Caesarstone Sdot-Yam Ltd. (CSTE)
NASDAQ:CSTE
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CaesarStone Sdot-Yam
(NASDAQ:CSTE)
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Rating:49Neutral
Price Target:
$2.00
▲(5.26% Upside)
Action:Reiterated
Date:05/15/26
Overall score reflects weak core fundamentals (shrinking revenue, large losses, and renewed cash burn) partially offset by improving technical momentum and a cautiously constructive earnings-call trajectory toward positive adjusted EBITDA. Valuation support is limited due to negative earnings and no dividend data, while legal and tariff risks remain notable headwinds.
Positive Factors
Asset-light production model
Shifting quartz production to third‑party partners reduces fixed capital and operating exposure, creating a more flexible, lower‑capex cost base. This structural change supports scalable capacity, faster margin recovery as volumes normalize, and lower investment needs over a 2–6 month horizon and beyond.
Negative Factors
Sustained revenue decline
Persistent top‑line contraction weakens operating leverage and forces higher opex as a percentage of sales, hindering margin recovery. Continued weakness—especially in the U.S.—makes returning to consistent profitability harder and increases sensitivity to pricing and volume cycles over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light production model
Shifting quartz production to third‑party partners reduces fixed capital and operating exposure, creating a more flexible, lower‑capex cost base. This structural change supports scalable capacity, faster margin recovery as volumes normalize, and lower investment needs over a 2–6 month horizon and beyond.
Read all positive factors
CaesarStone Sdot-Yam (CSTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.58M
Dividend YieldN/A
Average Volume (3M)61.21K
Price to Earnings (P/E)―
Beta (1Y)1.59
Revenue Growth-8.98%
EPS Growth-187.59%
CountryUS
Employees1,532
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)-4.21
Shares Outstanding34,577,076
10 Day Avg. Volume51,553
30 Day Avg. Volume61,207
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.46
Price to Sales (P/S)0.16
P/FCF Ratio-1.43
Enterprise Value/Market Cap1.87
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit1.63
Enterprise Value/Ebitda-0.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1
Revenue Forecast (FY)$402.80M
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, a...
How the Company Makes Money
CaesarStone makes money by selling surfacing products—primarily engineered stone slabs and related materials—into the building and remodeling value chain. Revenue is generated when the company sells product to distribution and fabrication channels...
CaesarStone Sdot-Yam Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call communicated clear structural progress — margin expansion, transition to a third‑party manufacturing model, cost‑saving milestones, recoveries in Australia and a path to positive adjusted EBITDA in Q3 2026 — but was balanced by significant near‑term challenges: a ~15% revenue decline, marked weakness in North America, operating expense leverage, meaningful legal exposure (711 silica claims and a $48.8M reserve), and material tariff/trade risks that could compress margins. Management emphasized active mitigation (pricing, supply‑chain optimization, insurance actions) and liquidity, but uncertainty from geopolitical and trade developments leaves the outlook mixed.Positive Updates
Gross Margin Expansion
Reported gross margin of 22.3% versus 21.3% year‑over‑year (an improvement of 100 basis points); adjusted gross margin improved to 23.9% from 21.2% (approximately +270 basis points), reflecting benefits from the transition to an asset‑light production model.
Negative Updates
Significant Revenue Decline
Global revenue of $88.7 million, down approximately 14.9% year‑over‑year on a constant currency basis (management also referenced ~15% decline), primarily due to macroeconomic softness and competitive pressures.
Read all updates
Q1-2026 Updates
Positive
Negative
Gross Margin Expansion
Reported gross margin of 22.3% versus 21.3% year‑over‑year (an improvement of 100 basis points); adjusted gross margin improved to 23.9% from 21.2% (approximately +270 basis points), reflecting benefits from the transition to an asset‑light production model.
