CaesarStone Sdot-Yam (CSTE) AI Stock Analysis

• Market Cap: $75.33M
• Dividend Yield: N/A
• Average Volume (3M): 61.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -15.45%
• EPS Growth: -6.98%
• Country: US
• Employees: 1,532
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -0.40
• Shares Outstanding: 34,555,830
• 10 Day Avg. Volume: 51,553
• 30 Day Avg. Volume: 61,207
• PEG Ratio: 0.05
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 6.84
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: -1.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.00 ▲(5.26% Upside)

The score is held down primarily by weak financial performance (declining revenue, negative margins, and negative operating cash flow). Technicals are relatively supportive with price above major moving averages and positive MACD. Earnings call commentary is mixed—meaningful cost-savings initiatives and an EBITDA improvement target are offset by ongoing losses, margin pressure, and material legal risk; valuation is also weakened by loss-making results and no dividend support.

Positive Factors

Cost savings via outsourcing

The move to outsource production and close the Bar-Lev facility yields structural annualized savings (~$22M) and $85M realized since 2023. This reduces fixed-cost leverage, improves long-term gross margin potential and supports the target of positive adjusted EBITDA by Q3 2026.

Porcelain segment expansion

Securing full ownership of Lioli embeds growth in the porcelain category, diversifying product mix away from solely engineered quartz. This structural expansion supports broader market exposure, product innovation and potential margin resilience as porcelain demand grows.

Net cash liquidity cushion

A net cash position (~$66.7M) provides a durable liquidity runway to execute restructuring, absorb near-term losses and fund the porcelain rollout. Combined with manageable leverage, it reduces short-term refinancing risk and supports strategic investments during the turnaround.

Negative Factors

Declining revenue & negative margins

Persistent revenue declines and a negative net margin signal falling scale and weak pricing power. Reduced volumes worsen fixed-cost absorption, making margin recovery harder and lengthening the path to sustainable profitability absent durable top-line improvement.

Poor cash generation

Negative operating cash flow and volatile FCF highlight structural cash-generation weakness. This constrains reinvestment, elevates reliance on reserves or financing, and limits the company's ability to fund capex, marketing or aggressive restructuring without external support.

Significant silica litigation exposure

Extensive silica-related litigation and a $46M provision create ongoing contingent liabilities and reputational risk. Continued claims or larger settlements can force additional provisions, divert cash, increase insurance/legal costs and constrain capital allocation for growth initiatives.

CaesarStone Sdot-Yam Business Overview & Revenue Model

Company Description

Caesarstone Ltd., together with its subsidiaries, develops, manufactures, and markets engineered quartz and other surfaces under the Caesarstone brand in the United States, Australia, Canada, Latin America, Asia, Israel, Europe, the Middle East, and Africa. The company's engineered quartz slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling construction end markets. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for flooring and cladding applications, as well as resells natural stones, various ancillary fabrication tools, and installation accessories; and sells sinks and materials. It sells its products directly to fabricators, sub-distributors, and resellers; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.

How the Company Makes Money

CaesarStone generates revenue primarily through the sale of its engineered quartz surfaces to distributors, contractors, and retailers in both domestic and international markets. The company's revenue model is based on direct sales as well as distribution partnerships that help expand its reach. Key revenue streams include the sale of slabs and finished products, which are sold at premium prices due to their quality and design. Additionally, CaesarStone benefits from strategic partnerships with home improvement retailers and builders, which enhance its market presence and drive sales. The company also invests in marketing and brand promotion to build consumer awareness and demand, contributing to its overall earnings.

CaesarStone Sdot-Yam Financial Statement Overview

Summary

Weak fundamentals driven by declining revenue, negative profitability (net margin -14.77%, EBIT margin -12.43%), and negative operating cash flow. Balance sheet leverage is manageable (debt-to-equity 0.48), but negative ROE (-21.92%) and liquidity/cash generation concerns keep the score low.

Income Statement

CaesarStone Sdot-Yam's income statement reveals significant challenges. The company has experienced declining revenue growth, with a negative growth rate of -1.36% in the TTM period. Profitability metrics are concerning, with a negative net profit margin of -14.77% and an EBIT margin of -12.43%. The gross profit margin has also decreased over time, indicating pressure on cost management. Overall, the income statement reflects a struggling financial performance with declining revenues and negative profitability.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.48, which is relatively stable compared to previous periods. However, the return on equity is negative at -21.92%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 45.39%, suggesting a reasonable level of equity financing. While the leverage is manageable, the negative ROE highlights profitability challenges.

