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Capstone Holding

CAPS
19
Construction Materials · Basic Materials
Price
$0.23
-0.01 (-5.88%)
Market Cap
$1.2M
Exchange
NASDAQ Capital Market
Winston Score
19
Winston is worried
Weak fundamentals across most pillars.
Data as of Jul 25, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+6612.5% over 4y

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

Diluted shares outstanding: 79K (2021) → 5.3M (2025)

Capstone Holding Corp. operates as an expanding conglomerate of enterprises specializing in building products, primarily catering to the residential and commercial construction sectors throughout the United States. A key entity within its current portfolio is Instone, which functions as a nationwide wholesale supplier of thin veneer stone and associated masonry goods. Boasting more than three decades in operation, Instone has solidified its position as the dominant force in its particular niche, providing an extensive selection of both engineered and natural stone options. Instone was originally established on July 30, 1987, and maintains its corporate headquarters in Alsip, Illinois.

Winston Score History

Growth Profile

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

Revenue Growth

+60.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+99.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (3%)

Research and development spending

Cash Runway

~0 months

$419,000 cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Revenue accelerating

Capstone Holding grew revenue 60% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

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

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Quality

Gross Margin
23.5%
Thin — 23.5% gross margin
Operating Margin
-11.8%
Losing money on operations — -11.8%
ROCE
-3.9%
Weak — -3.9% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+18.9%
Fast-growing sales (18.9% 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
N/A
Data not available
FCF Margin
-9.8%
Burning cash (-9.8%)

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

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Stability

Debt / Equity
2.44
Heavy debt load (2.44)
Interest Cover
N/A
Data not available

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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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