSPITALITY CORP (TH) Stock Fundamental Analysis

NASDAQ:TH - Nasdaq - US87615L1070 - Common Stock - Currency: USD

9.38  -0.11 (-1.21%)

After market: 9.38 0 (0%)

Fundamental Rating

6

Taking everything into account, TH scores 6 out of 10 in our fundamental rating. TH was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. TH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TH has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

TH had positive earnings in the past year.
TH had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TH reported negative net income in multiple years.
TH had a positive operating cash flow in each of the past 5 years.
TH Yearly Net Income VS EBIT VS OCF VS FCFTH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

1.2 Ratios

Looking at the Return On Assets, with a value of 13.61%, TH belongs to the top of the industry, outperforming 91.60% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.13%, TH belongs to the top of the industry, outperforming 81.68% of the companies in the same industry.
TH has a better Return On Invested Capital (20.49%) than 93.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TH is significantly above the industry average of 10.59%.
The last Return On Invested Capital (20.49%) for TH is above the 3 year average (18.84%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 13.61%
ROE 23.13%
ROIC 20.49%
ROA(3y)11.23%
ROA(5y)6.2%
ROE(3y)26.04%
ROE(5y)12.54%
ROIC(3y)18.84%
ROIC(5y)13.96%
TH Yearly ROA, ROE, ROICTH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

1.3 Margins

TH has a better Profit Margin (22.53%) than 97.71% of its industry peers.
With an excellent Operating Margin value of 31.29%, TH belongs to the best of the industry, outperforming 96.95% of the companies in the same industry.
In the last couple of years the Operating Margin of TH has grown nicely.
Looking at the Gross Margin, with a value of 47.43%, TH is in line with its industry, outperforming 47.33% of the companies in the same industry.
In the last couple of years the Gross Margin of TH has grown nicely.
Industry RankSector Rank
OM 31.29%
PM (TTM) 22.53%
GM 47.43%
OM growth 3Y183.89%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y29.82%
GM growth 5YN/A
TH Yearly Profit, Operating, Gross MarginsTH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 20 40

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7

2. Health

2.1 Basic Checks

TH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TH has been increased compared to 5 years ago.
TH has a better debt/assets ratio than last year.
TH Yearly Shares OutstandingTH Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
TH Yearly Total Debt VS Total AssetsTH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

TH has an Altman-Z score of 3.79. This indicates that TH is financially healthy and has little risk of bankruptcy at the moment.
TH has a better Altman-Z score (3.79) than 81.68% of its industry peers.
TH has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
The Debt to FCF ratio of TH (1.42) is better than 87.79% of its industry peers.
TH has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
TH has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. TH outperforms 90.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.42
Altman-Z 3.79
ROIC/WACC2.27
WACC9.02%
TH Yearly LT Debt VS Equity VS FCFTH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

TH has a Current Ratio of 1.01. This is a normal value and indicates that TH is financially healthy and should not expect problems in meeting its short term obligations.
TH's Current ratio of 1.01 is in line compared to the rest of the industry. TH outperforms 56.49% of its industry peers.
TH has a Quick Ratio of 1.01. This is a normal value and indicates that TH is financially healthy and should not expect problems in meeting its short term obligations.
TH has a Quick ratio of 1.01. This is in the better half of the industry: TH outperforms 61.07% of its industry peers.
Industry RankSector Rank
Current Ratio 1.01
Quick Ratio 1.01
TH Yearly Current Assets VS Current LiabilitesTH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

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3

3. Growth

3.1 Past

The earnings per share for TH have decreased strongly by -44.23% in the last year.
The Earnings Per Share has been growing by 75.17% on average over the past years. This is a very strong growth
TH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.28%.
The Revenue has been growing by 35.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-44.23%
EPS 3YN/A
EPS 5Y75.17%
EPS Q2Q%-53.49%
Revenue 1Y (TTM)-27.28%
Revenue growth 3Y35.79%
Revenue growth 5YN/A
Sales Q2Q%-34.77%

3.2 Future

TH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -31.76% yearly.
TH is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -32.34% yearly.
EPS Next Y-55.41%
EPS Next 2Y-51.16%
EPS Next 3Y-31.76%
EPS Next 5YN/A
Revenue Next Year-31.09%
Revenue Next 2Y-24.09%
Revenue Next 3Y-32.34%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
TH Yearly Revenue VS EstimatesTH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M 500M
TH Yearly EPS VS EstimatesTH Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1 1.5

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.78, which indicates a very decent valuation of TH.
TH's Price/Earnings ratio is rather cheap when compared to the industry. TH is cheaper than 93.89% of the companies in the same industry.
TH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 25.53, the valuation of TH can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TH is on the same level as its industry peers.
TH is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.78
Fwd PE 25.53
TH Price Earnings VS Forward Price EarningsTH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

