$Target Hospitality (TH.US)$ 🎯 2024.3.27 Current price 10.9...

New data: In 23Q4, revenue contracted for the second consecutive quarter, expanding to 17.2%. Operating profit shrank by 28.1%. Net profit before tax increased by 8.3% due to proceeds from the sale of securities, and net profit after tax increased 20%.

For the full year of 2023, revenue increased 12.3%, operating profit increased 38%, and net profit increased 1.35 times.

The balance ratio fell from 74% to 45.7%, and total assets fell a lot. On the asset side, mainly cash fell from 180 million to 100 million, on the debt side, mainly long-term loans fell from 330 million to 180 million, and deferred liabilities were almost reduced from 120 million. Overall, the optimization was quite significant.

Net operating cash flow was higher than net investment, and continued to generate a large share of shareholder surpluses.

Currently, the price-earnings ratio is 7, and the valuation is not very high, but unfortunately, the purchase price proposed by Arrow Holdings below TDR is 10.8, so there is little point in holding it now.