Target Hospitality Corp. (TH) AI Stock Analysis

Target Hospitality Corp. operates in the North American specialty rental and hospitality services sector. Organized into four segments Hospitality & Facilities Services (South), Hospitality & Facilities Services (Midwest), Government, and TCPL Keystone the company provides a network of specialized rental accommodation units. Beyond housing, it delivers comprehensive support services such as catering, maintenance, housekeeping, security, grounds-keeping, health and recreation, workforce community management, concierge, and laundry services. Headquartered in The Woodlands, Texas, the company serves clients including the U.S. government, government contractors, investment-grade natural resource development firms, and energy infrastructure companies with customized hospitality solutions.

Annual revenue expanded from $291.3M in FY2021 to a peak of $563.6M in FY2023 before declining to $386.3M in FY2024 and $320.6M in FY2025, reflecting a 17.0% drop in FY2025. Gross margin contracted to 4.0% in FY2025, down from 55.6% in FY2023, while operating margin fell to -8.8%. Net income shifted from $173.7M in FY2023 to a loss of -$37.1M in FY2025, alongside diluted EPS of -$0.33. Over the 5-year period from FY2020 to FY2025, revenue achieved a CAGR of 7.3%. In the latest quarter ended June 30, 2026, revenue increased 38.7% year-over-year, while quarterly earnings dropped 59.1%. Trailing twelve month revenue stood at $347.4M with a profit margin of -10.8%.

As of June 30, 2026, Target Hospitality held $6.1M in cash and short-term investments against total debt of $8.3M, yielding net debt of $2.2M and a debt-to-equity ratio of 0.02. Total assets were $654.2M, with shareholders' equity of $370.1M and a current ratio of 0.65. Operating cash flow totaled $74.1M in FY2025, supporting capital expenditures of $67.8M and free cash flow of $6.3M. Over five years, the company's share count rose 3.5%.

Target Hospitality trades at a forward P/E of 25.3x and an EV to EBITDA ratio of 52.7x, compared to medians of 17.2x and 13.9x for US-listed Industrials peers. Its price-to-sales multiple is 4.4x versus the peer median of 1.5x, and its price-to-book ratio sits at 5.6x. The company holds a market capitalization of $1.51B and an enterprise value of $2.12B. Over the past year, TH stock returned 120.2%, substantially outpacing the S&P 500 (SPY) return of 16.8%, while its 5-year return reached 316.7% compared to 83.0% for SPY.

Wall Street sentiment includes 4 Strong Buy ratings and 1 Buy rating, with 0 Hold, Sell, or Strong Sell recommendations. The mean price target of $25.20 represents potential upside of 63.0% over the last close of $15.46. For the current fiscal year ending December 31, 2026, analysts anticipate an EPS estimate of -$0.03 on revenue of $439.2M. For next fiscal year, 3 analysts project revenue of $751.3M and an EPS of $0.91. Target Hospitality beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 5, 2026.

This page is an AI-written research summary of Target Hospitality Corp. (TH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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