Capstone Green Energy (CGRN) – Revenues are growing and becoming more stable

Thursday, November 11, 2021

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. 

Leave a Reply