Target Hospitality Corp. (TH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Norwegian Cruise Line Holdings Ltd.

Royal Caribbean Group

Hyatt Hotels Corp.

Carnival Corp.

Red Rock Resorts, Inc.

Vail Resorts, Inc.

Choice Hotels International, Inc.

Wyndham Hotels & Resorts, Inc.

Hilton Worldwide Holdings, Inc.

Travel + Leisure Co.

Target Hospitality Corp.

Why is Target Hospitality Corp. ?

High Debt company with Weak Long Term Fundamental Strength

With a fall in Operating Profit of -17.27%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 10 consecutive quarters
The company has declared negative results in Dec 23 after 10 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at USD 78.47 MM
PRE-TAX PROFIT(Q) At USD -15.21 MM has Fallen at -49.58%
NET PROFIT(Q) At USD -12.92 MM has Fallen at -49.33%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 177.92%, its profits have fallen by -148.4%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Target Hospitality Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Target Hospitality Corp.

177.92%

1.52

59.73%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.33%

EBIT Growth (5y)

-256.68%

EBIT to Interest (avg)

3.88

Debt to EBITDA (avg)

2.21

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.82

Tax Ratio

23.87%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

50.82%

ROCE (avg)

26.52%

ROE (avg)

23.17%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.58

EV to EBIT

-31.48

EV to EBITDA

17.37

EV to Capital Employed

2.58

EV to Sales

3.13

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.21%

ROE (Latest)

-8.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 78.47 MM

PRE-TAX PROFIT(Q)

At USD -15.21 MM has Fallen at -49.58%

NET PROFIT(Q)

At USD -12.92 MM has Fallen at -49.33%

ROCE(HY)

Lowest at -11%

RAW MATERIAL COST(Y)

Grown by 111.89% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.31 times

NET SALES(Q)

At USD 72.78 MM has Fallen at -9.2%

Here's what is not working for Target Hospitality Corp.

Pre-Tax Profit

At USD -15.21 MM has Fallen at -49.58%

over average net sales of the previous four periods of USD -10.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -12.92 MM has Fallen at -49.33%

over average net sales of the previous four periods of USD -8.65 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 78.47 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

At USD 72.78 MM has Fallen at -9.2%

over average net sales of the previous four periods of USD 80.16 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Debtors Turnover Ratio

Lowest at 6.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 111.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales