TARGET HOSPITALITY CORP (TH) Stock Fundamental Analysis
USA - NASDAQ:TH - US87615L1070 - Common Stock
7 USD
-0.02 (-0.28%)
7 USD
0 (0%)
TH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. TH has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
The reported net income has been mixed in the past 5 years: TH reported negative net income in multiple years.
In the past 5 years TH always reported a positive cash flow from operatings.
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 (2.77%) which is in line with its industry peers.
TH's Return On Invested Capital of 4.91% is in line compared to the rest of the industry. TH outperforms 51.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TH is significantly above the industry average of 10.67%.
The last Return On Invested Capital (4.91%) 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 | 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
With a Profit Margin value of 3.58%, TH perfoms like the industry average, outperforming 51.11% of the companies in the same industry.
TH's Profit Margin has improved in the last couple of years.
TH has a Operating Margin of 9.79%. This is comparable to the rest of the industry: TH outperforms 55.56% of its industry peers.
TH's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 32.18%, TH is doing worse than 74.07% of the companies in the same industry.
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
TH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TH has less shares outstanding
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 4.81 indicates that TH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.81, TH belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
TH has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
TH has a better Debt to FCF ratio (0.76) than 91.85% 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 82.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 4.81 |
ROIC/WACC0.58
WACC8.44%
2.3 Liquidity
TH has a Current 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 has a better Current ratio (1.47) than 72.59% 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.
With a decent Quick ratio value of 1.47, TH is doing good in the industry, outperforming 76.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
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 -35.27% 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)-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.
The Revenue is expected to decrease by -12.66% on average over the next years. This is quite bad
EPS Next Y-137.77%
EPS Next 2Y-49.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18.18%
Revenue Next 2Y-12.66%
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
With a Price/Earnings ratio of 53.85, TH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TH is on the same level as its industry peers.
TH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.40.
The Forward Price/Earnings Ratio is negative for TH. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.85 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TH is valued cheaper than 83.70% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TH indicates a somewhat cheap valuation: TH is cheaper than 76.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.38 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
TH's earnings are expected to decrease with -49.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y-49.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7
-0.02 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners32%
Inst Owner Change-0.02%
Ins Owners2.76%
Ins Owner Change0.37%
Market Cap698.46M
Analysts81.67
Price Target10.71 (53%)
Short Float %8.02%
Short Ratio6.52
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)0%
PT rev (3m)20%
EPS NQ rev (1m)-9.08%
EPS NQ rev (3m)20%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.67%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)6.42%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)14.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.85 | ||
| Fwd PE | N/A | ||
| P/S | 2.25 | ||
| P/FCF | 18.38 | ||
| P/OCF | 9.07 | ||
| P/B | 1.74 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 7 |
EPS(TTM)0.13
EY1.86%
EPS(NY)-0.16
Fwd EYN/A
FCF(TTM)0.38
FCFY5.44%
OCF(TTM)0.77
OCFY11.02%
SpS3.11
BVpS4.02
TBVpS3.15
PEG (NY)N/A
PEG (5Y)1.34
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 | 4.81 |
F-Score4
WACC8.44%
ROIC/WACC0.58
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-137.77%
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-18.18%
Revenue Next 2Y-12.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-82.52%
EBIT growth 3Y42.95%
EBIT growth 5Y3.09%
EBIT Next Year-42.41%
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%