Custom Truck One Source, Inc. (NSCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Enova International, Inc.

Nelnet, Inc.

SLM Corp.

Upbound Group, Inc.

McGrath RentCorp

Walker & Dunlop, Inc.

Custom Truck One Source, Inc.

Textainer Group Holdings Ltd.

Herc Holdings, Inc.

Navient Corp.

H&E Equipment Services, Inc.

Why is Custom Truck One Source, Inc. ?

Poor Management Efficiency with a low ROCE of 3.96%

The company has been able to generate a Return on Capital Employed (avg) of 3.96% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.97 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.97 times
The company has been able to generate a Return on Equity (avg) of 2.56% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 45.67% and Operating profit at 43.62%

The company has declared Negative results for the last 6 consecutive quarters

ROCE(HY) Lowest at -4.37%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.37 times
CASH AND EQV(HY) Lowest at USD 10.64 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 11.21%, its profits have fallen by -144.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Custom Truck One Source, Inc. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Custom Truck One Source, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Custom Truck One Source, Inc.

6.46%

0.65

57.92%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

45.67%

EBIT Growth (5y)

43.62%

EBIT to Interest (avg)

0.84

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

16.37%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

3.96%

ROE (avg)

2.56%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.30

EV to EBIT

30.31

EV to EBITDA

9.42

EV to Capital Employed

1.08

EV to Sales

1.90

PEG Ratio

Dividend Yield

ROCE (Latest)

3.55%

ROE (Latest)

-2.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 257.15 MM

NET PROFIT(9M)

Higher at USD -7.46 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.04 times

PRE-TAX PROFIT(Q)

At USD -5.6 MM has Grown at 64.03%

-10What is not working for the Company

ROCE(HY)

Lowest at -4.37%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.37 times

CASH AND EQV(HY)

Lowest at USD 10.64 MM

DEBT-EQUITY RATIO (HY)

Highest at 316.94 %

NET PROFIT(Q)

Lowest at USD -23.08 MM

EPS(Q)

Lowest at USD -0.13

Here's what is working for Custom Truck One Source, Inc.

Operating Cash Flow

Highest at USD 257.15 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD -5.6 MM has Grown at 64.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Debtors Turnover Ratio

Highest at 10.04 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 69.26 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Custom Truck One Source, Inc.

Inventory Turnover Ratio

Lowest at 1.37 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Profit

Lowest at USD -23.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 10.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 316.94 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio