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TH

Target Hospitality NasdaqCM:TH Stock Report

Last Price

US$5.96

Market Cap

US$547.8m

7D

-2.1%

1Y

43.3%

Updated

26 Jun, 2022

Data

Company Financials +
TH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health2/6
Dividends0/6

TH Stock Overview

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America.

Target Hospitality Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Target Hospitality
Historical stock prices
Current Share PriceUS$5.96
52 Week HighUS$7.68
52 Week LowUS$2.72
Beta2.37
1 Month Change-5.40%
3 Month Change1.71%
1 Year Change43.27%
3 Year Change-34.51%
5 Year Changen/a
Change since IPO-40.99%

Recent News & Updates

May 16

Target Hospitality: Further Upside Possible, But Plateau In Growth Possible Longer-Term

Target Hospitality could see further upside as lodging demand for oil and gas workers increases in light of the situation in Ukraine. However, hiring levels across the O&G industry look increasingly unlikely to return to previous levels. This could affect lodging demand over the longer-term.

Shareholder Returns

THUS HospitalityUS Market
7D-2.1%4.6%6.6%
1Y43.3%-30.2%-18.4%

Return vs Industry: TH exceeded the US Hospitality industry which returned -30.2% over the past year.

Return vs Market: TH exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is TH's price volatile compared to industry and market?
TH volatility
TH Average Weekly Movement11.1%
Hospitality Industry Average Movement9.2%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: TH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: TH's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1978823Brad Archerhttps://www.targethospitality.com

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through four segments: Hospitality & Facilities Services - South, Hospitality & Facilities Services - Midwest, Government, and TCPL Keystone. It owns a network of specialty rental accommodation units with approximately 15,528 beds across 27 communities, which include 26 owned and 1 leased; and operates 1 community not owned or leased by the company.

Target Hospitality Fundamentals Summary

How do Target Hospitality's earnings and revenue compare to its market cap?
TH fundamental statistics
Market CapUS$547.85m
Earnings (TTM)US$9.06m
Revenue (TTM)US$326.18m

60.5x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TH income statement (TTM)
RevenueUS$326.18m
Cost of RevenueUS$154.41m
Gross ProfitUS$171.77m
Other ExpensesUS$162.72m
EarningsUS$9.06m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.099
Gross Margin52.66%
Net Profit Margin2.78%
Debt/Equity Ratio353.2%

How did TH perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TH?

Other financial metrics that can be useful for relative valuation.

TH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA7.1x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does TH's PE Ratio compare to its peers?

TH PE Ratio vs Peers
The above table shows the PE ratio for TH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.1x
BVH Bluegreen Vacations Holding
7.5x3.3%US$526.9m
GHG GreenTree Hospitality Group
23.4x41.7%US$411.2m
PLYA Playa Hotels & Resorts
50.8x43.4%US$1.2b
TNL Travel + Leisure
10.6x18.7%US$3.6b
TH Target Hospitality
60.5x25.9%US$547.8m

Price-To-Earnings vs Peers: TH is expensive based on its Price-To-Earnings Ratio (60.5x) compared to the peer average (23.1x).


Price to Earnings Ratio vs Industry

How does TH's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Earnings vs Industry: TH is expensive based on its Price-To-Earnings Ratio (60.5x) compared to the US Hospitality industry average (16.9x)


Price to Earnings Ratio vs Fair Ratio

What is TH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio60.5x
Fair PE Ratio18.4x

Price-To-Earnings vs Fair Ratio: TH is expensive based on its Price-To-Earnings Ratio (60.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).


Share Price vs Fair Value

What is the Fair Price of TH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TH ($5.96) is trading below our estimate of fair value ($16.71)

Significantly Below Fair Value: TH is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: TH is poor value based on its PEG Ratio (2.3x)


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Future Growth

How is Target Hospitality forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


25.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TH's forecast earnings growth (25.9% per year) is above the savings rate (1.9%).

Earnings vs Market: TH's earnings (25.9% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: TH's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TH's revenue (3% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: TH's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TH's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Target Hospitality performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-25.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TH has high quality earnings.

Growing Profit Margin: TH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TH has become profitable over the past 5 years, growing earnings by -25.2% per year.

Accelerating Growth: TH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (119.6%).


Return on Equity

High ROE: TH's Return on Equity (9.2%) is considered low.


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Financial Health

How is Target Hospitality's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TH's short term assets ($54.6M) exceed its short term liabilities ($32.8M).

Long Term Liabilities: TH's short term assets ($54.6M) do not cover its long term liabilities ($361.4M).


Debt to Equity History and Analysis

Debt Level: TH's net debt to equity ratio (347.3%) is considered high.

Reducing Debt: TH's debt to equity ratio has increased from 35.7% to 353.2% over the past 5 years.

Debt Coverage: TH's debt is well covered by operating cash flow (23.6%).

Interest Coverage: TH's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


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Dividend

What is Target Hospitality current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate TH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TH's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TH has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Brad Archer (50 yo)

8.42yrs

Tenure

US$3,581,389

Compensation

Mr. James Bradley Archer, also known as Brad, serves as Chief Executive Officer of Target Hospitality Corp. since 2014 and also serves as its President since 2014 and has been Non-Independent Director sinc...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD3.58M) is about average for companies of similar size in the US market ($USD2.83M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TH's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: TH's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Target Hospitality Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Target Hospitality Corp.
  • Ticker: TH
  • Exchange: NasdaqCM
  • Founded: 1978
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Implied Market Cap: US$547.848m
  • Shares outstanding: 91.92m
  • Website: https://www.targethospitality.com

Number of Employees


Location

  • Target Hospitality Corp.
  • 9320 Lakeside Boulevard
  • Suite 300
  • The Woodlands
  • Texas
  • 77381
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.