TARGET HOSPITALITY CORP (TH)
US87615L1070 - Common Stock
We assign a fundamental rating of 7 out of 10 to TH. TH was compared to 135 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 has a correct valuation and a medium growth rate. With these ratings, TH could be worth investigating further for quality investing!.
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.
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 better Return On Assets (25.02%) than 97.74% of its industry peers.
With an excellent Return On Equity value of 46.05%, TH belongs to the best of the industry, outperforming 90.98% of the companies in the same industry.
TH's Return On Invested Capital of 28.30% is amongst the best of the industry. TH outperforms 95.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TH is significantly above the industry average of 10.08%.
The 3 year average ROIC (18.84%) for TH is below the current ROIC(28.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.02% | ||
| ROE | 46.05% | ||
| ROIC | 28.3% |
ROA(3y)11.23%
ROA(5y)6.2%
ROE(3y)26.04%
ROE(5y)12.54%
ROIC(3y)18.84%
ROIC(5y)13.96%
1.3 Margins
TH's Profit Margin of 30.83% is amongst the best of the industry. TH outperforms 98.50% of its industry peers.
With an excellent Operating Margin value of 42.69%, TH belongs to the best of the industry, outperforming 99.25% of the companies in the same industry.
In the last couple of years the Operating Margin of TH has grown nicely.
The Gross Margin of TH (55.62%) is better than 63.16% of its industry peers.
In the last couple of years the Gross Margin of TH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.69% | ||
| PM (TTM) | 30.83% | ||
| GM | 55.62% |
OM growth 3Y183.89%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y29.82%
GM growth 5YN/A
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 more shares outstanding
Compared to 5 years ago, TH has more shares outstanding
TH has a better debt/assets ratio than last year.
2.2 Solvency
TH has an Altman-Z score of 4.85. This indicates that TH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TH (4.85) is better than 89.47% of its industry peers.
The Debt to FCF ratio of TH is 1.94, which is an excellent value as it means it would take TH, only 1.94 years of fcf income to pay off all of its debts.
TH has a better Debt to FCF ratio (1.94) than 84.21% of its industry peers.
TH has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
TH's Debt to Equity ratio of 0.47 is fine compared to the rest of the industry. TH outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 4.85 |
ROIC/WACC3.08
WACC9.19%
2.3 Liquidity
TH has a Current Ratio of 2.57. This indicates that TH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.57, TH belongs to the best of the industry, outperforming 91.73% of the companies in the same industry.
A Quick Ratio of 2.57 indicates that TH has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.57, TH belongs to the best of the industry, outperforming 91.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
TH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 102.63%, which is quite impressive.
Measured over the past years, TH shows a very strong growth in Earnings Per Share. The EPS has been growing by 75.17% on average per year.
Looking at the last year, TH shows a quite strong growth in Revenue. The Revenue has grown by 12.28% in the last year.
Measured over the past years, TH shows a very strong growth in Revenue. The Revenue has been growing by 35.79% on average per year.
EPS 1Y (TTM)102.63%
EPS 3YN/A
EPS 5Y75.17%
EPS growth Q2Q-6.45%
Revenue 1Y (TTM)12.28%
Revenue growth 3Y35.79%
Revenue growth 5YN/A
Revenue growth Q2Q-17.18%
3.2 Future
Based on estimates for the next years, TH will show a very negative growth in Earnings Per Share. The EPS will decrease by -32.07% on average per year.
TH is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.95% yearly.
EPS Next Y-57.42%
EPS Next 2Y-32.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-25.56%
Revenue Next 2Y-12.95%
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
A Price/Earnings ratio of 7.57 indicates a rather cheap valuation of TH.
Based on the Price/Earnings ratio, TH is valued cheaper than 96.24% of the companies in the same industry.
TH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.31.
TH is valuated rather expensively with a Price/Forward Earnings ratio of 17.78.
66.17% of the companies in the same industry are more expensive than TH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TH to the average of the S&P500 Index (20.48), we can say TH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 17.78 |
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 95.49% of the companies listed in the same industry.
TH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TH is cheaper than 84.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.51 | ||
| EV/EBITDA | 3.77 |
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 -32.07% in the coming years.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-32.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TARGET HOSPITALITY CORP
NASDAQ:TH (5/9/2024, 7:21:48 PM)
After market: 11.66 0 (0%)11.66
+0.14 (+1.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 17.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.02% | ||
| ROE | 46.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.69% | ||
| PM (TTM) | 30.83% | ||
| GM | 55.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)102.63%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-57.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.28%
Revenue growth 3Y35.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y