Custom Truck One Source Inc. Common Stock (CTOS)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable competitive advantages, conservative balance sheets, and prices that offer a margin of safety. Custom Truck One Source rents and sells specialty trucks into utility, telecom, rail, and other infrastructure markets. It has a niche position, but the business is capital-intensive, cyclical, and highly levered. In fiscal 2025, revenue was $1.4B and net income was -$31.1M; in fiscal 2024, revenue was $1.4B and net income was -$28.7M. That followed fiscal 2023 net income of $50.7M. The FairStock Lynch category is TURNAROUND - loss in the latest year after earlier profits. There are early signs: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $417.6M, net income was $10.4M, and diluted EPS was $0.05, better than fiscal Q2 2025 net loss of $28.4M. But one quarter is not a trend. At the 2026-10-13 close of $9.56, FairStock calculations show P/E 106.22, P/B 2.66, ROE 2.67%, ROCE 3.14%, D/E 3.12, FCF -$226.3M, FCF yield -10.4%, Altman Z-Score 0.55, and Graham Number $2.70. Piotroski F-Score is 6/9 and PEG is 0.78, but those are small comforts against negative free cash flow and leverage. Those are not safe-bargain marks. The company must sustain profits, generate positive free cash flow, and deleverage. Until then, the price offers no margin of safety. I prefer evidence over hope.

In plain English: Custom Truck One Source rents and sells specialized trucks and equipment, mostly to utilities, telecom, rail and other infrastructure customers. The business has been losing money in recent years and uses a lot of debt, though the most recent filed quarter showed a small profit. At $9.56 on 2026-10-13, the price looks expensive compared with its current profits and net assets, so it depends on a successful turnaround.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer