Capstone Stock Story


USD 3.03  0.17  5.94%   

In general, we focus on analyzing Capstone (NASDAQ:CGRN) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Capstone Green Energy daily price indicators and compare them against related drivers. My story will outline Capstone Green. We will evaluate if Capstone Green shares are reasonably priced going into July.
Published over two months ago
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Continue to hold Capstone Green (NASDAQ:CGRN)?

One of the ways to look at asset utilization of Capstone is to check how much profit was generated for every dollar of assets it reports. Capstone Green Energy shows a negative utilization of assets of -13.22 percent, losing $0.13 for each dollar of assets held by the firm. Inadequate asset utilization signifies that the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Capstone Green Energy shows how discouraging it operates for each dollar spent on its assets.
The successful prediction of Capstone Green stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Capstone Green Energy, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Capstone Green based on Capstone Green hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Capstone Green's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Capstone Green's related companies.

Use Technical Analysis to project Capstone expected Price

Capstone Green technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Capstone Green technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Capstone Green trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How does Capstone utilize its cash?

To perform a cash flow analysis of Capstone Green, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Capstone Green is receiving and how much cash it distributes out in a given period. The Capstone Green cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Capstone Green Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (29.67 Million)

Payment of 245 shares by Hencken Frederick S Iii of Capstone Green subject to Rule 16b-3

Legal trades by Capstone Green insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Capstone insider trading alert for payment of common stock by Hencken Frederick S Iii, Chief Financial Officer, on 6th of July 2022. This event was filed by Capstone Green Energy Cor with SEC on 2021-11-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

The company reported the previous year's revenue of 71.75 M. Net Loss for the year was (18.08 M) with profit before overhead, payroll, taxes, and interest of 7.16 M.

Deferred Revenue Breakdown

Capstone Green Deferred Revenue yearly trend continues to be quite stable with very little volatility. The value of Deferred Revenue is projected to decrease to about 7.3 M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Capstone Green Deferred Revenue is quite stable at the moment as compared to the past year. The company's current value of Deferred Revenue is estimated at 7.33 Million
20154.37 Million
20165.05 Million
20176.6 Million
20188.24 Million
20198.84 Million
20207.14 Million
20218.21 Million
20227.33 Million

Capstone Green implied volatility may change after the rise

Latest mean deviation is at 3.07. Capstone Green Energy exhibits very low volatility with skewness of 0.46 and kurtosis of 0.19. However, we advise investors to further study Capstone Green Energy technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Capstone Green's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Capstone Green's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Capstone Green Implied Volatility

Capstone Green's implied volatility exposes the market's sentiment of Capstone Green Energy stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Capstone Green's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Capstone Green stock will not fluctuate a lot when Capstone Green's options are near their expiration.

Our Takeaway on Capstone Green Investment

Whereas some other companies under the specialty industrial machinery industry are still a bit expensive, Capstone Green may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Capstone Green.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Capstone Green Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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