← Back to All US Stocks

Target Hospitality Corp. (TH) Fundamental Analysis & AI Grade 2026

TH Nasdaq Hotels, Rooming Houses, Camps & Other Lodging Places DE CIK: 0001712189
Updated This Month • Analysis: May 13, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
72% Confidence
N/A
C
72% Conf
Pending
Analysis scheduled

📊 TH Key Takeaways

Revenue: $72.8M
Net Margin: -17.8%
Free Cash Flow: $-8.5M
Current Ratio: 0.85x
Debt/Equity: 0.08x
EPS: $-0.13
AI Grade: C with 72% confidence
Target Hospitality Corp. (TH) receives a C fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $72.8M, net profit margin of -17.8%, and return on equity (ROE) of -3.4%, Target Hospitality Corp. demonstrates mixed fundamentals in the Real Estate sector. Below is our complete TH stock analysis for 2026.

Is Target Hospitality Corp. (TH) a Good Investment?

Claude

Target Hospitality demonstrates revenue growth of 16.7% YoY, but faces severe operational challenges with negative operating margins (-19.7%), persistent net losses, and negative free cash flow (-8.5M) despite positive operating cash flow. With minimal cash reserves ($5.5M), liquidity stress (current ratio 0.85x), and inability to cover interest expenses from operations, the company shows signs of financial distress that outweigh growth prospects.

Target Hospitality Corp. Key Strengths (TH)

Claude
  • + Strong revenue growth of 16.7% YoY demonstrates market demand
  • + Low debt-to-equity ratio (0.08x) provides financial flexibility and deleveraging capacity
  • + Substantial equity base of $376.9M acts as financial cushion for operations

TH Stock Risks: Target Hospitality Corp. Investment Risks

Claude
  • ! Persistent unprofitability with -17.8% net margin and -19.7% operating margin despite revenue growth indicates fundamental operational inefficiency
  • ! Negative free cash flow (-8.5M) with CapEx ($15.5M) exceeding operating cash flow ($7.0M), signaling unsustainable capital intensity
  • ! Severe liquidity crisis with current ratio of 0.85x, minimal cash reserves ($5.5M), and negative interest coverage ratio (-23.8x)

Key Metrics to Watch

Claude
  • * Path to operating profitability and operating margin expansion
  • * Free cash flow inflection point and cash depletion runway
  • * Liquidity position and ability to refinance or raise capital

Target Hospitality Corp. (TH) Financial Metrics & Key Ratios

Revenue
$72.8M
Net Income
$-12.9M
EPS (Diluted)
$-0.13
Free Cash Flow
$-8.5M
Total Assets
$539.5M
Cash Position
$5.5M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

TH Profit Margin, ROE & Profitability Analysis

Gross Margin 9.5%
Operating Margin -19.7%
Net Margin -17.8%
ROE -3.4%
ROA -2.4%
FCF Margin -11.6%

TH vs Real Estate Sector: How Target Hospitality Corp. Compares

How Target Hospitality Corp. compares to Real Estate sector averages

Net Margin
TH -17.8%
vs
Sector Avg 20.0%
TH Sector
ROE
TH -3.4%
vs
Sector Avg 8.0%
TH Sector
Current Ratio
TH 0.8x
vs
Sector Avg 1.5x
TH Sector
Debt/Equity
TH 0.1x
vs
Sector Avg 1.5x
TH Sector

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.

Return on Equity
-3.4%
Sector avg: 8%
Net Profit Margin
-17.8%
Sector avg: 20%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.08x
Sector avg: 1.5x

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

Current Ratio
0.85x
Quick Ratio
0.82x
Debt/Equity
0.08x
Debt/Assets
30.2%
Interest Coverage
-23.83x
Long-term Debt
$31.5M

TH Revenue & Earnings Growth: 5-Year Financial Trend

TH 5-year financial data: Year 2021: Revenue $261.3M, Net Income $12.0M, EPS $0.13. Year 2022: Revenue $333.7M, Net Income -$25.1M, EPS $-0.26. Year 2023: Revenue $365.6M, Net Income -$4.6M, EPS $-0.05. Year 2024: Revenue $365.6M, Net Income $73.9M, EPS $0.74. Year 2025: Revenue $365.6M, Net Income $173.7M, EPS $1.56.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-11.6%
Free cash flow / Revenue

TH Quarterly Earnings & Performance

Quarterly financial performance data for Target Hospitality Corp. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $54.9M -$6.5M $-0.07
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

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Target Hospitality Corp. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$7.0M
Cash generated from operations
Stock Buybacks
$33.5M
Shares repurchased (TTM)
Capital Expenditures
$15.5M
Investment in assets
Dividends
None
No dividend program

TH SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Target Hospitality Corp. (CIK: 0001712189)

📋 Recent SEC Filings

Date Form Document Action
May 28, 2026 8-K tm2615480d2_8k.htm View →
May 26, 2026 4 xslF345X06/form4.xml View →
May 26, 2026 4 xslF345X06/form4.xml View →
May 26, 2026 4 xslF345X06/form4.xml View →
May 26, 2026 4 xslF345X06/form4.xml View →

Frequently Asked Questions about TH

What is the AI rating for TH?

Target Hospitality Corp. (TH) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TH's key strengths?

Claude: Strong revenue growth of 16.7% YoY demonstrates market demand. Low debt-to-equity ratio (0.08x) provides financial flexibility and deleveraging capacity.

What are the risks of investing in TH?

Claude: Persistent unprofitability with -17.8% net margin and -19.7% operating margin despite revenue growth indicates fundamental operational inefficiency. Negative free cash flow (-8.5M) with CapEx ($15.5M) exceeding operating cash flow ($7.0M), signaling unsustainable capital intensity.

What is TH's revenue and growth?

Target Hospitality Corp. reported revenue of $72.8M.

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 $-0.13.

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 grade reflects both perspectives for balanced insights.

What is TH's fundamental grade?

Based on our AI fundamental analysis in June 2026, Target Hospitality Corp. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TH stock overvalued or undervalued?

Valuation metrics for TH: ROE of -3.4% (sector avg: 8%), net margin of -17.8% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.

What is TH's AI grade for 2026?

Our dual AI analysis gives Target Hospitality Corp. a combined C grade 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 $7.0M, with capital expenditures of $15.5M. FCF margin is -11.6%.

How does TH compare to other Real Estate stocks?

Vs Real Estate sector averages: Net margin -17.8% (avg: 20%), ROE -3.4% (avg: 8%), current ratio 0.85 (avg: 1.5).

Top Rated Stocks
AAPL 92% MSFT 92% FAST 92% ANET 88% RDDT 88% KNSL 88% MGRE 88% FIZZ 88% DECK 87% NVDA 87%
Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 13, 2026 | Data as of: 2026-03-31 | Powered by Claude AI