Capstone HoldingCAPS -3.21%23 Gross Margin % is 23.50% as of Mar. 2026, which is 0% below its 10-year median of 23.54. GuruFocus rates CAPS with a GF Score™ of 23/100 and a GF Value™ of $0.11 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 396 Building Materials companies, Capstone Holding ranks worse than 56.31% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Capstone Holding had a gross margin of 23.50% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Capstone Holding Gross Margin % Related Terms
Capstone Holding Gross Margin % Historical Data
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The historical data trend for Capstone Holding's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Building Materials subindustry, Capstone Holding's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Capstone Holding Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Capstone Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Capstone Holding's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Capstone Holding (CAPS) has a Gross Margin % of 23.50% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Capstone Holding and its competitors. This is near median its historical median of 23.54. Over the past decade, Capstone Holding's Gross Margin % has ranged from 19.88 to 26.85. According to the industry distribution chart, Capstone Holding ranks #223 out of 396 companies in the Building Materials industry, placing it in the top 56.3%.
Is Capstone Holding's Gross Margin % too high?
Capstone Holding's current Gross Margin % of 23.50% is near median its 10-year median of 23.54. Over the past 10 years, this metric has ranged from a low of 19.88 to a high of 26.85. The Building Materials industry median Gross Margin % is 26.19. Capstone Holding's value of 23.50% is 10.3% below this industry median. Based on the distribution chart, Capstone Holding ranks #223 out of 396 companies in the Building Materials industry, which is below the industry midpoint. Overall, Capstone Holding has a GF Score™ of 23/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capstone Holding's Gross Margin % compare to BASA and CRH?
According to the Building Materials industry distribution chart, Capstone Holding ranks #223 out of 396 companies for Gross Margin %. This places Capstone Holding in the lower half of its industry. The industry median Gross Margin % is 26.19. Capstone Holding's value of 23.50% is 10.3% below this benchmark. Historically, Capstone Holding's own Gross Margin % has ranged from 19.88 to 26.85 over the past decade. While the company's 10-year median is 23.54 vs. the industry median of 26.19, Capstone Holding has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Building Materials company?
The median Gross Margin % among Building Materials companies is 26.19, based on 396 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Capstone Holding's current Gross Margin % of 23.50% is 10.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Capstone Holding and its competitors. For the Building Materials industry, the median Gross Margin % is 26.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capstone Holding's current Gross Margin % is 23.50%, which is near median its own 10-year median of 23.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capstone Holding stock overvalued right now?
Based on GuruFocus' analysis, Capstone Holding (CAPS) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.11, compared to a current price of $0.26 — trading 133% above its estimated fair value. The current Gross Margin % is 23.50%, which is near median its 10-year median of 23.54 and 10.3% below the Building Materials industry median of 26.19. Capstone Holding's overall GF Score™ is 23/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Capstone Holding (CAPS), the current Gross Margin % is 23.50% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Capstone Holding (CAPS) Overvalued in 2026?
Based on GuruFocus' analysis, Capstone Holding stock appears to be overvalued.
The current stock price of $0.26 is trading 133% above its estimated GF Value™ of $0.11.
GuruFocus considers Capstone Holding to be Significantly Overvalued.
Key valuation signals for CAPS:
Gross Margin %: 23.50% (near median its 10-year median of 23.54)
GF Value™: $0.11 vs. price of $0.26 (133% above fair value)
Industry Position: 10.3% below the Building Materials median (#223 of 396)
No single metric tells the full story. See the CAPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capstone Holding Corp is a national, technology-enabled building products distribution and installation platform. The Company has two reportable segments: (i) the TotalStone segment, which includes the operations of TotalStone, LLC and Canadian Stone Industries, and (ii) the Carolina Stone segment, which includes the operations of Carolina Stone Distributors. Both segments are engaged in the distribution and fabrication of natural and manufactured stone and related building products.
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