$Custom Truck One Source (CTOS.US)$Listed in 2017, the reven...
$Custom Truck One Source (CTOS.US)$Listed in 2017, the revenue growth has been slow for the following 3 years with continuous losses. After a major acquisition in 2021, the revenue increased by 2.9 times, taking a significant step forward, and grew by 34.8% in 2022. However, the net income incurred a loss of 0.18 billion in 2021 and made a profit of 0.039 billion in 2022.
The asset-liability ratio shows an increase of inventory by 0.19 billion to 0.6 billion in 2022, which accounts for 38% of the revenue that year, surpassing the net income by far, making the ratio too high. The accounts receivable increased by 0.034 billion, almost equal to the net income of that year.
Revenue grew by 24.8% in the first two quarters of 2023, operating profit doubled, but at the same time, interest expenses increased significantly. The operating profit is 1.67 times the interest expense, posing a heavy burden.
The cash flow is also very poor, with operating cash flow remaining significantly lower than investment cash flow even after the acquisition. Shareholders' equity has been continuously decreasing.
Currently, the PE ratio is 42.5, and the TTM PE ratio has dropped to 31, making it temporarily unattractive.
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