Mar. 14 at 5:29 PM
While you're watching
$HD and
$LOW, here's the under-the-radar play benefiting from the same tailwinds:
$CAPS (Capstone Holding Corp.)
THE THESIS:
The same remodeling supercycle driving
$HD and
$LOW is fueling CAPS - but CAPS is a
$5M market cap company with
$100M revenue in its sights. That's the kind of asymmetry big caps can't offer.
WHY NOW:
- Bain & Zonda research confirms deferred construction/remodeling demand is about to explode
-
$HD and
$LOW win on volume. CAPS wins on the premium stone/masonry niche they dominate
- CAPS operates in 32 states, just expanded into Canada, and is executing a roll-up of regional stone distributors
THE NUMBERS:
- Current revenue run-rate approaching
$60M+ post-acquisitions
- Targeting
$100M run-rate and 10% EBITDA margins in 2026
- CEO literally cut salary to
$1.X to hit EBITDA profitability by Q2
- Trading at 0.09x revenue.
$HD trades at 2x.
$LOW trades at 1.8x
