TARGET HOSPITALITY CORP (TH) Stock Fundamental Analysis
NASDAQ:TH - Nasdaq - US87615L1070 - Common Stock - Currency: USD
Taking everything into account, TH scores 6 out of 10 in our fundamental rating. TH was compared to 136 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 is valued correctly, but it does not seem to be growing.
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.
In the past 5 years TH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.82%, TH belongs to the top of the industry, outperforming 84.56% of the companies in the same industry.
TH's Return On Equity of 16.92% is fine compared to the rest of the industry. TH outperforms 75.74% of its industry peers.
TH's Return On Invested Capital of 16.97% is amongst the best of the industry. TH outperforms 86.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TH is significantly above the industry average of 15.70%.
The 3 year average ROIC (23.28%) for TH is well above the current ROIC(16.97%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 16.92% | ||
| ROIC | 16.97% |
ROA(3y)14.8%
ROA(5y)7.76%
ROE(3y)33.25%
ROE(5y)13.93%
ROIC(3y)23.28%
ROIC(5y)15.4%
1.3 Margins
TH's Profit Margin of 18.45% is amongst the best of the industry. TH outperforms 91.91% of its industry peers.
In the last couple of years the Profit Margin of TH has grown nicely.
The Operating Margin of TH (28.06%) is better than 95.59% of its industry peers.
TH's Operating Margin has been stable in the last couple of years.
TH's Gross Margin of 46.13% is in line compared to the rest of the industry. TH outperforms 45.59% of its industry peers.
TH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.06% | ||
| PM (TTM) | 18.45% | ||
| GM | 46.13% |
OM growth 3Y30.12%
OM growth 5Y-0.65%
PM growth 3YN/A
PM growth 5Y37.62%
GM growth 3Y9.84%
GM growth 5Y0.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TH is creating value.
TH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TH has less shares outstanding
The debt/assets ratio for TH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.99 indicates that TH is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TH (2.99) is better than 80.15% of its industry peers.
TH has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
The Debt to FCF ratio of TH (1.51) is better than 88.97% 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.
Looking at the Debt to Equity ratio, with a value of 0.00, TH belongs to the top of the industry, outperforming 90.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.82
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.07 indicates that TH should not have too much problems paying its short term obligations.
TH has a better Current ratio (1.07) than 60.29% of its industry peers.
A Quick Ratio of 1.07 indicates that TH should not have too much problems paying its short term obligations.
The Quick ratio of TH (1.07) is better than 63.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for TH have decreased strongly by -54.55% in the last year.
Measured over the past years, TH shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.14% on average per year.
The Revenue for TH has decreased by -31.45% in the past year. This is quite bad
TH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.76% yearly.
EPS 1Y (TTM)-54.55%
EPS 3YN/A
EPS 5Y40.14%
EPS Q2Q%-58.62%
Revenue 1Y (TTM)-31.45%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%-33.7%
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 -50.25% yearly.
Based on estimates for the next years, TH will show a very negative growth in Revenue. The Revenue will decrease by -11.82% on average per year.
EPS Next Y-117.17%
EPS Next 2Y-50.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-31.16%
Revenue Next 2Y-11.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
TH is valuated reasonably with a Price/Earnings ratio of 9.49.
Based on the Price/Earnings ratio, TH is valued cheaper than 92.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. TH is valued rather cheaply when compared to this.
