Target Hospitality (TH) AI Stock Analysis

• Market Cap: $674.51M
• Dividend Yield: N/A
• Average Volume (3M): 437.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• 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: 0.98
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 7.97
• Enterprise Value/Ebitda: 8.78
• 1Y Price Target: $11.00
• Price Target Upside: 62.72% 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: $7.50 ▲(10.95% Upside)

The score is driven primarily by solid financial footing (low leverage) and strong cash flow generation, reinforced by constructive earnings-call guidance and sizable contract wins. These positives are tempered by weak profitability (negative net margin), only neutral technical momentum, and unfavorable valuation signals due to negative earnings.

Positive Factors

Strong balance sheet and liquidity

Low net debt and ~ $205M liquidity materially improve financial flexibility over the next 2–6 months. This buffer reduces refinancing risk, funds bid/proposal activity and growth capex, and allows the company to absorb project ramp timing without forcing distressed asset sales.

Robust cash generation

Strong free cash flow growth and near-1:1 cash conversion indicate recurring, high-quality cash generation from leasing and services. Durable cash flow supports reinvestment in modular assets, deleveraging, and contract performance even with GAAP net losses in the near term.

Large multiyear contract awards

Substantial multiyear bookings expand a stable recurring revenue base and de-risk near-term topline. Coupled with entry into data center/AI and HFS renewal rates >90%, the contract pipeline supports predictable revenue visibility and scale benefits across several secular growth end markets.

Negative Factors

Negative profitability and margin pressure

Persistent negative net margin and falling operating margins signal structural profitability challenges. Lower-contribution construction revenue and government-segment declines compress returns, making it harder to generate sustainable earnings from new contracts without improving unit economics.

Revenue volatility and negative EPS growth

Large swings in revenue and severe EPS decline reflect volatile demand and contract timing noise. Such earnings volatility undermines reinvestment consistency and investor confidence, and makes multi-quarter planning and margin improvement harder absent steadier utilization or higher-margin mix.

Underutilized assets creating recurring carrying costs

Quarterly carrying costs for idle West Texas assets materially drag adjusted EBITDA and cash returns until recontracting. Prolonged remarketing risk can depress segment margins and consume liquidity, limiting the pace of expansion or capital deployment despite the company’s overall strong balance sheet.

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 balance sheet with very low leverage (TTM debt-to-equity 0.033) and robust cash generation (TTM free cash flow growth 44.53%, operating cash flow to net income 1.20). This is offset by weak profitability (TTM net margin -3.08%) and declining EBIT/EBITDA margins, indicating ongoing operating pressure.

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: Negative
• Last Price: 6.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TH, the sentiment is Negative. The current price of 6.76 is below the 20-day moving average (MA) of 7.72, below the 50-day MA of 7.85, and below the 200-day MA of 7.65, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 25.58 is Positive, neither overbought nor oversold. The STOCH value of 4.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$674.51M	-68.86	-2.36%	―	-26.65%	-110.98%
PRSU	64 Neutral	$978.60M	2.83	-24.71%	―	-68.48%	2198.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVEO	54 Neutral	$286.61M	-11.86	-12.34%	4.25%	-10.51%	-247.97%

Target Hospitality Corporate Events

Target Hospitality Extends Executive Performance Stock Unit Period

On January 25, 2026, Target Hospitality’s board compensation committee amended an existing Executive Performance Stock Unit Agreement covering performance stock units granted on March 1, 2023 to certain employees, including current named executive officers. The change, which extends the total shareholder return performance period by one year to December 31, 2026 while retaining substantially similar material terms, is intended to preserve the original pay-for-performance design and alignment with shareholders after a 2024 unsolicited take‑private proposal disrupted management’s ability to meet the original performance metrics, effectively reissuing the 2023 awards under updated timing conditions.

The most recent analyst rating on (TH) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Target Hospitality stock, see the TH Stock Forecast page.

Target Hospitality Appoints Cyril Hahamski Chief Accounting Officer

On January 12, 2026, Target Hospitality’s board appointed veteran finance executive Cyril J. Hahamski as Chief Accounting Officer, with Chief Financial Officer Jason Vlacich relinquishing his additional Chief Accounting Officer duties but remaining CFO. Hahamski brings more than 25 years of experience spanning public accounting and senior controllership roles at Anew Climate, ALS Limited and Buckeye Partners, and will oversee Target’s accounting operations, external reporting, internal controls and management reporting under an employment agreement running initially through December 31, 2027 that includes equity-based pay options and change-in-control protections. The move is designed to bolster Target’s internal financial and reporting capabilities as it pursues a robust pipeline of growth opportunities, signaling a further professionalization of its finance function that may support execution of its strategic expansion plans.

The most recent analyst rating on (TH) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Target Hospitality stock, see the TH Stock Forecast page.

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.