Custom Truck One Source Valuation: Recent Returns Contrast with Longer Term Performance

Custom Truck One Source (CTOS) has shown mixed returns with a 24.16% 1-year total shareholder return, but a net loss and trading at $6.32 against an analyst target of $7.75. The stock is considered 2.8% undervalued with a fair value of $6.50. The ongoing transition to electric and autonomous vehicles may render existing fleet assets obsolete, leading to lower return on assets and margin compression. However, strong demand and high utilization in core utility markets could support revenue and margins.