TARGET HOSPITALITY CORP (TH) Stock Fundamental Analysis
NASDAQ:TH - Nasdaq - US87615L1070 - Common Stock - Currency: USD
Taking everything into account, TH scores 6 out of 10 in our fundamental rating. TH was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. TH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TH had positive earnings in the past year.
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
With an excellent Return On Assets value of 9.82%, TH belongs to the best of the industry, outperforming 84.56% of the companies in the same industry.
The Return On Equity of TH (16.92%) is better than 76.47% of its industry peers.
TH has a Return On Invested Capital of 16.97%. This is amongst the best in the industry. TH outperforms 86.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TH is significantly above the industry average of 14.24%.
The last Return On Invested Capital (16.97%) 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 | 9.82% | ||
| ROE | 16.92% | ||
| ROIC | 16.97% |
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 18.45%, TH belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
TH's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.06%, TH belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
TH's Operating Margin has been stable in the last couple of years.
TH has a Gross Margin of 46.13%. This is comparable to the rest of the industry: TH outperforms 44.85% of its industry peers.
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 | 28.06% | ||
| PM (TTM) | 18.45% | ||
| GM | 46.13% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TH 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
TH has an Altman-Z score of 3.05. This indicates that TH is financially healthy and has little risk of bankruptcy at the moment.
TH's Altman-Z score of 3.05 is fine compared to the rest of the industry. TH outperforms 79.41% of its industry peers.
The Debt to FCF ratio of TH is 1.51, which is an excellent value as it means it would take TH, only 1.51 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.51, TH belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
TH has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, TH belongs to the top of the industry, outperforming 89.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.82
WACC9.31%
2.3 Liquidity
TH has a Current Ratio of 1.07. This is a normal value and indicates that TH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TH (1.07) is better than 61.03% of its industry peers.
TH has a Quick Ratio of 1.07. This is a normal value and indicates that TH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TH (1.07) is better than 63.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
TH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.55%.
TH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.14% yearly.
Looking at the last year, TH shows a very negative growth in Revenue. The Revenue has decreased by -31.45% in the last year.
TH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.76% yearly.
EPS 1Y (TTM)-54.55%
EPS 3YN/A
EPS 5Y40.14%
EPS Q2Q%-58.62%
Revenue 1Y (TTM)-31.45%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%-33.7%
3.2 Future
The Earnings Per Share is expected to decrease by -43.74% on average over the next years. This is quite bad
Based on estimates for the next years, TH will show a very negative growth in Revenue. The Revenue will decrease by -11.82% on average per year.
EPS Next Y-139.73%
EPS Next 2Y-43.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-28.66%
Revenue Next 2Y-11.82%
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 9.89, the valuation of TH can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TH indicates a rather cheap valuation: TH is cheaper than 94.85% of the companies listed in the same industry.
TH is valuated cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for TH. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TH is valued cheaper than 97.06% of the companies in the same industry.
98.53% 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 | 5.63 | ||
| EV/EBITDA | 3.76 |
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 -43.74% in the coming years.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-43.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.92
-0.05 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners29.31%
Inst Owner Change0.27%
Ins Owners2.24%
Ins Owner Change0.39%
Market Cap683.77M
Analysts80
Price Target8.93 (29.05%)
Short Float %6.44%
Short Ratio2.14
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)2
Avg EPS beat(2)66.1%
Min EPS beat(2)57.44%
Max EPS beat(2)74.75%
EPS beat(4)4
Avg EPS beat(4)42.36%
Min EPS beat(4)4.85%
Max EPS beat(4)74.75%
EPS beat(8)6
Avg EPS beat(8)24.04%
EPS beat(12)7
Avg EPS beat(12)9.79%
EPS beat(16)9
Avg EPS beat(16)55.24%
Revenue beat(2)2
Avg Revenue beat(2)3.29%
Min Revenue beat(2)1.44%
Max Revenue beat(2)5.14%
Revenue beat(4)3
Avg Revenue beat(4)1.33%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)5.14%
Revenue beat(8)7
Avg Revenue beat(8)2.07%
Revenue beat(12)8
Avg Revenue beat(12)1.14%
Revenue beat(16)12
Avg Revenue beat(16)2.48%
PT rev (1m)0%
PT rev (3m)-16.67%
EPS NQ rev (1m)-239.95%
EPS NQ rev (3m)-126.92%
EPS NY rev (1m)-131.42%
EPS NY rev (3m)-175.7%
Revenue NQ rev (1m)-13.27%
Revenue NQ rev (3m)-18.32%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-14.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | N/A | ||
| P/S | 1.77 | ||
| P/FCF | 5.63 | ||
| P/OCF | 4.51 | ||
| P/B | 1.62 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 3.76 |
EPS(TTM)0.7
EY10.12%
EPS(NY)-0.28
Fwd EYN/A
FCF(TTM)1.23
FCFY17.76%
OCF(TTM)1.54
OCFY22.18%
SpS3.91
BVpS4.26
TBVpS3.31
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 16.92% | ||
| ROCE | 22.01% | ||
| ROIC | 16.97% | ||
| ROICexc | 27.7% | ||
| ROICexgc | 40.2% | ||
| OM | 28.06% | ||
| PM (TTM) | 18.45% | ||
| GM | 46.13% | ||
| FCFM | 31.44% |
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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 41.54% | ||
| Cap/Sales | 7.83% | ||
| Interest Coverage | 6.03 | ||
| Cash Conversion | 83.71% | ||
| Profit Quality | 170.39% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.05 |
F-Score5
WACC9.31%
ROIC/WACC1.82
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)-54.55%
EPS 3YN/A
EPS 5Y40.14%
EPS Q2Q%-58.62%
EPS Next Y-139.73%
EPS Next 2Y-43.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-31.45%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%-33.7%
Revenue Next Year-28.66%
Revenue Next 2Y-11.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-54.95%
EBIT growth 3Y42.95%
EBIT growth 5Y3.09%
EBIT Next Year-47.36%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.67%
FCF growth 3Y20.91%
FCF growth 5YN/A
OCF growth 1Y-3.27%
OCF growth 3Y13.19%
OCF growth 5Y20.18%