Target Hospitality (TH) AI Stock Analysis

• Market Cap: $669.52M
• Dividend Yield: N/A
• Average Volume (3M): 467.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -26.65%
• EPS Growth: -110.98%
• Country: US
• Employees: 770
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.01
• Shares Outstanding: 99,779,530
• 10 Day Avg. Volume: 643,173
• 30 Day Avg. Volume: 467,760
• PEG Ratio: -0.24
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 7.97
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 10.00
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $10.00
• Price Target Upside: 49.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.27
• Revenue Forecast (FY): $315.45M

• Rating: 64 Neutral
• Price Target: $7.00 ▲(4.32% Upside)

Target Hospitality's overall stock score reflects strong earnings call insights and a solid balance sheet, but is tempered by profitability challenges and technical indicators pointing to bearish momentum. The high P/E ratio suggests overvaluation, limiting potential upside.

Positive Factors

New Multiyear Contracts

Securing multiyear contracts worth $400 million enhances revenue visibility and supports long-term growth, strengthening the company's market position.

Data Center Market Expansion

Expanding into data centers aligns with industry trends, offering significant growth potential and diversification beyond traditional sectors.

Raised Financial Outlook

An improved financial outlook reflects confidence in business prospects and strategic initiatives, indicating potential for enhanced profitability.

Negative Factors

Declining Revenue Growth

A significant decline in revenue growth suggests challenges in maintaining market momentum, potentially impacting future financial performance.

Termination of Key Contracts

Loss of key contracts in the government segment can reduce revenue streams and hinder growth, necessitating new client acquisition to offset losses.

Lower Margin Contributions

Anticipated lower margin contributions may pressure profitability, requiring efficiency improvements to sustain margins and shareholder returns.

Target Hospitality Business Overview & Revenue Model

Company Description

Target Hospitality (TH) is a leading provider of integrated hospitality solutions, primarily serving the energy, resource, and government sectors. The company specializes in providing temporary and permanent accommodations, catering, and facility management services to clients in remote locations. Through its extensive network of modular housing and hospitality facilities, Target Hospitality is dedicated to delivering high-quality living and working environments that enhance the well-being and productivity of its residents.

How the Company Makes Money

Target Hospitality generates revenue through several key streams. The primary source of income comes from leasing modular accommodations and providing hospitality services to clients in various sectors, particularly in oil and gas, mining, and government contracts. This is often structured as long-term contracts or agreements that ensure a steady cash flow. Additionally, the company earns revenue from ancillary services such as catering, facility management, and maintenance services that complement their accommodation offerings. Strategic partnerships with energy companies and government agencies further bolster their revenue, as these relationships often lead to multi-year contracts that provide financial stability and growth opportunities. Overall, Target Hospitality's diversified service offerings and strong client relationships contribute significantly to its earnings.

Target Hospitality Financial Statement Overview

Summary

Target Hospitality shows resilience in cash flow generation and a strong balance sheet with low leverage. However, profitability challenges persist, as indicated by negative net income and declining margins. Recent revenue growth is a positive sign, but operational efficiency needs improvement.

Income Statement

Target Hospitality's income statement shows a mixed performance. The TTM data reveals a gross profit margin of 21.79% and a net profit margin of -3.08%, indicating challenges in profitability. However, the company has shown a positive revenue growth rate of 1.34% in the TTM, recovering from a significant decline in the previous year. The EBIT and EBITDA margins have decreased compared to previous years, reflecting pressure on operational efficiency.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.033 in the TTM, significantly improved from previous years. The return on equity is negative at -2.36% in the TTM, highlighting profitability challenges. However, the equity ratio remains stable, suggesting a solid asset base relative to equity.

Cash Flow

Cash flow analysis shows robust free cash flow growth of 44.53% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.20, and the free cash flow to net income ratio is nearly 1, reflecting efficient cash conversion despite net income losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	314.55M	386.27M	563.61M	501.99M	291.34M	225.15M
Gross Profit	82.90M	178.18M	313.32M	247.13M	101.35M	57.16M
EBITDA	75.20M	125.10M	332.62M	224.29M	102.21M	68.11M
Net Income	-9.69M	71.27M	173.70M	73.94M	-4.58M	-25.13M
Balance Sheet
Total Assets	541.15M	725.77M	694.35M	771.73M	513.39M	534.24M
Cash, Cash Equivalents and Short-Term Investments	30.39M	190.67M	103.93M	181.67M	23.41M	6.98M
Total Debt	13.28M	209.65M	200.83M	354.69M	331.64M	378.34M
Total Liabilities	138.91M	304.68M	317.05M	570.88M	416.12M	435.35M
Stockholders Equity	402.38M	421.08M	377.31M	200.85M	97.27M	98.89M
Cash Flow
Free Cash Flow	81.64M	121.43M	88.38M	164.77M	69.11M	34.60M
Operating Cash Flow	98.91M	151.68M	156.80M	305.61M	104.60M	46.78M
Investing Cash Flow	-46.59M	-28.84M	-68.18M	-140.23M	-35.91M	-10.95M
Financing Cash Flow	-199.67M	-36.06M	-166.37M	-7.10M	-52.27M	-35.68M

Target Hospitality Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TH, the sentiment is Neutral. The current price of 6.71 is below the 20-day moving average (MA) of 6.94, below the 50-day MA of 7.59, and below the 200-day MA of 7.40, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 55.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TH.

Target Hospitality Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TH	64 Neutral	$669.52M	―	-2.36%	―	-26.65%	-110.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PRSU	56 Neutral	$972.37M	2.99	-24.71%	―	-68.48%	2198.47%
CVEO	53 Neutral	$258.86M	-10.64	-12.34%	4.74%	-10.51%	-247.97%

Target Hospitality Corporate Events

Target Hospitality Reports Q3 2025 Financial Results

Target Hospitality, a leading provider of modular accommodations and value-added hospitality services in North America, has reported its financial results for the third quarter of 2025. The company operates in the hospitality sector, offering a range of services including food management, logistics, and security for various end-users.

Target Hospitality Releases New Investor Presentation

On September 16, 2025, Target Hospitality Corp. released an investor presentation on its website. The presentation includes forward-looking statements, which are subject to cautionary statements and are not deemed ‘filed’ under the Securities Exchange Act of 1934.

The most recent analyst rating on (TH) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Target Hospitality stock, see the TH Stock Forecast page.

Target Hospitality’s Earnings Call Highlights Growth and Optimism

The recent earnings call for Target Hospitality highlighted a generally positive sentiment, driven by significant growth opportunities in new contracts, particularly within the data center and government sectors. The company also showcased a robust financial position. Despite facing challenges such as terminated contracts and carrying costs for idle assets, the positive aspects, including new contracts and raised guidance, were emphasized as outweighing the negatives.

Target Hospitality Reports Q2 2025 Results and Optimistic Outlook

Target Hospitality is a leading provider of modular accommodations and hospitality services in North America, offering a range of value-added solutions to various industries. The company recently announced its second-quarter 2025 earnings, highlighting a significant focus on strategic diversification despite financial challenges. Key financial metrics revealed a revenue of $61.6 million, a net loss of $14.9 million, and an adjusted EBITDA of $3.5 million. The revenue decline was primarily due to the termination of certain government contracts, although new multi-year contracts worth over $400 million were secured, including a significant $246 million contract supporting U.S. government initiatives. Looking ahead, Target Hospitality is optimistic about its growth prospects, supported by a robust pipeline and strategic initiatives aimed at expanding its service offerings across diverse markets, with an increased revenue outlook for 2025.