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CSTE

CaesarstoneNasdaqGS:CSTE Stock Report

Last Price

US$12.19

Market Cap

US$419.8m

7D

-2.0%

1Y

-10.0%

Updated

26 Jan, 2022

Data

Company Financials +
CSTE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends2/6

CSTE Stock Overview

Caesarstone Ltd., together with its subsidiaries, develops, manufactures, and markets engineered quartz surfaces under the Caesarstone brand in the United States, Australia, Canada, Latin America, Asia, Israel, Europe, the Middle East, and Africa.

Caesarstone Competitors

Armstrong Flooring

NYSE:AFI

US$44.5m

H.B. Fuller

NYSE:FUL

US$3.8b

Interface

NasdaqGS:TILE

US$798.4m

Price History & Performance

Summary of all time highs, changes and price drops for Caesarstone
Historical stock prices
Current Share PriceUS$12.19
52 Week HighUS$19.80
52 Week LowUS$10.20
Beta0.88
1 Month Change8.65%
3 Month Change-0.41%
1 Year Change-9.97%
3 Year Change-19.33%
5 Year Change-59.84%
Change since IPO9.72%

Recent News & Updates

Dec 01
Are Investors Undervaluing Caesarstone Ltd. (NASDAQ:CSTE) By 38%?

Are Investors Undervaluing Caesarstone Ltd. (NASDAQ:CSTE) By 38%?

Today we will run through one way of estimating the intrinsic value of Caesarstone Ltd. ( NASDAQ:CSTE ) by taking the...

Nov 23

Caesarstone: Cheap But The Market Isn't Convinced Yet

Strong demand in multiple markets powers sales forward in Q3. Although shipping and raw material costs continue to increase, management continues to invest behind its brand. The market needs to see a clear line of sight to improved profitability. Fiscal 2022 should tell us a lot.

Shareholder Returns

CSTEUS BuildingUS Market
7D-2.0%-4.7%-5.1%
1Y-10.0%18.8%3.3%

Return vs Industry: CSTE underperformed the US Building industry which returned 18.5% over the past year.

Return vs Market: CSTE underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is CSTE's price volatile compared to industry and market?
CSTE volatility
CSTE Average Weekly Movement4.9%
Building Industry Average Movement5.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

Stable Share Price: CSTE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CSTE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19871,999Yuval Dagimhttps://www.caesarstone.com

Caesarstone Ltd., together with its subsidiaries, develops, manufactures, and markets engineered quartz 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 kitchen countertops in the renovation and remodeling construction end markets, as well as in new buildings construction market. 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.

Caesarstone Fundamentals Summary

How do Caesarstone's earnings and revenue compare to its market cap?
CSTE fundamental statistics
Market CapUS$419.84m
Earnings (TTM)US$19.16m
Revenue (TTM)US$609.73m

21.9x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSTE income statement (TTM)
RevenueUS$609.73m
Cost of RevenueUS$439.40m
Gross ProfitUS$170.34m
ExpensesUS$151.18m
EarningsUS$19.16m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.56
Gross Margin27.94%
Net Profit Margin3.14%
Debt/Equity Ratio4.3%

How did CSTE perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

56%

Payout Ratio

Valuation

Is Caesarstone undervalued compared to its fair value and its price relative to the market?

34.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSTE ($12.19) is trading below our estimate of fair value ($18.67)

Significantly Below Fair Value: CSTE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSTE is poor value based on its PE Ratio (21.9x) compared to the US Building industry average (20.6x).

PE vs Market: CSTE is poor value based on its PE Ratio (21.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: CSTE is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CSTE is good value based on its PB Ratio (0.8x) compared to the US Building industry average (2.7x).


Future Growth

How is Caesarstone forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

45.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSTE's forecast earnings growth (45.7% per year) is above the savings rate (2%).

Earnings vs Market: CSTE's earnings (45.7% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CSTE's revenue (8.5% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: CSTE's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CSTE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Caesarstone performed over the past 5 years?

-39.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSTE has a large one-off loss of $6.9M impacting its September 30 2021 financial results.

Growing Profit Margin: CSTE's current net profit margins (3.1%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: CSTE's earnings have declined by 39.3% per year over the past 5 years.

Accelerating Growth: CSTE's earnings growth over the past year (105.4%) exceeds its 5-year average (-39.3% per year).

Earnings vs Industry: CSTE earnings growth over the past year (105.4%) exceeded the Building industry 45%.


Return on Equity

High ROE: CSTE's Return on Equity (3.8%) is considered low.


Financial Health

How is Caesarstone's financial position?


Financial Position Analysis

Short Term Liabilities: CSTE's short term assets ($397.2M) exceed its short term liabilities ($162.8M).

Long Term Liabilities: CSTE's short term assets ($397.2M) exceed its long term liabilities ($171.7M).


Debt to Equity History and Analysis

Debt Level: CSTE has more cash than its total debt.

Reducing Debt: CSTE's debt to equity ratio has reduced from 4.7% to 4.3% over the past 5 years.

Debt Coverage: CSTE's debt is well covered by operating cash flow (164.2%).

Interest Coverage: CSTE's interest payments on its debt are well covered by EBIT (19.3x coverage).


Balance Sheet


Dividend

What is Caesarstone current dividend yield, its reliability and sustainability?

3.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSTE's dividend (3.28%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: CSTE's dividend (3.28%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: CSTE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CSTE has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.8%), CSTE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Yuval Dagim (59 yo)

3.42yrs

Tenure

US$1,669,790

Compensation

Mr. Yuval Dagim has been a Chief Executive Officer of Caesarstone Ltd. since August 2018. Mr. Dagim served as Chief Executive Officer of Shikun & Binui Ltd.since December 26, 2017. He was the Managing Dir...


CEO Compensation Analysis

Compensation vs Market: Yuval's total compensation ($USD1.67M) is about average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Yuval's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CSTE's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: CSTE's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Caesarstone Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Caesarstone Ltd.
  • Ticker: CSTE
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Building Products
  • Sector: Capital Goods
  • Implied Market Cap: US$419.840m
  • Shares outstanding: 34.44m
  • Website: https://www.caesarstone.com

Number of Employees


Location

  • Caesarstone Ltd.
  • Kibbutz Sdot-Yam
  • Menashe
  • 3780400
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 01:04
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.