Want to see CAPS full AI Analyst Report?
Top Page
Capstone Holding
(NASDAQ:CAPS)
Select Model
Select Model
Rating:41Neutral
Price Target:
$0.17
▼(-12.11% Downside)
Action:Reiterated
Date:09/25/26
The score is weighed down primarily by weak financial performance—large losses and negative operating/free cash flow—despite improving revenue and gross margin. Technicals also remain unfavorable with price below key moving averages and negative MACD. Corporate updates show operational progress and some balance-sheet clean-up, but Nasdaq compliance risk and a negative/meaningless P/E (loss-making) limit the overall rating.
Positive Factors
Improving Growth and Margins
Rapid quarterly growth and higher gross margin show improving commercial traction, while positive Stone Business Adjusted EBITDA indicates operating progress in a core business. If sustained, these gains can strengthen earnings quality and support internally funded expansion over the next several quarters.
Negative Factors
Persistent Losses and Cash Burn
Negative EBIT, EBITDA, operating cash flow and free cash flow show that the recent revenue rebound has not yet translated into sustainable company-wide earnings or self-funding. Persistent cash consumption can force external financing and limit investment flexibility if the operating turnaround stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Growth and Margins
Rapid quarterly growth and higher gross margin show improving commercial traction, while positive Stone Business Adjusted EBITDA indicates operating progress in a core business. If sustained, these gains can strengthen earnings quality and support internally funded expansion over the next several quarters.
Read all positive factors
Capstone Holding (CAPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.55M
Dividend YieldN/A
Average Volume (3M)4.90M
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth38.87%
EPS Growth81.73%
CountryUS
Employees93
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)-3.84
Shares Outstanding21,754,795
10 Day Avg. Volume14,232,662
30 Day Avg. Volume4,898,594
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.2
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
28
Negative
Balance Sheet
36
Negative
Cash Flow
24
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.25M | 46.88M | 44.88M | 48.35M | 61.56M | 66.74M |
| Gross Profit | 15.30M | 10.79M | 9.57M | 9.61M | 16.53M | 16.32M |
| EBITDA | -6.55M | -9.78M | -1.00M | -1.75M | 4.23M | 5.80M |
| Net Income | -22.10M | -21.23M | -2.56M | -3.82M | 2.31M | 3.92M |
Balance Sheet | ||||||
| Total Assets | 54.68M | 51.38M | 47.22M | 52.70M | 65.21M | 60.85M |
| Cash, Cash Equivalents and Short-Term Investments | 225.00K | 727.00K | 11.00K | 52.00K | 23.00K | 50.00K |
| Total Debt | 17.91M | 28.85M | 16.61M | 20.33M | 28.80M | 28.34M |
| Total Liabilities | 42.26M | 38.92M | 50.28M | 50.26M | 57.04M | 31.78M |
| Stockholders Equity | 12.42M | 12.45M | -3.06M | 2.44M | 8.17M | 29.08M |
Cash Flow | ||||||
| Free Cash Flow | -3.83M | -4.57M | 3.70M | 1.44M | -3.06M | 2.55M |
| Operating Cash Flow | -3.60M | -4.41M | 3.82M | 1.65M | -2.89M | 3.72M |
| Investing Cash Flow | -7.04M | -6.91M | -120.00K | -208.00K | -173.00K | -931.00K |
| Financing Cash Flow | 10.18M | 12.12M | -3.74M | -1.41M | 3.04M | -2.74M |
Capstone Holding Technical Analysis
Negative
0.19
Price Trends
0.21
Negative
0.26
Negative
0.44
Negative
Market Momentum
>-0.01
Negative
36.81
Neutral
37.66
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 0.19 is above the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.21, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 37.66 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 49 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 0 New Risks
Capstone Holding Peers Comparison
UnderperformOutperform
Sector (61)
CAPS
Capstone Holding
0.16
-1.16
-87.65%
RETO
ReTo Eco-Solutions
0.15
-23.65
-99.36%
FEAM
5E Advanced Materials, Inc.
2.80
-0.87
-23.71%
STAI
ScanTech AI Systems
0.01
-8.25
-99.87%
Capstone Holding Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and ComplianceStock Split
Capstone Holding Highlights Improved Capital Structure and Growth
Positive
Aug 27, 2026
On August 26, 2026, Capstone Holding Corp. published an investor FAQ to address shareholder questions that followed its August 12, 2026 earnings release and an August 17 invitation for inquiries. The FAQ disclosed that roughly 75% of the original ...
Business Operations and StrategyFinancial Disclosures
Capstone Holding boosts Q2 results and growth outlook
Positive
Aug 12, 2026
Capstone Holding Corp., a national technology-enabled distributor of stone veneer, hardscape materials, and modular masonry systems, reported strong second-quarter 2026 results that highlight the benefits of its scaled, integrated platform. The co...
Business Operations and StrategyPrivate Placements and Financing
Capstone Holding Extends Convertible Note Maturity for Flexibility
Neutral
Aug 3, 2026
On July 29, 2025, Capstone Holding Corp. entered into a securities purchase agreement with an institutional investor authorizing up to $10.9 million in senior secured convertible notes, issued with an 8.34% original issue discount, and initially d...
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...
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.