GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Capstone Companies Inc (OTCPK:CAPC) » Definitions » Mohanram G-Score

Capstone (Capstone) Mohanram G-Score : 3 (As of Dec. 2023)


View and export this data going back to 1998. Start your Free Trial

What is Capstone Mohanram G-Score?

Mohanram G-Score is a financial indicator developed by professor Partha Mohanram to help investors find the best investment opportunities in the growth stocks. Companies have higher G-score tends to generate higher return. According to his study, the best growth stocks that have a G-Score greater than 6 tend to beat the market, while those with a G-Score lower than 1 tend to have negative absolute returns.

Thus, the zones of discrimination were as such:

Good or high score = 6, 7, 8
Bad or low score = 0, 1

Capstone has an G-score of 3.

The historical rank and industry rank for Capstone's Mohanram G-Score or its related term are showing as below:

CAPC' s Mohanram G-Score Range Over the Past 10 Years
Min: 0   Med: 3   Max: 5
Current: 3

During the past 13 years, the highest Piotroski G-score of Capstone was 5. The lowest was 0. And the median was 3.


Capstone Mohanram G-Score Historical Data

The historical data trend for Capstone's Mohanram G-Score 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.

* Premium members only.

Capstone Mohanram G-Score Chart

Capstone Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Mohanram G-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 3.00 2.00 3.00 3.00

Capstone Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Mohanram G-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 3.00 3.00 3.00 3.00

Competitive Comparison of Capstone's Mohanram G-Score

For the Electrical Equipment & Parts subindustry, Capstone's Mohanram G-Score, along with its competitors' market caps and Mohanram G-Score 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's Mohanram G-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Capstone's Mohanram G-Score distribution charts can be found below:

* The bar in red indicates where Capstone's Mohanram G-Score falls into.



Capstone Mohanram G-Score Calculation

The calculation of the Mohanram G-score consists of eight criteria. Assign one point for each criterion met, then add up all the points to get the G-Score.

Profitability

Question 1. Return on Assets (ROA)

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. It measures how well a company uses its asset to generate earnings.

Score 1 if ROA > ROA Industry Median, 0 otherwise.

Question 2. Cash ROA

Cash ROA equals to Cash Flow from Operations divided by average Total Assets. It measures how well a company uses its asset to generate cash.

Score 1 if Cash ROA > Cash ROA Industry Median, 0 otherwise.

Question 3. CFO and Net Income

Score 1 if CFO > Net Income, 0 otherwise.

Earnings Predictability

Question 4. Earnings Variability

Earnings Variability is measured as the variance of a firm's ROA in the past five years.

Score 1 if Earnings Variability < Earnings Variability Industry Median, 0 otherwise.

Question 5. Sales Growth Variability

Sales Growth Variability is measured as the 5-year variance in sales growth.

Score 1 if Sales Growth Variability < Sales Growth Variability Industry Median, 0 otherwise.

Accounting Conservatism

Question 6. Research & Development Intensity

Research & Development Intensity is calcualted by Research & Development divided by the beginning Total Assets.

Score 1 if Research & Development Intensity > Research & Development Intensity Industry Median, 0 otherwise.

Question 7. CAPEX Intensity

CAPEX Intensity is calcualted by Capital Expenditure divided by the beginning Total Assets.

Score 1 if CAPEX Intensity > CAPEX Intensity Industry Median, 0 otherwise.

Question 8. Advertising Expenditure Intensity

Advertising Expenditure Intensity is calcualted by Advertising Expenditure divided by the beginning Total Assets. Note that Advertising Expenditure is not reported as a seperate line item for many companies, thus Selling, General, & Admin. Expense is used in this calculation.

Score 1 if Advertising Expenditure Intensity > Advertising Expenditure Intensity Industry Median, 0 otherwise.

* 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.

* Note that all the Industry Median used for comparison in his original research, are substituted with Sector Median due to the limitation of data within certain countries.

Good or high score = 6, 7, 8
Bad or low score = 0, 1

Capstone has an G-score of 3.