The Forward Price/Earnings Ratio is negative for TH. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TH indicates a rather cheap valuation: TH is cheaper than 97.06% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TH indicates a rather cheap valuation: TH is cheaper than 98.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.41 | ||
| EV/EBITDA | 3.59 |
4.3 Compensation for Growth
TH has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TH's earnings are expected to decrease with -50.25% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-50.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.645
-0.05 (-0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners29.31%
Inst Owner Change0.01%
Ins Owners2.24%
Ins Owner Change0.39%
Market Cap656.59M
Analysts80
Price Target8.93 (34.39%)
Short Float %6%
Short Ratio1.98
Dividend
| Industry Rank | Sector 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)66.1%
Min EPS beat(2)57.44%
Max EPS beat(2)74.75%
EPS beat(4)4
Avg EPS beat(4)42.36%
Min EPS beat(4)4.85%
Max EPS beat(4)74.75%
EPS beat(8)6
Avg EPS beat(8)24.04%
EPS beat(12)7
Avg EPS beat(12)9.79%
EPS beat(16)9
Avg EPS beat(16)55.24%
Revenue beat(2)2
Avg Revenue beat(2)3.29%
Min Revenue beat(2)1.44%
Max Revenue beat(2)5.14%
Revenue beat(4)3
Avg Revenue beat(4)1.33%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)5.14%
Revenue beat(8)7
Avg Revenue beat(8)2.07%
Revenue beat(12)8
Avg Revenue beat(12)1.14%
Revenue beat(16)12
Avg Revenue beat(16)2.48%
PT rev (1m)16.67%
PT rev (3m)-16.67%
EPS NQ rev (1m)-179.96%
EPS NQ rev (3m)-114.28%
EPS NY rev (1m)-132.71%
EPS NY rev (3m)-132.71%
Revenue NQ rev (1m)-7.12%
Revenue NQ rev (3m)-13.44%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-17.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | N/A | ||
| P/S | 1.7 | ||
| P/FCF | 5.41 | ||
| P/OCF | 4.33 | ||
| P/B | 1.56 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 3.59 |
EPS(TTM)0.7
EY10.53%
EPS(NY)-0.12
Fwd EYN/A
FCF(TTM)1.23
FCFY18.49%
OCF(TTM)1.54
OCFY23.1%
SpS3.91
BVpS4.26
TBVpS3.31
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 16.92% | ||
| ROCE | 22.01% | ||
| ROIC | 16.97% | ||
| ROICexc | 27.7% | ||
| ROICexgc | 40.2% | ||
| OM | 28.06% | ||
| PM (TTM) | 18.45% | ||
| GM | 46.13% | ||
| FCFM | 31.44% |
ROA(3y)14.8%
ROA(5y)7.76%
ROE(3y)33.25%
ROE(5y)13.93%
ROIC(3y)23.28%
ROIC(5y)15.4%
ROICexc(3y)32.35%
ROICexc(5y)20.92%
ROICexgc(3y)44.23%
ROICexgc(5y)28.72%
ROCE(3y)30.2%
ROCE(5y)19.98%
ROICexcg growth 3Y59.31%
ROICexcg growth 5Y15.95%
ROICexc growth 3Y59.26%
ROICexc growth 5Y15.52%
OM growth 3Y30.12%
OM growth 5Y-0.65%
PM growth 3YN/A
PM growth 5Y37.62%
GM growth 3Y9.84%
GM growth 5Y0.15%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 41.54% | ||
| Cap/Sales | 7.83% | ||
| Interest Coverage | 6.03 | ||
| Cash Conversion | 83.71% | ||
| Profit Quality | 170.39% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.99 |
F-Score5
WACC9.32%
ROIC/WACC1.82
Cap/Depr(3y)108.53%
Cap/Depr(5y)79.14%
Cap/Sales(3y)15.74%
Cap/Sales(5y)13.03%
Profit Quality(3y)148.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.55%
EPS 3YN/A
EPS 5Y40.14%
EPS Q2Q%-58.62%
EPS Next Y-117.17%
EPS Next 2Y-50.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-31.45%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%-33.7%
Revenue Next Year-31.16%
Revenue Next 2Y-11.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-54.95%
EBIT growth 3Y42.95%
EBIT growth 5Y3.09%
EBIT Next Year-47.36%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.67%
FCF growth 3Y20.91%
FCF growth 5YN/A
OCF growth 1Y-3.27%
OCF growth 3Y13.19%
OCF growth 5Y20.18%