Target Hospitality (TH) AI Stock Analysis
Target Hospitality
(BMV:TH)
No summary available
Target Hospitality (TH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- MXN 1.36B
- Dividend Yield
- ―
- Average Volume (3M)
- ―
- Price to Earnings (P/E)
- -36.2
- Beta (1Y)
- 0.00
- Revenue Growth
- 2.38%
- EPS Growth
- -430.12%
- Country
- Mexico
- Employees
- 902
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
Target Hospitality Business Overview & Revenue Model
Company Description
Target Hospitality Corp. operates as a prominent provider of specialized temporary accommodations and comprehensive hospitality services throughout North America. The company oversees a significant network of lodging facilities, encompassing roughly...
Target Hospitality Earnings Call Summary
The call emphasized strong execution and rapid growth driven by the WHS segment: sizable contract awards (9,000+ beds, $1.4B+), a deep pipeline (20,000+ beds), significant sequential margin expansion (+700 bps), improved cash flows (> $110M YTD including > $100M customer advances), and materially enhanced liquidity ($660M credit facility). Challenges include elevated near-term capital spending (Q2 CapEx $132M; 2026 guide $490M–$510M) that will temporarily increase leverage, transitional costs of $5M–$7M related to Government asset optimization, moderation in HFS-South, and timing/ramp risks for large WHS contracts whose variable revenue accrues as communities scale (most upside realized in 2027). On balance, highlights materially outweigh lowlights as growth, contract visibility, margins, and financing flexibility provide a favorable outlook despite near-term investment and execution risks.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Target's 2026 guidance calls for total revenue of $410–420 million, adjusted EBITDA of $85–95 million and capital spending (ex‑acquisitions) of $490–510 million (largely front‑loaded in 2026 and supported by customer advance payments); management says 2026 operating cash flows will outpace adjusted EBITDA (YTD cash from operations >$110M including >$100M of advances) and the 2026 outlook assumes no variable revenue above contracted minimums. Looking to 2027, Target expects to exit with annualized revenue >$700 million and adjusted EBITDA >$260 million (the 2027 outlook includes ~ $30M of annual variable revenue tied to a data‑center hub), and to end 2027 with net leverage well below 3x. Recent quarter and balance‑sheet metrics supporting the outlook: Q2 revenue ≈ $86M, Q2 adjusted EBITDA ≈ $18M (≈21% margin), Q2 capex ≈ $132M, total available liquidity ≈ $141M, net leverage 0.6x, WHS Q2 revenue ≈ $36M (up 142% YoY) with average WHS utilized beds >4,000, HFS‑South ≈ $33M and Government ≈ $13M in Q2, >9,000 contracted beds since January representing >$1.4B of multiyear contracts, a commercial pipeline exceeding 20,000 beds, a new $660M credit facility (replacing a $175M revolver), recurring corporate expenses ~ $15M this quarter, and expected Government‑segment transitional costs of $5–7M over the next two quarters.
Target Hospitality Risk Analysis
Target Hospitality disclosed 10 risk factors in its most recent earnings report. Target Hospitality reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksTarget Hospitality Peers Comparison
Overall Rating
ARMK71Outperform
RHLD69Neutral
CVEO56Neutral
PRSU51Neutral
UNF51Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ARMK | 71Outperform | $14.23B | 36.96 | 11.75% | 0.89% | 11.02% | 6.21% |
| RHLD | 69Neutral | $944.29M | 12.12 | 3767.66% | ― | ― | ― |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| CVEO | 56Neutral | $371.82M | -57.09 | -4.76% | ― | 12.61% | 69.81% |
| PRSU | 51Neutral | $1.50B | 38.03 | 7.31% | ― | -26.32% | -87.41% |
| UNF | 51Neutral | $4.44B | 40.45 | 4.99% | 0.57% | 3.74% | -24.28% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MX:TH | Target Hospitality | 188.36 | 0.00 | 0.00% | |
| UNF | UniFirst Corp | 254.84 | 103.91 | 68.84% | |
| PRSU | Pursuit Attractions And Hospitality, Inc. | 55.15 | 20.76 | 60.37% | |
| ARMK | ARAMARK Holdings Corp. | 53.96 | 16.67 | 44.69% | |
| CVEO | Civeo Corp. | 35.97 | 13.49 | 60.01% | |
| RHLD | Resolute Holdings Management, Inc. | 120.76 | -26.88 | -18.21% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.