TARGET HOSPITALITY CORP (TH) Stock Fundamental Analysis
USA - NASDAQ:TH - US87615L1070 - Common Stock
6.67 USD
+0.26 (+4.06%)
6.67 USD
0 (0%)
Taking everything into account, TH scores 4 out of 10 in our fundamental rating. TH was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. While TH has a great health rating, its profitability is only average at the moment. TH has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TH had negative earnings in the past year.
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.
The Return On Equity of TH (2.77%) is comparable to the rest of the industry.
The Return On Invested Capital of TH (4.91%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TH is significantly above the industry average of 10.82%.
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
TH has a Profit Margin of 3.58%. This is comparable to the rest of the industry: TH outperforms 52.27% of its industry peers.
In the last couple of years the Profit Margin of TH has grown nicely.
Looking at the Operating Margin, with a value of 9.79%, TH is in line with its industry, outperforming 56.06% of the companies in the same industry.
TH's Operating Margin has been stable in the last couple of years.
TH's Gross Margin of 32.18% is on the low side compared to the rest of the industry. TH is outperformed by 73.48% 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 | 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.
TH has less shares outstanding than it did 1 year ago.
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 4.66 indicates that TH is not in any danger for bankruptcy at the moment.
TH's Altman-Z score of 4.66 is amongst the best of the industry. TH outperforms 87.88% 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.
With an excellent Debt to FCF ratio value of 0.76, TH belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
TH has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
TH has a Debt to Equity ratio of 0.07. This is amongst the best in the industry. TH outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 4.66 |
ROIC/WACC0.58
WACC8.51%
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 Current ratio of 1.47. This is in the better half of the industry: TH outperforms 71.97% 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.
The Quick ratio of TH (1.47) is better than 75.76% of its industry peers.
| 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 -109.20%.
The Earnings Per Share has been growing by 40.14% on average over the past years. This is a very strong growth
The Revenue for TH has decreased by -31.46% in the past year. This is quite bad
Measured over the past years, TH shows a small growth in Revenue. The Revenue has been growing by 3.76% on average per year.
EPS 1Y (TTM)-109.2%
EPS 3YN/A
EPS 5Y40.14%
EPS Q2Q%-105%
Revenue 1Y (TTM)-31.46%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%4.37%
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 -53.52% yearly.
The Revenue is expected to decrease by -12.66% on average over the next years. This is quite bad
EPS Next Y-139.73%
EPS Next 2Y-53.52%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings Ratio is negative for TH. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TH. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TH is valued cheaper than 86.36% of the companies in the same industry.
78.79% 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 | 17.51 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
TH's earnings are expected to decrease with -53.52% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-53.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.67
+0.26 (+4.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners32%
Inst Owner Change1.94%
Ins Owners2.76%
Ins Owner Change0.36%
Market Cap665.53M
Revenue(TTM)386.27M
Net Income(TTM)11.10M
Analysts81.67
Price Target10.2 (52.92%)
Short Float %8.27%
Short Ratio6.74
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)-4.76%
PT rev (3m)14.29%
EPS NQ rev (1m)-9.08%
EPS NQ rev (3m)20%
EPS NY rev (1m)-5.19%
EPS NY rev (3m)-8%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)6.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)14.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.14 | ||
| P/FCF | 17.51 | ||
| P/OCF | 8.65 | ||
| P/B | 1.66 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)-0.08
EYN/A
EPS(NY)-0.25
Fwd EYN/A
FCF(TTM)0.38
FCFY5.71%
OCF(TTM)0.77
OCFY11.57%
SpS3.11
BVpS4.02
TBVpS3.15
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
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%
ROICexgc growth 3Y59.31%
ROICexgc 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 | 4.66 |
F-Score4
WACC8.51%
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)-109.2%
EPS 3YN/A
EPS 5Y40.14%
EPS Q2Q%-105%
EPS Next Y-139.73%
EPS Next 2Y-53.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-31.46%
Revenue growth 3Y9.86%
Revenue growth 5Y3.76%
Sales Q2Q%4.37%
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%
TARGET HOSPITALITY CORP / TH FAQ
What is the ChartMill fundamental rating of TARGET HOSPITALITY CORP (TH) stock?
ChartMill assigns a fundamental rating of 4 / 10 to TH.
Can you provide the valuation status for TARGET HOSPITALITY CORP?
ChartMill assigns a valuation rating of 2 / 10 to TARGET HOSPITALITY CORP (TH). This can be considered as Overvalued.
How profitable is TARGET HOSPITALITY CORP (TH) stock?
TARGET HOSPITALITY CORP (TH) has a profitability rating of 5 / 10.
Can you provide the financial health for TH stock?
The financial health rating of TARGET HOSPITALITY CORP (TH) is 8 / 10.