CaesarStone Sdot-Yam (CSTE) AI Stock Analysis

• Market Cap: $22.56M
• Dividend Yield: N/A
• Average Volume (3M): 61.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -15.45%
• EPS Growth: -6.98%
• Country: US
• Employees: 1,532
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -0.48
• Shares Outstanding: 34,577,076
• 10 Day Avg. Volume: 51,553
• 30 Day Avg. Volume: 61,207
• 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 Cap: 3.26
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: -1.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1
• Revenue Forecast (FY): $402.80M

• Rating: 43 Neutral
• Price Target: $0.64 ▼(-66.16% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held down primarily by weak financial performance (persistent losses, sharp 2025 revenue contraction, and negative 2025 cash flow) and bearish technical signals (price far below major moving averages with negative MACD). The earnings call provides some offset via sizable cost-savings actions and a stated path to positive adjusted EBITDA by Q3 2026, but legal and profitability headwinds remain significant; valuation is difficult to anchor due to the negative P/E.

Positive Factors

Cost-savings transformation

Shifting quartz production to outsourced partners and closing Bar‑Lev materially reduces fixed manufacturing cost base and capex needs. Annualized ~$22M savings plus >$85M since 2023 improves structural cost competitiveness, supports margin recovery and the stated path to positive adjusted EBITDA by Q3 2026.

Porcelain business ownership

Full ownership of Lioli deepens exposure to the growing porcelain category, diversifying product mix away from quartz. This strengthens product differentiation, control of innovation and margin mix long term, and supports channel expansion where porcelain demand is structurally rising.

Regional demand resilience

Outperformance in Australia and EMEA demonstrates geographic diversification and market resilience after silica regulation impacts. Strong regional demand supports more stable revenue pools, allowing management to prioritize profitable channels and scale outsourced production without sole reliance on North America.

Negative Factors

Severe revenue decline

An ~86% year‑over‑year revenue drop and multi-quarter top‑line deterioration erode scale, impair fixed‑cost absorption, and compress gross margins. Sustained low volumes risk structural margin weakness, slower recovery of operating leverage, and reduced bargaining power with channels and suppliers.

Negative cash generation

A shift to negative operating and free cash flow means the business is consuming cash to run operations and restructure. This reduces liquidity, increases refinancing or covenant risk, and limits ability to invest in marketing, product development or conversion to support a durable recovery.

Major legal exposure

Extensive silica‑related litigation and a $46M provision create uncertain contingent liabilities and potential further cash outflows. Legal risk can persist for years, raises insurance and compliance costs, distracts management, and can materially constrain capital allocation and partner/customer confidence.

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 makes money by selling its surfacing products (such as engineered stone slabs and related surface offerings) into the countertop and interior-surface supply chain. Revenue is generated when the company sells finished slabs and other surface materials to distributors and other channel partners, who then supply fabricators and installers that cut, finish, and install the surfaces for end customers (homeowners, builders, and commercial projects). Its key revenue streams are therefore product sales volumes multiplied by realized pricing, influenced by mix (product type, design/color, and format), geographic and channel mix, and demand from new construction and remodeling activity. Earnings are also affected by manufacturing and logistics economics (plant utilization, input and freight costs), as well as the effectiveness of its distribution relationships and go-to-market coverage. Specific details on significant partnerships are null.

CaesarStone Sdot-Yam Financial Statement Overview

Summary

Financial profile is strained: multi-year losses (with a deeply negative 2025 net margin ~-35%), severe 2025 revenue contraction (~-86% YoY), and a reversal to negative operating and free cash flow in 2025. Leverage is moderate (debt-to-equity ~0.79) and equity remains positive, but equity has been materially drawn down by losses.

Income Statement

Profitability has deteriorated sharply: the company swung from positive earnings in 2020–2021 to persistent losses from 2022–2025, with 2025 showing a deeply negative net margin (~-35%) and negative operating profitability. Revenue has also contracted materially, with very steep top-line decline in 2025 (revenue down ~86% year over year), and gross margin has compressed versus earlier years. Strengths are limited to the fact that gross profit remains positive, but the operating cost structure and scale decline are overwhelming it.

