Latest Ratios: P/E Ratio -53.3x · EV/EBITDA 32.2x · ROE -9.2%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.0B | $797M | $980M | $1.0B | $1.5B | $344M | $152M | $473M | $410M | — | — |
| Enterprise Value | $2.0B | $800M | $999M | $1.1B | $1.7B | $652M | $523M | $871M | $528M | — | — |
| P/E Ratio → | -53.32 | — | 13.80 | 6.24 | 20.46 | — | — | 38.46 | 84.00 | — | — |
| P/S Ratio | 6.16 | 2.49 | 2.54 | 1.82 | 3.02 | 1.18 | 0.67 | 1.47 | 1.70 | — | — |
| P/B Ratio | 5.05 | 2.05 | 2.33 | 2.72 | 7.54 | 3.54 | 1.53 | 3.92 | 1.17 | — | — |
| P/FCF | 280.20 | 113.02 | 8.07 | 11.59 | 9.19 | 4.98 | 4.38 | — | — | — | — |
| P/OCF | 26.67 | 10.76 | 6.46 | 6.54 | 4.96 | 3.29 | 3.24 | 7.81 | 15.63 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.49 | 2.59 | 1.99 | 3.36 | 2.24 | 2.32 | 2.71 | 2.20 | — | — |
| EV / EBITDA | 32.20 | 13.01 | 8.03 | 3.46 | 6.63 | 6.06 | 7.50 | 8.15 | 6.58 | — | — |
| EV / EBIT | — | — | 9.13 | 4.51 | 11.71 | 20.58 | 209.40 | 17.50 | 12.92 | — | — |
| EV / FCF | — | 113.36 | 8.23 | 12.69 | 10.24 | 9.44 | 15.12 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 4.0% | 4.0% | 46.1% | 55.6% | 49.2% | 34.8% | 25.4% | 45.8% | 37.5% | 39.5% | 65.2% |
| Operating Margin | -8.8% | -8.8% | 28.2% | 42.7% | 34.7% | 12.7% | 1.8% | 14.9% | 17.0% | 16.0% | 27.0% |
| Net Profit Margin | -11.6% | -11.6% | 18.4% | 30.8% | 14.7% | -1.6% | -11.2% | 3.7% | 2.1% | 0.7% | 18.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -9.2% | -9.2% | 17.9% | 60.1% | 49.6% | -4.7% | -22.9% | 5.1% | 2.8% | 0.6% | 8.7% |
| ROA | -5.9% | -5.9% | 10.0% | 23.7% | 11.5% | -0.9% | -4.4% | 2.1% | 1.8% | 0.5% | 6.3% |
| ROIC | -5.1% | -5.1% | 17.8% | 42.6% | 33.6% | 6.4% | 0.6% | 7.3% | 8.7% | 5.6% | 9.0% |
| ROCE | -6.0% | -6.0% | 19.5% | 39.9% | 34.1% | 8.0% | 0.8% | 9.2% | 16.4% | 11.2% | 10.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.50 | 0.53 | 1.77 | 3.41 | 3.83 | 3.36 | 0.38 | 15595.47 | 0.10 |
| Debt / EBITDA | 0.17 | 0.17 | 1.68 | 0.62 | 1.39 | 3.08 | 5.43 | 3.79 | 1.63 | 4.89 | 0.37 |
| Net Debt / Equity | — | 0.01 | 0.05 | 0.26 | 0.86 | 3.17 | 3.76 | 3.31 | 0.34 | 14821.54 | 0.08 |
| Net Debt / EBITDA | 0.04 | 0.04 | 0.15 | 0.30 | 0.68 | 2.86 | 5.33 | 3.73 | 1.48 | 4.65 | 0.32 |
| Debt / FCF | — | 0.33 | 0.16 | 1.10 | 1.05 | 4.46 | 10.73 | — | — | 9.77 | 0.66 |
| Interest Coverage | -3.36 | -3.36 | 4.69 | 9.29 | 3.81 | 0.92 | 0.06 | 1.49 | 1.69 | 10.33 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.87 | 0.87 | 1.07 | 2.57 | 1.24 | 0.83 | 0.96 | 1.00 | 1.15 | 159.68 | 3.27 |
| Quick Ratio | 0.87 | 0.87 | 1.07 | 2.57 | 1.24 | 0.83 | 0.96 | 1.00 | 1.14 | 157.47 | 3.27 |
| Cash Ratio | 0.10 | 0.10 | 0.82 | 1.48 | 0.95 | 0.32 | 0.15 | 0.11 | 0.19 | 55.48 | 0.09 |
| Asset Turnover | — | 0.60 | 0.53 | 0.81 | 0.65 | 0.57 | 0.42 | 0.53 | 0.43 | 554.49 | 0.35 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 167.07 | 162.38 | — |
| Days Sales Outstanding | — | 63.98 | 46.62 | 43.45 | 30.65 | 36.06 | 47.64 | 56.11 | 89.24 | 49.19 | 24.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | 6.5% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | 539.5% | 2401.7% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 7.2% | 16.0% | 4.9% | — | — | 2.6% | 1.2% | — | — |
| FCF Yield | 0.4% | 0.9% | 12.4% | 8.6% | 10.9% | 20.1% | 22.8% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 3.4% | 0.7% | 0.0% | 0.0% | 3.5% | 3.9% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 3.4% | 0.7% | 0.0% | 0.0% | 3.5% | 3.9% | 6.5% | — | — |
| Shares Outstanding | — | $100M | $101M | $105M | $100M | $97M | $96M | $95M | $41M | $41M | $41M |
Government contract concentration risk
According to recent financial data, Target Hospitality's P/E ratio of -54.78 and EV/EBITDA of 33.08 suggest that the market is struggling to price the company's equity given the current lack of positive earnings and the significant contraction in the underlying business model's revenue base.
