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Target Hospitality Altman Z-Score

: 2.88 (As of Today)
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Good Sign:

Altman Z-score of 3.14 is strong.

Target Hospitality has a Altman Z-Score of 2.88, indicating it is in Grey Zones. This implies that Target Hospitality is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

TH' s Altman Z-Score Range Over the Past 10 Years
Min: 0.65   Med: 1.22   Max: 3.14
Current: 3.14

During the past 5 years, Target Hospitality's highest Altman Z-Score was 3.14. The lowest was 0.65. And the median was 1.22.


Target Hospitality Altman Z-Score Historical Data

The historical data trend for Target Hospitality's Altman Z-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
Altman Z-Score
- 2.13 1.54 0.70 1.30

Target Hospitality Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Altman Z-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 0.65 0.87 1.08 1.30 1.96

Competitive Comparison

For the Specialty Business Services subindustry, Target Hospitality's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score Distribution

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

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



Target Hospitality Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Target Hospitality's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0442+1.4*0.0289+3.3*0.0965+0.6*3.0146+1.0*0.6622
=2.88

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2022:
Total Assets was $492.5 Mil.
Total Current Assets was $54.6 Mil.
Total Current Liabilities was $32.8 Mil.
Retained Earnings was $14.2 Mil.
Pre-Tax Income was 1.582 + 4.564 + 8.337 + -0.972 = $13.5 Mil.
Interest Expense was -8.436 + -8.528 + -8.368 + -8.671 = $-34.0 Mil.
Revenue was 80.335 + 81.69 + 89.169 + 74.986 = $326.2 Mil.
Market Cap (Today) was $1,188.4 Mil.
Total Liabilities was $394.2 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(54.579 - 32.799)/492.538
=0.0442

X2=Retained Earnings/Total Assets
=14.238/492.538
=0.0289

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(13.511 - -34.003)/492.538
=0.0965

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1188.445/394.231
=3.0146

X5=Revenue/Total Assets
=326.18/492.538
=0.6622

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Target Hospitality has a Altman Z-Score of 2.88 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Target Hospitality  (NAS:TH) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Target Hospitality Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Target Hospitality's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


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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