Capstone Therapeutics (CAPS) AI Stock Analysis

• Market Cap: $6.59M
• Dividend Yield: N/A
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -0.97%
• EPS Growth: 64.07%
• Country: US
• Employees: 36
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 5,581,205
• 10 Day Avg. Volume: 10,902,708
• 30 Day Avg. Volume: 3,724,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.51
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: -23.17
• 1Y Price Target: $1.00
• Price Target Upside: -13.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $1.00 ▼(-13.79% Downside)

Capstone Therapeutics' overall stock score is primarily impacted by its weak financial performance and valuation, which reflect significant challenges and risks. However, recent corporate events provide a positive outlook for potential growth and expansion, partially offsetting the negative financial indicators.

Capstone Therapeutics Business Overview & Revenue Model

Company Description

Capstone Therapeutics (CAPS) is a biopharmaceutical company focused on developing innovative therapies for unmet medical needs in the fields of oncology and autoimmune diseases. The company leverages advanced technologies and a robust pipeline of drug candidates to create targeted treatments that aim to improve patient outcomes. With a commitment to research and development, CAPS is positioned at the intersection of biotechnology and healthcare, striving to deliver breakthrough solutions to challenging medical conditions.

How the Company Makes Money

Capstone Therapeutics generates revenue primarily through the development and commercialization of its therapeutic products. The company's revenue model includes potential income from licensing agreements with larger pharmaceutical companies that seek to utilize CAPS's proprietary technology and drug candidates. Additionally, CAPS may receive milestone payments tied to the successful progression of its products through various stages of clinical trials. Research grants and government funding for specific projects can also contribute to the company's earnings. Strategic partnerships with other biotech firms and academic institutions enhance its capabilities and may lead to co-development opportunities, further diversifying its revenue streams.

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

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	43.38M	44.88M	48.35M	61.56M	66.74M	45.45M
Gross Profit	9.52M	9.57M	9.61M	16.53M	16.32M	10.94M
EBITDA	-1.28M	-121.00K	-1.75M	4.23M	5.02M	2.64M
Net Income	-4.20M	-2.56M	-3.82M	2.31M	3.92M	10.46M
Balance Sheet
Total Assets	51.88M	47.22M	52.70M	65.21M	60.85M	54.87M
Cash, Cash Equivalents and Short-Term Investments	773.00K	11.00K	52.00K	23.00K	50.00K	1.00
Total Debt	14.91M	16.61M	20.33M	28.80M	28.34M	20.81M
Total Liabilities	8.64M	50.28M	23.58M	31.88M	31.78M	25.77M
Stockholders Equity	26.27M	-3.06M	2.44M	33.33M	29.08M	29.11M
Cash Flow
Free Cash Flow	1.10M	3.70M	1.24M	-3.06M	2.55M	639.00K
Operating Cash Flow	1.14M	3.82M	1.45M	-2.89M	3.72M	642.00K
Investing Cash Flow	-39.00K	-120.00K	-208.00K	-173.00K	-931.00K	-3.00K
Financing Cash Flow	-332.00K	-3.74M	-1.21M	3.04M	-2.74M	-697.00K

Capstone Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 1.16 is below the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.41, and below the 200-day MA of 2.19, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 10.67 is Positive, 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 *	61 Neutral	$10.37B	6.45	-0.08%	2.84%	3.09%	-36.03%
CAPS	48 Neutral	$6.59M	―	-12.98%	―	-0.97%	64.07%
AFMDQ	42 Neutral	$1.52K	―		―	-95.23%	42.16%
RLMD	41 Neutral	$54.77M	―	-175.12%	―	―	23.17%
NXTC	36 Underperform	$12.98M	―	-104.07%	―	―	1.66%
GOVX	34 Underperform	$17.69M	―	-9690.24%	―	1943.07%	80.97%
ICU	33 Underperform	$22.19M	―	1475.93%	―	―	87.87%

Capstone Therapeutics Corporate Events

Capstone Therapeutics Acquires Carolina Stone Holdings

On August 15, 2025, Capstone Holding Corp. announced a membership interest purchase agreement to acquire all issued and outstanding membership interests in Carolina Stone Holdings, LLC, and its subsidiary, Carolina Stone Distributors, LLC, for a total of $2,625,000 in cash, a seller note of $1,250,000, and an earn-out agreement. This acquisition, expected to close on August 29, 2025, aims to enhance Capstone’s market presence in the stone products industry by integrating Carolina Stone’s operations into its portfolio.

Capstone Therapeutics Adjusts Convertible Note Conversion Price

Capstone Holding Corp. entered into a securities purchase agreement with an institutional investor on July 29, 2025, authorizing the issuance of senior secured convertible notes with an original principal amount of up to $10,909,885. On August 14, 2025, the company and the buyer agreed to reduce the conversion price of the first issued note from $1.72 to $1.00, effective August 15, 2025, with a conversion limit of $1,363,736 at the new price.

Capstone Therapeutics Secures $3M for Strategic Acquisition

On July 29, 2025, Capstone Holding Corp. entered into a securities purchase agreement with an institutional investor to issue senior secured convertible notes, initially raising $3 million out of a $10 million facility, to support its M&A strategy. This financing will primarily fund the acquisition of a Southeast U.S.-based distributor, marking Capstone’s expansion into a high-growth construction market, while maintaining capital structure and aligning with its long-term strategy of investing in high-quality, earnings-accretive acquisitions.

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.