Balance Sheet

Leverage is moderate (2025 debt-to-equity ~0.79), but the balance sheet has weakened meaningfully as equity has been drawn down by losses (equity roughly halved from 2024 to 2025). Returns on equity are sharply negative in recent years, reflecting ongoing value erosion. A positive is that equity is still positive and debt is not extreme, but continued losses could further pressure capital and flexibility.

Cash Flow

Cash generation has turned negative in 2025, with both operating cash flow and free cash flow in the red, indicating the business is currently consuming cash rather than funding itself. While free cash flow growth appears positive in 2025, that improvement is from an already negative base and does not change the fact that cash flow is negative. Prior years (2023–2024) showed the ability to generate positive operating cash flow, which is a key offset, but the recent reversal raises near-term funding and sustainability risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	397.23M	443.22M	565.23M	690.81M	643.89M
Gross Profit	73.28M	96.67M	91.94M	163.25M	171.50M
EBITDA	-37.20M	-20.61M	-51.62M	-13.54M	61.98M
Net Income	-137.47M	-42.83M	-107.66M	-57.05M	18.97M
Balance Sheet
Total Assets	398.44M	549.04M	579.86M	752.98M	867.65M
Cash, Cash Equivalents and Short-Term Investments	59.92M	106.34M	91.12M	59.16M	85.54M
Total Debt	109.48M	136.86M	146.00M	178.34M	187.13M
Total Liabilities	259.23M	275.26M	257.01M	324.03M	365.49M
Stockholders Equity	139.21M	277.17M	320.65M	426.63M	499.88M
Cash Flow
Free Cash Flow	-45.11M	21.45M	55.36M	-41.11M	-10.79M
Operating Cash Flow	-36.07M	31.87M	66.53M	-23.31M	20.68M
Investing Cash Flow	-7.46M	-24.36M	-40.53M	-7.29M	-34.88M
Financing Cash Flow	-3.92M	-3.04M	-23.78M	9.16M	-25.25M

CaesarStone Sdot-Yam Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1.9 is above the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.77, and above the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 21.18 is Positive, neither overbought nor oversold. The STOCH value of 13.88 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SWIM	60 Neutral	$708.78M	66.46	-2.68%	―	4.12%	-198.38%
ROCK	54 Neutral	$1.23B	15.14	9.87%	―	-9.21%	-97.43%
NX	52 Neutral	$811.65M	-52.26	-30.23%	2.12%	43.81%	-584.11%
BXC	49 Neutral	$395.39M	2,188.09	2.20%	―	-0.19%	-50.51%
CSTE	43 Neutral	$22.56M	-0.47	-62.60%	―	-15.45%	-6.98%
JELD	41 Neutral	$122.27M	-0.34	-155.46%	―	-15.28%	-350.51%

CaesarStone Sdot-Yam Corporate Events

Caesarstone Deepens Restructuring as 2025 Losses Widen and Bar‑Lev Plant Shuts

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 premium surface materials, serving global residential and commercial markets with a particular presence in North America, Australia and Israel.

On March 4, 2026, Caesarstone reported fourth quarter and full‑year 2025 results showing revenue declines and wider losses amid weak global demand and competitive pressures. The company closed its Bar‑Lev, Israel, manufacturing facility in December 2025, shifted quartz production fully to third‑party partners, and advanced a restructuring expected to deliver about $100 million in annualized savings since 2023, including $20–22 million from Bar‑Lev, while working to monetize its previously closed U.S. site and aiming to restore profitability in 2026.

In the fourth quarter of 2025, revenue slipped to $94.4 million and gross margin narrowed, while non‑cash impairment and restructuring charges tied to Bar‑Lev drove operating loss to $82.3 million and net loss to $87.9 million. For full‑year 2025, revenue fell to $397.2 million, adjusted margins weakened as lower volumes hurt fixed cost absorption, and adjusted EBITDA loss deepened to $32.6 million despite lower underlying operating expenses reflecting ongoing cost‑cutting measures.

The most recent analyst rating on (CSTE) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on CaesarStone Sdot-Yam stock, see the CSTE Stock Forecast page.