95.42% of the companies in the same industry are more expensive than TH, based on the Enterprise Value to EBITDA ratio.
TH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TH is cheaper than 96.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.24
EV/EBITDA 4.52
TH Per share dataTH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

TH has an outstanding profitability rating, which may justify a higher PE ratio.
TH's earnings are expected to decrease with -31.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-51.16%
EPS Next 3Y-31.76%

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0

5. Dividend

5.1 Amount

TH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TARGET HOSPITALITY CORP

NASDAQ:TH (2/4/2025, 8:11:04 PM)

After market: 9.38 0 (0%)

9.38

-0.11 (-1.21%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)N/A N/A
Inst Owners25.57%
Inst Owner Change-2.99%
Ins Owners2.2%
Ins Owner Change0%
Market Cap928.06M
Analysts43.64
Price Target10.71 (14.18%)
Short Float %4.15%
Short Ratio2.71
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.15%
Min EPS beat(2)4.85%
Max EPS beat(2)57.44%
EPS beat(4)4
Avg EPS beat(4)28%
Min EPS beat(4)4.85%
Max EPS beat(4)57.44%
EPS beat(8)5
Avg EPS beat(8)11.85%
EPS beat(12)7
Avg EPS beat(12)68.11%
EPS beat(16)9
Avg EPS beat(16)51.46%
Revenue beat(2)1
Avg Revenue beat(2)1.16%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)5.14%
Revenue beat(4)3
Avg Revenue beat(4)1.93%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)5.14%
Revenue beat(8)6
Avg Revenue beat(8)1.86%
Revenue beat(12)8
Avg Revenue beat(12)1.46%
Revenue beat(16)12
Avg Revenue beat(16)4.47%
PT rev (1m)0%
PT rev (3m)13.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.83%
EPS NY rev (1m)0%
EPS NY rev (3m)9.89%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-14.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
Industry RankSector Rank
PE 10.78
Fwd PE 25.53
P/S 2.16
P/FCF 7.24
P/OCF 5.82
P/B 2.22
P/tB 2.9
EV/EBITDA 4.52
EPS(TTM)0.87
EY9.28%
EPS(NY)0.37
Fwd EY3.92%
FCF(TTM)1.3
FCFY13.81%
OCF(TTM)1.61
OCFY17.18%
SpS4.33
BVpS4.22
TBVpS3.24
PEG (NY)N/A
PEG (5Y)0.14
Profitability
Industry RankSector Rank
ROA 13.61%
ROE 23.13%
ROCE 27.92%
ROIC 20.49%
ROICexc 32.53%
ROICexgc 47.91%
OM 31.29%
PM (TTM) 22.53%
GM 47.43%
FCFM 29.89%
ROA(3y)11.23%
ROA(5y)6.2%
ROE(3y)26.04%
ROE(5y)12.54%
ROIC(3y)18.84%
ROIC(5y)13.96%
ROICexc(3y)24.19%
ROICexc(5y)17.2%
ROICexgc(3y)32.5%
ROICexgc(5y)23.34%
ROCE(3y)25.67%
ROCE(5y)19.02%
ROICexcg growth 3Y260.51%
ROICexcg growth 5YN/A
ROICexc growth 3Y275.77%
ROICexc growth 5YN/A
OM growth 3Y183.89%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y29.82%
GM growth 5YN/A
F-Score6
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.42
Debt/EBITDA 0
Cap/Depr 41.86%
Cap/Sales 7.28%
Interest Coverage 250
Cash Conversion 76.36%
Profit Quality 132.69%
Current Ratio 1.01
Quick Ratio 1.01
Altman-Z 3.79
F-Score6
WACC9.02%
ROIC/WACC2.27
Cap/Depr(3y)111.65%
Cap/Depr(5y)99.76%
Cap/Sales(3y)17.24%
Cap/Sales(5y)16.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.23%
EPS 3YN/A
EPS 5Y75.17%
EPS Q2Q%-53.49%
EPS Next Y-55.41%
EPS Next 2Y-51.16%
EPS Next 3Y-31.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-27.28%
Revenue growth 3Y35.79%
Revenue growth 5YN/A
Sales Q2Q%-34.77%
Revenue Next Year-31.09%
Revenue Next 2Y-24.09%
Revenue Next 3Y-32.34%
Revenue Next 5YN/A
EBIT growth 1Y-48.12%
EBIT growth 3Y285.5%
EBIT growth 5YN/A
EBIT Next Year-21.04%
EBIT Next 3Y-53.47%
EBIT Next 5YN/A
FCF growth 1Y-12.68%
FCF growth 3Y39.54%
FCF growth 5YN/A
OCF growth 1Y-39.38%
OCF growth 3Y49.64%
OCF growth 5YN/A