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Target Hospitality Beneish M-Score

: -2.96 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Target Hospitality's Beneish M-Score or its related term are showing as below:

TH' s Beneish M-Score Range Over the Past 10 Years
Min: -474.39   Med: -3.05   Max: -2.41
Current: -2.96

During the past 5 years, the highest Beneish M-Score of Target Hospitality was -2.41. The lowest was -474.39. And the median was -3.05.


Target Hospitality Beneish M-Score Historical Data

The historical data trend for Target Hospitality's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Target Hospitality Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
- - -3.15 -3.05 -3.60

Target Hospitality Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.96 -3.63 -3.74 -3.60 -2.96

Competitive Comparison

For the Specialty Business Services subindustry, Target Hospitality's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Target Hospitality Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Target Hospitality's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Target Hospitality's Beneish M-Score falls into.



Target Hospitality Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Target Hospitality for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8182+0.528 * 0.577+0.404 * 0.9264+0.892 * 1.6392+0.115 * 0.8842
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7247+4.679 * -0.1448-0.327 * 0.9599
=-2.96

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $41.5 Mil.
Revenue was 80.335 + 81.69 + 89.169 + 74.986 = $326.2 Mil.
Gross Profit was 27.916 + 29.212 + 33.608 + 27.069 = $117.8 Mil.
Total Current Assets was $54.6 Mil.
Total Assets was $492.5 Mil.
Property, Plant and Equipment(Net PPE) was $293.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $70.9 Mil.
Selling, General, & Admin. Expense(SGA) was $46.9 Mil.
Total Current Liabilities was $32.8 Mil.
Long-Term Debt & Capital Lease Obligation was $348.1 Mil.
Net Income was 0.494 + 2.799 + 6.675 + -0.912 = $9.1 Mil.
Non Operating Income was -1.227 + 0.533 + 1.12 + -2.08 = $-1.7 Mil.
Cash Flow from Operations was -30.58 + 5.152 + 40.006 + 67.44 = $82.0 Mil.
Total Receivables was $30.9 Mil.
Revenue was 45.492 + 51.609 + 48.263 + 53.62 = $199.0 Mil.
Gross Profit was 11.461 + 10.094 + 11.718 + 8.194 = $41.5 Mil.
Total Current Assets was $43.8 Mil.
Total Assets was $522.3 Mil.
Property, Plant and Equipment(Net PPE) was $312.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $65.0 Mil.
Selling, General, & Admin. Expense(SGA) was $39.5 Mil.
Total Current Liabilities was $33.3 Mil.
Long-Term Debt & Capital Lease Obligation was $387.5 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(41.463 / 326.18) / (30.915 / 198.984)
=0.12711693 / 0.15536425
=0.8182

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(41.467 / 198.984) / (117.805 / 326.18)
=0.20839364 / 0.36116561
=0.577

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (54.579 + 293.361) / 492.538) / (1 - (43.806 + 312.949) / 522.267)
=0.29357735 / 0.3169107
=0.9264

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=326.18 / 198.984
=1.6392

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(65.037 / (65.037 + 312.949)) / (70.879 / (70.879 + 293.361))
=0.17206193 / 0.19459422
=0.8842

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(46.889 / 326.18) / (39.47 / 198.984)
=0.14375192 / 0.19835766
=0.7247

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((348.108 + 32.799) / 492.538) / ((387.469 + 33.299) / 522.267)
=0.77335556 / 0.80565688
=0.9599

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(9.056 - -1.654 - 82.018) / 492.538
=-0.1448

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Target Hospitality has a M-score of -2.96 suggests that the company is unlikely to be a manipulator.


Target Hospitality Beneish M-Score Related Terms

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Target Hospitality Business Description

Target Hospitality logo
Traded in Other Exchanges
Address
2170 Buckthorne Place, Suite 440, The Woodlands, Houston, TX, USA, 77380-1775
Target Hospitality Corp is a vertically integrated specialty rental and hospitality services company in the United States. The company provides vertically integrated specialty rental and comprehensive hospitality services including catering food services, maintenance, housekeeping, grounds-keeping, on-site security, overall workforce lodge management, and laundry service. Its operating segment includes HFS-South and HFS-Midwest; Government; TCPL Keystone and others. It generates a majority of its revenue from the Government segment which consists primarily of specialty rental and vertically integrated hospitality services revenue from customers with Government contracts located in Texas.
Executives
Medler Linda R director 4505 W HANGING ROCK COURT MARANA AZ 85658
Patenaude Pamela H. director 26642 TOWNE CENTRE DRIVE C/O LOANDEPOT, INC. FOOTHILL RANCH CA 92610
Faulkenberry Barbara J director 3200 INDUSTRIAL PARK ROAD VAN BUREN AR 72956
Kelley John Travis officer: EVP - Operations 2170 BUCKTHORNE PLACE, SUITE 440 SUITE 440 THE WOODLANDS TX 77380
Berry Joy Anne director 2170 BUCKTHORNE PLACE, SUITE 440 THE WOODLANDS TX 77380
Kalamaras Eric officer: EVP and CFO ATLAS PIPELINE PARTNERS, GP 110 W. 7TH, SUITE 2300 TULSA OK 74119
Sagansky Jeffrey director 1450 2ND STREET SUITE 247 SANTA MONICA CA 90401
Baker Eli director 416 BEIRUT AVENUE PACIFIC PALISADES CA 90272
Algeco Limited Partnership Slp 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Archer James B. director, officer: President and CEO C/O TARGET HOSPITALITY 2170 BUCKTHORNE PLACE, SUITE 440 THE WOODLANDS TX 77380
Algeco Investments 2 S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Algeco Investments 1 S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Algeco Global S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Algeco Holding S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG CITY N4 L-2453
Arrow Holdings S.a.r.l. 10 percent owner 20 RUE EUGENE RUPPERT LUXEMBOURG N4 L-2453

Target Hospitality Headlines

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