The elevated EV/EBITDA multiple relative to peers like McGrath RentCorp suggests that investors are paying a premium for a business currently experiencing negative operating margins. This valuation appears to rely on the hope of a cyclical recovery in energy or government demand, as the current multiples are difficult to justify based on existing fundamental performance.
Based on reported figures, Target Hospitality's ROIC has plummeted from 7.4% in 2023Q4 to -2.2% in 2026Q1, indicating that the company is currently failing to generate returns that exceed its cost of capital, effectively destroying shareholder value through its current operational configuration.
The transition from positive to negative returns on invested capital highlights the difficulty of maintaining a high-fixed-cost modular fleet during periods of low utilization. This trend suggests that the company's capital allocation strategy, which was previously successful, is now hampered by an inability to right-size the asset base to match current demand levels.
As reported in recent SEC filings, the company's asset turnover ratio has stagnated at 0.14 in 2026Q1, down from 0.18 in 2023Q4, which suggests that the company's ability to generate revenue from its existing modular housing fleet is deteriorating significantly over time.
The volatility in DSO, which reached 63 days in 2026Q1, indicates potential friction in the collection cycle, likely tied to the complexity of government contract billing. Investors should monitor whether these turnover metrics continue to decline, as they serve as a leading indicator of the company's inability to optimize its working capital in a contracting environment.
Based on the most recent quarterly data, Target Hospitality's current ratio has fallen to 0.85, indicating that the company's short-term assets may no longer be sufficient to cover its immediate liabilities, a significant shift from the more robust liquidity positions observed in previous fiscal periods.
The rapid depletion of the cash position suggests that the company is burning through its liquidity reserves to sustain operations during this downturn. This liquidity profile warrants close investigation, as it limits the company's flexibility to navigate further contract delays or unexpected operational shocks in the Permian Basin.
The most commonly misapplied metric for Target Hospitality is the standard EV/EBITDA multiple, which obscures the company's unique reliance on government contract cycles and the high fixed-cost nature of its specialized modular infrastructure compared to traditional generalist equipment rental firms.
Using standard rental multiples fails to account for the 'take-or-pay' contract nuances that can artificially inflate revenue recognition while masking underlying occupancy declines. Analysts should instead focus on 'Revenue per Available Bed' and 'Contract Backlog Duration' to better assess the true economic health of the business model.
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Quick answers to the most common questions about buying TH stock.
Target Hospitality Corp.'s current P/E ratio is -53.3x. The historical average is 32.6x.
Target Hospitality Corp.'s current EV/EBITDA is 32.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.4x.
Target Hospitality Corp.'s return on equity (ROE) is -9.2%. The historical average is 10.8%.
Based on historical data, Target Hospitality Corp. is trading at a P/E of -53.3x. Compare with industry peers and growth rates for a complete picture.
Target Hospitality Corp. has 4.0% gross margin and -8.8% operating margin.
Target Hospitality Corp.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.