Cash Flow

The cash flow statement indicates significant issues with cash generation. The operating cash flow is negative, and the free cash flow growth rate is volatile, with a recent increase of 78.25% in the TTM period. The operating cash flow to net income ratio is negative, reflecting cash flow difficulties. Despite a high free cash flow to net income ratio of 1.96, the overall cash flow position is weak, highlighting liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	443.22M	565.23M	690.81M	643.89M	486.41M
Gross Profit	190.59M	96.67M	91.94M	163.25M	171.50M	133.94M
EBITDA	-117.93M	-20.61M	-51.62M	-13.54M	61.98M	46.09M
Net Income	-183.94M	-42.83M	-107.66M	-57.05M	18.97M	7.22M
Balance Sheet
Total Assets	501.65M	549.04M	579.86M	752.98M	867.65M	820.92M
Cash, Cash Equivalents and Short-Term Investments	69.33M	106.34M	91.12M	59.16M	85.54M	122.36M
Total Debt	113.99M	136.86M	146.00M	178.34M	187.13M	167.62M
Total Liabilities	271.99M	275.26M	257.01M	324.03M	365.49M	325.87M
Stockholders Equity	227.74M	277.17M	320.65M	426.63M	499.88M	492.94M
Cash Flow
Free Cash Flow	-94.21M	21.45M	55.36M	-41.11M	-10.79M	27.79M
Operating Cash Flow	-67.44M	31.87M	66.53M	-23.31M	20.68M	47.62M
Investing Cash Flow	-49.77M	-24.36M	-40.53M	-7.29M	-34.88M	-68.31M
Financing Cash Flow	-6.74M	-3.04M	-23.78M	9.16M	-25.25M	-6.08M

CaesarStone Sdot-Yam Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSTE, the sentiment is Positive. The current price of 1.9 is below the 20-day moving average (MA) of 2.14, above the 50-day MA of 1.81, and above the 200-day MA of 1.75, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 48.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSTE.

CaesarStone Sdot-Yam Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BXC	65 Neutral	$547.09M	40.84	2.20%	―	-0.19%	-50.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ROCK	61 Neutral	$1.51B	702.16	13.29%	―	-9.21%	-97.43%
NX	54 Neutral	$855.03M	-3.46	-28.88%	2.12%	43.81%	-584.11%
SWIM	53 Neutral	$733.76M	-61.97	-2.68%	―	4.12%	-198.38%
CSTE	50 Neutral	$75.33M	-1.09	-27.96%	―	-15.45%	-6.98%
JELD	40 Underperform	$232.37M	-0.34	-155.46%	―	-15.28%	-350.51%

CaesarStone Sdot-Yam Corporate Events

Caesarstone Announces Board Changes with New Appointment

Caesarstone Ltd. announced that Irit Ben-Dov resigned from its board of directors on December 14, 2025, for personal reasons unrelated to any company disagreements. Subsequently, Yaron Arzi was appointed to the board to fill the vacancy. Mr. Arzi brings over 30 years of leadership experience across various industries, enhancing the board’s strategic capabilities.

The most recent analyst rating on (CSTE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on CaesarStone Sdot-Yam stock, see the CSTE Stock Forecast page.

Caesarstone Ltd. Shareholders Approve Proposals at Annual Meeting

On November 19, 2025, Caesarstone Ltd. held its annual general meeting at its headquarters in Kibbutz Sdot-Yam, Israel. During the meeting, shareholders approved all proposals outlined in the company’s proxy statement, in accordance with Israeli Companies Law and the company’s articles of association. This approval signifies continued shareholder support for the company’s strategic decisions and governance, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (CSTE) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on CaesarStone Sdot-Yam stock, see the CSTE Stock Forecast page.

Caesarstone Announces Q3 2025 Results and Strategic Facility Closure

On November 12, 2025, Caesarstone Ltd. reported its third quarter financial results, highlighting a revenue of $102.1 million and a strategic shift towards an innovation-focused business model. The company announced the closure of its Bar-Lev facility as part of a multi-year initiative to optimize its global manufacturing network, aiming to save $22 million annually and improve profitability by the third quarter of 2026. Despite facing economic headwinds and competitive pressures, Caesarstone is committed to enhancing its brand and expanding its product offerings, while navigating legal challenges related to silica dust exposure claims.

The most recent analyst rating on (CSTE) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on CaesarStone Sdot-Yam stock, see the CSTE Stock Forecast page.