Target Hospitality Corp. Common Stock (TH)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Target Hospitality as a specialty rental and hospitality operator whose fortunes are tied to workforce and government housing demand. In fiscal 2023, the company reported revenue of $365.6 million and net income of $173.7 million, or $1.56 per diluted share. By fiscal 2024, revenue fell to $265.9 million but net income was still $71.3 million, or $0.70 per share. Then fiscal 2025 turned hard: revenue was $274.8 million while net income became a loss of $37.1 million, or -$0.37 per share. In the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, revenue was $54.7 million and net income was -$9.0 million. That trajectory tells me the prior earnings power was not durable; contracts and occupancy clearly matter enormously. The balance sheet is not stretched, with debt-to-equity of 0.13 and an Altman Z-Score of 4.55 per FairStock. But FairStock's ROE is -9.77% and ROCE is -3.66%, and the Piotroski F-Score of 4/9 is mediocre. Free cash flow is barely positive at $9.8 million, a 0.5% FCF yield at the $1.9 billion market cap, while FairStock's EV/EBITDA multiple of 47.45 and P/B of 5.07, measured at the 2026-10-13 close, leave no margin of safety on trailing numbers. The Lynch classification is a turnaround because it lost money in the latest year after earlier profits. Mr. Market is paying up for a recovery that has not yet shown up in filed results. I would need evidence that revenue and margins are stabilizing before calling this a bargain.

In plain English: Target Hospitality provides temporary housing and hospitality services, mainly for workers and government clients. The business looks weak right now: after making money in fiscal 2023 and fiscal 2024, it lost $37.1 million in fiscal 2025, and the latest filed quarter, fiscal Q2 2026, also showed a $9.0 million loss. At the $18.72 close on 2026-10-13, the stock looks expensive compared with current profits and cash flow, though it has low debt and the market may be hoping for a turnaround.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer