TARGET HOSPITALITY CORP (TH)
US87615L1070 - Common Stock
Overall TH gets a fundamental rating of 6 out of 10. We evaluated TH against 134 industry peers in the Hotels, Restaurants & Leisure industry. TH gets an excellent profitability rating and is at the same time showing great financial health properties. TH has a bad growth rate and is valued cheaply. This makes TH very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TH was profitable.
In the past year TH had a positive cash flow from operations.
In multiple years TH reported negative net income over the last 5 years.
TH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 17.53%, TH belongs to the best of the industry, outperforming 94.78% of the companies in the same industry.
TH has a better Return On Equity (30.77%) than 83.58% of its industry peers.
TH has a better Return On Invested Capital (27.65%) than 94.78% 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 10.22%.
The last Return On Invested Capital (27.65%) for TH is above the 3 year average (18.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.53% | ||
| ROE | 30.77% | ||
| ROIC | 27.65% |
ROA(3y)11.23%
ROA(5y)6.2%
ROE(3y)26.04%
ROE(5y)12.54%
ROIC(3y)18.84%
ROIC(5y)13.96%
1.3 Margins
TH's Profit Margin of 25.49% is amongst the best of the industry. TH outperforms 96.27% of its industry peers.
The Operating Margin of TH (36.26%) is better than 98.51% of its industry peers.
In the last couple of years the Operating Margin of TH has grown nicely.
TH's Gross Margin of 51.09% is in line compared to the rest of the industry. TH outperforms 58.21% of its industry peers.
TH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.26% | ||
| PM (TTM) | 25.49% | ||
| GM | 51.09% |
OM growth 3Y183.89%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y29.82%
GM growth 5YN/A
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.
The number of shares outstanding for TH has been increased compared to 1 year ago.
Compared to 5 years ago, TH has more shares outstanding
The debt/assets ratio for TH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.58 indicates that TH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.58, TH belongs to the top of the industry, outperforming 84.33% of the companies in the same industry.
TH has a debt to FCF ratio of 1.29. This is a very positive value and a sign of high solvency as it would only need 1.29 years to pay back of all of its debts.
TH has a better Debt to FCF ratio (1.29) than 88.81% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, TH belongs to the top of the industry, outperforming 90.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.29 | ||
| Altman-Z | 3.58 |
ROIC/WACC2.82
WACC9.79%
2.3 Liquidity
TH has a Current Ratio of 0.89. This is a bad value and indicates that TH is not financially healthy enough and could expect problems in meeting its short term obligations.
TH has a Current ratio (0.89) which is comparable to the rest of the industry.
TH has a Quick Ratio of 0.89. This is a bad value and indicates that TH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.89, TH perfoms like the industry average, outperforming 52.99% of the companies in the same industry.
The current and quick ratio evaluation for TH is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
TH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.29%.
Measured over the past years, TH shows a very strong growth in Earnings Per Share. The EPS has been growing by 75.17% on average per year.
Looking at the last year, TH shows a very negative growth in Revenue. The Revenue has decreased by -20.53% in the last year.
Measured over the past years, TH shows a very strong growth in Revenue. The Revenue has been growing by 35.79% on average per year.
EPS 1Y (TTM)-17.29%
EPS 3YN/A
EPS 5Y75.17%
EPS Q2Q%-59.09%
Revenue 1Y (TTM)-20.53%
Revenue growth 3Y35.79%
Revenue growth 5YN/A
Sales Q2Q%-29.87%
3.2 Future
The Earnings Per Share is expected to decrease by -43.73% on average over the next years. This is quite bad
TH is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -21.32% yearly.
EPS Next Y-59.42%
EPS Next 2Y-43.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-31.76%
Revenue Next 2Y-21.32%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.00, which indicates a rather cheap valuation of TH.
Compared to the rest of the industry, the Price/Earnings ratio of TH indicates a rather cheap valuation: TH is cheaper than 97.01% of the companies listed in the same industry.
TH is valuated cheaply when we compare the Price/Earnings ratio to 30.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.79, which indicates a correct valuation of TH.
Based on the Price/Forward Earnings ratio, TH is valued a bit cheaper than the industry average as 76.12% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TH to the average of the S&P500 Index (23.28), we can say TH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TH is valued cheaper than 96.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TH is valued cheaper than 97.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.5 | ||
| EV/EBITDA | 3.11 |
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 -43.73% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-43.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TARGET HOSPITALITY CORP
NASDAQ:TH (11/4/2024, 8:00:00 PM)
After market: 7.7 0 (0%)7.7
+0.16 (+2.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap773.31M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
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EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 15.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.53% | ||
| ROE | 30.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 36.26% | ||
| PM (TTM) | 25.49% | ||
| GM | 51.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-17.29%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-59.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.53%
Revenue growth 3Y35.79%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y