CaesarStone Sdot-Yam (CSTE) AI Stock Analysis

• Market Cap: $48.38M
• Dividend Yield: N/A
• Average Volume (3M): 61.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -20.14%
• EPS Growth: 8.70%
• Country: US
• Employees: 1,532
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -0.33
• 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: 2.34
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.39
• Enterprise Value/Ebitda: -3.23
• 1Y Price Target: $2.75
• Price Target Upside: 96.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 42 Neutral
• Price Target: $1.50 ▲(7.14% Upside)

CaesarStone Sdot-Yam's overall stock score is primarily impacted by its weak financial performance, with significant profitability and cash flow challenges. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to negative earnings. While the earnings call noted some strategic progress, the company's financial and operational challenges remain significant.

Positive Factors

Cost Reduction Initiatives

The company's ongoing cost reduction efforts, totaling over $55 million since 2022, enhance profitability and operational efficiency, providing a durable improvement in financial health.

Porcelain Business Expansion

Expanding the Porcelain product line positions Caesarstone to capture new market opportunities, potentially increasing revenue streams and enhancing competitive advantage.

Solid Financial Position

A strong net cash position of $72.4 million provides financial stability and flexibility, allowing for strategic investments and resilience against market fluctuations.

Negative Factors

Revenue Decline

Significant revenue decline reflects ongoing market challenges and reduced demand, impacting long-term growth prospects and financial performance.

Gross Margin Decrease

Declining gross margins indicate pressure on cost management and pricing power, potentially affecting long-term profitability and competitive positioning.

Silicosis Lawsuits

Ongoing legal challenges related to silica dust exposure could lead to significant financial liabilities, impacting the company's financial health and reputation.

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, wholesalers, and directly to consumers. The company has established a strong distribution network, which includes partnerships with retailers and contractors, allowing it to reach a broad customer base. Key revenue streams include the sale of countertop surfaces for kitchens and bathrooms, as well as other applications in residential and commercial settings. Additionally, CaesarStone benefits from its brand recognition and reputation for quality, which enables it to command premium pricing for its products. Seasonal trends in the construction and renovation markets, as well as strategic collaborations with home improvement retailers, play significant roles in driving sales and enhancing profitability.

CaesarStone Sdot-Yam Financial Statement Overview

Summary

CaesarStone Sdot-Yam is facing significant financial challenges, particularly in terms of profitability and cash flow generation. Declining revenue, negative net profit margins, and negative operating cash flow are major concerns. While the balance sheet remains relatively stable, the company needs to address its declining revenue and improve cost management.

Income Statement

CaesarStone Sdot-Yam has experienced declining revenue over recent periods, with a negative revenue growth rate of -4.31% in TTM. The company is facing significant profitability challenges, as indicated by negative net profit margins and EBIT margins. The gross profit margin has also decreased over time, reflecting pressure on cost management and pricing power.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio of 0.48 in TTM, which is relatively stable. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio remains stable, suggesting a balanced capital structure, but profitability issues are a concern.

Cash Flow

CaesarStone Sdot-Yam's cash flow situation is challenging, with negative operating cash flow in TTM. Despite this, the free cash flow to net income ratio is positive, indicating some efficiency in converting earnings to cash. The free cash flow growth rate is volatile, reflecting inconsistent cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	406.18M	443.22M	565.23M	690.81M	643.89M	486.41M
Gross Profit	81.39M	96.67M	94.23M	163.25M	171.50M	133.94M
EBITDA	-34.99M	-20.61M	-51.62M	-13.30M	61.41M	58.30M
Net Income	-60.00M	-42.83M	-107.66M	-56.37M	18.97M	7.22M
Balance Sheet
Total Assets	529.12M	549.04M	579.86M	752.98M	867.65M	820.92M
Cash, Cash Equivalents and Short-Term Investments	75.63M	106.34M	91.12M	59.16M	85.54M	122.36M
Total Debt	118.45M	136.86M	146.00M	155.59M	164.36M	148.77M
Total Liabilities	280.27M	275.26M	257.01M	324.03M	365.49M	325.87M
Stockholders Equity	246.65M	277.17M	315.06M	426.63M	499.88M	492.94M
Cash Flow
Free Cash Flow	-23.30M	21.45M	55.36M	-41.11M	-10.51M	27.79M
Operating Cash Flow	-11.91M	31.87M	66.53M	-23.31M	20.97M	47.62M
Investing Cash Flow	-25.28M	-24.36M	-40.53M	-7.29M	-36.66M	-68.31M
Financing Cash Flow	-2.98M	-3.04M	-23.78M	9.16M	-23.76M	-6.08M

CaesarStone Sdot-Yam Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSTE, the sentiment is Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.49, and below the 200-day MA of 2.45, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 6.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSTE.

CaesarStone Sdot-Yam Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROCK	74 Outperform	$1.98B	16.07	12.97%	―	-7.49%	10.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BXC	63 Neutral	$553.65M	20.75	4.46%	―	-2.32%	-21.44%
SWIM	59 Neutral	$882.22M	―	-3.29%	―	-0.11%	-213.56%
NX	49 Neutral	$689.99M	33.84	-43.35%	2.13%	70.18%	-374.22%
JELD	46 Neutral	$402.25M	―	-56.74%	―	-15.16%	-1232.39%
CSTE	42 Neutral	$48.38M	―	-21.97%	―	-20.14%	8.70%

CaesarStone Sdot-Yam Corporate Events

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.

Caesarstone Reports Q2 2025 Financial Results Amidst Economic Challenges

Caesarstone Ltd. reported its financial results for the second quarter of 2025, revealing a revenue of $101.1 million, a decrease from the previous year due to global economic challenges and competitive pressures. The company is implementing cost reduction measures to improve profitability and has recorded a net loss of $18.6 million for the quarter. Legal proceedings concerning silica dust exposure claims continue, with a provision of $44.9 million recorded for potential losses. Despite these challenges, Caesarstone remains focused on strategic transformation initiatives to navigate market difficulties.