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Capstone Therapeutics Corp (CAPS)
:CAPS
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Capstone Therapeutics (CAPS) AI Stock Analysis

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CAPS

Capstone Therapeutics

(NASDAQ:CAPS)

Rating:51Neutral
Price Target:
$1.50
▼(-6.25%Downside)
Capstone Therapeutics' overall stock score is primarily impacted by its financial instability, with negative equity and declining profitability. The technical analysis indicates mixed signals, and the valuation reflects high risk. However, the recent amendment to its stock purchase agreement provides a positive corporate event, offering some potential for improved financial flexibility.

Capstone Therapeutics (CAPS) vs. SPDR S&P 500 ETF (SPY)

Capstone Therapeutics Business Overview & Revenue Model

Company DescriptionCapstone Therapeutics Corp., a biotechnology company, develops novel peptides and other molecules for helping patients with under-served medical conditions in the United States. It develops Apo E mimetic peptide molecule AEM-28 and its analogs that have completed Phase Ia and Phase Ib/IIa clinical trials for lipoprotein metabolism. The company was formerly known as OrthoLogic Corp. and changed its name to Capstone Therapeutics Corp. in May 2010. Capstone Therapeutics Corp. was founded in 1987 and is headquartered in Tempe, Arizona.
How the Company Makes MoneyCapstone Therapeutics primarily generates revenue through the development and commercialization of its proprietary therapeutic products. The company engages in research and development activities to create new drug candidates, which are then advanced through clinical trials. Upon successful trial outcomes, Capstone seeks regulatory approval for its products, allowing them to enter the market. Revenue streams include product sales, licensing agreements, and potential milestone and royalty payments from partnerships with other pharmaceutical companies. Additionally, Capstone may collaborate with academic institutions and research organizations to bolster its drug development pipeline and expand its market presence.

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
45
Neutral
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
30
Negative
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue44.88M48.35M61.56M66.74M45.45M
Gross Profit9.57M9.61M16.53M16.32M10.94M
EBITDA-121.00K-1.75M4.23M5.02M2.64M
Net Income-2.56M-3.82M2.31M3.92M10.46M
Balance Sheet
Total Assets47.22M52.70M65.21M60.85M54.87M
Cash, Cash Equivalents and Short-Term Investments11.00K52.00K23.00K50.00K1.00
Total Debt16.61M20.33M28.80M28.34M20.81M
Total Liabilities50.28M23.58M31.88M31.78M25.77M
Stockholders Equity-3.06M2.44M33.33M29.08M29.11M
Cash Flow
Free Cash Flow3.70M1.24M-3.06M2.55M639.00K
Operating Cash Flow3.82M1.45M-2.89M3.72M642.00K
Investing Cash Flow-120.00K-208.00K-173.00K-931.00K-3.00K
Financing Cash Flow-3.74M-1.21M3.04M-2.74M-697.00K

Capstone Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.60
Price Trends
50DMA
1.75
Negative
100DMA
2.08
Negative
200DMA
2.47
Negative
Market Momentum
MACD
-0.04
Negative
RSI
47.90
Neutral
STOCH
65.16
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 1.6 is above the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.75, and below the 200-day MA of 2.47, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 65.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAPS.

Capstone Therapeutics Risk Analysis

Capstone Therapeutics disclosed 18 risk factors in its most recent earnings report. Capstone Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Capstone Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$8.30M-11.56%-5.81%39.02%
44
Neutral
C$979.11M-6.82-13.73%1.75%17.37%-32.84%
42
Neutral
$304.55K
-95.23%-325.89%
41
Neutral
$22.08M-160.26%19.21%
36
Underperform
$14.08M-63.94%22.63%
34
Underperform
$20.44M-616.17%71.39%
33
Underperform
$17.28M1475.93%75.26%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAPS
Capstone Therapeutics
1.60
-2.90
-64.44%
AFMDQ
Affimed
0.02
-5.19
-99.62%
GOVX
GeoVax Labs
0.79
-1.51
-65.65%
RLMD
Relmada Therapeutics
0.65
-3.33
-83.67%
NXTC
NextCure
6.17
-12.67
-67.25%
ICU
SeaStar Medical Holding
0.77
-8.09
-91.31%

Capstone Therapeutics Corporate Events

M&A TransactionsBusiness Operations and Strategy
Capstone Therapeutics Releases Investor FAQ for Transparency
Neutral
Jun 30, 2025

On June 30, 2025, Capstone Holding Corp. announced the release of an Investor FAQ to provide shareholders with clear information on its growth strategy, capital structure, and M&A pipeline. The FAQ aims to enhance transparency and investor understanding of Capstone’s operations and long-term value creation, with plans for periodic updates as new developments occur.

Private Placements and Financing
Capstone Therapeutics Amends Stock Purchase Agreement
Positive
Jun 27, 2025

Capstone Holding Corp. entered into a common stock purchase agreement with an accredited investor on May 14, 2025, allowing the company to sell up to $20 million in common stock. On June 26, 2025, the company amended the agreement to increase the purchase limit per transaction to $3 million, potentially enhancing its financial flexibility and market operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025