NasdaqCM:CPST

Stock Analysis Report

Executive Summary

Capstone Turbine Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications worldwide.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.

Risks

  • Capstone Turbine has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Capstone Turbine's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

CPST

-2.0%

US Electrical

-0.2%

US Market


1 Year Return

-45.1%

CPST

-10.3%

US Electrical

1.1%

US Market

CPST underperformed the Electrical industry which returned -9.4% over the past year.

CPST underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

CPSTIndustryMarket
7 Day-2.8%-2.0%-0.2%
30 Day-21.1%7.9%2.5%
90 Day-37.4%0.7%1.6%
1 Year-45.1%-45.1%-8.4%-10.3%3.4%1.1%
3 Year-62.6%-62.6%38.7%30.5%45.2%35.8%
5 Year-97.5%-97.5%32.6%19.3%62.6%44.8%

Price Volatility Vs. Market

How volatile is Capstone Turbine's share price compared to the market and industry in the last 5 years?


Simply Wall St News

3 weeks ago | Simply Wall St

Is Capstone Turbine Corporation's (NASDAQ:CPST) CEO Overpaid Relative To Its Peers?

Valuation

Is Capstone Turbine undervalued based on future cash flows and its price relative to the stock market?

2x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Capstone Turbine's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Capstone Turbine's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Capstone Turbine is loss making, we can't compare its value to the US Electrical industry average.

Capstone Turbine is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Capstone Turbine, we can't assess if its growth is good value.


Price Based on Value of Assets

Capstone Turbine is overvalued based on assets compared to the US Electrical industry average.


Next Steps

Future Growth

How is Capstone Turbine expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

69.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Capstone Turbine's revenue is expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).

Capstone Turbine's earnings are expected to grow significantly at over 20% yearly.

Capstone Turbine's revenue growth is expected to exceed the United States of America market average.

Capstone Turbine's earnings growth is expected to exceed the United States of America market average.

Capstone Turbine's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Capstone Turbine will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Capstone Turbine performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Capstone Turbine does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Capstone Turbine's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Capstone Turbine's 1-year growth to the US Electrical industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Capstone Turbine has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Capstone Turbine has efficiently used its assets last year compared to the US Electrical industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Capstone Turbine improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Capstone Turbine's financial position?


Financial Position Analysis

Capstone Turbine is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Capstone Turbine's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Capstone Turbine's level of debt (146.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (21.5% vs 146.9% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.3x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Capstone Turbine has sufficient cash runway for 1.2 years based on current free cash flow.

Unable to confirm if Capstone Turbine has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

What is Capstone Turbine's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Capstone Turbine's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Capstone Turbine's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Capstone Turbine has not reported any payouts.

Unable to verify if Capstone Turbine's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Capstone Turbine has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Capstone Turbine's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Darren Jamison (53yo)

12.8yrs

Tenure

US$997,208

Compensation

Mr. Darren R. Jamison has been the President and Chief Executive Officer at Capstone Turbine Corp. since December 6, 2006. Mr. Jamison served as President of Northern Power Systems Inc., a subsidiary of Di ...


CEO Compensation Analysis

Darren's remuneration is higher than average for companies of similar size in United States of America.

Darren's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

50.5yo

Average Age

The tenure for the Capstone Turbine management team is about average.


Board Age and Tenure

3.1yrs

Average Tenure

60yo

Average Age

The tenure for the Capstone Turbine board of directors is about average.


Insider Trading

More shares have been bought than sold by Capstone Turbine individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$31026 Aug 19
Robert Powelson
EntityIndividual
Role
Member of the Board of Directors
NON-INDEPENDENT DIRECTOR
Shares500
Max PriceUS$0.62
BuyUS$3,48321 Aug 19
Yon Jorden
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$0.70
BuyUS$4,13514 Jun 19
Yon Jorden
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$0.83
BuyUS$24,72014 Jun 19
Holly Van Deursen
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares30,000
Max PriceUS$0.82
BuyUS$10,08014 Jun 19
Robert Flexon
EntityIndividual
Role
Member of the Board of Directors
Director
Shares12,600
Max PriceUS$0.80
BuyUS$16,60014 Jun 19
Darren Jamison
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceUS$0.83
BuyUS$2,49015 Feb 19
Jayme Brooks
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares3,000
Max PriceUS$0.83
BuyUS$7,90015 Feb 19
Yon Jorden
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$0.79
BuyUS$14,00014 Feb 19
Darren Jamison
EntityIndividual
Role
Chief Executive Officer
President
Shares17,500
Max PriceUS$0.80
BuyUS$5,02214 Feb 19
Holly Van Deursen
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares6,500
Max PriceUS$0.77

Ownership Breakdown


Management Team

  • Darren Jamison (53yo)

    President

    • Tenure: 12.8yrs
    • Compensation: US$997.21k
  • Jim Crouse (55yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 12.6yrs
    • Compensation: US$379.04k
  • Jayme Brooks (48yo)

    Executive VP

    • Tenure: 4.4yrs
    • Compensation: US$385.31k
  • Jeff Foster

    Senior Vice President of Customer Service & Product Development

    • Tenure: 1.9yrs
  • Kirk Petty

    Senior Vice President of Manufacturing

    • Tenure: 0.7yrs
  • Frederick Hencken (40yo)

    Chief Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • Bob Flexon (61yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$108.23k
  • Yon Jorden (64yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$100.83k
  • Darren Jamison (53yo)

    President

    • Tenure: 12.8yrs
    • Compensation: US$997.21k
  • Gary Mayo (65yo)

    Non Executive Director

    • Tenure: 11.9yrs
    • Compensation: US$101.21k
  • Holly Van Deursen (60yo)

    Chairman of the Board

    • Tenure: 3.1yrs
    • Compensation: US$111.25k
  • Paul DeWeese (52yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$92.08k
  • Rob Powelson (50yo)

    NON-INDEPENDENT DIRECTOR

    • Tenure: 0.3yrs

Company Information

Capstone Turbine Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capstone Turbine Corporation
  • Ticker: CPST
  • Exchange: NasdaqCM
  • Founded: 1988
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: US$41.198m
  • Shares outstanding: 79.24m
  • Website: https://www.capstoneturbine.com

Number of Employees


Location

  • Capstone Turbine Corporation
  • 16640 Stagg Street
  • Van Nuys
  • California
  • 91406
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPSTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2000
TBN1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000

Biography

Capstone Turbine Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications worldwide. It offers microturbin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:09
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.