A Look At Custom Truck One Source (CTOS) Valuation After Recent Share Price Strength

Simply Wall St

Thu, February 19, 2026 at 11:13 AM GMT+9 3 min read

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CTOS

+1.67%

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Custom Truck One Source (CTOS) has drawn fresh attention after recent price moves, with the share closing at US$7.29. For investors, the key question is how current fundamentals line up with that pricing.

See our latest analysis for Custom Truck One Source.

The recent 1 day share price return of 1.67% and 7 day share price return of 2.82% build on a stronger 30 day share price return of 16.08% and 90 day share price return of 36.52%. The 1 year total shareholder return of 48.17% contrasts with a flat 3 year total shareholder return of 2.97% and a 5 year total shareholder return decline of 13.42%, suggesting momentum has picked up more recently even though longer term results have been mixed.

If this move has you looking beyond a single name, it could be a good moment to broaden your search with our list of 24 power grid technology and infrastructure stocks.

Custom Truck One Source now trades close to its US$7.75 analyst price target, and our intrinsic value estimate suggests a 7% premium. This raises the question of whether there is still a buying opportunity here or if the market is already pricing in future growth.

Most Popular Narrative: 12.2% Overvalued

Compared with the last close at $7.29, the most followed narrative sets fair value at $6.50 using a discounted cash flow approach with its own assumptions.

The company’s aggressive fleet expansion strategy, evidenced by record Q2 OEC and ongoing high CapEx commitments, increases exposure to financial risk if end market rental demand slows or if technological disruption accelerates. This could drive down utilization rates, depress asset values, and heighten leverage, ultimately putting future earnings and balance sheet stability under pressure.

Read the complete narrative.

Curious what earnings path still supports a premium price tag despite these pressures? The narrative leans on steadier revenue growth, improving margins and a richer future earnings multiple. The exact mix of those ingredients may matter more than the headline fair value.

Result: Fair Value of $6.50 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, sustained high demand in core utility markets and record rental utilization could keep revenue and cash flow healthier than this cautious fair value story assumes.

Find out about the key risks to this Custom Truck One Source narrative.

Another Take On Valuation

While the fair value narrative points to Custom Truck One Source being 12.2% overvalued at $6.50, the current P/S of 0.9x paints a different picture. It sits below the peer average of 1x and an estimated fair ratio of 1.1x. This could limit valuation downside, but how much weight do you give that discount?

Story continues  

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:CTOS P/S Ratio as at Feb 2026

Next Steps

If the mixed signals in this article leave you on the fence, take a moment to look through the underlying data yourself and form a view quickly. To see what has investors optimistic right now, check out the 3 key rewards.

Looking for more investment ideas?

If this stock has sharpened your thinking, do not stop here. The quickest way to widen your opportunity set is to scan focused lists built from the same data.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include CTOS.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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