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Target Hospitality Corp.
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$1.8B
Market Cap
13.8
P/E
17.54
PEG
-7.5%
ROCE
-9.2%
ROE
0.03
D/E
-9.7%
OPM
-14.2%
% from 52W High
94
α RS
🔍 TH is showing a momentum setup because RS Rating is 94 (top decile vs market), it's within 14.2% of its 52-week high, and it has maintained a 21-day Near 52-Week High momentum persistence. The main caution: the Debt Free Growers preset's Backtest win rate is only 43.6%. Net: Mixed signal stack, not a recommendation. ? RS Rating 52W High Momentum Streaks Backtest
Sources
RS Rating 94 · 14.2% from 52W high · Near 52-Week High streak: 21d · Backtest win rate 43.6%
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🌏 Global Investor Returns
Currency-adjusted total returns for TH including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. It operates through Hospitality & Facilities Services – South, Workforce Hospitality Solutions, and Government segments. The company owns a network of specialty rental accommodation units. It also provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. In addition, the company offers construction services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding TH
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 951.3K $8.8M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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📊 MIXED Secures >$2B contracts; 2026 revenue guided $370M-$380M.
Revenue & Profitability
Q1 2026 total revenue $73 million, adjusted EBITDA $10 million. HFS South revenue $33 million, WHS $24 million, Government $13 million. 2026 guidance: revenue $370M-$380M, adjusted EBITDA $75M-$85M, capital spending $460M-$480M (excl. acquisitions). Exit 2027 annualized revenue >$680M, adjusted EBITDA >$240M. Net leverage 0.6x, total liquidity ~$150 million.
Outlook
Management sees powerful long-term demand from a multi-trillion dollar investment cycle led by AI-driven data centers and critical infrastructure. An active growth pipeline exceeds 20,000 beds. Revenue and adjusted EBITDA are expected to build through 2026 and into 2027, with sustained margin expansion.
Growth Drivers
Growth is driven by the rapidly expanding WHS segment, fueled by contract wins since April for over 7,000 beds. AI-driven data center and power generation development, particularly in remote geographies, underpins momentum. WHS is projected to become the largest segment by end of 2026, contributing >45% of revenue.
Balance Sheet & CapEx
Q1 2026 capital spending $46 million, focused on WHS growth. Full-year 2026 guidance $460M-$480M (excl. acquisitions). The AI Infrastructure Community involves net capital investment of $200M-$210M, ~95% incurred in 2026, entirely new assets. Customer down payments and capital-efficient contract structures reduce funding requirements.
Margins
Q1 2026 margins were temporarily compressed due to elevated expenses for services, mobilization, and construction in WHS. Margins are expected to expand consistently through 2026 and into 2027 as new communities ramp. The AI Infrastructure Community's margin profile is 40%-50%. HFS South margins are expected to remain stable.
Key Risks
Transitional costs associated with network optimization in the government segment of $5 million-$7 million over the next two quarters. Forward-looking statements caution about risks; no other specific risks were flagged by management or analysts.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-10
Q2 results showed strong revenue and EBITDA growth, driven by WHS segment expansion and robust contract wins. The outlook was raised for both 2026 and 2027, with significant capital deployment and a growing pipeline in data centers and power.
Q1 2026 Q1 2026 2026-05-11
Q1 2026 saw strong revenue and contract momentum, with over $2B in multiyear wins and a robust pipeline exceeding 20,000 beds. WHS segment is set to become the largest by 2026, driving raised guidance and margin expansion, supported by disciplined capital allocation.
Q4 2025 Q4 2025 2026-03-11
Record contract wins in 2025 drove strong revenue and positioned the WHS segment as the primary growth engine, with a robust pipeline of over 20,000 beds and significant expansions in AI and power markets. 2026 guidance calls for steady margin expansion and continued capital discipline.
Q3 2025 Q3 2025 2025-11-06
Q3 2025 saw $99M in revenue and $22M Adjusted EBITDA, with strong growth in AI/data center contracts and a robust pipeline. Gilley facility is fully operational, and liquidity remains high. 2025 guidance is reaffirmed, with significant multi-year contracts and margin expansion expected.
Q2 2025 Q2 2025 2025-08-07
Q2 2025 revenue reached $62M with adjusted EBITDA of $4M, driven by new multi-year contracts and expansion into the data center market. Raised 2025 guidance reflects contract growth and a robust pipeline, supported by strong liquidity and market demand.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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