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Custom Truck One Source (CTOS)
NYSE:CTOS
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Custom Truck One Source
(NYSE:CTOS)
59Neutral
Custom Truck One Source (CTOS) vs. S&P 500 (SPY)
Market Cap
$928.55M
Dividend YieldN/A
Average Volume (3M)910.21K
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth-0.61%
EPS Growth-248.58%
CountryUS
Employees2,619
SectorIndustrials
Sector Strength78
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.08
Shares Outstanding226,475,770
10 Day Avg. Volume1,027,708
30 Day Avg. Volume910,210
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.60
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.57
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.73Price Target Upside39.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Custom Truck One Source Business Overview & Revenue Model
Company DescriptionCustom Truck One Source, Inc. provides specialty equipment rental services to the electric utility transmission and distribution, telecommunications, rail, other infrastructure-related industries in North America. It operates through Equipment Rental Solutions, Truck and Equipment Sales, and Aftermarket Parts and Services segments. The Equipment Rental Solutions owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The Truck and Equipment Sales segment offers new equipment for sale to be used for end-markets which can be modified to meet customers specific needs. The Aftermarket Parts and Services segment provides truck and equipment maintenance and repair services as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.
How the Company Makes MoneyCustom Truck One Source makes money through several key revenue streams. Primarily, the company generates income by selling and renting out specialized vehicles and equipment. The sale of new and used equipment represents a significant portion of its revenue, allowing customers to purchase or lease equipment tailored to their operational needs. Additionally, CTOS offers maintenance and repair services, providing ongoing support and generating recurring income from service contracts and parts sales. The company's strategic partnerships with equipment manufacturers and financial institutions also enhance its product offerings and financing solutions, contributing to its overall earnings. These diversified revenue streams, along with its established industry presence, enable CTOS to maintain a robust financial model.
Custom Truck One Source Financial Statement Overview
Summary
Custom Truck One Source shows a mixed financial profile. Operational efficiency is strong with EBIT and EBITDA margins, but profitability is challenged by consistent negative net income. The balance sheet is moderately leveraged with a stable equity position, though return on equity is negatively impacted by losses. Cash flow from operations is robust, but free cash flow is constrained by high capital expenditures.Income Statement
Custom Truck One Source demonstrates a mixed performance in its income statement. The gross profit margin for TTM is approximately 21.53%, showing a solid ability to cover costs. However, the net profit margin remains negative at -1.03%, indicating challenges in maintaining profitability. Revenue growth has been inconsistent, with a notable decrease from 2023 to 2024. The EBIT margin at 8.18% and EBITDA margin at 18.25% for TTM suggest reasonable operational efficiency despite overall profitability issues.―
Balance Sheet
The balance sheet reflects a moderately leveraged company with a debt-to-equity ratio of approximately 0.13 in TTM, indicating a manageable level of debt relative to equity. The equity ratio is 22.95%, suggesting a reasonable proportion of assets financed by equity. However, the company's return on equity is negative due to negative net income, posing a risk to shareholder returns.55
Cash Flow
Cash flow analysis shows a positive trend in operating cash flow for the TTM at $96.52M, but free cash flow growth is complex due to significant capital expenditures. The operating cash flow to net income ratio is notably strong, highlighting effective cash generation relative to net income. However, the free cash flow to net income ratio is strained due to negative net income and high capital investments.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.80B | 1.87B | 1.57B | 1.17B | 302.74M | Gross Profit |
| 390.27M | 454.26M | 383.75M | 210.01M | 76.44M | EBIT |
| 126.36M | 170.95M | 161.86M | 9.29M | 17.25M | EBITDA |
| 373.76M | 408.38M | 359.12M | 104.84M | 94.56M | Net Income Common Stockholders |
| -28.66M | 50.71M | 38.91M | -181.50M | -21.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.81M | 10.31M | 14.36M | 35.90M | 3.41M | Total Assets |
| 3.50B | 3.37B | 2.94B | 2.68B | 768.40M | Total Debt |
| 2.43B | 2.20B | 1.83B | 1.60B | 727.66M | Net Debt |
| 2.42B | 2.19B | 1.81B | 1.56B | 724.25M | Total Liabilities |
| 2.64B | 2.45B | 2.05B | 1.83B | 799.47M | Stockholders Equity |
| 861.31M | 917.20M | 888.44M | 858.51M | -31.07M |
| Cash Flow | Free Cash Flow | |||
| -276.33M | -395.07M | -294.82M | -49.46M | -25.59M | Operating Cash Flow |
| 121.98M | -30.88M | 45.97M | 138.93M | 42.83M | Investing Cash Flow |
| -187.49M | -176.60M | -218.94M | -1.43B | -29.31M | Financing Cash Flow |
| 58.28M | 202.88M | 153.90M | 1.32B | -16.41M |
Custom Truck One Source Technical Analysis
Positive
4.10
Price Trends
4.29
Negative
4.64
Negative
4.45
Negative
Market Momentum
-0.05
Negative
50.73
Neutral
56.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTOS, the sentiment is Positive. The current price of 4.1 is above the 20-day moving average (MA) of 3.80, below the 50-day MA of 4.29, and below the 200-day MA of 4.45, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTOS.
