Movers and SHAKERS
Capstone Green Energy (CGRN)
Revenues are growing and becoming more stable
Capstone Green Energy Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine's products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Quarterly revenues increased 15% y-o-y. Sales are shifting from lumpy Energy Generations Technology (EGT) sales to higher margin, stable Energy as a Service (EaaS). Quarterly sales of $17.2 million surpassed our estimate of $16.7 million. EaaS grew 57.0% while EGT sales declined 9.4%. New Gross Product Orders rose to $10.8 million, a 20% improvement over booking in the last September quarter, leading to a rise in the company's book-to-bill ratio of 1.3-1 times.
Margins decreased as COVID cost reductions abate. Gross margin were 15.8%, down from 17.2% last year and 16.5% last quarter. A reduction in costs last year due to travel reductions and overall belt tightening has begun to evaporate. Margins were also hurt by a build up in inventories, increased expenditure on part replacements, and a $0.8 million legal settlement. EGT margins have turned negative ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.