Target Hospitality Corp. — Earnings Quality Grade D
TH · Industrials
Significant concerns
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 17 days (47 → 64)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR outpaced revenue for 2 consecutive years
Revenue -17.0%, CFFO -51.2%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 124.1% is >2x revenue growth -17.0%
SG&A/Gross Profit = 137.2%, exceeds 70%
Gross margin swung -32.8pp (46.1% → 13.3%)
Cash Flow Quality
CFFO/NI = -2.00. Below 1.0
FCF $0.0B, FCF/NI = -0.17
Accruals ratio = -21.0%. Low accruals
Cash $0.0B covers 78% of debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 21% of equity. Manageable
Interest coverage = -4.5x (<2x). Financial stress
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -14% YoY. Normal
Manipulation Score
M-Score = -1.79 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25