Capstone Holding Corp. (NASDAQ: CAPS)

Sector: Basic Materials Industry: Building Materials CIK: 0000887151
Market Cap 86,671.75
P/B 0.00
P/E -0.01
P/S 0.00
ROIC (Qtr) -5.76
Div Yield % 0.00
Rev 1y % (Qtr) 10.85
Total Debt (Qtr) 23.26 Mn
Debt/Equity (Qtr) 0.86
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About

Investment thesis

Bull case

  • Tangible assets of 32.09M provide robust 24.22x coverage of other current liabilities 1.32M, indicating strong asset backing.
  • Operating cash flow of (1.15M) exceeds working capital of (907000) by 1.26x, showing strong operational efficiency.
  • Tangible assets of 32.09M provide robust 5.56x coverage of receivables 5.77M, showing strong asset quality.

Bear case

  • Operating cash flow of (1.15M) barely covers its investment activities of (2.46M), with a coverage ratio of 0.47, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 730000 against inventory of 12.17M, the 0.06 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 730000 provide limited coverage of acquisition spending of (2.42M), which is -0.30x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (1.17M) provides weak coverage of capital expenditures of 21000, with a -55.62 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (1.15M) provides minimal -2.73x coverage of tax expenses of 420000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2023)

Segments Breakdown of Revenue (2023)

Peer comparison

Companies in the Building Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CRH Crh Public Ltd Co 82.74 Bn 24.11 2.24 20.15 Bn
2 VMC Vulcan Materials CO 39.95 Bn 35.72 5.07 4.87 Bn
3 MLM Martin Marietta Materials Inc 30.94 Bn 212.27 13.41 5.90 Bn
4 JHX James Hardie Industries plc 11.15 Bn 93.63 2.53 4.86 Bn
5 EXP Eagle Materials Inc 7.43 Bn 17.29 3.23 1.80 Bn
6 KNF Knife River Corp 5.32 Bn 35.87 1.75 1.24 Bn
7 USLM United States Lime & Minerals Inc 3.38 Bn 216.45 27.53 0.00 Bn
8 TTAM Titan America SA 3.19 Bn 19.19 1.95 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 1.41
EV to Cash from Ops. EV to Cash from Ops. 0.00 23.36
EV to Debt EV to Debt 0.00 58.70
EV to EBIT EV to EBIT 0.00 27.99
EV to EBITDA EV to EBITDA 0.00 17.60
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 29.87
EV to Market Cap EV to Market Cap 0.00 0.53
EV to Revenue EV to Revenue 0.00 4.30
Price to Book Value [P/B] P/B 0.00 5.38
Price to Earnings [P/E] P/E -0.01 46.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -8.52 3.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.53
Dividend per Basic Share Div per Share (Qtr) 0.00 0.43
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.56
Interest Coverage Int. cover (Qtr) -2.07 14.54
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 85.31 -813.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5,515.38 438.80
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.93
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -87.45 -73.90
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -234.19 -66.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -67.85 -59.38
EBT Growth (1y) % EBT 1y % (Qtr) -42.72 -52.02
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -67.29
FCF Growth (1y) % FCF 1y % (Qtr) -145.89 -5.79
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.03 12.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.76 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.04 1.32
Current Ratio Curr Ratio (Qtr) 0.96 2.95
Debt to Equity Ratio Debt/Equity (Qtr) 0.86 0.52
Interest Cover Ratio Int Coverage (Qtr) -2.07 14.54
Times Interest Earned Times Interest Earned (Qtr) -2.07 14.54
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -6.40 -43.04
EBIT Margin % EBIT Margin % (Qtr) -7.73 -72.64
EBT Margin % EBT Margin % (Qtr) -11.46 -77.34
Gross Margin % Gross Margin % (Qtr) 21.90 30.03
Net Profit Margin % Net Margin % (Qtr) -14.00 -82.01