TARGET HOSPITALITY CORP (TH) Stock Fundamental Analysis
NASDAQ:TH - US87615L1070 - Common Stock
8.8 USD
-0.11 (-1.29%)
8.8 USD
0 (0%)
Taking everything into account, TH scores 4 out of 10 in our fundamental rating. TH was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. TH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TH has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TH was profitable.
TH had a positive operating cash flow in the past year.
In multiple years TH reported negative net income over the last 5 years.
Each year in the past 5 years TH had a positive operating cash flow.
1.2 Ratios
TH has a Return On Assets (2.08%) which is comparable to the rest of the industry.
TH has a Return On Equity of 2.77%. This is comparable to the rest of the industry: TH outperforms 52.24% of its industry peers.
TH has a Return On Invested Capital (4.91%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TH is significantly above the industry average of 16.00%.
The 3 year average ROIC (23.28%) for TH is well above the current ROIC(4.91%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 2.77% | ||
| ROIC | 4.91% |
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
Looking at the Profit Margin, with a value of 3.58%, TH is in line with its industry, outperforming 51.49% of the companies in the same industry.
In the last couple of years the Profit Margin of TH has grown nicely.
TH has a Operating Margin of 9.79%. This is comparable to the rest of the industry: TH outperforms 54.48% of its industry peers.
In the last couple of years the Operating Margin of TH has remained more or less at the same level.
With a Gross Margin value of 32.18%, TH is not doing good in the industry: 73.88% of the companies in the same industry are doing better.
TH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.79% | ||
| PM (TTM) | 3.58% | ||
| GM | 32.18% |
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
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 less shares outstanding
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 5.67 indicates that TH is not in any danger for bankruptcy at the moment.
TH has a Altman-Z score of 5.67. This is amongst the best in the industry. TH outperforms 85.07% of its industry peers.
The Debt to FCF ratio of TH is 0.76, which is an excellent value as it means it would take TH, only 0.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TH (0.76) is better than 90.30% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that TH is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.07, TH belongs to the best of the industry, outperforming 82.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 5.67 |
ROIC/WACC0.52
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.47 indicates that TH should not have too much problems paying its short term obligations.
TH has a better Current ratio (1.47) than 73.13% of its industry peers.
TH has a Quick Ratio of 1.47. 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 Quick ratio of 1.47 is fine compared to the rest of the industry. TH outperforms 76.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for TH have decreased strongly by -88.18% in the last year.
The Earnings Per Share has been growing by 40.14% on average over the past years. This is a very strong growth
Looking at the last year, TH shows a very negative growth in Revenue. The Revenue has decreased by -35.27% in the last year.
The Revenue has been growing slightly by 3.76% on average over the past years.
EPS 1Y (TTM)-88.18%
EPS 3YN/A
EPS 5Y40.14%
EPS Q2Q%-183.33%
Revenue 1Y (TTM)-35.27%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%-38.83%
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 -49.18% yearly.
Based on estimates for the next years, TH will show a very negative growth in Revenue. The Revenue will decrease by -13.39% on average per year.
EPS Next Y-139.73%
EPS Next 2Y-49.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18%
Revenue Next 2Y-13.39%
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.
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
Based on the Price/Earnings ratio of 67.69, the valuation of TH can be described as expensive.
TH's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.84. TH is valued rather expensively when compared to this.
TH is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.69 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TH is valued a bit cheaper than 76.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TH is valued a bit cheaper than the industry average as 70.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.1 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
A cheap valuation may be justified as TH's earnings are expected to decrease with -49.18% in the coming years.
PEG (NY)N/A
PEG (5Y)1.69
EPS Next 2Y-49.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.8
-0.11 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners30.45%
Inst Owner Change-10.07%
Ins Owners2.77%
Ins Owner Change0.52%
Market Cap878.06M
Analysts80
Price Target10.71 (21.7%)
Short Float %8.12%
Short Ratio6.32
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)0
Avg EPS beat(2)-51.49%
Min EPS beat(2)-66.46%
Max EPS beat(2)-36.52%
EPS beat(4)2
Avg EPS beat(4)7.3%
Min EPS beat(4)-66.46%
Max EPS beat(4)74.75%
EPS beat(8)5
Avg EPS beat(8)10.01%
EPS beat(12)6
Avg EPS beat(12)0.15%
EPS beat(16)9
Avg EPS beat(16)64.31%
Revenue beat(2)2
Avg Revenue beat(2)4.9%
Min Revenue beat(2)3.82%
Max Revenue beat(2)5.99%
Revenue beat(4)4
Avg Revenue beat(4)4.09%
Min Revenue beat(4)1.44%
Max Revenue beat(4)5.99%
Revenue beat(8)7
Avg Revenue beat(8)2.45%
Revenue beat(12)9
Avg Revenue beat(12)2.01%
Revenue beat(16)12
Avg Revenue beat(16)2.53%
PT rev (1m)20%
PT rev (3m)20%
EPS NQ rev (1m)-6.66%
EPS NQ rev (3m)-206.66%
EPS NY rev (1m)-8%
EPS NY rev (3m)-8%
Revenue NQ rev (1m)6.98%
Revenue NQ rev (3m)25.87%
Revenue NY rev (1m)15.04%
Revenue NY rev (3m)14.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.69 | ||
| Fwd PE | N/A | ||
| P/S | 2.83 | ||
| P/FCF | 23.1 | ||
| P/OCF | 11.41 | ||
| P/B | 2.19 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)0.13
EY1.48%
EPS(NY)-0.16
Fwd EYN/A
FCF(TTM)0.38
FCFY4.33%
OCF(TTM)0.77
OCFY8.77%
SpS3.11
BVpS4.02
TBVpS3.15
PEG (NY)N/A
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 2.77% | ||
| ROCE | 6.37% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 6.32% | ||
| OM | 9.79% | ||
| PM (TTM) | 3.58% | ||
| GM | 32.18% | ||
| FCFM | 12.24% |
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-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 55.1% | ||
| Cap/Sales | 12.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.11% | ||
| Profit Quality | 342.26% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 5.67 |
F-Score4
WACC9.42%
ROIC/WACC0.52
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)-88.18%
EPS 3YN/A
EPS 5Y40.14%
EPS Q2Q%-183.33%
EPS Next Y-139.73%
EPS Next 2Y-49.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-35.27%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%-38.83%
Revenue Next Year-18%
Revenue Next 2Y-13.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-82.52%
EBIT growth 3Y42.95%
EBIT growth 5Y3.09%
EBIT Next Year-50.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-83.15%
FCF growth 3Y20.91%
FCF growth 5YN/A
OCF growth 1Y-79.7%
OCF growth 3Y13.19%
OCF growth 5Y20.18%