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Capstone Holding
(NASDAQ:CAPS)
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Rating:41Neutral
Price Target:
$0.22
▼(-4.35% Downside)
Action:Reiterated
Date:07/09/26
The score is driven primarily by stressed fundamentals—large losses, negative operating/free cash flow, and high leverage—followed by a strong bearish technical setup with the price below all major moving averages. Corporate events add meaningful listing and dilution uncertainty, while valuation is constrained by negative earnings and the lack of dividend support.
Positive Factors
Revenue growth & share gains
Sustained top-line growth (+10.1% TTM) combined with management's report of H1 2026 share gains across the US and Canada indicates durable demand and product-market fit. Outperforming peers through adverse seasons supports long-term revenue expansion and pricing leverage as markets normalize.
Negative Factors
Negative profitability & cash burn
Deeply negative margins and persistent operating/free cash outflows signal the business is consuming cash rather than generating it. Continued losses force repeated financing, constrain reinvestment in sales and operations, and pose a structural risk to viability unless margins materially improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & share gains
Sustained top-line growth (+10.1% TTM) combined with management's report of H1 2026 share gains across the US and Canada indicates durable demand and product-market fit. Outperforming peers through adverse seasons supports long-term revenue expansion and pricing leverage as markets normalize.
Read all positive factors
Capstone Holding (CAPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.50M
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth18.89%
EPS Growth88.40%
CountryUS
Employees93
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)-3.86
Shares Outstanding15,203,173
10 Day Avg. Volume1,309,522
30 Day Avg. Volume1,370,765
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.31
Price to Sales (P/S)0.08
P/FCF Ratio-0.85
Enterprise Value/Market Cap9.15
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit2.58
Enterprise Value/Ebitda-3.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)$72.11M
Capstone Holding Business Overview & Revenue Model
Company Description
Capstone Holding Corp. operates as an expanding conglomerate of enterprises specializing in building products, primarily catering to the residential and commercial construction sectors throughout the United States. A key entity within its current ...
Capstone Holding Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 46.88M | 44.88M | 48.35M | 61.56M | 66.74M |
| Gross Profit | 10.79M | 9.57M | 9.61M | 16.53M | 16.32M |
| EBITDA | -9.78M | -1.00M | -1.75M | 4.23M | 5.80M |
| Net Income | -21.23M | -2.56M | -3.82M | 2.31M | 3.92M |
Balance Sheet | |||||
| Total Assets | 51.38M | 47.22M | 52.70M | 65.21M | 60.85M |
| Cash, Cash Equivalents and Short-Term Investments | 727.00K | 11.00K | 52.00K | 23.00K | 50.00K |
| Total Debt | 28.85M | 16.61M | 20.33M | 28.80M | 28.34M |
| Total Liabilities | 38.92M | 50.28M | 50.26M | 57.04M | 31.78M |
| Stockholders Equity | 12.45M | -3.06M | 2.44M | 8.17M | 29.08M |
Cash Flow | |||||
| Free Cash Flow | -4.57M | 3.70M | 1.24M | -3.06M | 2.55M |
| Operating Cash Flow | -4.41M | 3.82M | 1.45M | -2.89M | 3.72M |
| Investing Cash Flow | -6.91M | -120.00K | -208.00K | -173.00K | -931.00K |
| Financing Cash Flow | 12.12M | -3.74M | -1.21M | 3.04M | -2.74M |
Capstone Holding Technical Analysis
Negative
0.23
Price Trends
0.29
Negative
0.41
Negative
0.62
Negative
Market Momentum
-0.01
Negative
32.42
Neutral
20.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAPS, the sentiment is Negative. The current price of 0.23 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.29, and below the 200-day MA of 0.62, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 32.42 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAPS.
Capstone Holding Risk Analysis
Capstone Holding disclosed 47 risk factors in its most recent earnings report. Capstone Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The reduction of the conversion price under the October Note and the resulting conversion of a substantial portion of the principal and accrued interest into shares of common stock resulted in significant dilution to our existing stockholders, and future conversions at the reduced conversion price or further reductions in the conversion price could result in additional substantial dilution. Q1, 2026
2.
We were not in compliance with the minimum Cash Flow Coverage Ratio under our Revolving Credit Agreement as of March 31, 2026, and although we have received a written waiver from our lender, there can be no assurance that we will maintain compliance in future periods or that our lender will grant additional waivers, which could result in acceleration of our outstanding indebtedness and materially impair our liquidity. Q1, 2026
3.
Changes in foreign currency translation and transaction risks that could adversely affect our reported financial results and the cost of servicing our Canadian dollar-denominated obligations. Q1, 2026
Capstone Holding Peers Comparison
UnderperformOutperform
Sector (61)
CAPS
Capstone Holding
0.23
-1.33
-85.26%
RETO
ReTo Eco-Solutions
2.74
-44.26
-94.17%
FEAM
5E Advanced Materials, Inc.
1.15
-2.96
-72.02%
STAI
ScanTech AI Systems
0.05
-13.33
-99.66%
Capstone Holding Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Capstone Holding Granted Extended Nasdaq Compliance Deadline
Negative
Jul 9, 2026
On January 7, 2026, Capstone Holding Corp. disclosed that it had received a Nasdaq deficiency notice after its common stock traded below the $1.00 minimum bid price for 30 consecutive business days, triggering a 180-day grace period to regain comp...
Private Placements and FinancingRegulatory Filings and Compliance
Capstone Holding Updates Equity Purchase Agreement Terms
Neutral
Jul 6, 2026
On June 11, 2026, Capstone Holding Corp. entered into an Amended and Restated Common Stock Purchase Agreement with an accredited investor, giving the company the right, but not the obligation, to sell up to $20 million of newly issued common share...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingShareholder MeetingsStock Split
Capstone Holding Shareholders Approve Reverse Split and Plan Changes
Positive
Jun 22, 2026
TotalStone, a subsidiary of Capstone Holding Corp., amended its long-standing revolving credit agreement on June 17, 2026, extending the facility’s maturity to December 31, 2026, with approximately $9.56 million outstanding as of March 31, 2...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Capstone Holding Updates Equity Line Financing Agreement
Positive
Jun 12, 2026
On June 11, 2026, Capstone Holding Corp. amended and restated its existing equity line financing with an accredited investor, maintaining the ability to sell up to $20 million of newly issued common stock while overhauling the pricing and timing m...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Capstone Holding Issues Investor FAQ, Reaffirms 2026 Outlook
Positive
May 6, 2026
On May 6, 2026, Capstone Holding Corp. published an investor FAQ that details capital structure progress, including a 72% reduction in the principal on its convertible notes issued in 2025, leaving $1.90 million outstanding as of May 1. The FAQ al...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.