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CSTE

Caesarstone NasdaqGS:CSTE Stock Report

Last Price

US$8.81

Market Cap

US$294.8m

7D

-10.4%

1Y

-43.1%

Updated

19 May, 2022

Data

Company Financials +
CSTE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance1/6
Financial Health4/6
Dividends0/6

CSTE Stock Overview

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.

Caesarstone Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Caesarstone
Historical stock prices
Current Share PriceUS$8.81
52 Week HighUS$17.69
52 Week LowUS$8.22
Beta0.73
1 Month Change-16.10%
3 Month Change-27.73%
1 Year Change-43.09%
3 Year Change-37.96%
5 Year Change-76.94%
Change since IPO-20.70%

Recent News & Updates

Apr 26

Caesarstone: Now Getting To Levels Too Cheap To Pass Up

A bottoming pattern seems to be forming on the weekly chart. Downside risk looks limited here due to the company remaining profitable and having ultra-low valuation multiples. Sales continue to increase. Margins will eventually follow.

Shareholder Returns

CSTEUS BuildingUS Market
7D-10.4%1.8%0.5%
1Y-43.1%-18.6%-11.5%

Return vs Industry: CSTE underperformed the US Building industry which returned -15.7% over the past year.

Return vs Market: CSTE underperformed the US Market which returned -8.1% over the past year.

Price Volatility

Is CSTE's price volatile compared to industry and market?
CSTE volatility
CSTE Average Weekly Movement5.7%
Building Industry Average Movement6.3%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

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
19872,272Yuval Dagimhttps://www.caesarstone.com

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.

Caesarstone Fundamentals Summary

How do Caesarstone's earnings and revenue compare to its market cap?
CSTE fundamental statistics
Market CapUS$294.77m
Earnings (TTM)US$9.61m
Revenue (TTM)US$668.30m

31.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSTE income statement (TTM)
RevenueUS$668.30m
Cost of RevenueUS$496.93m
Gross ProfitUS$171.37m
Other ExpensesUS$161.76m
EarningsUS$9.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.28
Gross Margin25.64%
Net Profit Margin1.44%
Debt/Equity Ratio3.7%

How did CSTE perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CSTE ($8.55) is trading below our estimate of fair value ($64.76)

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 (30.7x) compared to the US Building industry average (16.8x).

PE vs Market: CSTE is poor value based on its PE Ratio (30.7x) compared to the US market (16x).


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 (0.6x) compared to the US Building industry average (2.3x).


Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


64.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSTE's forecast earnings growth (64.7% per year) is above the savings rate (1.9%).

Earnings vs Market: CSTE's earnings (64.7% per year) are forecast to grow faster than the US market (12.4% per year).

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

Revenue vs Market: CSTE's revenue (7.9% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: CSTE's revenue (7.9% 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?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-30.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CSTE has high quality earnings.

Growing Profit Margin: CSTE's current net profit margins (1.4%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: CSTE's earnings have declined by 30.8% per year over the past 5 years.

Accelerating Growth: CSTE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CSTE had negative earnings growth (-48.7%) over the past year, making it difficult to compare to the Building industry average (27.2%).


Return on Equity

High ROE: CSTE's Return on Equity (2.1%) is considered low.


Financial Health

How is Caesarstone's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CSTE's short term assets ($414.3M) exceed its short term liabilities ($169.6M).

Long Term Liabilities: CSTE's short term assets ($414.3M) exceed its long term liabilities ($181.1M).


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 3.7% over the past 5 years.

Debt Coverage: CSTE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CSTE's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CSTE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CSTE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CSTE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CSTE's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: CSTE is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CSTE has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure


CEO

Yuval Dagim (59 yo)

3.75yrs

Tenure

US$1,629,540

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 ($USD1.63M) is about average for companies of similar size in the US market ($USD1.67M).

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 (2.8 years average tenure).


Board Members

Experienced Board: CSTE's board of directors are considered experienced (5.4 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$294.770m
  • Shares outstanding: 34.48m
  • 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 Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.