CaesarStone Sdot-Yam (CSTE) AI Stock Analysis

• Market Cap: $36.28M
• Dividend Yield: N/A
• Average Volume (3M): 61.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• 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: 3.12
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: -2.53
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $1.50 ▼(-11.24% Downside)

CaesarStone Sdot-Yam's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative profitability. While there are strategic initiatives underway, such as cost savings and business model transformation, these are offset by ongoing operational challenges and legal issues. Technical analysis and valuation also present concerns, with mixed signals and a negative P/E ratio.

Positive Factors

Strategic Transformation

The shift to outsourcing production is a strategic move to enhance competitiveness and profitability, potentially improving long-term financial health.

Porcelain Business Expansion

Full ownership of Lioli enhances CaesarStone's position in the growing porcelain market, supporting long-term revenue growth and market expansion.

Regional Performance

Growth in Australia and EMEA regions indicates successful market strategies and potential for sustained regional revenue growth.

Negative Factors

Declining Revenue

Continued revenue decline reflects challenges in maintaining market share and could impact long-term financial stability.

Legal Challenges

Ongoing legal issues pose significant financial risks and could divert resources from growth initiatives, affecting long-term profitability.

Profitability Issues

Sustained EBITDA losses highlight operational inefficiencies and challenge the company's ability to achieve profitability, impacting future financial health.

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

CaesarStone Sdot-Yam is facing substantial financial challenges with declining revenues, negative profitability, and cash flow difficulties. The income statement shows negative net profit and EBIT margins, while the balance sheet indicates a negative return on equity. Cash flow issues are evident with negative operating cash flow. These factors highlight significant operational and financial risks.

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	400.66M	443.22M	565.23M	690.81M	643.89M	486.41M
Gross Profit	77.66M	96.67M	91.94M	163.25M	171.50M	133.94M
EBITDA	-44.63M	-20.61M	-51.62M	-13.54M	61.98M	46.09M
Net Income	-73.88M	-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	-41.29M	21.45M	55.36M	-41.11M	-10.79M	27.79M
Operating Cash Flow	-30.83M	31.87M	66.53M	-23.31M	20.68M	47.62M
Investing Cash Flow	-22.06M	-24.36M	-40.53M	-7.29M	-34.88M	-68.31M
Financing Cash Flow	-2.87M	-3.04M	-23.78M	9.16M	-25.25M	-6.08M

CaesarStone Sdot-Yam Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.69 is above the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.29, and below the 200-day MA of 1.97, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 67.26 is Neutral, neither overbought nor oversold. The STOCH value of 81.10 is Negative, 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BXC	62 Neutral	$503.38M	18.87	2.20%	―	-0.19%	-50.51%
ROCK	58 Neutral	$1.47B	673.51	13.29%	―	-9.21%	-97.43%
SWIM	53 Neutral	$825.92M	―	-2.68%	―	4.12%	-198.38%
NX	50 Neutral	$608.79M	―	-43.35%	2.44%	70.18%	-374.22%
CSTE	46 Neutral	$36.28M	-0.60	-27.96%	―	-15.45%	-6.98%
JELD	38 Underperform	$219.55M	―	-155.46%	―	-15.28%	-350.51%

CaesarStone Sdot-Yam Corporate Events

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.

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.

Caesarstone Ltd. Announces Annual General Meeting for November 2025

On October 8, 2025, Caesarstone Ltd. announced its board of directors’ decision to hold the annual general meeting of shareholders on November 19, 2025. The meeting will address the re-election and election of board members and the re-appointment of the company’s independent auditors. Shareholders will vote on these proposals, and the board recommends voting in favor. The meeting will also provide an opportunity to discuss the company’s audited financial statements for the fiscal year ended December 31, 2024.