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Target Hospitality (TH) AI Stock Analysis
Target Hospitality
(NASDAQ:TH)
The score reflects a balance of strong cash generation and improved balance-sheet leverage, plus a positive growth/contract outlook from the latest earnings call and recent contract wins. Offsetting these are materially weakened profitability (TTM net losses and negative ROE) and very bearish technical momentum with the stock trading well below major moving averages.
Target Hospitality (TH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.04B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.19M
- Price to Earnings (P/E)
- -27.6
- Beta (1Y)
- 1.07
- Revenue Growth
- 11.92%
- EPS Growth
- -443.76%
- Country
- US
- 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...
How the Company Makes Money
Target Hospitality makes money by contracting to provide rental accommodations (beds/rooms/units) and bundled hospitality services at its owned or operated lodging facilities. Revenue is generally earned through (1) lodging fees charged on a per-pers...
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 Financial Statement Overview
Summary
Financials are mixed: strong TTM operating cash flow ($170.1M) and free cash flow ($130.4M) support liquidity and flexibility, and leverage is conservative (debt-to-equity ~0.10). However, profitability has reset materially with a TTM net loss (-$37.7M) and negative ROE (~-11%), keeping the financial performance score in the middle range despite strong cash conversion.
Income Statement
34NegativeBalance Sheet
63PositiveCash Flow
78Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 347.37M | 320.63M | 386.27M | 563.61M | 501.99M | 291.34M |
| Gross Profit | 25.43M | 12.98M | 178.18M | 313.32M | 247.13M | 101.35M |
| EBITDA | 40.88M | 38.60M | 182.26M | 332.62M | 211.84M | 102.21M |
| Net Income | -37.68M | -37.12M | 71.27M | 173.70M | 73.94M | -4.58M |
Balance Sheet | ||||||
| Total Assets | 654.19M | 530.21M | 725.77M | 694.35M | 771.73M | 513.39M |
| Cash, Cash Equivalents and Short-Term Investments | 6.07M | 8.35M | 190.67M | 103.93M | 181.67M | 23.41M |
| Total Debt | 8.28M | 10.70M | 209.65M | 200.83M | 354.69M | 331.64M |
| Total Liabilities | 284.40M | 141.15M | 304.68M | 317.05M | 570.88M | 416.12M |
| Stockholders Equity | 370.11M | 389.26M | 421.08M | 377.31M | 200.85M | 97.27M |
Cash Flow | ||||||
| Free Cash Flow | 89.01M | 6.30M | 121.43M | 88.38M | 164.77M | 69.11M |
| Operating Cash Flow | 170.11M | 74.09M | 151.68M | 156.80M | 305.61M | 104.60M |
| Investing Cash Flow | -193.78M | -67.79M | -28.84M | -68.18M | -140.23M | -35.91M |
| Financing Cash Flow | 10.51M | -188.64M | -36.06M | -166.37M | -7.10M | -52.27M |
Target Hospitality Technical Analysis
Price Trends
Market Momentum
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 10.42 is below the 20-day moving average (MA) of 14.95, below the 50-day MA of 17.66, and below the 200-day MA of 14.86, indicating a bearish trend. The MACD of -1.64 indicates Positive momentum. The RSI at 21.97 is Positive, neither overbought nor oversold. The STOCH value of 24.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TH.
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
PRSU71Outperform
RHLD63Neutral- TH58Neutral
CVEO56Neutral
ARMK52Neutral
UNF51Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| PRSU | 71Outperform | $1.54B | 31.24 | 8.31% | ― | 11.92% | -86.26% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| RHLD | 63Neutral | $1.02B | 27.07 | -2605.86% | ― | ― | ― |
| TH | 58Neutral | $1.12B | -27.57 | -9.80% | ― | 11.92% | -443.76% |
| CVEO | 56Neutral | $360.45M | -51.87 | -4.76% | ― | 12.61% | 69.81% |
| ARMK | 52Neutral | $13.80B | 34.45 | 11.75% | 0.95% | 11.02% | 6.21% |
| UNF | 51Neutral | $4.37B | 38.60 | 4.99% | 0.60% | 3.74% | -24.28% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TH | Target Hospitality | 10.42 | 3.75 | 56.22% | |
| UNF | UniFirst Corp | 243.20 | 91.22 | 60.02% | |
| PRSU | Pursuit Attractions And Hospitality, Inc. | 54.04 | 20.13 | 59.36% | |
| ARMK | ARAMARK Holdings Corp. | 50.30 | 13.10 | 35.20% | |
| CVEO | Civeo Corp. | 32.68 | 10.46 | 47.07% | |
| RHLD | Resolute Holdings Management, Inc. | 129.93 | -44.83 | -25.65% |
Target Hospitality Corporate Events
Target Hospitality Announces Secondary Offering and Share Buyback
PositiveOn September 8, 2026, Target Hospitality announced that selling stockholders Arrow Holdings S.à r.l. and MFA Global S.à r.l., both controlled by TDR Capital LLP, launched a secondary underwritten offering of the company’s common stock...
Target Hospitality Releases Updated Investor Presentation Materials
NeutralOn September 1, 2026, Target Hospitality posted a new investor presentation on its website, offering updated materials for shareholders and analysts. The presentation is being shared as supplemental information rather than as a formal securities fili...
Target Hospitality Secures Major Hyperscaler Housing Contract
PositiveOn August 26, 2026, Target Hospitality announced a new multi-year lease and services agreement to provide a turnkey modular accommodations and hospitality community for a top-five hyperscaler’s data center project in the Pecos region of West Te...
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.
Date of analysis: Nov 06, 2026