TARGET HOSPITALITY CORP (TH)
US87615L1070 - Common Stock
Taking everything into account, TH scores 6 out of 10 in our fundamental rating. TH was compared to 135 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: TH reported negative net income in multiple years.
Each year in the past 5 years TH had a positive operating cash flow.
1.2 Ratios
TH has a Return On Assets of 13.61%. This is amongst the best in the industry. TH outperforms 91.79% of its industry peers.
TH has a better Return On Equity (23.13%) than 82.09% of its industry peers.
TH has a Return On Invested Capital of 20.49%. This is amongst the best in the industry. TH outperforms 93.28% 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 10.46%.
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 Rank | Sector 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%
1.3 Margins
TH has a Profit Margin of 22.53%. This is amongst the best in the industry. TH outperforms 97.76% of its industry peers.
With an excellent Operating Margin value of 31.29%, TH belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
TH's Operating Margin has improved in the last couple of years.
The Gross Margin of TH (47.43%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TH has grown nicely.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TH is creating value.
Compared to 1 year ago, TH has more shares outstanding
TH has more shares outstanding than it did 5 years ago.
TH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.64 indicates that TH is not in any danger for bankruptcy at the moment.
TH's Altman-Z score of 3.64 is amongst the best of the industry. TH outperforms 82.84% of its industry peers.
The Debt to FCF ratio of TH is 1.42, which is an excellent value as it means it would take TH, only 1.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.42, TH belongs to the top of the industry, outperforming 88.06% of the companies in the same industry.
TH has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
TH's Debt to Equity ratio of 0.00 is amongst the best of the industry. TH outperforms 91.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.64 |
ROIC/WACC2.3
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.01 indicates that TH should not have too much problems paying its short term obligations.
TH has a Current ratio (1.01) which is in line with its industry peers.
A Quick Ratio of 1.01 indicates that TH should not have too much problems paying its short term obligations.
TH has a Quick ratio (1.01) which is comparable to the rest of the industry.
TH does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for TH have decreased strongly by -44.23% in the last year.
TH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 75.17% yearly.
TH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.28%.
TH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.79% yearly.
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 -43.73% yearly.
The Revenue is expected to decrease by -21.32% on average over the next years. This is quite bad
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
TH is valuated reasonably with a Price/Earnings ratio of 10.01.
Based on the Price/Earnings ratio, TH is valued cheaper than 95.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. TH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 17.87, TH is valued on the expensive side.
68.66% of the companies in the same industry are more expensive than TH, based on the Price/Forward Earnings ratio.
TH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 17.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TH is valued cheaply inside the industry as 94.78% of the companies are valued more expensively.
TH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TH is cheaper than 97.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | 4.18 |
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)0.13
EPS Next 2Y-43.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TARGET HOSPITALITY CORP
NASDAQ:TH (11/22/2024, 4:02:29 PM)
After market: 8.71 0 (0%)8.71
-0.06 (-0.68%)
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 Cap861.77M
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)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 17.87 | ||
| 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)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.61% | ||
| ROE | 23.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.29% | ||
| PM (TTM) | 22.53% | ||
| GM | 47.43% | ||
| 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| 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)-44.23%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-59.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-27.28%
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