TARGET HOSPITALITY CORP (TH) Stock Fundamental Analysis
NASDAQ:TH - Nasdaq - US87615L1070 - Common Stock - Currency: USD
Overall TH gets a fundamental rating of 5 out of 10. We evaluated TH against 131 industry peers in the Hotels, Restaurants & Leisure industry. TH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TH is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TH had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.90%, TH is in the better half of the industry, outperforming 78.63% of the companies in the same industry.
TH has a Return On Equity of 10.70%. This is in the better half of the industry: TH outperforms 69.47% of its industry peers.
The Return On Invested Capital of TH (11.58%) is better than 77.10% of its industry peers.
TH had an Average Return On Invested Capital over the past 3 years of 23.28%. This is significantly above the industry average of 15.91%.
The last Return On Invested Capital (11.58%) for TH is well below the 3 year average (23.28%), which needs to be investigated, but indicates that TH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.9% | ||
| ROE | 10.7% | ||
| ROIC | 11.58% |
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 has a Profit Margin of 12.71%. This is amongst the best in the industry. TH outperforms 81.68% of its industry peers.
In the last couple of years the Profit Margin of TH has grown nicely.
TH has a better Operating Margin (21.99%) than 83.97% of its industry peers.
TH's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 42.08%, TH perfoms like the industry average, outperforming 40.46% of the companies in the same industry.
In the last couple of years the Gross Margin of TH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.99% | ||
| PM (TTM) | 12.71% | ||
| GM | 42.08% |
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
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 reduced compared to 1 year ago.
Compared to 5 years ago, TH has less shares outstanding
TH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.30 indicates that TH is not in any danger for bankruptcy at the moment.
TH has a Altman-Z score of 5.30. This is amongst the best in the industry. TH outperforms 87.02% of its industry peers.
The Debt to FCF ratio of TH is 0.68, which is an excellent value as it means it would take TH, only 0.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TH (0.68) is better than 91.60% of its industry peers.
TH has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
TH has a better Debt to Equity ratio (0.10) than 82.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 5.3 |
ROIC/WACC1.18
WACC9.8%
2.3 Liquidity
A Current Ratio of 1.97 indicates that TH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.97, TH belongs to the top of the industry, outperforming 83.97% of the companies in the same industry.
A Quick Ratio of 1.97 indicates that TH should not have too much problems paying its short term obligations.
TH has a better Quick ratio (1.97) than 84.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
TH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.18%.
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 -31.46% in the past year. This is quite bad
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)-31.46%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%-38.83%
3.2 Future
The Earnings Per Share is expected to decrease by -44.00% on average over the next years. This is quite bad
The Revenue is expected to decrease by -11.46% on average over the next years. This is quite bad
EPS Next Y-136.79%
EPS Next 2Y-44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-28.73%
Revenue Next 2Y-11.46%
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
With a Price/Earnings ratio of 62.08, TH can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as TH.
Compared to an average S&P500 Price/Earnings ratio of 26.41, TH is valued quite expensively.
TH is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.08 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TH is valued cheaply inside the industry as 92.37% of the companies are valued more expensively.
90.08% of the companies in the same industry are more expensive than TH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.05 | ||
| EV/EBITDA | 5.53 |
4.3 Compensation for Growth
The decent profitability rating of TH may justify a higher PE ratio.
A cheap valuation may be justified as TH's earnings are expected to decrease with -44.00% in the coming years.
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y-44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.07
-0.1 (-1.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners30.45%
Inst Owner Change-2.25%
Ins Owners2.77%
Ins Owner Change0.84%
Market Cap801.84M
Analysts80
Price Target8.93 (10.66%)
Short Float %5.93%
Short Ratio4.77
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)1
Avg EPS beat(2)4.14%
Min EPS beat(2)-66.46%
Max EPS beat(2)74.75%
EPS beat(4)3
Avg EPS beat(4)17.65%
Min EPS beat(4)-66.46%
Max EPS beat(4)74.75%
EPS beat(8)6
Avg EPS beat(8)16.51%
EPS beat(12)7
Avg EPS beat(12)6.51%
EPS beat(16)9
Avg EPS beat(16)54.27%
Revenue beat(2)2
Avg Revenue beat(2)2.63%
Min Revenue beat(2)1.44%
Max Revenue beat(2)3.82%
Revenue beat(4)3
Avg Revenue beat(4)1.89%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)5.14%
Revenue beat(8)7
Avg Revenue beat(8)2.01%
Revenue beat(12)9
Avg Revenue beat(12)1.65%
Revenue beat(16)12
Avg Revenue beat(16)2.22%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.34%
EPS NY rev (1m)0%
EPS NY rev (3m)7.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.08 | ||
| Fwd PE | N/A | ||
| P/S | 2.29 | ||
| P/FCF | 12.05 | ||
| P/OCF | 7.63 | ||
| P/B | 1.93 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 5.53 |
EPS(TTM)0.13
EY1.61%
EPS(NY)-0.05
Fwd EYN/A
FCF(TTM)0.67
FCFY8.3%
OCF(TTM)1.06
OCFY13.1%
SpS3.52
BVpS4.18
TBVpS3.27
PEG (NY)N/A
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.9% | ||
| ROE | 10.7% | ||
| ROCE | 15.01% | ||
| ROIC | 11.58% | ||
| ROICexc | 12.41% | ||
| ROICexgc | 15.31% | ||
| OM | 21.99% | ||
| PM (TTM) | 12.71% | ||
| GM | 42.08% | ||
| FCFM | 19.04% |
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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 53.62% | ||
| Cap/Sales | 11.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.65% | ||
| Profit Quality | 149.78% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 5.3 |
F-Score5
WACC9.8%
ROIC/WACC1.18
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-136.79%
EPS Next 2Y-44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-31.46%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%-38.83%
Revenue Next Year-28.73%
Revenue Next 2Y-11.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-63.24%
EBIT growth 3Y42.95%
EBIT growth 5Y3.09%
EBIT Next Year-50.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-64.78%
FCF growth 3Y20.91%
FCF growth 5YN/A
OCF growth 1Y-70.05%
OCF growth 3Y13.19%
OCF growth 5Y20.18%