Capstone Therapeutics (CAPS) AI Stock Analysis

• Market Cap: $7.37M
• Dividend Yield: N/A
• Average Volume (3M): 74.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -5.81%
• EPS Growth: 39.02%
• Country: US
• Employees: 36
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 5,190,251
• 10 Day Avg. Volume: 122,744
• 30 Day Avg. Volume: 74,625
• PEG Ratio: -0.02
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.95
• Enterprise Value/Market Cap: 4.30
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 3.46
• Enterprise Value/Ebitda: -6.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: $1.50 ▼(-1.32%Downside)

Capstone Therapeutics is currently experiencing substantial financial and technical challenges. The negative P/E ratio and weak market momentum are significant concerns, coupled with declining revenue and profitability. Although there is some improvement in cash flow and potential financial flexibility from recent corporate actions, the overall outlook remains cautious.

Capstone Therapeutics Business Overview & Revenue Model

Company Description

Capstone Therapeutics (CAPS) is a biotechnology company focused on the development of novel therapies for the treatment of inflammatory and fibrotic diseases. The company operates within the pharmaceutical and healthcare sectors, leveraging its expertise in peptide-based therapeutics to address unmet medical needs. Capstone's core product offerings center around its proprietary drug candidates that are in various stages of clinical development.

How the Company Makes Money

Capstone Therapeutics makes money primarily through the development and commercialization of its therapeutic drug candidates. The company's revenue model includes potential income from licensing agreements, partnerships with larger pharmaceutical companies, and eventual sales of approved drugs. Key revenue streams are often derived from upfront payments, milestone payments, and royalties from partners who license their drug candidates for further development and commercialization. Strategic partnerships and collaborations play a significant role in contributing to Capstone's earnings, providing both financial resources and expertise to advance their pipeline.

Capstone Therapeutics Financial Statement Overview

Summary

Capstone Therapeutics is facing financial challenges with declining revenue and profitability, negative equity, and high leverage posing substantial risks. Despite these issues, there is improvement in cash flow management with strong free cash flow growth, indicating effective cash management amidst ongoing net losses.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.42M	44.88M	48.35M	61.56M	66.74M	45.45M
Gross Profit	9.17M	9.57M	9.61M	16.53M	16.32M	10.94M
EBITDA	-910.00K	-121.00K	-1.75M	4.23M	5.02M	2.64M
Net Income	-3.88M	-2.56M	-3.82M	2.31M	3.92M	10.46M
Balance Sheet
Total Assets	35.50M	47.22M	52.70M	65.21M	60.85M	54.87M
Cash, Cash Equivalents and Short-Term Investments	1.74M	11.00K	52.00K	23.00K	50.00K	1.00
Total Debt	12.21M	16.61M	20.33M	28.80M	28.34M	20.81M
Total Liabilities	10.58M	50.28M	23.58M	31.88M	31.78M	25.77M
Stockholders Equity	26.97M	-3.06M	2.44M	33.33M	29.08M	29.11M
Cash Flow
Free Cash Flow	2.83M	3.70M	1.24M	-3.06M	2.55M	639.00K
Operating Cash Flow	2.85M	3.82M	1.45M	-2.89M	3.72M	642.00K
Investing Cash Flow	-20.00K	-120.00K	-208.00K	-173.00K	-931.00K	-3.00K
Financing Cash Flow	-1.11M	-3.74M	-1.21M	3.04M	-2.74M	-697.00K

Capstone Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.52 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 1.86, and below the 200-day MA of 2.62, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 22.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAPS.

Capstone Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	44 Neutral	C$976.20M	-6.71	-13.35%	2.69%	17.20%	-32.62%
AFMDQ	42 Neutral	$1.15M	―		―	-95.23%	-325.89%
RLMD	41 Neutral	$19.95M	―	-160.26%	―	―	19.21%
CAPS	40 Underperform	$7.37M	―	-11.56%	―	-5.81%	39.02%
NXTC	36 Underperform	$12.01M	―	-63.94%	―	―	22.63%
GOVX	34 Underperform	$7.59M	―	-616.17%	―	―	71.39%
ICU	33 Underperform	$9.04M	―	1475.93%	―	―	75.26%

Capstone Therapeutics Corporate Events

Capstone Therapeutics Releases Investor FAQ for Transparency

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.

Capstone Therapeutics Amends Stock Purchase Agreement

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.