Capstone Green Energy

CGEH

Industrial - Machinery · Industrials

Price

$11.69

+1.39 (+13.50%)

Market Cap

$243.6M

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+41.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 14.7M (2022) → 20.8M (2026)

Capstone Green Energy Holdings makes small power generators called microturbines. These turbines run on natural gas, biogas, or hydrogen and produce electricity and heat for buildings, factories, oil and gas sites, and remote locations. The company sells and rents these systems to industrial and commercial customers who need reliable power that does not depend on the main electrical grid.

Capstone earns money through equipment sales, long-term rental contracts, and service agreements that cover maintenance and parts. It operates mainly in North America but has customers in Europe, Latin America, and other regions. Its installed base of turbines creates a recurring revenue stream from service contracts, which helps stabilize cash flow. The main risk is that microturbines compete against cheaper alternatives like diesel generators and larger natural gas systems, and the company's small size limits its pricing power and ability to absorb rising costs.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

YoY Growth Rate

Revenue data limited

EPS Growth

YoY Growth Rate

EPS data limited

R&D Spend

$4M/ year

↑ Rising (+36% vs prior year)

3.4% of revenue

In line with sector average (4%)

R&D investment increasing — building for the future

Insider Activity

20.9%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~2 months

$9M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Short runway — potential dilution ahead through share issuance

Cash watch

Capstone Green Energy has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

27.8%

Modest — 27.8% gross margin

Operating Margin

0.1%

Thin — 0.1% operating margin

ROCE

0.5%

Weak — 0.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+48.2%

Fast-growing sales (48.2% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

-422%

Weak — only -422% of profit becomes cash

FCF Margin

-7.8%

Burning cash (-7.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

1.68x

Dangerous — barely covers interest (1.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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