Target Hospitality (TH) AI Stock Analysis

• Market Cap: $801.23M
• Dividend Yield: N/A
• Average Volume (3M): 437.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• 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: 323,886
• 30 Day Avg. Volume: 437,218
• 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: 1.03
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 10.00
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $11.00
• Price Target Upside: 37.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $9.00 ▲(12.50% Upside)

The score is driven primarily by solid financial resilience (strong free cash flow and very low leverage) and a constructive earnings outlook supported by sizable multiyear contract wins and reaffirmed revenue/EBITDA guidance. These positives are tempered by ongoing profitability challenges (net losses/negative margins) and a weak valuation signal from the negative P/E, with technical indicators showing only mixed-to-moderate momentum.

Positive Factors

Strong Cash Generation

Target Hospitality's robust cash generation and low leverage enhance financial stability, providing a solid foundation for future investments and growth initiatives.

Significant Contract Wins

Securing substantial multiyear contracts strengthens Target Hospitality's revenue base and market position, ensuring long-term business stability and growth potential.

Expansion in AI and Data Center Markets

Target Hospitality's strategic entry into high-growth sectors like AI and data centers diversifies its portfolio and aligns with industry trends, supporting sustainable growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues, reflected in negative margins, indicate operational inefficiencies that could hinder long-term financial performance if not addressed.

Underutilization of West Texas Assets

The underutilization of assets in West Texas results in ongoing costs without revenue generation, negatively impacting margins and financial efficiency.

Decline in Government Segment Revenue

A decrease in government segment revenue could weaken Target Hospitality's revenue diversification and stability, affecting its overall financial health.

Target Hospitality Business Overview & Revenue Model

Company Description

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 Corp. also provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation, workforce community management, concierge, and laundry services. It serves the U.S. government, government contractors, investment grade natural resource development companies, and energy infrastructure companies. The company was founded in 1978 and is headquartered in The Woodlands, Texas.

How the Company Makes Money

Target Hospitality generates revenue primarily through the leasing of its modular lodging facilities and the provision of ancillary services to its clients. The company's key revenue streams include monthly rental fees charged for accommodations, as well as additional income from catering, facility management, and other hospitality services. Significant partnerships with major corporations in the energy and construction sectors help secure long-term contracts, providing a stable revenue base. Additionally, Target Hospitality benefits from economies of scale and operational efficiencies, allowing it to maintain competitive pricing while enhancing profitability.

Target Hospitality Financial Statement Overview

Summary

Strong cash generation and low leverage support financial stability (free cash flow growth of 44.53% TTM; debt-to-equity 0.033). Offsetting this, profitability remains weak with a -3.08% net margin and declining EBIT/EBITDA margins, indicating operational pressure despite modest TTM revenue growth (1.34%).

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: Positive
• Last Price: 8.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TH, the sentiment is Positive. The current price of 8 is below the 20-day moving average (MA) of 8.34, above the 50-day MA of 7.67, and above the 200-day MA of 7.58, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 23.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TH.

Target Hospitality Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TH	67 Neutral	$801.23M	-81.14	-2.36%	―	-26.65%	-110.98%
PRSU	64 Neutral	$934.20M	2.70	-24.71%	―	-68.48%	2198.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVEO	54 Neutral	$272.34M	-11.40	-12.34%	4.25%	-10.51%	-247.97%

Target Hospitality Corporate Events

Target Hospitality Amends Credit Facility to Support Growth

On December 23, 2025, Arrow Bidco, LLC and other Target Hospitality subsidiaries executed a sixth amendment to their existing asset-based lending credit agreement with a syndicate of lenders led by Bank of America, N.A., adjusting the Consolidated Fixed Charge Coverage Ratio covenant applicable in calendar year 2026. The revision is intended to give Target Hospitality greater flexibility in the timing of capital expenditures for planned growth projects during 2026, and the company reported that it remained in compliance with all financial covenants under the credit facility as of the date of the amendment, suggesting continued lender support and financial capacity to pursue its expansion plans.

The most recent analyst rating on (TH) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Target Hospitality stock, see the TH Stock Forecast page.

Target Hospitality Updates Bylaws Following Delaware Law Changes

On November 21, 2025, Target Hospitality Corp.’s Board of Directors approved amendments to the company’s Bylaws. These changes involved removing a section related to transactions between the company and its directors or officers, aligning with recent amendments to Delaware’s corporate laws, and incorporating other clarifying changes.

The most recent analyst rating on (TH) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Target Hospitality stock, see the TH Stock Forecast page.

Target Hospitality Releases Investor Presentation

On November 17, 2025, Target Hospitality Corp. released an investor presentation on its website. The presentation includes forward-looking statements, which are not considered filed under the Securities Exchange Act of 1934.

The most recent analyst rating on (TH) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Target Hospitality stock, see the TH Stock Forecast page.