OTCPK:CPSN

Stock Analysis Report

Executive Summary

Capstone Systems Inc., through its subsidiary Yunguhui Group Limited, provides management consulting services to small and medium-sized enterprises in mainland China.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CPSN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CPSN

-2.6%

US Professional Services

-2.8%

US Market


1 Year Return

n/a

CPSN

-13.0%

US Professional Services

-15.9%

US Market

Return vs Industry: Insufficient data to determine how CPSN performed against the US Professional Services industry.

Return vs Market: Insufficient data to determine how CPSN performed against the US Market.


Shareholder returns

CPSNIndustryMarket
7 Day0%-2.6%-2.8%
30 Day-20.0%-22.2%-18.8%
90 Dayn/a-22.5%-24.0%
1 Yearn/a-12.3%-13.0%-14.2%-15.9%
3 Yearn/a14.9%11.4%9.9%2.8%
5 Yearn/a29.5%22.7%27.2%13.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Capstone Systems is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Capstone Systems has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of CPSN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Capstone Systems regulatory filings here.
  • Explore potentially undervalued companies in the Commercial Services industry.

Future Growth

How is Capstone Systems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.3%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Capstone Systems has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of CPSN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Capstone Systems's filings and announcements here.
  • Explore growth companies in the Commercial Services industry.

Past Performance

How has Capstone Systems performed over the past 5 years?

14.1%

Historical Commercial Services annual earnings growth


Earnings and Revenue History

Quality Earnings: CPSN is currently unprofitable.

Growing Profit Margin: CPSN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if CPSN's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: CPSN is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (13.1%).


Return on Equity

High ROE: CPSN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Capstone Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CPSN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CPSN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CPSN is debt free.

Reducing Debt: CPSN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: CPSN has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CPSN's debt is covered by short term assets.


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: Insufficient data to determine if CPSN has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CPSN'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 CPSN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPSN'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 CPSN'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?


CEO

Xiuping Fang (59yo)

0.75

Tenure

Mr. Xiuping Fang serves as the Chairman of the Board, Chief Executive Officer, Chief Financial and Accounting Officer, President, Secretary, Treasurer and Director of Capstone Systems Inc. since July 12, 2 ...


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Capstone Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capstone Systems Inc.
  • Ticker: CPSN
  • Exchange: OTCPK
  • Founded: 2015
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$172.107m
  • Shares outstanding: 215.13m
  • Website: https://www.yunguhui.com.cn

Number of Employees


Location

  • Capstone Systems Inc.
  • Yun Gu Hui, International Financial Center
  • 42nd Floor
  • Nanjing
  • Jiangsu Province
  • 210005
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPSNOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2019

Biography

Capstone Systems Inc., through its subsidiary Yunguhui Group Limited, provides management consulting services to small and medium-sized enterprises in mainland China. The company’s services include management advisory, corporate governance advisory, public relations advisory, and other capital market related consulting services, as well as financing and intermediary, and going public consulting services. It owns and operates two service centers; and nine cooperation service centers through independent operators. The company was founded in 2015 and is based in Nanjing, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 06:14
End of Day Share Price2020/03/25 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.