📊 TH Key Takeaways
Is Target Hospitality Corp. (TH) a Good Investment?
Target Hospitality exhibits concerning profitability metrics with -11.6% net margin and -10.8% operating margin despite 16.7% revenue growth, suggesting structural cost issues. While strong free cash flow generation ($58.6M) and positive operating cash flow provide near-term support, liquidity ratios below 1.0x combined with minimal cash reserves ($8.3M) create vulnerability. The business must demonstrate margin improvement and operational turnaround to justify fundamental viability.
Why Buy Target Hospitality Corp. Stock? TH Key Strengths
- Revenue growth of 16.7% YoY shows market demand
- Strong operating cash flow of $74.1M and free cash flow of $58.6M (18.3% FCF margin) despite earnings losses
- Minimal long-term debt burden of $1.7M provides financial flexibility
- Solid equity base of $389.3M provides capital cushion
TH Stock Risks: Target Hospitality Corp. Investment Risks
- Severe unprofitability: -$37.1M net income with -11.6% net margin and negative ROE/ROA
- Extremely low gross margin of 13.3% indicates fundamental unit economics or pricing power problems
- Liquidity squeeze with current ratio of 0.87x and only $8.3M cash relative to $141.1M liabilities
- Negative operating margin of -10.8% means core business operations are loss-making despite revenue scale
- Interest coverage ratio of -5.2x reflects inability to cover obligations from operations
Key Metrics to Watch
- Gross margin trend and cost structure efficiency
- Path to operating profitability and when positive operating income is achieved
- Cash balance and working capital changes to assess liquidity sustainability
Target Hospitality Corp. (TH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TH Profit Margin, ROE & Profitability Analysis
TH vs Real Estate Sector: How Target Hospitality Corp. Compares
How Target Hospitality Corp. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Target Hospitality Corp. Stock Overvalued? TH Valuation Analysis 2026
Based on fundamental analysis, Target Hospitality Corp. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Target Hospitality Corp. Balance Sheet: TH Debt, Cash & Liquidity
TH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Target Hospitality Corp.'s revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.56 reflects profitable operations.
TH Revenue Growth, EPS Growth & YoY Performance
TH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $65.8M | -$795.0K | $-0.01 |
| Q2 2025 | $54.9M | -$14.9M | $-0.15 |
| Q1 2025 | $54.9M | -$6.5M | $-0.07 |
| Q3 2024 | $65.8M | $20.0M | $0.20 |
| Q2 2024 | $67.5M | $18.4M | $0.18 |
| Q1 2024 | $72.4M | $20.4M | $0.20 |
| Q3 2023 | $93.5M | $494.0K | $0.20 |
| Q2 2023 | $74.4M | $494.0K | $0.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Target Hospitality Corp. Dividends, Buybacks & Capital Allocation
TH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Target Hospitality Corp. (CIK: 0001712189)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TH
What is the AI rating for TH?
Target Hospitality Corp. (TH) has an AI rating of SELL with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TH's key strengths?
Claude: Revenue growth of 16.7% YoY shows market demand. Strong operating cash flow of $74.1M and free cash flow of $58.6M (18.3% FCF margin) despite earnings losses.
What are the risks of investing in TH?
Claude: Severe unprofitability: -$37.1M net income with -11.6% net margin and negative ROE/ROA. Extremely low gross margin of 13.3% indicates fundamental unit economics or pricing power problems.
What is TH's revenue and growth?
Target Hospitality Corp. reported revenue of $320.6M.
Does TH pay dividends?
Target Hospitality Corp. does not currently pay dividends.
Where can I find TH SEC filings?
Official SEC filings for Target Hospitality Corp. (CIK: 0001712189) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TH's EPS?
Target Hospitality Corp. has a diluted EPS of $-0.37.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Target Hospitality Corp. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TH stock overvalued or undervalued?
Valuation metrics for TH: ROE of -9.5% (sector avg: 8%), net margin of -11.6% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy TH stock in 2026?
Our dual AI analysis gives Target Hospitality Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TH's free cash flow?
Target Hospitality Corp.'s operating cash flow is $74.1M, with capital expenditures of $15.5M. FCF margin is 18.3%.
How does TH compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -11.6% (avg: 20%), ROE -9.5% (avg: 8%), current ratio 0.87 (avg: 1.5).