Capstone  (OTCPK:CAPC) Mohanram G-Score Explanation

Partha Mohanram is the John H. Watson Chair in Value Investing at Rotman and the Acting Vice-Dean of Research Strategy and Resources.

In 2000, he wrote a research paper called "Separating Winners from Losers Among Low Book-to-Market Stocks Using Financial Statement Analysis".

This paper tests whether a strategy based on financial statement analysis of low book-to-market (growth) stocks is successful in differentiating between winners and losers in terms of future stock performance. Based on the research, a strategy based on buying high G-score (6, 7 or 8) firms and shorting low G-score (0 or 1) firms consistently earns significant excess returns. Further, the results do not support a risk based explanation for the book-to-market effect as the strategy returns positive returns in all years, and firms that ex-ante appear less risky have better future returns.

To conclude, one can use a modified fundamental analysis strategy (G-score) to identify mispricing and earn substantial abnormal returns.


Capstone Mohanram G-Score Related Terms

Thank you for viewing the detailed overview of Capstone's Mohanram G-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Capstone (Capstone) Business Description

Traded in Other Exchanges
N/A
Address
431 Fairway Drive, Suite 200, Deerfield Beach, FL, USA, 33441
Capstone Companies Inc is a United States-based holding company. It is engaged in the business of developing, marketing, and selling specialty LED lighting solutions and consumer products through national and regional retailers and distributors in North America. It operates in product categories, including LED Puck Lights, LED Undercabinet Light Bars, LED Motion Sensor Lights, Wireless Remote-Control Outlets, Wireless Remote-Controlled LED Accent Lights, Wardrobe/Fitness Mirror, Standard Rectangular, and Others. It generates the majority of its revenue from the sale of Lighting Products in the United States.
Executives
Aimee C Gaudet officer: Corporate Secretary 431 FAIRWAY DRIVE, SUITE 200, DEERFIELD BEACH FL 33441
Mindy Postal other: Spouse of Jeffrey Postal 333 LOS OLAS WAY, APT 1410, FT. LAUDERDALE FL 33301
Jeffrey Postal director GRAND EALLERIA 220, 46-46 NORRE GRANDE, ST THOMAS VSVI U8 90278
Hung James Siu King other: Mgr/Dir of Capstone HK FLAT H 16/F TOWER 11 LAGUNA VERDE, 8 LAGUNA VERDE HUNG HOM, KOWLOON K3 999077
James G Mcclinton director, officer: COO 3021 OLD ORCHARD ROAD, DAVIE FL 33328
Jeffrey J Guzy director 3130 19TH STREET, NORTH, ARLINGTON VA 22201
Larry Paul Sloven director APARTMENT 3004, 512 NORTH MCCLURG COURT, CHICAGO IL 60611
Stewart Wallach director 350 JIM MORAN BLVD - SUITE # 121, DEERFIELD BEACH FL 33442
William Dato director, officer: Pres Complete Pwer Solutns LLC 4100 NORTH POWERLINE ROAD, BUILDING O, UNIT 3, POMPANO BEACH FL 33073
Lorenzo Cesar Lamadrid director 1424 WEST 28 STREET, MIAMI BEACH FL 33140
Margaret Fisher 10 percent owner 9009 POTOMAC FOREST DRIVE, GREAT FALLS VA 22066
Wong Cora director 1826HARPER AVE, REDONDO BEACH CA 90278
Howard Ullman director, 10 percent owner, officer: CEO 12535 ORANGE DR, STE 613, DAVIE FL 38330
Laurie Holtz director 1826 W 23 STREET, ISLAND 3, MIAMI BEACH FL 33140
Bart S Fisher 10 percent owner 9009 POTOMAC FOREST DRIVE, GREAT FALLS VA 22066

Capstone (Capstone) Headlines

From GuruFocus

Q4 2020 Capstone Companies Inc Earnings Call Transcript

By GuruFocus Research 02-13-2024

Q1 2021 Capstone Companies Inc Earnings Call Transcript

By GuruFocus Research 02-13-2024

Q4 2019 Capstone Companies Inc Earnings Call Transcript

By GuruFocus Research 02-13-2024