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 Analysis

High growth potential and fair value.


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

Stable Share Price: CPST's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

CPST

20.1%

US Electrical

12.5%

US Market


1 Year Return

-87.4%

CPST

-22.1%

US Electrical

-12.7%

US Market

Return vs Industry: CPST underperformed the US Electrical industry which returned -22.1% over the past year.

Return vs Market: CPST underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

CPSTIndustryMarket
7 Day-4.3%20.1%12.5%
30 Day-50.2%-22.3%-14.7%
90 Day-63.4%-30.4%-21.5%
1 Year-87.4%-87.4%-20.5%-22.1%-10.9%-12.7%
3 Year-85.4%-85.4%-6.1%-11.6%12.6%5.4%
5 Year-99.1%-99.1%5.2%-5.2%31.9%17.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPST ($1.12) is trading below our estimate of fair value ($10.88)

Significantly Below Fair Value: CPST is trading below fair value by more than 20%.


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

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 good value based on its PB Ratio (0.6x) compared to the US Electrical industry average (1.3x).


Next Steps

Future Growth

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

74.2%

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 (1.7%).

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

High Growth Earnings: CPST's is expected to become profitable in the next 3 years.

Revenue vs Market: CPST's revenue (20.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CPST's revenue (20.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPST is currently unprofitable.

Growing Profit Margin: CPST is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPST is unprofitable, but has reduced losses over the past 5 years at a rate of 16.1% 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 (-1.4%).


Return on Equity

High ROE: CPST has a negative Return on Equity (-115.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Capstone Turbine's financial position?


Financial Position Analysis

Short Term Liabilities: CPST's short term assets ($61.3M) exceed its short term liabilities ($28.3M).

Long Term Liabilities: CPST's short term assets ($61.3M) exceed its long term liabilities ($34.0M).


Debt to Equity History and Analysis

Debt Level: CPST's debt to equity ratio (170%) is considered high.

Reducing Debt: CPST's debt to equity ratio has increased from 31% to 170% 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 2.2x 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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CPST has less than a year of cash runway if free cash flow continues to grow at historical rates of 0.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Darren Jamison (53yo)

13.25s

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 ($USD997.21K) is above average for companies of similar size in the US market ($USD605.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darren Jamison
President13.25yrsUS$997.21k0.72% $73.2k
James Crouse
Chief Revenue Officer0.25yrUS$379.04k0.34% $34.7k
Frederick Hencken
Chief Accounting Officer & CFO0.42yrno data0.35% $36.1k
Kirk Petty
Senior Vice President of Operationsno datano datano data
Jennifer Derstine
Vice President of Marketing & Distribution0.25yrno datano data
Jeff Foster
Senior Vice President of Customer Service & Product Development2.42yrsno datano data
Colby Petersen
Staff Counselno datano datano data

0.4yrs

Average Tenure

53yo

Average Age

Experienced Management: CPST's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Darren Jamison
President13.25yrsUS$997.21k0.72% $73.2k
Robert Flexon
Independent Director1.92yrsUS$108.23k0.19% $19.2k
Yon Jorden
Independent Director2.92yrsUS$100.83k0.27% $27.7k
Gary Mayo
Non Executive Director12.42yrsUS$101.21k0.21% $21.6k
Denise Wilson
Director0.33yrno data0.18% $17.9k
Holly Van Deursen
Independent Chairman of the Board3.58yrsUS$111.25k0.38% $39.0k
Paul DeWeese
Independent Director3.58yrsUS$92.08k0.18% $18.0k
Robert Powelson
Independent Director0.75yrno data0.098% $10.0k

3.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: CPST's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.4%.


Top Shareholders

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$10.212m
  • Shares outstanding: 9.12m
  • 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
TBN2DB (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 microturbine units, components, and various accessories for applications, including cogeneration comprising combined heat and power (CHP) and integrated CHP, as well as combined cooling, heat, and power; and renewable energy, natural resources, and critical power supply. The company’s microturbines are also used as battery charging generators for hybrid electric vehicle applications. It also provides various accessories, including rotary gas compressors with digital controls; heat recovery modules for CHP applications; dual mode controllers that allow automatic transition between grid connect and stand-alone modes; batteries with digital controls for stand-alone or dual-mode operations; batteries with digital controls; power servers for multipacked installations; protocol converters for Internet access; packaging options; and miscellaneous parts, such as frames, exhaust ducting, backflow dampers, and installation hardware. In addition, the company remanufactures microturbine engines; and provides after-market parts and services. It markets and sells its products primarily through distributors and original equipment manufacturers. Capstone Turbine Corporation was founded in 1988 and is headquartered in Van Nuys, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:36
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.