Custom Truck One Source, Inc. — Earnings Quality Grade F
CTOS · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 37 days, change -7 days YoY
AR growth -9.4% vs revenue growth 7.9%
Revenue 7.9%, CFFO 154.2%. Cash follows revenue
Expense Quality
Inventory -11.3% vs COGS 8.5%. Normal
CapEx growth 14.7% vs revenue 7.9%. Normal
SG&A/Gross Profit = 55.9%. Normal
Gross margin 21.2%, change -0.5pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.1B)
Accruals ratio = -9.9%. Low accruals
Cash $0.0B covers only 0% of debt $2.4B
Balance Sheet Health
Goodwill+Intangibles $0.9B = 115% of equity. Over 50%
Debt/EBITDA = 6.1x (>4x). Interest coverage = 0.9x (<2x). Financial stress
Other assets -26.3% vs revenue 7.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -3.01 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25