Custom Truck One Source Risk Analysis
Custom Truck One Source disclosed 24 risk factors in its most recent earnings report. Custom Truck One Source reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Custom Truck One Source Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.70B | 11.36 | 22.80% | 1.74% | 7.31% | 91.99% | |
69 Neutral | $5.98B | 12.66 | 16.41% | 2.17% | 6.21% | 47.05% | |
64 Neutral | $4.27B | 11.81 | 5.31% | 249.66% | 4.08% | -8.61% | |
61 Neutral | $3.27B | 15.53 | 9.60% | 2.32% | 8.34% | -63.02% | |
59 Neutral | $928.55M | ― | -3.76% | ― | -0.61% | -248.58% | |
56 Neutral | $3.33B | 36.43 | 15.74% | 1.21% | -3.52% | -46.60% | |
53 Neutral | $157.66M | ― | -54.64% | 4.80% | -0.01% | -1174.26% |
* Industrials Sector Average
Performance Comparison
CTOS
Custom Truck One Source
4.10
0.22
5.67%
HEES
H&E Equipment Services
90.72
43.04
90.27%
HRI
Herc Holdings
116.20
-29.28
-20.13%
MGRC
Mcgrath Rentcorp
109.62
1.54
1.42%
R
Ryder System
144.71
21.70
17.64%
ALTG
Alta Equipment Group
4.75
-6.73
-58.62%
Custom Truck One Source Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 1.74%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented several positive highlights, including strong revenue growth, increased rental demand, and record-high equipment sales in TES. However, challenges such as pressure on gross margins, economic uncertainty due to tariff policies, and flat ATS segment performance were noted. Despite these challenges, the reaffirmation of full-year guidance suggests a cautiously optimistic outlook.Q1-2025 Updates
Positive Updates
Strong Year-Over-Year Revenue Growth
Total revenue for Q1 2025 was $422 million, a significant increase driven by robust demand in core T&D markets, resulting in a 13% year-over-year revenue growth for the ERS segment.
Increased Utilization and Rental Demand
Average OEC on rent for Q1 was over $1.2 billion, a 13% year-over-year increase, with utilization rates just under 78%, up 440 basis points from last year.
Record-High Equipment Sales Performance in TES
TES segment experienced significant net order growth with a backlog increase of over $51 million or 14%, and ending with the strongest March in company history.
Reaffirmed Full Year 2025 Guidance
Custom Truck reaffirmed its fiscal 2025 revenue guidance of $1.97 billion to $2.06 billion and adjusted EBITDA guidance of $370 million to $390 million.
Negative Updates
Pressure on Gross Margins
TES segment gross margin was 15.1%, down from Q1 2024, impacted by mix and improved inventory levels, although still within the expected range of 15% to 18%.
Economic Uncertainty and Tariff Challenges
Evolving U.S. tariff policies introduced greater economic uncertainty with shifting cross-border production and increased inventory levels to mitigate potential impacts.
Flat ATS Segment Revenue
ATS business posted revenue of $35 million, flat compared to Q1 of the previous year, with adjusted gross profit margin down due to higher material costs.
Company Guidance
In the first quarter of 2025, Custom Truck One Source Inc. reported a strong financial performance across its primary markets. The company's revenue reached $422 million, with an adjusted EBITDA of $73 million and an adjusted gross profit of $136 million. The ERS segment experienced a 13% year-over-year revenue growth, with rental revenue and rental asset sales increasing by 9% and 26%, respectively. The average OEC on rent for Q1 topped $1.2 billion, reflecting a 13% year-over-year increase, while average utilization rose to just under 78%, up 440 basis points from Q1 2024. The TES segment also showed promising signs, with a 14% increase in backlog of over $51 million for the quarter and sequential monthly sales growth. Custom Truck reaffirmed its fiscal 2025 guidance, projecting total revenue between $1.97 billion and $2.06 billion, adjusted EBITDA in the range of $370 million to $390 million, and net rental CapEx of under $200 million. Despite challenges such as evolving tariffs and high interest rates, the company maintains optimism about meeting its growth targets, supported by strong order flow and sustained demand across its markets.Custom Truck One Source Corporate Events
Business Operations and StrategyFinancial Disclosures
Custom Truck One Source Reports Q1 2025 Financial Results
Neutral
Apr 30, 2025
On April 30, 2025, Custom Truck One Source, Inc. reported its financial results for the first quarter of 2025, showing a revenue increase to $422.2 million, up 2.7% from the previous year. Despite a net loss of $17.8 million, the company experienced growth in rental revenue and rental asset sales, particularly within its Equipment Rental Solutions segment, and reaffirmed its 2025 guidance, citing strong demand in its core markets and a robust backlog in its Truck and Equipment Sales segment.
Spark’s Take on CTOS Stock
According to Spark, TipRanks’ AI Analyst, CTOS is a Neutral.
Custom Truck One Source shows strong revenue growth and a positive outlook for 2025, as indicated by the recent earnings call. However, challenges remain in profitability and technicals, with the stock trading below key moving averages and a negative P/E ratio. The overall score reflects these mixed signals, emphasizing the need for improved cash flow management and consistent profitability.
To see Spark’s full report on CTOS stock, click here.
Financial Disclosures
Custom Truck One Source Reports Strong Q4 2024 Results
Positive
Mar 4, 2025
On March 4, 2025, Custom Truck One Source reported its financial results for the fourth quarter and full year of 2024. The company saw a significant improvement in its fourth-quarter performance, with a total revenue increase of 16.4% compared to the previous quarter and a net income of $27.6 million, reversing a net loss from the third quarter. Despite a full-year revenue decrease of 3.4% compared to 2023, the company achieved record performance in its Truck and Equipment Sales segment and reduced its inventory by more than $150 million, setting a positive outlook for 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.