Read all positive updates
Company Guidance
Management guided that, assuming no material deterioration in global economic or geopolitical conditions, Caesarstone is on track to achieve positive adjusted EBITDA in Q3 2026; they expect additional cash restructuring costs of approximately $3–5 million for the remainder of 2026 (Q1 restructuring cash costs were $0.4M) and cited expected annualized cash savings by 2027 (management referenced approximately $22M by 2027 and, separately, stated an expectation to realize more than $100M of annual cash savings versus full‑year 2023 based on actions completed to date). Key quarterly metrics cited alongside the guidance include Q1 revenue of ~$88.7M (down ~14.9% constant currency / ~15% YoY), U.S. revenue of ~$40M (vs $49.1M LY), Australia $17.1M (up ~11.2% CC), Israel $4.2M (vs $5.0M LY), gross margin 22.3% (up 100 bps), adjusted gross margin 23.9%, operating expenses $39.2M (44.1% of revenue; ~34.5% ex certain items), adjusted EBITDA loss $7.5M (vs $7.1M LY), adjusted diluted net loss per share $0.32 on 34.6M shares, cash and short‑term deposits $52.3M, total debt $1.8M (net cash $50.4M), and that ~45% of revenues are generated in the U.S. where the average import tariff is ~15% (the ITC proposed a 4‑year tariff‑rate‑quota with in‑quota 25% and out‑of‑quota 40% ad valorem).CaesarStone Sdot-Yam Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 386.38M | 397.23M | 443.22M | 565.23M | 690.81M | 643.89M |
| Gross Profit | 71.90M | 73.28M | 96.67M | 91.94M | 163.25M | 171.50M |
| EBITDA | -125.49M | -37.20M | -20.61M | -51.62M | -13.54M | 61.98M |
| Net Income | -145.69M | -137.47M | -42.83M | -107.66M | -57.05M | 18.97M |
Balance Sheet | ||||||
| Total Assets | 370.13M | 398.44M | 549.04M | 579.86M | 752.98M | 867.65M |
| Cash, Cash Equivalents and Short-Term Investments | 52.27M | 59.92M | 106.34M | 91.12M | 59.16M | 85.54M |
| Total Debt | 105.19M | 109.48M | 136.86M | 146.00M | 178.34M | 187.13M |
| Total Liabilities | 251.82M | 259.23M | 275.26M | 257.01M | 324.03M | 365.49M |
| Stockholders Equity | 118.31M | 139.21M | 277.17M | 320.65M | 426.63M | 499.88M |
Cash Flow | ||||||
| Free Cash Flow | -36.76M | -45.11M | 21.45M | 55.36M | -41.11M | -10.79M |
| Operating Cash Flow | -29.12M | -36.07M | 31.87M | 66.53M | -23.31M | 20.68M |
| Investing Cash Flow | -5.90M | -7.46M | -24.36M | -40.53M | -7.29M | -34.88M |
| Financing Cash Flow | -3.61M | -3.92M | -3.04M | -23.78M | 9.16M | -25.25M |
CaesarStone Sdot-Yam Technical Analysis
Positive
1.90
Price Trends
1.49
Positive
1.59
Positive
1.52
Positive
Market Momentum
0.10
Positive
52.63
Neutral
32.76
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 above the 20-day moving average (MA) of 1.66, above the 50-day MA of 1.49, and above the 200-day MA of 1.52, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 32.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSTE.
CaesarStone Sdot-Yam Risk Analysis
CaesarStone Sdot-Yam disclosed 51 risk factors in its most recent earnings report. CaesarStone Sdot-Yam reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CaesarStone Sdot-Yam Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $624.63M | 72.17 | 2.13% | ― | 8.34% | ― | |
52 Neutral | $844.72M | -3.43 | -30.23% | 2.12% | 28.35% | -939.66% | |
49 Neutral | $62.58M | -0.40 | -79.62% | ― | -8.98% | -187.59% | |
47 Neutral | $408.73M | -99.73 | -0.65% | ― | 1.38% | -111.51% | |
46 Neutral | $1.13B | 125.04 | 0.94% | ― | -4.66% | -201.96% | |
46 Neutral | $174.89M | -0.35 | -291.24% | ― | -12.11% | -43.71% |
* Industrials Sector Average
CSTE
CaesarStone Sdot-Yam
1.70
-0.10
-5.56%
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CaesarStone Sdot-Yam Corporate Events
Caesarstone First-Quarter Loss Widens as U.S. Trade Case and Silicosis Claims Cloud Outlook
May 13, 2026
On May 13, 2026, Caesarstone reported first-quarter 2026 revenue of $88.7 million, down from $99.6 million a year earlier, as weak global demand and competitive pressures, especially in North America, offset strength in Australia. Despite the top-...
Caesarstone Deepens Restructuring as 2025 Losses Widen and Bar‑Lev Plant Shuts
Mar 4, 2026
Caesarstone Ltd., based in Israel and listed on Nasdaq, is a leading developer and manufacturer of high‑quality engineered surfaces for kitchens, bathrooms and other interior applications. The company focuses on quartz, porcelain and related...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.