Is the business good?
How good a business is TH?
Target Hospitality Corp. earns −9.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−9.4%
Return on invested capital · cost of capital 9.0% · 18 points below what the capital costs: growth destroys value
- Operating margin
- −15%
Operating margin · Specialty Business Services median 10% · 12 months to Q1 2026
- Share count, year on year
- +0.83%
Share count, year on year · flat: no meaningful dilution
- Gross margin
- 9.8%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 1.8% |
| FY2021 | 13% |
| FY2022 | 35% |
| FY2023 | 43% |
| FY2024 | 28% |
| FY2025 | −11% |
Details›
- Gross margin12 months to Q1 2026
- 9.8%
- Operating margin12 months to Q1 2026
- −15%
- Net margin12 months to Q1 2026
- −13%
- Free cash flow margin
- 21%
- Revenue, trailing twelve months
- $324M
- Free cash flow, trailing twelve months
- $69M
- Net income, trailing twelve months
- −$44M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −9.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Business Services
Ranks #1 of 18 by Smart Score