Custom Truck One SourceCTOS +5.00%67 Gross Margin % is 22.33% as of Mar. 2026, which is 8% below its 10-year median of 24.38. GuruFocus rates CTOS with a GF Score™ of 67/100 and a GF Value™ of $6.39 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,007 Business Services companies, Custom Truck One Source ranks worse than 73.78% on this metric.
CTOS's Gross Margin % is ranked worse than 73.78% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs CTOS: 21.65
Custom Truck One Source had a gross margin of 22.33% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Custom Truck One Source was -0.90% per year.
Custom Truck One Source (NYSE:CTOS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Custom Truck One Source had a gross margin of 22.33% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Custom Truck One Source Gross Margin % Related Terms
Custom Truck One Source Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CTOS vs HTZ, VSTS, MGRC: Gross Margin % Comparison
For the Rental & Leasing Services subindustry, Custom Truck One Source's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Custom Truck One Source Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Custom Truck One Source's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Custom Truck One Source's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Custom Truck One Source (CTOS) has a Gross Margin % of 22.33% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Custom Truck One Source and its competitors. This is near median its historical median of 24.38. Over the past decade, Custom Truck One Source's Gross Margin % has ranged from 17.99 to 33.14. According to the industry distribution chart, Custom Truck One Source ranks #743 out of 1007 companies in the Business Services industry, placing it in the top 73.8%.
Is Custom Truck One Source's Gross Margin % too high?
Custom Truck One Source's current Gross Margin % of 22.33% is near median its 10-year median of 24.38. Over the past 10 years, this metric has ranged from a low of 17.99 to a high of 33.14. The Business Services industry median Gross Margin % is 34.46. Custom Truck One Source's value of 22.33% is 35.2% below this industry median. Based on the distribution chart, Custom Truck One Source ranks #743 out of 1007 companies in the Business Services industry, which is below the industry midpoint. Overall, Custom Truck One Source has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Custom Truck One Source's Gross Margin % compare to HTZ and VSTS?
According to the Business Services industry distribution chart, Custom Truck One Source ranks #743 out of 1007 companies for Gross Margin %. This places Custom Truck One Source in the lower half of its industry. The industry median Gross Margin % is 34.46. Custom Truck One Source's value of 22.33% is 35.2% below this benchmark. Historically, Custom Truck One Source's own Gross Margin % has ranged from 17.99 to 33.14 over the past decade. While the company's 10-year median is 24.38 vs. the industry median of 34.46, Custom Truck One Source has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Custom Truck One Source's current Gross Margin % of 22.33% is 35.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Custom Truck One Source and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Custom Truck One Source's current Gross Margin % is 22.33%, which is near median its own 10-year median of 24.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Custom Truck One Source stock overvalued right now?
Based on GuruFocus' analysis, Custom Truck One Source (CTOS) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.39, compared to a current price of $11.97 — trading 87.3% above its estimated fair value. The current Gross Margin % is 22.33%, which is near median its 10-year median of 24.38 and 35.2% below the Business Services industry median of 34.46. Custom Truck One Source's overall GF Score™ is 67/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Custom Truck One Source (CTOS), the current Gross Margin % is 22.33% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Custom Truck One Source (CTOS) Overvalued in 2026?
Based on GuruFocus' analysis, Custom Truck One Source stock appears to be overvalued.
The current stock price of $11.97 is trading 87.3% above its estimated GF Value™ of $6.39.
GuruFocus considers Custom Truck One Source to be Significantly Overvalued.
Key valuation signals for CTOS:
Gross Margin %: 22.33% (near median its 10-year median of 24.38)
GF Value™: $6.39 vs. price of $11.97 (87.3% above fair value)
Industry Position: 35.2% below the Business Services median (#743 of 1007)
No single metric tells the full story. See the CTOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Custom Truck One Source Inc is a one-stop-shop provider of specialty equipment in the electric utility transmission and distribution, forestry, telecom, waste management, rail, and infrastructure end-markets in North America. The company's segment includes Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). It generates maximum revenue from the TES segment. Geographically, it derives a majority revenue from the United States.
67GF Score
Get the complete analysis for CTOS
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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