Capstone Holding Corp. (CAPS) stock analysis
Close on Nov 12, 2026Market cap $1.60MP/E –Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak6 of 30 checks passed
Capstone passes 6 of the 30 checks behind our score; 16 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 2/6
- Past performance
- 0/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 95.4% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $2.02 is below our fair value estimate of $44.12.
P/B below the industry
Capstone's price-to-book of 0.14 is below the Wholesale Trade-durable Goods median of 2.15.
Growing faster than the industry
Revenue grew 48.8% over the last twelve months; the Wholesale Trade-durable Goods median is 8.4%.
What to watch
Return on capital under 10%
Return on invested capital was -23.8%, below the 10% that usually covers the cost of capital.
High debt
Debt is 93.1% of shareholders' equity, above the 40% we consider low.
Interest not well covered
Operating income covers interest expense -1.4 times; we look for at least 5.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals -24.9% of total debt; we look for at least 20%.
Valuation3/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B below the industry
Capstone's price-to-book of 0.14 is below the Wholesale Trade-durable Goods median of 2.15.
Trading below fair value
The share price of $2.02 is below our fair value estimate of $44.12.
Margin of safety over 20%
The price is 95.4% below fair value, more than the 20% cushion we look for.
Growth2/6
Revenue growth over 3 years
Needs three years of positive revenue.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 48.8% over the last twelve months; the Wholesale Trade-durable Goods median is 8.4%.
Guidance issued
The latest outlook (FY2026 revenue, Aug 12, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 26.7% over the last twelve months, against 21.9% a year earlier.
Past performance0/6
Return on equity
Needs positive equity and five years of results.
Return on capital under 10%
Return on invested capital was -23.8%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
Capstone's return on equity of -107% is below the Wholesale Trade-durable Goods median of 7.6%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin below the industry
Capstone's net margin of -31.1% is below the Wholesale Trade-durable Goods median of 1.9%.
Financial health1/6
High debt
Debt is 93.1% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals -24.9% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense -1.4 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.04 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is -4.78; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Capstone has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$44.12
The share price is 95% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/B | 2.1× | – | 2.1× | $31.86 | 50% |
| P/S | 0.8× | – | 0.8× | $56.38 | 50% |
| Earnings powerleft out, too far from the others | 7.4% cost of equity | – | – | $3.02 | – |
| Fair value | $44.12 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/B at month end
- Wholesale Trade-durable Goods median 2.1
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $127.50K
- Value traded per 1% price move
- $18.89K
Downside
High risk
- Typical loss in a bad month
- 51.5%
- Volatility (annualized)
- 98%
- Sharpe ratio, 1 year
- -1.00
- Beta to the S&P 500 (5Y)
- 0.44
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2009 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +4.5% | – | – | – | |
| Gross profit | +12.8% | – | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2013 | FY2017 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -42.8% | -350.6% | -451.9% | |
| Return on assets | -41.5% | 127.6% | -43.1% | |
| Current ratio | 64.91 | 6.90 | 1.00 | |
| Debt to equity | – | -2.56 | 1.05 | |
| Net debt to EBITDA | – | – | -1.16× | |
| Interest coverage | – | – | -2.8× | |
| Inventory turnover | – | – | 2.7× | |
| Capex to revenue | – | – | 0.3% | |
| Diluted shares | 41M | 0M | 5M |
Cash use needs five years of cash flow figures
Capstone does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -45.3% | 0.95× | 10.49× | -451.9% |
| FY2024 | -5.7% | 0.90× | -160.90× | 825.4% |
| FY2018 | -19.0% | -1.31× | -1.43× | -35.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$21.23M
- Cash generatingOperating cash flow above zero-$4.41M
- Return on assets improvedROA up on the prior year-4.9% → -45.0%
- Earnings backed by cashOperating cash flow above net income-$4.41M vs -$21.23M
- Less leverageLong-term debt to assets fell13.4% → 18.2%
- Better liquidityCurrent ratio rose1.02 → 1.00
- No dilutionShare count did not rise0M → 5M
- Gross margin improvedGross margin up on the prior year21.33% → 23.02%
- More efficientAsset turnover rose0.85 → 0.99
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