Custom Truck One Source (CTOS) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: N/A
• Average Volume (3M): 677.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: 6.21%
• EPS Growth: -177.57%
• Country: US
• Employees: 2,619
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): -0.13
• Shares Outstanding: 226,559,590
• 10 Day Avg. Volume: 652,359
• 30 Day Avg. Volume: 677,897
• PEG Ratio: 0.25
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -4.08
• Enterprise Value/Market Cap: 2.59
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 11.22
• Enterprise Value/Ebitda: 9.34
• 1Y Price Target: $6.83
• Price Target Upside: 10.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: $6.50 ▲(5.18% Upside)

Custom Truck One Source's strong financial performance and positive earnings call sentiment are offset by valuation concerns due to negative earnings and high leverage. The technical analysis supports a moderately positive outlook, but the stock's attractiveness is limited by its valuation metrics.

Positive Factors

Revenue Growth

The strong revenue and EBITDA growth indicate robust demand in core markets and effective execution, supporting long-term business expansion.

Segment Performance

Significant growth in ERS and TES segments highlights the company's strong market position and ability to capture demand, enhancing competitive advantage.

Cash Flow Management

Improved cash flow management ensures financial stability and supports strategic investments, crucial for sustaining long-term growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility, potentially impacting the company's ability to invest in growth and manage economic downturns.

Backlog Decline

A declining backlog could signal future revenue challenges, affecting the company's ability to sustain growth momentum.

Regulatory Uncertainty

Regulatory uncertainties can lead to increased costs and operational challenges, impacting profitability and strategic planning.

Custom Truck One Source Business Overview & Revenue Model

Company Description

Custom 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 Money

Custom Truck One Source generates revenue through several key streams, primarily from the sale and rental of specialized trucks and equipment. The company earns income by manufacturing and customizing vehicles tailored to the specific requirements of various industries. Additionally, CTOS offers rental services, allowing customers to access equipment without the need for long-term investment. Aftermarket services, including parts sales and maintenance support, contribute significantly to the revenue, fostering repeat business and customer loyalty. Strategic partnerships with manufacturers and suppliers enhance the company's offerings and market reach, while its strong presence in niche markets helps maintain consistent earnings.

Custom Truck One Source Financial Statement Overview

Summary

Custom Truck One Source shows strong revenue growth and improved cash flow management, but profitability margins remain below industry standards and leverage is high. Continued focus on reducing debt and enhancing net margins is crucial.

Income Statement

Custom Truck One Source has shown a strong revenue growth trajectory, particularly when comparing the TTM (Trailing-Twelve-Months) period to the previous year. Gross Profit Margin is healthy at approximately 22.8% for TTM, indicating good cost management. However, Net Profit Margin has remained low, showing a slight improvement but still below industry standards. The EBIT and EBITDA margins indicate strong operating efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio has improved slightly over the years, yet remains relatively high, indicating potential leverage risk. Return on Equity is modest, reflecting challenges in translating equity into profit. While the Equity Ratio shows a stable position, it suggests moderate asset financing through equity.

Cash Flow

There is a significant improvement in Free Cash Flow in the TTM period, showcasing effective cash management. The Operating Cash Flow to Net Income Ratio is robust, indicating strong cash flow from operations relative to net income. However, historical negative Free Cash Flow in prior periods highlights previous challenges in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.80B	1.87B	1.57B	1.17B	302.74M
Gross Profit	322.97M	390.27M	454.26M	383.75M	210.01M	76.44M
EBITDA	388.06M	373.76M	408.38M	359.12M	104.84M	94.56M
Net Income	-18.24M	-28.66M	50.71M	38.91M	-181.50M	-21.28M
Balance Sheet
Total Assets	3.58B	3.50B	3.37B	2.94B	2.68B	768.40M
Cash, Cash Equivalents and Short-Term Investments	5.26M	3.81M	10.31M	14.36M	35.90M	3.41M
Total Debt	2.51B	2.43B	2.20B	1.83B	1.60B	727.66M
Total Liabilities	2.79B	2.64B	2.45B	2.05B	1.83B	799.47M
Stockholders Equity	790.13M	861.31M	917.20M	888.44M	858.51M	-31.07M
Cash Flow
Free Cash Flow	136.28M	-276.33M	-395.07M	-294.82M	-49.46M	-25.59M
Operating Cash Flow	192.30M	121.98M	-30.88M	45.97M	138.93M	42.83M
Investing Cash Flow	-160.17M	-187.49M	-176.60M	-218.94M	-1.43B	-29.31M
Financing Cash Flow	2.45M	58.28M	202.88M	153.90M	1.32B	-16.41M

Custom Truck One Source Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.18 is above the 20-day moving average (MA) of 5.92, above the 50-day MA of 5.90, and above the 200-day MA of 4.98, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 78.15 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGRC	81 Outperform	2.92B	11.54	21.70%	1.62%	8.78%	117.40%
R	78 Outperform	7.66B	16.03	16.46%	1.78%	3.68%	6.61%
CTOS	66 Neutral	$1.40B	―	-4.37%	―	6.21%	-177.57%
HRI	50 Neutral	3.95B	137.79	1.20%	2.33%	11.41%	-92.67%
ALTG	48 Neutral	230.75M	-3.50	-148.75%	3.17%	-3.46%	-222.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Custom Truck One Source Corporate Events

Custom Truck One Source Q2 2025 Revenue Surges 20.9%

On July 30, 2025, Custom Truck One Source reported its financial results for the second quarter of 2025, showing a significant increase in total revenue by 20.9% to $511.5 million compared to the same period in 2024. Despite a net loss of $28.4 million, the company experienced growth in all segments, with notable increases in rental revenue and equipment sales, and reaffirmed its guidance for 2025, highlighting its strong market position and expected growth driven by demand for vocational vehicles and infrastructure investments.

The most recent analyst rating on (CTOS) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Custom Truck One Source stock, see the CTOS Stock Forecast page.

Custom Truck One Source Confirms Director Elections

On June 12, 2025, Custom Truck One Source held its annual stockholders meeting, where key proposals were voted on. The election of four Class C directors was confirmed, with Fred Ross, Georgia Nelson, Mary Jackson, and Ryan McMonagle all securing their positions until the 2028 meeting. Additionally, Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025, reflecting continued confidence in their financial oversight.

The most recent analyst rating on (CTOS) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Custom Truck One Source stock, see the CTOS Stock Forecast page.