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.


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

1.6%

CPST

3.0%

US Electrical

1.0%

US Market


1 Year Return

-49.6%

CPST

-0.05%

US Electrical

6.7%

US Market

Return vs Industry: CPST underperformed the US Electrical industry which returned -0% over the past year.

Return vs Market: CPST underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

CPSTIndustryMarket
7 Day1.6%3.0%1.0%
30 Day-12.2%-3.4%-1.8%
90 Day-34.8%-1.1%-1.8%
1 Year-49.6%-49.6%2.1%-0.05%9.1%6.7%
3 Year-64.7%-64.7%39.5%31.4%46.1%36.6%
5 Year-97.0%-97.0%36.5%22.9%66.9%48.6%

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

Valuation

Is Capstone Turbine undervalued compared to its fair value and its price relative to the market?

1.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: CPST ($0.47) is trading above our estimate of fair value ($0.38)

Significantly Undervalued: CPST is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CPST is unprofitable, so we can't compare its PE Ratio to the Electrical industry average.

PE vs Market: CPST is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CPST's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CPST is overvalued based on its PB Ratio (1.8x) compared to the US Electrical industry average (1.5x).


Next Steps

Future Growth

How is Capstone Turbine forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPST is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: CPST is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: CPST's loss is forecast to worsen by 0% next year.

Revenue vs Market: CPST's revenue (17.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CPST's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if CPST's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: CPST is unprofitable, but has reduced losses over the past 5 years at a rate of 12.6% per year.

Accelerating Growth: Unable to compare CPST's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CPST is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (24%).


Return on Equity

High ROE: CPST has a negative Return on Equity (-91.13%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CPST is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CPST is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Capstone Turbine's financial position?


Financial Position Analysis

Short Term Liabilities: CPST's short term assets ($64.3M) exceeds its short term liabilities ($28.0M)

Long Term Liabilities: CPST's short term assets (64.3M) exceeds its long term liabilities (33.3M)


Debt to Equity History and Analysis

Debt Level: CPST's debt to equity ratio (146.9%) is considered high

Reducing Debt: CPST's debt to equity ratio has increased from 21.5% to 146.9% over the past 5 years.


Balance Sheet

Inventory Level: CPST has a high level of physical assets or inventory.

Debt Coverage by Assets: CPST's debt is covered by short term assets (assets are 2.299270x 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.

Stable Cash Runway: CPST has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CPST has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CPST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CPST's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CPST's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPST's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.3yrs

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

Compensation vs. Market: Darren's total compensation ($USD997.21K) is about average for companies of similar size in the US market ($USD495.80K).

Compensation vs Earnings: Darren's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.3yrs

Average Tenure

53yo

Average Age

Experienced Management: CPST's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

60yo

Average Age

Experienced Board: CPST's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: CPST insiders have bought more shares than they have sold in the past 3 months.


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
Independent 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
Independent 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
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
Independent 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: 12.7yrs
    • Compensation: US$379.04k
  • Jeff Foster

    Senior Vice President of Customer Service & Product Development

    • Tenure: 2yrs
  • Kirk Petty

    Senior Vice President of Manufacturing

    • Tenure: 0.8yrs
  • Frederick Hencken (40yo)

    Chief Accounting Officer & Interim CFO

    • Tenure: 0yrs

Board Members

  • Bob Flexon (61yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$108.23k
  • Yon Jorden (64yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$100.83k
  • Darren Jamison (53yo)

    President

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

    Non Executive Director

    • Tenure: 12yrs
    • Compensation: US$101.21k
  • Holly Van Deursen (60yo)

    Independent Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: US$111.25k
  • Paul DeWeese (52yo)

    Independent Director

    • Tenure: 3.2yrs
    • 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$37.378m
  • Shares outstanding: 79.54m
  • 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 Analysis2019/10/14 23:32
End of Day Share Price2019/10/14 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.