(CTOS) Custom Truck One Source - Overview
Sector: Industrials | Industry: Rental & Leasing Services | Exchange: NYSE (USA) | Market Cap: 2.099m USD | Total Return: 117.7% in 12m
Avg Turnover: 8.86M
Qual. Beats: 2
Rev. Trend: 79.1%
Qual. Beats: 0
Warnings
High Debt/EBITDA (7.0) with thin interest coverage (1.0)
High Debt while negative Cash Flow
Interest Coverage Ratio 1.0 is critical
Altman Z'' 0.01 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader
Custom Truck One Source, Inc. (CTOS) is a North American provider of specialty equipment and vocational trucks, serving the electric utility, telecommunications, and infrastructure sectors. The company operates through two primary segments: Specialty Equipment Rentals (SER) and Specialty Truck Equipment and Manufacturing (STEM). Its portfolio includes aerial lifts, cranes, and digger derricks, supported by aftermarket parts, maintenance services, and equipment customization.
The business model relies on the high capital intensity of infrastructure projects, where utility contractors often prefer rental models to manage fleet costs and project-specific requirements. As a participant in the Trading Companies & Distributors industry, the company benefits from the ongoing modernization of the North American electrical grid and the expansion of 5G telecommunications networks. For a deeper look into the companys financial health, consider reviewing the detailed metrics on ValueRay.
Founded in 1988 and formerly known as Nesco Holdings, Inc., the Kansas City-based firm facilitates the full lifecycle of heavy equipment through integrated sales, leasing, and repair services. This vertically integrated approach allows the company to capture value from initial manufacturing and modification through to secondary market sales of used fleet units.
- Grid modernization and utility infrastructure spending drive specialty equipment rental demand
- High interest rates increase debt service costs and pressure net income margins
- Supply chain stability impacts inventory turnover for new truck and equipment sales
- Growth in telecommunications and 5G deployment accelerates aerial lift fleet utilization
- Fleet age and maintenance costs influence EBITDA margins in the rental segment
| Net Income: -17.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA 6.68 > 1.0 |
| NWC/Revenue: 14.60% < 20% (prev 16.33%; Δ -1.74% < -1%) |
| CFO/TA 0.09 > 3% & CFO 322.0m > Net Income -17.4m |
| Net Debt (2.60b) to EBITDA (369.1m): 7.03 < 3 |
| Current Ratio: 1.30 > 1.5 & < 3 |
| Outstanding Shares: last quarter (226.6m) vs 12m ago -0.72% < -2% |
| Gross Margin: 19.91% > 18% (prev 0.19%; Δ 1.97k% > 0.5%) |
| Asset Turnover: 55.95% > 50% (prev 51.18%; Δ 4.77% > 0%) |
| Interest Coverage Ratio: 0.98 > 6 (EBITDA TTM 369.1m / Interest Expense TTM 153.7m) |
| A: 0.08 (Total Current Assets 1.26b - Total Current Liabilities 972.8m) / Total Assets 3.55b |
| B: -0.18 (Retained Earnings -621.7m / Total Assets 3.55b) |
| C: 0.04 (EBIT TTM 150.7m / Avg Total Assets 3.55b) |
| D: -0.23 (Book Value of Equity -633.2m / Total Liabilities 2.74b) |
| Altman-Z'' = 0.01 = B |
| DSRI: 0.91 (Receivables 209.7m/210.2m, Revenue 1.98b/1.81b) |
| GMI: 0.95 (GM 19.91% / 19.01%) |
| AQI: 1.08 (AQ_t 0.29 / AQ_t-1 0.27) |
| SGI: 1.09 (Revenue 1.98b / 1.81b) |
| TATA: -0.10 (NI -17.4m - CFO 322.0m) / TA 3.55b) |
| Beneish M = -3.12 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 9.58 with a total of 793,898 shares traded.
Over the past week, the price has changed by +3.68%,
over one month by +4.93%,
over three months by +33.80% and
over the past year by +117.73%.
Custom Truck One Source has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy CTOS.
- StrongBuy: 3
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 11.2 | 16.6% |
P/E Forward = 61.3497
P/S = 1.0584
P/B = 2.6069
Revenue TTM = 1.98b USD
EBIT TTM = 150.7m USD
EBITDA TTM = 369.1m USD
Long Term Debt = 1.63b USD (from longTermDebt, last quarter)
Short Term Debt = 754.2m USD (from shortTermDebt, last quarter)
Debt = 2.60b USD (from shortLongTermDebtTotal, last quarter) + Leases 115.3m
Net Debt = 2.60b USD (calculated: Debt 2.60b - CCE 9.61m)
Enterprise Value = 4.69b USD (2.10b + Debt 2.60b - CCE 9.61m)
Interest Coverage Ratio = 0.98 (Ebit TTM 150.7m / Interest Expense TTM 153.7m)
EV/FCF = -141.4x (Enterprise Value 4.69b / FCF TTM -33.2m)
FCF Yield = -0.71% (FCF TTM -33.2m / Enterprise Value 4.69b)
FCF Margin = -1.67% (FCF TTM -33.2m / Revenue TTM 1.98b)
Net Margin = -0.88% (Net Income TTM -17.4m / Revenue TTM 1.98b)
Gross Margin = 19.91% ((Revenue TTM 1.98b - Cost of Revenue TTM 1.59b) / Revenue TTM)
Gross Margin QoQ = 22.33% (prev 20.58%)
Tobins Q-Ratio = 1.32 (Enterprise Value 4.69b / Total Assets 3.55b)
Interest Expense / Debt = 5.90% (Interest Expense 153.7m / Debt 2.60b)
Taxrate = 21.0% (US default 21%)
NOPAT = 119.0m (EBIT 150.7m * (1 - 21.00%))
Current Ratio = 1.30 (Total Current Assets 1.26b / Total Current Liabilities 972.8m)
Debt / Equity = 3.23 (Debt 2.60b / totalStockholderEquity, last quarter 805.2m)
Debt / EBITDA = 7.03 (Net Debt 2.60b / EBITDA 369.1m)
Debt / FCF = -78.17 (negative FCF - burning cash) (Net Debt 2.60b / FCF TTM -33.2m)
Total Stockholder Equity = 797.3m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.49% (Net Income -17.4m / Total Assets 3.55b)
RoE = -1.22% (Net Income TTM -17.4m / Total Stockholder Equity 1.42b)
RoCE = 4.94% (EBIT 150.7m / Capital Employed (Equity 1.42b + L.T.Debt 1.63b))
RoIC = 3.58% (NOPAT 119.0m / Invested Capital 3.32b)
WACC = 8.12% (E(2.10b)/V(4.70b) * Re(12.41%) + D(2.60b)/V(4.70b) * Rd(5.90%) * (1-Tc(0.21)))
Discount Rate = 12.41% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -76.41 | Cagr: -2.70%
[DCF] Fair Price = unknown (Cash Flow -33.2m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.88 | # QB: 2
Revenue Correlation: 79.10 | Revenue CAGR: 3.42% | SUE: 0.31 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.01 | Chg30d=N/A | Revisions=-20% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.04 | Chg30d=N/A | Revisions=N/A | Analysts=2
EPS current Year (2026-12-31): EPS=0.12 | Chg30d=+56.45% | Revisions=+33% | GrowthEPS=+1065.0% | GrowthRev=+5.3%
EPS next Year (2027-12-31): EPS=0.28 | Chg30d=+31.76% | Revisions=+43% | GrowthEPS=+130.6% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: +43%