Capstone Holding Corp. (CAPS) is a Construction Materials company in the Basic Materials sector, currently trading at $0.59. It has a SharesGrow Score of 36/100, indicating a weak investment profile with 1 out of 7 criteria passed.
Valuation: CAPS trades at a trailing Price-to-Earnings (P/E) of -0.6 (S&P 500 average ~25).
Financials: revenue is $45M, -12.1%/yr average growth. Net income is $3M (loss), growing at -91%/yr. Net profit margin is -5.7% (negative). Gross margin is 21.3% (-3.1 pp trend).
Balance sheet: total debt is $17M with negative equity of -$3M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.02 (adequate). Debt-to-assets is 35.2%. Total assets: $47M.
Analyst outlook: 1 / 1 analysts rate CAPS as buy (100%) — strong consensus.
SharesGrow 7-Criteria breakdown: Value ?/100 (Fail), Growth 15/100 (Fail), Past 50/100 (Partial), Health 25/100 (Fail), Moat 20/100 (Fail), Future 100/100 (Pass), Income 10/100 (Fail).
