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Target HospitalityTH +3.53%66 3-Year ROIIC % is 78.09 as of Dec. 2025, which is 51% above its 10-year median of 51.81. GuruFocus rates TH with a GF Score™ of 66/100 and a GF Value™ of $7.52 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,010 Business Services companies, Target Hospitality ranks better than 90.2% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Target Hospitality's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 78.09%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Target Hospitality's 3-Year ROIIC % or its related term are showing as below:
TH's 3-Year ROIIC % is ranked better than 90.2% of 1010
companies
in the Business Services industry
Industry Median: 4.995
vs TH: 78.09
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Target Hospitality 3-Year ROIIC % Related Terms
Target Hospitality 3-Year ROIIC % Historical Data
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The historical data trend for Target Hospitality's 3-Year ROIIC % 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.
For the Specialty Business Services subindustry, Target Hospitality's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Business Services Industry
For the Business Services industry and Industrials sector, Target Hospitality's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Target Hospitality's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Target Hospitality (TH) has a 3-Year ROIIC % of 78.09 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Target Hospitality and its competitors. This is 51% above median its historical median of 51.81. According to the industry distribution chart, Target Hospitality ranks #99 out of 1010 companies in the Business Services industry, placing it in the top 9.8%.
Is Target Hospitality's 3-Year ROIIC % too high?
Target Hospitality's current 3-Year ROIIC % of 78.09 is 51% above median its 10-year median of 51.81. The Business Services industry median 3-Year ROIIC % is 5.00. Target Hospitality's value of 78.09 is 1463.4% above this industry median. Based on the distribution chart, Target Hospitality ranks #99 out of 1010 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Target Hospitality has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Target Hospitality's 3-Year ROIIC % compare to TIC and CMPR?
According to the Business Services industry distribution chart, Target Hospitality ranks #99 out of 1010 companies for 3-Year ROIIC %. This places Target Hospitality in the top 10% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.00. Target Hospitality's value of 78.09 is 1463.4% above this benchmark. While the company's 10-year median is 51.81 vs. the industry median of 5.00, Target Hospitality has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Business Services company?
The median 3-Year ROIIC % among Business Services companies is 5.00, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Target Hospitality's current 3-Year ROIIC % of 78.09 is 1463.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Target Hospitality and its competitors. For the Business Services industry, the median 3-Year ROIIC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Target Hospitality's current 3-Year ROIIC % is 78.09, which is 51% above median its own 10-year median of 51.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Target Hospitality stock overvalued right now?
Based on GuruFocus' analysis, Target Hospitality (TH) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.52, compared to a current price of $17.32 — trading 130.3% above its estimated fair value. The current 3-Year ROIIC % is 78.09, which is 51% above median its 10-year median of 51.81 and 1463.4% above the Business Services industry median of 5.00. Target Hospitality's overall GF Score™ is 66/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Target Hospitality (TH), the current 3-Year ROIIC % is 78.09 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Target Hospitality (TH) Overvalued in 2026?
Based on GuruFocus' analysis, Target Hospitality stock appears to be overvalued.
The current stock price of $17.32 is trading 130.3% above its estimated GF Value™ of $7.52.
GuruFocus considers Target Hospitality to be Significantly Overvalued.
Key valuation signals for TH:
3-Year ROIIC %: 78.09 (51% above median its 10-year median of 51.81)
GF Value™: $7.52 vs. price of $17.32 (130.3% above fair value)
Industry Position: 1463.4% above the Business Services median (#99 of 1010)
No single metric tells the full story. See the TH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. The company has three reportable segments: HFS - South, which provides specialty rental and hospitality services to the natural resources and development industry; WHS, which provides construction and hospitality solutions for critical mineral and data center projects; and Government, which provides specialty rental and hospitality services under government contracts.
66GF Score
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