← Back to All US Stocks

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

TH Nasdaq Hotels, Rooming Houses, Camps & Other Lodging Places DE CIK: 0001712189
Recently Updated • Analysis: Apr 17, 2026 • SEC Data: 2025-12-31
SELL
70% Conf
Pending
Analysis scheduled

📊 TH Key Takeaways

Revenue: $320.6M
Net Margin: -11.6%
Free Cash Flow: $58.6M
Current Ratio: 0.87x
Debt/Equity: 0.00x
EPS: $-0.37
AI Rating: SELL with 70% confidence
Target Hospitality Corp. (TH) receives a SELL rating with 70% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $320.6M, net profit margin of -11.6%, and return on equity (ROE) of -9.5%, 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 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

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
  • + 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

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
  • ! 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

Claude
  • * 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

Revenue
$320.6M
Net Income
$-37.1M
EPS (Diluted)
$-0.37
Free Cash Flow
$58.6M
Total Assets
$530.2M
Cash Position
$8.3M

💡 AI Analyst Insight

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

TH Profit Margin, ROE & Profitability Analysis

Gross Margin 13.3%
Operating Margin -10.8%
Net Margin -11.6%
ROE -9.5%
ROA -7.0%
FCF Margin 18.3%

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

How Target Hospitality Corp. compares to Real Estate sector averages

Net Margin
TH -11.6%
vs
Sector Avg 20.0%
TH Sector
ROE
TH -9.5%
vs
Sector Avg 8.0%
TH Sector
Current Ratio
TH 0.9x
vs
Sector Avg 1.5x
TH Sector
Debt/Equity
TH 0.0x
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
-9.5%
Sector avg: 8%
Net Profit Margin
-11.6%
Sector avg: 20%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
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
0.87x
Quick Ratio
0.85x
Debt/Equity
0.00x
Debt/Assets
26.6%
Interest Coverage
-5.25x
Long-term Debt
$1.7M

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
18.3%
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
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

Operating Cash Flow
$74.1M
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
Apr 7, 2026 DEF 14A tm261385-1_def14a.htm View →
Apr 1, 2026 8-K tm2610742d1_8k.htm View →
Mar 11, 2026 8-K tm268492d1_8k.htm View →
Mar 11, 2026 10-K th-20251231x10k.htm View →
Mar 11, 2026 8-K th-20260311x8k.htm View →

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).

Top Rated Stocks
NSSC 92% MLI 92% MELI 92% MDXG 92% MANH 92% INVA 92% GGG 92% GCT 92% FTNT 92% FSLR 92%
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: Apr 17, 2026 | Data as of: 2025-12-31 | Powered by Claude AI