Investment Thesis
Capstone Companies exhibits severe financial distress with massive losses, negative cash flow, and critical liquidity issues that threaten operational viability. The company's negative gross margin and operating margins indicate fundamental business model failure. The near-zero current ratio and negative quick ratio suggest immediate solvency concerns without significant capital injection or operational restructuring.
Strengths
- Minimal long-term debt burden reduces refinancing risk
- Positive gross profit of $105.2K shows some revenue generation capability
- Cash position of $95.2K provides minimal operating runway
Risks
- Severe liquidity crisis with current ratio of 0.23x and quick ratio of -0.19x
- Continuous operating losses with negative free cash flow of -$269.9K
- Negative gross margin of -560.9% indicates unsustainable business model
- Stockholders' equity of only $200.7K with total liabilities of $708.7K creates high insolvency risk
- Negative operating and net margins indicate inability to control costs relative to revenue
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Gross margin stabilization and revenue growth quality
- Current ratio recovery and working capital management
- Total equity preservation and covenant compliance with creditors
Financial Metrics
Revenue
-18.8K
Net Income
-260.4K
EPS (Diluted)
$0.00
Free Cash Flow
-269.9K
Total Assets
909.4K
Cash
95.2K
Profitability Ratios
Gross Margin
-560.9%
Operating Margin
1,288.1%
Net Margin
1,388.1%
ROE
-129.8%
ROA
-28.6%
FCF Margin
1,438.3%
Balance Sheet & Liquidity
Current Ratio
0.23x
Quick Ratio
-0.19x
Debt/Equity
0.00x
Debt/Assets
77.9%
Interest Coverage
-17.26x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-21T22:18:11.148492 |
Data as of: 2025-09-30 |
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