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Custom Truck One Source (CTOS): analysis traps
Where its figures could mislead a reader, and what to check before taking them at face value · Data: Q3 2026, to Sep 30, 2026, filed Oct 26, 2026; rules v1.1
Custom Truck One Source (CTOS): 0 rules of 10 triggered on the filings to Sep 30, 2026. 1 to review; 2 with insufficient data; 4 not applicable. Each is a question to verify, with the normal explanation that would produce the same figures.
Check these first
A precise DCF value = the true value To review · confidence high
The DCF's point value is 8.30 a share (price 9.33); 45% of it is the terminal value, a number about years no one has seen. Moving operating margin by ±3 pts alone takes it from 4.55 to 12.05; across every method the research ran the range is -4 to 44. The value is a range; the decimals are not information.
Innocent reading: A stable, mature business with a narrow range of outcomes, where the point value is a fair summary.
Every rule
A01 FCF growth = the business improved Insufficient data
fewer than two fiscal years with operating cash flow and capital expenditure on file
A07 Stock compensation added back = no economic cost Not triggered confidence high
Stock compensation is 0.4% of revenue: small enough that adding it back changes little.
The figures and how they are read
| Fiscal year | FY2025 |
| Stock compensation | $8M |
| Revenue | $1.9B |
| SBC / revenue | +0.4% |
| Buybacks | $33M |
| Buybacks / SBC | 3.9 |
| Diluted shares, year before | 237.0M shares |
| Diluted shares | 227.0M shares |
| Diluted shares: change | -4.2% |
SBC / revenue from the cash flow statement's add-back; the diluted weighted share count year over year; buybacks from the financing section
Source: FY2025 (stock compensation, buybacks and the diluted share count, fiscal year)
B02 Receivables growing = future cash is certain Not triggered confidence medium
Receivables grew 12% against revenue 3% in Q3 2026; DSO 42 against a median of 35: collections are keeping pace with sales.
The figures and how they are read
| Quarter | Q3 2026 |
| Revenue, year over year | +2.7% |
| Receivables, year over year | +12.4% |
| Quarter before | Q2 2026 |
| Revenue y/y, quarter before | +10.2% |
| Receivables y/y, quarter before | +29.8% |
| Days sales outstanding | 41.8 |
| DSO, median of eight quarters | 35.4 |
| Receivables | $205M |
| Revenue | $495M |
receivables and revenue against the same quarter a year earlier; DSO = receivables / quarterly revenue × days, against the median of the eight quarters before
Source: Q3 2026 (receivables and revenue) · Q3 2025 (the same quarter a year earlier)
B08 Adjusted profit = economic profit Insufficient data
no reconciliation table read from the releases yet and fewer than three quarters with both an adjusted and a GAAP EPS
C02 Low net debt = no refinancing risk Not triggered confidence medium
$1M comes due within a year, 237.7× covered by cash and investments of $15M plus $279M of free cash flow.
The figures and how they are read
| Cash and investments | $15M |
| Debt | $1.7B |
| Net debt | $1.6B |
| Due within a year | $1M |
| Read from | the current portion of debt on the balance sheet |
| Free cash flow, twelve months | $279M |
| Cash plus free cash flow | $294M |
| Coverage of what is due | 237.7 |
| Due in the second year | — |
| Balance sheet date | 2026-09-30 |
due within a year from the maturity table (else the current portion of debt), against cash and investments plus free cash flow over the last twelve months (zero if negative); no credit lines assumed
Source: 2026-09-30 (debt maturities, cash and investments)
D03 EPS growth = profit growth Not applicable
a loss in one of the quarters: EPS growth has no meaning
E02 Low P/E at a cyclical peak = undervalued Not applicable
a loss on a trailing or mid-cycle basis: the P/E has no meaning
E07 A precise DCF value = the true value To review confidence high
The DCF's point value is 8.30 a share (price 9.33); 45% of it is the terminal value, a number about years no one has seen. Moving operating margin by ±3 pts alone takes it from 4.55 to 12.05; across every method the research ran the range is -4 to 44. The value is a range; the decimals are not information.
The figures and how they are read
| dcf value | 8.30 |
| price | 9.33 |
| terminal value share | +45.3% |
| swing by input | Operating margin / ±3 pts / 4.55 / 12.05; Revenue growth (each year) / ±5 pts / 5.84 / 11.19; WACC / ±1 pt / 6.87 / 10.19; Capex (share of revenue) / ±1 pt / 7.9 / 8.7 |
| range all methods | -4.36; 44.4 |
the DCF's point value against the share of it that is the terminal value and the value at each input moved by one step (growth ±5 pts, WACC ±1 pt, margin ±3 pts …); the range across every method the research ran
Source: 2026-11-08 (valuation research)
What would explain it innocently
- A stable, mature business with a narrow range of outcomes, where the point value is a fair summary
- The inputs that matter most are themselves well known (a regulated return, a long contract)
What to look for in the filing
- Which input you believe differs from the research's and why
- What the price implies for growth (the reverse DCF on the fair-value page)
What would show the trap does not apply
- The DCF's value is robust to the terminal growth and discount rate (the range's low end is still above the price)
- The company's cash flows over the next three years track the DCF's early years
Look again: next filing.
J06 A bank's low P/E and high profit = safe Not applicable
not a bank
J08 A REIT's low net income = the dividend is unsafe Not applicable
not a REIT
What the statuses mean
Triggered: the filings show the pattern; read the normal explanations and the missing evidence before concluding anything. To review: one quarter or a weak signal; a reader's judgement, not a pattern. Not triggered: the pattern is absent on these figures. Insufficient data: the filings read so far do not hold what the rule needs; this is not a clean bill. Not applicable: the rule is not meant for this kind of company (a bank's working capital, a loss-making quarter's EPS growth). Out of date: the latest filing is more than fifteen months old.
Severity is what the pattern could mean for cash, value or solvency; confidence is how reliable the inputs and the reading are. The two are kept apart.
Record a view
A reader's judgement, grounds, what would change it and the next review; kept in the browser (needs JavaScript).
Every rule and the companies it triggers on → Custom Truck One Source: cash flow →
Each rule reads the company's own filings by a fixed formula and says what would explain the same figures innocently. A triggered rule is a question to verify, not a finding of manipulation, and not a view on the stock. Missing data is shown as missing, never as clear. Not investment advice.