Target Hospitality Corp.
Find Ratings ReportsTARGET HOSPITALITY CORP's gross profit margin for the third quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. TARGET HOSPITALITY CORP has weak liquidity. Currently, the Quick Ratio is 0.56 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 132.30% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 145.94 | 159.57 |
EBITDA ($mil) | 89.18 | 75.56 |
EBIT ($mil) | 67.65 | 60.1 |
Net Income ($mil) | 45.58 | 19.02 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 105.1 | 176.99 |
Total Assets ($mil) | 696.52 | 729.7 |
Total Debt ($mil) | 227.43 | 335.02 |
Equity ($mil) | 338.27 | 145.62 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 71.57 | 59.33 |
EBITDA Margin | 61.1 | 47.35 |
Operating Margin | 46.35 | 37.66 |
Sales Turnover | 0.85 | 0.59 |
Return on Assets | 24.03 | 6.18 |
Return on Equity | 49.5 | 31.02 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 0.58 | 1.13 |
Debt/Capital | 0.4 | 0.7 |
Interest Expense | 5.96 | 9.98 |
Interest Coverage | 11.34 | 6.02 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 101.66 | 97.26 |
Div / share | 0.0 | 0.0 |
EPS | 0.43 | 0.2 |
Book value / share | 3.33 | 1.5 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 547734.0 | 748302.0 |
HOLD. TARGET HOSPITALITY CORP's P/E ratio indicates a significant discount compared to an average of 49.19 for the Real Estate subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.69 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 6.43. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, TARGET HOSPITALITY CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
TH 5.74 | Peers 49.19 | TH 5.73 | Peers 18.58 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TH is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TH is trading at a significant discount to its peers. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
TH 11.47 | Peers 40.04 | TH NM | Peers 5.86 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. TH is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. TH's negative PEG ratio makes this valuation measure meaningless. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
TH 2.69 | Peers 6.43 | TH 225.00 | Peers -7.55 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TH is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. TH is expected to have an earnings growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
TH 1.54 | Peers 7.79 | TH 36.77 | Peers 11.68 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TH is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. TH has a sales growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||