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ZYBERNO

Stock Report

Updated Aug 31, 2026

CUSTOM TRUCK ONE SOURCE, INC. (CTOS)

NYSE

$9.20

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

9.0/100

POOR BUSINESS

CUSTOM TRUCK ONE SOURCE, INC. (CTOS) scores 9/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full CTOS quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-23.9%

Market Overestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full CTOS valuation analysis · → View full CTOS Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-3.1%)

Debt-to-Equity (Solvency Risk):CRITICAL (2.19x)

Operating Margin (Operational Efficiency):POOR (8.0%)

Return on Capital (Capital Efficiency):CRITICAL (4.9%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

CUSTOM TRUCK ONE SOURCE, INC. (CTOS) stock report — Zyberno Score 9/100 (POOR BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, CUSTOM TRUCK ONE SOURCE, INC. (CTOS) shows a Brina Gap of -23.9%, which weakens the case: based on the company's ROIC (4.9%) and reinvestment rate (-216.3%), the business can fundamentally grow at -10.7% — but the current enterprise value implies the market expects 13.2%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:9.20

Market Cap:$2.09B

Valuation Multiples (3)

P/B Ratio:2.56x

P/S Ratio:1.03x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$3.75B

Ev Ebitda Ratio:8.67x

Price Action & Momentum (3)

12-1 Momentum:

+69.1% (95th pctile)

📈 Click to view full CTOS Momentum analysis →

Momentum Percentile:95 / 100

% of 52-Week High:75.2%

B. Profitability Assessment

Return Metrics (7)

ROE:

-3.1%

📊 Click to view full CTOS ROE analysis →

ROA:-0.7%

Roic:

4.9%

📊 Click to view full CTOS ROIC analysis →

Reinvestment Rate:-216.3%

Fundamental Growth Rate (g):-10.7%

Market-Implied Growth Rate:13.2%

Brina Gap:

-23.9%

☷ Click to view full CTOS Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:8.0%

Net Margin Ttm:-1.2%

Ebitda Margin:21.3%

TTM Performance (3)

Gross Margin Ttm:22.2%

Operating Margin Ttm:8.0%

Net Margin Ttm:-1.2%

Yield Metrics (2)

Earnings Yield:-$1.20

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.47

📊 Click to view full CTOS Earnings Surprise analysis →

EPS Surprise vs Expected:174.1%

Latest Earnings Filed:2026-08-03

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):5.5%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-15.0%

Cash Flow Growth (Linear) (1)

Operating Cash Flow Growth Rate (Linear):55.2%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):0.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.34x

Quick Ratio:0.29x

Cash Ratio:0.01x

Leverage Analysis (3)

Debt To Equity Ttm:2.19x

Debt-to-Equity Ratio:2.19x

Debt To Ebitda:3.85x

Coverage Ratios (2)

Interest Coverage Ratio:2.21x

Times Interest Earned:2.21

Capital Structure (4)

Working Capital:339,334,000.00

Cash And Cash Equivalents:10,287,000.00

Long Term Debt:$1.66B

Net Debt:$1.66B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $2.04B

Linear Growth: 5.5%

📊 Click to view full CTOS Revenue analysis & methodology →

Cost Of Revenue Ttm:$1.58B

Profitability Breakdown (2)

Gross profit TTM: $450.85M

Linear Growth: 74.0%

📊 Click to view full CTOS Gross Profit analysis & methodology →

Operating income TTM: $162.69M

Linear Growth: -1.0%

📊 Click to view full CTOS Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$24.76M

Linear Growth: -15.0%

📊 Click to view full CTOS Net Income analysis & methodology →

Income Before Tax:-$22.96M

Ebitda Ttm:432,644,000.00

Operating Expenses (5)

Operating Expenses:288,160,000.00

R And D Expense:0.00

Sga Expense:230,366,000.00

Income Tax Expense:$1.80M

Interest Expense:56,600,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:40.9%

Ebitda Margin:21.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$3.60B

Current Assets:$1.33B

Ppe Net:0.00

Goodwill:704,905,000.00

Intangible Assets:$212.19M

Liability Structure (4)

Total Liabilities:2,788,659,000.00

Current Liabilities:987,039,000.00

Long Term Debt:$1.66B

Short Term Debt:$10.71M

Equity & Capital (3)

Equity:$815.96M

Retained Earnings:-$611.28M

Common Stock:500,000,000.00

Working Capital Items (3)

Accounts Receivable:245,233,000.00

Inventory:1,042,203,000.00

Accounts Payable:115,437,000.00

Special Items (2)

Contract Liabilities:19,800,000.00

Stock Based Compensation:3,431,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $278.29M

Linear Growth: 55.2%

$0.00

Investment Activities (1)

Investing Cash Flow:-$59.23M

Financing Activities (3)

Financing Cash Flow:$38.58M

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:269,953,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.11

Eps diluted TTM: -$0.11

Linear Growth: -12.0%

📊 Click to view full CTOS EPS analysis & methodology →

Earnings Per Share Ttm:-$0.11

Revenue & Cash Per Share (2)

Sales Per Share Ttm:8.95

Operating Cash Flow Per Share:$1.36

Book Value & Capital (2)

Book Value Per Share:$3.59

Cash Per Share:0.05

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.58x

Working Capital Turnover Ttm:6.00x

Receivables Management (2)

Receivables Turnover Ttm:8.30x

Days Sales Outstanding Ttm:43.98

Inventory Management (2)

Inventory Turnover Ttm:1.52x

Days Inventory Outstanding Ttm:240.08

Payables & Cash Cycle (2)

Days Payable Outstanding:26.59

Cash Conversion Cycle:257.47

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:20.00

Quality Score:35.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:-216.3%

Fundamental Growth Rate (g):-10.7%

Market-Implied Growth Rate:13.2%

Brina Gap:

-23.9%

☷ Click to view full CTOS Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):5.5%

Net Income Growth Rate (Linear):-15.0%

Operating Income Growth Rate (Linear):0.0%

Cash Flow Growth Rates (1)

Operating Cash Flow Growth Rate (Linear):55.2%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):0.7%

Book Value Growth Rate (Linear):-2.7%

C. Company Profile & Context

Corporate Information (6)

Symbol:CTOS

Company Name:CUSTOM TRUCK ONE SOURCE, INC.

Sector:Unknown

Industry:Services-Equipment Rental & Leasing, NEC

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:227.43M

Shares Outstanding Basic:227.43M

Shares Outstanding Diluted:229.67M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 03:04:05 UTC

Data Timestamp:2026-08-31T03:04:05.521358