Capstone Therapeutics (CAPS) AI Stock Analysis

• Market Cap: $10.54M
• Dividend Yield: N/A
• Average Volume (3M): 684.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -7.19%
• EPS Growth: 4.18%
• Country: US
• Employees: 36
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -34.86
• Shares Outstanding: 5,190,251
• 10 Day Avg. Volume: 74,654
• 30 Day Avg. Volume: 684,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.14
• Price to Cash Flow (P/CF): 0.90
• P/FCF Ratio: 0.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Capstone Therapeutics' overall stock score reflects significant financial instability and valuation challenges, with negative equity and a negative P/E ratio indicating substantial risks. Despite improvements in cash flow and positive corporate developments, including revenue growth and brand expansion, these are overshadowed by ongoing financial struggles and technical weakness.

Capstone Therapeutics Business Overview & Revenue Model

Company Description

Capstone Therapeutics (CAPS) is a biotechnology company focused on the development of novel therapies for the treatment of inflammatory and fibrotic diseases. The company operates within the pharmaceutical and healthcare sectors, leveraging its expertise in peptide-based therapeutics to address unmet medical needs. Capstone's core product offerings center around its proprietary drug candidates that are in various stages of clinical development.

How the Company Makes Money

Capstone Therapeutics makes money primarily through the development and commercialization of its therapeutic drug candidates. The company's revenue model includes potential income from licensing agreements, partnerships with larger pharmaceutical companies, and eventual sales of approved drugs. Key revenue streams are often derived from upfront payments, milestone payments, and royalties from partners who license their drug candidates for further development and commercialization. Strategic partnerships and collaborations play a significant role in contributing to Capstone's earnings, providing both financial resources and expertise to advance their pipeline.

Capstone Therapeutics Financial Statement Overview

Summary

Capstone Therapeutics faces significant financial challenges, with declining revenue and profitability, alongside negative equity and high leverage, posing substantial risks. While cash flow management shows improvement, the company must address its structural financial weaknesses to restore stability and growth potential.

Income Statement

Capstone Therapeutics has experienced declining revenue over the past few years, dropping from $61.56M in 2022 to $44.88M in 2024. Gross profit margin decreased from 26.9% in 2022 to 21.3% in 2024, indicating shrinking profitability. The company has posted net losses over the last two years, with a net loss margin of -12.2% in 2024, reflecting ongoing challenges in achieving profitability.

Balance Sheet

The company's balance sheet shows negative stockholders' equity of -$3.06M in 2024, a concerning sign of financial instability and potential risk. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative, further indicating financial distress. These factors suggest significant leverage and financial risk.

Cash Flow

Capstone has shown improvement in free cash flow from $1.24M in 2023 to $3.70M in 2024, showcasing strong free cash flow growth. The operating cash flow to net income ratio is favorable, though the company continues to face net losses. This implies effective cash management but highlights the need for sustained profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
44.88M	48.35M	61.56M	66.74M	45.45M
	Gross Profit
9.57M	9.61M	16.53M	16.32M	10.94M
	EBIT
-638.00K	-1.26M	3.99M	4.64M	2.40M
	EBITDA
-638.00K	-1.75M	4.23M	5.02M	2.64M
	Net Income Common Stockholders
-2.56M	-3.82M	2.31M	3.92M	10.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.00K	52.00K	23.00K	50.00K	1.00
	Total Assets
47.22M	52.70M	65.21M	60.85M	54.87M
	Total Debt
10.29M	20.33M	28.80M	28.34M	20.81M
	Net Debt
10.28M	20.28M	28.78M	28.29M	20.81M
	Total Liabilities
50.28M	23.58M	31.88M	31.78M	25.77M
	Stockholders Equity
-3.06M	2.44M	33.33M	29.08M	29.11M
Cash Flow		Free Cash Flow
3.70M	1.24M	-3.06M	2.55M	639.00K
	Operating Cash Flow
3.82M	1.45M	-2.89M	3.72M	642.00K
	Investing Cash Flow
-120.00K	-208.00K	-173.00K	-931.00K	-3.00K
	Financing Cash Flow
-3.74M	-1.21M	3.04M	-2.74M	-697.00K

Capstone Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.02 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.66, and below the 200-day MA of 3.25, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 25.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAPS.

Capstone Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$1.92B	-1.52	-22.04%	3.84%	0.67%	-27.41%
RLMD	47 Neutral	$12.55M	―	-132.33%	―	―	19.21%
NXTC	43 Neutral	$11.22M	―	-61.87%	―	―	11.66%
CAPS	42 Neutral	$10.54M	―	-9.21%	―	-7.19%	4.18%
AFMD	42 Neutral	$11.25M	―	-151.46%	―	-95.23%	-325.89%
ICU	33 Underperform	$10.90M	―	1475.93%	―	―	75.26%
GOVX	32 Underperform	$14.12M	―	-462.31%	―	―	56.88%

Capstone Therapeutics Corporate Events

Capstone Holding Corp. Expands Toro Stone Brand Nationwide

Capstone Holding Corp. reported an 8% year-over-year increase in Q4 2024 revenue and announced the successful launch of its Toro Stone brand in six new states. The company aims to achieve a $100 million revenue run rate and $10 million Adjusted Instone EBITDA by the end of 2025, focusing on strategic acquisitions to double its business size. Capstone’s efforts to expand its geographic footprint and strengthen its portfolio of proprietary brands are positioning it as a leading national platform in the building products industry.

Capstone Therapeutics Announces Follow-On Public Offering

Capstone Holding Corp. announced the pricing of its follow-on public offering of 1,250,000 shares of common stock at $4.00 per share, aiming to raise $5 million in gross proceeds. The shares are approved for listing on the Nasdaq Capital Market under the ticker symbol ‘CAPS’ and began trading on March 6, 2025, with the offering closing on March 7, 2025. Joseph Gunnar & Co., LLC acted as the sole book-running manager for the offering, and the company granted underwriters a 45-day option to purchase an additional 187,500 shares.