NasdaqCM:TH

Stock Analysis Report

Executive Summary

Target Hospitality Corp., through its subsidiaries, provides specialty rental accommodations with catering and value-added hospitality services in the United States.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Target Hospitality's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.4%

TH

1.8%

US Hospitality

1.0%

US Market


1 Year Return

n/a

TH

7.5%

US Hospitality

8.0%

US Market

Return vs Industry: Insufficient data to determine how TH performed against the US Hospitality industry.

Return vs Market: Insufficient data to determine how TH performed against the US Market.


Shareholder returns

THIndustryMarket
7 Day-8.4%1.8%1.0%
30 Day-13.2%-1.7%-0.07%
90 Day-32.0%-5.0%-1.0%
1 Yearn/a10.1%7.5%10.4%8.0%
3 Yearn/a44.0%34.5%46.2%36.7%
5 Yearn/a41.4%25.7%64.3%46.2%

Price Volatility Vs. Market

How volatile is Target Hospitality's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Target Hospitality undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TH ($5.78) is trading below our estimate of fair value ($55.28)

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


Price To Earnings Ratio

PE vs Industry: TH is poor value based on its PE Ratio (436.5x) compared to the Hospitality industry average (22.2x).

PE vs Market: TH is poor value based on its PE Ratio (436.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TH is poor value based on its PEG Ratio (6.1x)


Price to Book Ratio

PB vs Industry: TH is overvalued based on its PB Ratio (4.3x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Target Hospitality forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

71.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TH's forecast earnings growth (71.8% per year) is above the savings rate (2.7%).

Earnings vs Market: TH's earnings (71.8% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: TH's revenue (6.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TH's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TH's Return on Equity is forecast to be high in 3 years time (31.7%)


Next Steps

Past Performance

How has Target Hospitality performed over the past 5 years?

100.1%

Last years revenue growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if TH's year-on-year earnings growth rate was positive over the past 5 years.

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 (-14.8%).


Return on Equity

High ROE: TH's Return on Equity (1%) is considered low.


Return on Assets

ROA vs Industry: TH's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate TH's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Target Hospitality's financial position?


Financial Position Analysis

Short Term Liabilities: TH's short term assets ($66.1M) exceeds its short term liabilities ($64.9M)

Long Term Liabilities: TH's short term assets (66.1M) do not cover its long term liabilities (408.0M)


Debt to Equity History and Analysis

Debt Level: TH's debt to equity ratio (288%) is considered high

Reducing Debt: Insufficient data to determine if TH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TH's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: TH's interest payments on its debt are well covered by EBIT (21.2x coverage).


Balance Sheet

Inventory Level: TH has a high level of physical assets or inventory.

Debt Coverage by Assets: TH's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Target Hospitality's salary, the management and board of directors tenure and is there insider trading?


CEO

Target Hospitality has no CEO, or we have no data on them.


Insider Trading

Insider Buying: TH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$31,25023 Aug 19
Martin Jimmerson
EntityIndividual
Shares5,000
Max PriceUS$6.25
BuyUS$33,75021 Aug 19
Martin Jimmerson
EntityIndividual
Shares5,000
Max PriceUS$6.75
BuyUS$20,51620 Aug 19
Gary Lindsay
EntityIndividual
Shares2,935
Max PriceUS$6.99
BuyUS$51,37519 Aug 19
Eli Baker
EntityIndividual
Shares7,500
Max PriceUS$6.85
BuyUS$229,35019 Aug 19
Gary Lindsay
EntityIndividual
Shares33,000
Max PriceUS$6.95

Ownership Breakdown


Management Team


    Board Members

      Company Information

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


      Key Information

      • Name: Target Hospitality Corp.
      • Ticker: TH
      • Exchange: NasdaqCM
      • Founded:
      • Industry: Hotels, Resorts and Cruise Lines
      • Sector: Consumer Services
      • Market Cap: US$579.293m
      • Shares outstanding: 100.22m
      • Website: https://www.targethospitality.com

      Number of Employees


      Location

      • Target Hospitality Corp.
      • 2170 Buckthorne Place
      • Suite 440
      • The Woodlands
      • Texas
      • 77380
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      THNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 2019

      Biography

      Target Hospitality Corp., through its subsidiaries, provides specialty rental accommodations with catering and value-added hospitality services in the United States. It builds, owns, and operates customize ...


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2019/10/22 00:50
      End of Day Share Price2019/10/21 00:00
      Earnings2019/06/30
      Annual Earnings2018/12/31


      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.