Target Hospitality Corp. (TH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-42.0%

$7.90

vs $13.61 price

Levered DCF

$9.03

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

3.72

Safe zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-21.65×	13.61×	6.01×	19.92×	-75.11×	-5.45×	38.46×	84×
P/B	2.05×	2.3×	2.61×	7.33×	3.54×	1.53×	3.92×	1.17×
P/S	2.49×	2.5×	1.75×	2.93×	1.18×	0.67×	1.47×	1.7×
EV / EBITDA	20.71×	5.41×	3.26×	7.76×	6.38×	7.68×	8.01×	6.6×
Gross margin	4.0%	46.1%	55.6%	49.2%	34.8%	25.4%	45.8%	37.5%
Operating margin	-8.8%	28.2%	42.7%	34.7%	12.7%	1.8%	14.9%	17.0%
Net margin	-11.6%	18.4%	30.8%	14.7%	-1.6%	-11.2%	3.7%	2.1%
Current ratio	0.87×	1.07×	2.57×	1.24×	0.83×	0.96×	1×	1.15×
Debt / equity	0.03×	0.5×	0.53×	1.77×	3.41×	3.83×	3.36×	0.38×
Interest coverage	-3.36×	4.67×	8.99×	4.6×	1.08×	0.1×	1.44×	1.69×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	6.5%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	539.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-9.5%	16.9%	46.0%	36.8%	-4.7%	-25.4%	9.9%	1.4%
Return on invested capital	-5.3%	12.2%	29.2%	20.4%	8.4%	0.6%	5.4%	2.4%
Return on assets	-7.0%	9.8%	25.0%	9.6%	-0.9%	-4.7%	2.0%	0.9%
Free cash flow yield	0.8%	12.6%	9.0%	11.2%	20.1%	22.8%	-5.1%	-13.1%
Earnings yield	-4.7%	7.4%	17.6%	5.0%	-1.3%	-16.6%	2.5%	1.2%
Enterprise value	$799.5M	$986.3M	$1.1B	$1.6B	$652.2M	$523.1M	$871M	$528.4M
Net debt / EBITDA	0.06×	0.1×	0.29×	0.82×	3.02×	5.45×	3.67×	1.49×
Cash conversion cycle (days)	11	18	13	5	13	25	40	39