Capstone Green Energy

CGEH

Industrial - Machinery · Industrials

Price

$11.69

+1.39 (+13.50%)

Market Cap

$243.6M

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Strong

Stability

Exceptional

Valuation

Data not available

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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)

Winston Score History

The full picture

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.

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

-15.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

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

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~20 months

$30M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

Revenue declining

Capstone Green Energy's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

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

Profit per sale

Gross Margin

35.1%

Modest — 35.1% gross margin

Profit after running costs

Operating Margin

3.9%

Thin — 3.9% operating margin

Return on the money invested

ROCE

5.3%

Weak — 5.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+5.4%

Slow sales growth (+5.4% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

129%

Turns 129% of profit into real cash

Spare cash per sale

FCF Margin

3.8%

Thin free cash flow (3.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.15

Conservative — low debt load (0.15)

Covers its interest

Interest Cover

8.90x

Comfortably covers interest (8.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

Cheaper or dearer next year

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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