Custom Truck One Source (CTOS) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: N/A
• Average Volume (3M): 728.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: -0.61%
• EPS Growth: -248.58%
• Country: US
• Employees: 2,619
• Sector: Industrials
• Sector Strength: 94
• Industry: Rental & Leasing Services
• EPS (TTM): -0.08
• Shares Outstanding: 226,475,770
• 10 Day Avg. Volume: 1,000,610
• 30 Day Avg. Volume: 728,540
• PEG Ratio: 10.52
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -318.11
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: 0.98
• 1Y Price Target: $6.30
• Price Target Upside: 8.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $6.00 ▲(3.27%Upside)

Custom Truck One Source earns a moderate score of 63, primarily driven by strong technical momentum and positive earnings call highlights. However, persistent profitability issues and a challenging valuation due to negative earnings weigh on the overall score.

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 a multifaceted business model comprising equipment sales, rentals, and services. The company earns income by selling new and pre-owned specialized trucks and heavy equipment. It also provides rental solutions for short-term and long-term needs, which is a significant revenue stream. Additionally, CTOS offers custom equipment manufacturing services tailored to specific client requirements. The company's aftermarket services, including parts and maintenance, contribute to its earnings by providing continuous support to clients. Strategic partnerships with manufacturers and suppliers enhance its product offerings and market reach, further supporting its revenue generation.

Custom Truck One Source Financial Statement Overview

Summary

Custom Truck One Source shows mixed financial health. Strong operational efficiency with EBIT and EBITDA margins is overshadowed by negative net income, affecting profitability and return on equity. Cash flow from operations is solid, but high capital expenditures strain free cash flow.

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.

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
EBITDA	373.76M	408.38M	359.12M	104.84M	94.56M
Net Income	-28.66M	50.71M	38.91M	-181.50M	-21.28M
Balance Sheet
Total Assets	3.50B	3.37B	2.94B	2.68B	768.40M
Cash, Cash Equivalents and Short-Term Investments	3.81M	10.31M	14.36M	35.90M	3.41M
Total Debt	2.43B	2.20B	1.83B	1.60B	727.66M
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

• Technical Analysis Sentiment: Positive
• Last Price: 5.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5.81 is above the 20-day moving average (MA) of 5.33, above the 50-day MA of 4.89, and above the 200-day MA of 4.64, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 68.66 is Neutral, neither overbought nor oversold. The STOCH value of 84.57 is Negative, 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	77 Outperform	$2.85B	11.29	23.85%	1.54%	7.31%	91.99%
HRI	73 Outperform	$4.89B	31.27	9.60%	1.85%	8.34%	-63.02%
R	71 Outperform	$7.32B	14.72	16.38%	1.77%	3.68%	―
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
CTOS	63 Neutral	$1.32B	―	-3.76%	―	-0.61%	-248.58%
ALTG	62 Neutral	$266.52M	―	-73.72%	2.84%	-2.09%	-977.36%
HEES	56 Neutral	$3.47B	38.00	15.74%	1.16%	-3.52%	-46.60%

Custom Truck One Source Corporate Events

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.

Custom Truck One Source Reports Q1 2025 Financial Results

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.