Custom Truck One Source, Inc. (CTOS) stock analysis
Close on Nov 11, 2026Market cap $2.36BP/E 79.8Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak5 of 30 checks passed
Custom Truck One Source passes 5 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 2/6
- Past performance
- 1/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Guidance raised
Custom Truck One Source raised its 2026 STEM Revenue outlook on Aug 3, 2026.
P/B below the industry
Custom Truck One Source's price-to-book of 2.87 is below the Miscellaneous Equipment Rental and Leasing median of 2.93.
Gross margin improving
Gross margin was 22.6% over the last twelve months, against 21.0% a year earlier.
Net margin above its 5-year average
Net margin was 1.4% over the last twelve months, against a 5-year average of -2.7%.
What to watch
Margin of safety under 20%
The price is 68.7% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $10.38 is above our fair value estimate of $6.15.
Return on equity under 15%
Return on equity was 3.7% over the last twelve months and averaged -8.1% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 6.9%, below the 10% that usually covers the cost of capital.
Valuation1/6
P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
Custom Truck One Source's P/E of 79.8 is above the Miscellaneous Equipment Rental and Leasing median of 19.8.
EV/EBITDA above its 5-year median
Custom Truck One Source's EV/EBITDA of 9.0 is above its 5-year median of 8.2.
P/B below the industry
Custom Truck One Source's price-to-book of 2.87 is below the Miscellaneous Equipment Rental and Leasing median of 2.93.
Trading above fair value
The share price of $10.38 is above our fair value estimate of $6.15.
Margin of safety under 20%
The price is 68.7% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing under 10% a year
Revenue grew 7.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 5.8% over the last twelve months; the Miscellaneous Equipment Rental and Leasing median is 9.4%.
Guidance raised
Custom Truck One Source raised its 2026 STEM Revenue outlook on Aug 3, 2026.
Gross margin improving
Gross margin was 22.6% over the last twelve months, against 21.0% a year earlier.
Past performance1/6
Return on equity under 15%
Return on equity was 3.7% over the last twelve months and averaged -8.1% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 6.9%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
Custom Truck One Source's return on equity of 3.7% is below the Miscellaneous Equipment Rental and Leasing median of 12.9%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 1.4% over the last twelve months, against a 5-year average of -2.7%.
Net margin below the industry
Custom Truck One Source's net margin of 1.4% is below the Miscellaneous Equipment Rental and Leasing median of 5.4%.
Financial health1/6
High debt
Debt is 201% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 16.9% of total debt; we look for at least 20%.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 1.28 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.09; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Custom Truck One Source has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$6.15
The share price is 69% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 19.8× | – | 19.8× | $2.58 | 40% |
| EV/EBITDA | 8.9× | 8.2× | 9.5× | $10.07 | 35% |
| P/B | 2.3× | 1.8× | 2.9× | $8.47 | 10% |
| Earnings power | 11.7% cost of equity | – | – | $5.02 | 15% |
| Fair value | $6.15 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Miscellaneous Equipment Rental and Leasing median 19.8
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $10.31M
- Value traded per 1% price move
- $4.41M
Downside
Medium risk
- Typical loss in a bad month
- 17.7%
- Volatility (annualized)
- 49%
- Sharpe ratio, 1 year
- 1.46
- Beta to the S&P 500 (5Y)
- 1.37
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2016 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +7.9% | +7.3% | +45.1% | – | |
| Gross profit | +5.5% | +2.4% | +40.1% | – | |
| Operating income | -1.1% | +6.5% | +48.6% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 98.5% | -3.7% | |
| Return on assets | – | -2.7% | -0.9% | |
| Current ratio | – | 1.45 | 1.33 | |
| Debt to equity | – | -23.08 | 2.03 | |
| Net debt to EBITDA | – | 6.99× | 4.22× | |
| Interest coverage | – | – | – | |
| Inventory turnover | – | 7.0× | 1.5× | |
| Diluted shares | – | 49M | 227M |
Cash use needs five years of cash flow figures
Custom Truck One Source does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -1.6% | 0.56× | 4.16× | -3.7% |
| FY2024 | -1.6% | 0.52× | 3.86× | -3.2% |
| FY2023 | 2.7% | 0.59× | 3.49× | 5.6% |
| FY2022 | 2.5% | 0.56× | 3.22× | 4.5% |
| FY2021 | -15.6% | 0.68× | 4.17× | -43.9% |
| FY2020 | -7.0% | 0.38× | -36.66× | 98.5% |
| FY2019 | -10.2% | 0.35× | -8.82× | 31.7% |
| FY2018 | -6.3% | 0.45× | -3.62× | 10.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$31.05M
- Cash generatingOperating cash flow above zero$310.11M
- Return on assets improvedROA up on the prior year-0.9% → -0.9%
- Earnings backed by cashOperating cash flow above net income$310.11M vs -$31.05M
- Less leverageLong-term debt to assets fell43.4% → 47.1%
- Better liquidityCurrent ratio rose1.30 → 1.33
- No dilutionShare count did not rise237M → 227M
- Gross margin improvedGross margin up on the prior year21.65% → 21.19%
- More efficientAsset turnover rose0.54 → 0.56
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