(TH) Target Hospitality - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: NASDAQ (USA) | Market Cap: 1.793m USD | Total Return: 138.1% in 12m
Avg Turnover: 18.4M
Qual. Beats: 0
Rev. Trend: -96.6%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -13.8 is critical
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Below Avwap Earnings
Tailwinds
Supp Ema20, Rs Leader, Idiosyncratic Leader
Target Hospitality Corp. (NASDAQ: TH) is a specialty rental and hospitality services provider operating primarily in North America. The company manages a network of modular accommodation units and provides comprehensive facility services, including catering, site maintenance, security, and workforce community management. Its business model relies on long-term service contracts with government agencies and large-scale natural resource developers.
The company operates through three core segments: South, Workforce Hospitality, and Government. Unlike traditional consumer-facing hotels, specialty rental firms in this sector focus on remote workforce housing and mission-critical infrastructure for industrial and federal projects. This niche allows for high asset utilization rates by serving investment-grade clients in the energy and defense sectors.
Investors can find more detailed financial metrics and valuation trends on ValueRay. Target Hospitality remains headquartered in The Woodlands, Texas, and maintains a vertically integrated approach by offering both construction and operational management services for its facilities.
- Government contract renewals and occupancy levels drive stable recurring revenue streams
- Volatility in Permian Basin oil production impacts workforce housing demand
- Termination or modification of large-scale humanitarian aid contracts reduces margins
- High operating leverage creates significant earnings sensitivity to asset utilization rates
- Strategic pivot toward government services diversification reduces dependence on energy cycles
| Net Income: -43.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -1.86 > 1.0 |
| NWC/Revenue: -3.28% < 20% (prev 14.04%; Δ -17.32% < -1%) |
| CFO/TA 0.14 > 3% & CFO 77.2m > Net Income -43.6m |
| Net Debt (42.5m) to EBITDA (48.9m): 0.87 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (99.9m) vs 12m ago 0.83% < -2% |
| Gross Margin: 0.57% > 18% (prev 0.40%; Δ 17.23% > 0.5%) |
| Asset Turnover: 58.71% > 50% (prev 62.13%; Δ -3.42% > 0%) |
| Interest Coverage Ratio: -13.77 > 6 (EBITDA TTM 48.9m / Interest Expense TTM 3.11m) |
| A: -0.02 (Total Current Assets 58.6m - Total Current Liabilities 69.2m) / Total Assets 539.5m |
| B: 0.52 (Retained Earnings 282.3m / Total Assets 539.5m) |
| C: -0.08 (EBIT TTM -42.8m / Avg Total Assets 551.0m) |
| D: 1.72 (Book Value of Equity 279.5m / Total Liabilities 162.9m) |
| Altman-Z'' = 2.86 = A |
| DSRI: 0.87 (Receivables 45.6m/56.9m, Revenue 323.5m/349.5m) |
| GMI: 69.88 (GM 0.57% / 39.98%) |
| AQI: 0.97 (AQ_t 0.16 / AQ_t-1 0.16) |
| SGI: 0.93 (Revenue 323.5m / 349.5m) |
| TATA: -0.22 (NI -43.6m - CFO 77.2m) / TA 539.5m) |
| Beneish M = 58.97 (Cap -4..+1) = D |
As of May 30, 2026, the stock is trading at USD 17.36 with a total of 2,412,547 shares traded.
Over the past week, the price has changed by -4.72%,
over one month by +22.34%,
over three months by +122.85% and
over the past year by +138.13%.
Target Hospitality has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold TH.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 22 | 26.7% |
P/E Forward = 20.1613
P/S = 5.542
P/B = 4.7567
P/EG = 1.3444
Revenue TTM = 323.5m USD
EBIT TTM = -42.8m USD
EBITDA TTM = 48.9m USD
Long Term Debt = 30.0m USD (from longTermDebt, last quarter)
Short Term Debt = 6.86m USD (from shortTermDebt, last quarter)
Debt = 48.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 8.99m
Net Debt = 42.5m USD (calculated: Debt 48.0m - CCE 5.46m)
Enterprise Value = 1.84b USD (1.79b + Debt 48.0m - CCE 5.46m)
Interest Coverage Ratio = -13.77 (Ebit TTM -42.8m / Interest Expense TTM 3.11m)
EV/FCF = 30.87x (Enterprise Value 1.84b / FCF TTM 59.5m)
FCF Yield = 3.24% (FCF TTM 59.5m / Enterprise Value 1.84b)
FCF Margin = 18.38% (FCF TTM 59.5m / Revenue TTM 323.5m)
Net Margin = -13.47% (Net Income TTM -43.6m / Revenue TTM 323.5m)
Gross Margin = 0.57% ((Revenue TTM 323.5m - Cost of Revenue TTM 321.7m) / Revenue TTM)
Gross Margin QoQ = -0.69% (prev -0.39%)
Tobins Q-Ratio = 3.40 (Enterprise Value 1.84b / Total Assets 539.5m)
Interest Expense / Debt = 6.47% (Interest Expense 3.11m / Debt 48.0m)
Taxrate = 21.0% (US default 21%)
NOPAT = -33.8m (EBIT -42.8m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.85 (Total Current Assets 58.6m / Total Current Liabilities 69.2m)
Debt / Equity = 0.13 (Debt 48.0m / totalStockholderEquity, last quarter 376.9m)
Debt / EBITDA = 0.87 (Net Debt 42.5m / EBITDA 48.9m)
Debt / FCF = 0.72 (Net Debt 42.5m / FCF TTM 59.5m)
Total Stockholder Equity = 392.5m (last 4 quarters mean from totalStockholderEquity)
RoA = -7.91% (Net Income -43.6m / Total Assets 539.5m)
RoE = -11.10% (Net Income TTM -43.6m / Total Stockholder Equity 392.5m)
RoCE = -10.13% (EBIT -42.8m / Capital Employed (Equity 392.5m + L.T.Debt 30.0m))
RoIC = -7.17% (negative operating profit) (NOPAT -33.8m / Invested Capital 471.7m)
WACC = 6.80% (E(1.79b)/V(1.84b) * Re(6.84%) + D(48.0m)/V(1.84b) * Rd(6.47%) * (1-Tc(0.21)))
Discount Rate = 6.84% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -62.87 | Cagr: -2.15%
[DCF] Terminal Value 73.10% ; FCFF base≈64.7m ; Y1≈56.7m ; Y5≈45.8m
[DCF] Fair Price = 6.92 (EV 735.3m - Net Debt 42.5m = Equity 692.8m / Shares 100.2m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.49 | # QB: 0
Revenue Correlation: -96.60 | Revenue CAGR: -24.49% | SUE: -0.31 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.11 | Chg30d=-42.27% | Revisions=+20% | Analysts=3
EPS next Quarter (2026-09-30): EPS=-0.02 | Chg30d=N/A | Revisions=+20% | Analysts=3
EPS current Year (2026-12-31): EPS=-0.18 | Chg30d=+0.00% | Revisions=+0% | GrowthEPS=+19.3% | GrowthRev=+17.3%
EPS next Year (2027-12-31): EPS=0.69 | Chg30d=+102.94% | Revisions=+0% | GrowthEPS=+476.4% | GrowthRev=+67.1%
[Analyst] Revisions Ratio: +20%