| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 25 | — | 17.3x | Bottom tier | |
Growth | 23 | 11.9% | 7.1% | Bottom tier | |
Quality | 17 | -8.1% | 4.5% | Bottom tier | |
Safety | 66 | 1.0x | 2.6x | Around median | |
Capital Return | 12 | 0.00% | 0.06% | Bottom tier | |
Momentum | 61 | 205.6% | -1.6% | Around median | |
Sentiment | 68 | 3 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Target Hospitality provides integrated accommodation and hospitality solutions for workforces executing large-scale, remote, or time-sensitive projects in North America. Its integrated model includes designing, developing, and operating accommodation communities and providing on-site services, while the Target Hyper/Scale platform enables accelerated capacity deployment and customization for projects related to AI data centers, power generation, and critical infrastructure. Revenue is distributed across the Workforce Hospitality Solutions segment WHS, the HFS-South network, which serves existing customers in high-activity regions and has a contract renewal rate exceeding 90%, and the Government segment, which included the Dilley assets in Texas in Q2 of fiscal 2026.
In Q2 of fiscal 2026, revenue according to EDGAR filings reached approximately $85.5 million, up 39% according to the earnings release, while gross profit reached $15.8 million, representing a gross margin of approximately 18.5%. The company recorded a net loss of $9.0 million, equivalent to a loss of $0.09 per share, while adjusted EBITDA in the August 10, 2026 call reached approximately $18 million, or about 21% of revenue, with its margin expanding by more than 700 basis points compared with Q1 of fiscal 2026. On a trailing twelve-month basis using 2026 data, revenue reached $376.9 million and gross profit reached $47.7 million, but the net loss remained elevated at $37.7 million.
WHS led Q2 fiscal 2026 results with revenue of approximately $36 million, up 142% year over year and representing about 42% of total revenue, after average utilized beds exceeded 4,000 beds. HFS-South generated approximately $33 million, or about 39% of the total, while the Government segment generated approximately $13 million, or about 15%, due to the reactivation of the Dilley assets. Management expects WHS to become the company’s largest segment in fiscal 2026 and to represent more than 50% of consolidated revenue based on the portfolio under contract at that time.
The analyst consensus is “Buy,” with an average price target of $23.4 and a target range between $21 and $26; the average is approximately 12% above the 52-week range high of $20.85, while the highest target is approximately 25% above it. No positive price-to-earnings multiple is available due to the per-share loss of $0.09 in Q2 of fiscal 2026 and the net loss of $37.7 million over the trailing twelve months, so the justification for the targets is largely tied to contract execution and converting WHS growth into sustainable profits and cash flows.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
The primary driver is the rapid expansion of the WHS segment, which generated approximately $36 million in revenue in Q2 of fiscal 2026, representing annual growth of 142%. Average utilized beds exceeded 4,000 beds, while the company signed multi-year contracts valued at more than $1.7 billion from January 2026 through August 26, 2026. The approximately $250 million Pecos contract also raised the fiscal 2026 revenue outlook by 6% and the adjusted EBITDA outlook by 22% on August 26, 2026.
The company provides integrated accommodation and hospitality communities for workforces, from design and development through operation and daily services, leveraging the Target Hyper/Scale platform. In Q2 of fiscal 2026, WHS generated approximately $36 million, HFS-South generated approximately $33 million, and the Government segment generated approximately $13 million. Revenue is based on long-term contracts and contracted minimums, with the potential to generate variable revenue when utilization increases under certain contracts.
Automated analysis for informational purposes only — not investment advice.
The company announced the contract on August 26, 2026 and expects it to generate approximately $250 million through a multi-year agreement to provide services for approximately 1,100 individuals in West Texas. The project is associated with one of the five largest hyperscale cloud service companies, expanding Target Hospitality’s exposure to AI-related infrastructure development. The contract prompted the company to raise its fiscal 2026 outlook again, by 6% for revenue and 22% for adjusted EBITDA.
The company ended Q2 of fiscal 2026 with available liquidity of approximately $141 million and a net leverage ratio of 0.6 times. On July 24, 2026, it replaced a $175 million credit facility with a new $660 million facility. Operating cash flow from the beginning of fiscal 2026 also exceeded approximately $110 million, including more than $100 million in customer advance payments, but the fiscal 2026 plan still requires capital expenditure of between $490 million and $510 million.
The targets depend on bringing several contracted communities to full operation, particularly two projects of approximately 3,300 and 4,000 beds that are expected to become fully operational by the middle of fiscal 2027. The company intends to deliver approximately 1,000 beds per quarter for these two projects, making the timing of construction, opening, and occupancy critical. If the schedule proceeds as planned, the company targets exiting fiscal 2027 with annual revenue exceeding $700 million and adjusted EBITDA above $260 million, excluding the broader opportunity pipeline.
Q2 fiscal 2026 revenue reached approximately $85.5 million and gross profit reached $15.8 million, equivalent to a gross margin of approximately 18.5%. Nevertheless, the company recorded a net loss of $9.0 million and a loss of $0.09 per share, while adjusted EBITDA reached approximately $18 million. On a trailing twelve-month basis using 2026 data, the net loss reached $37.7 million, so converting operating growth into sustainable net profit remains the key point to monitor.