Caesarstone (NasdaqGS:CSTE) - Share price, News & Analysis

CSTE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	1/6
Financial Health	4/6
Dividends	0/6

CSTE Stock Overview

Rewards

Trading at 86.8% below our estimate of its fair value

Earnings are forecast to grow 64.71% per year

Risk Analysis

Profit margins (1.4%) are lower than last year (3.7%)

Caesarstone Competitors

Armstrong Flooring

NYSE:AFI

US$9.4m

H.B. Fuller

NYSE:FUL

US$3.5b

Interface

NasdaqGS:TILE

US$818.9m

Price History & Performance

Summary of all time highs, changes and price drops for Caesarstone
Historical stock prices
Current Share Price	US$8.81
52 Week High	US$17.69
52 Week Low	US$8.22
Beta	0.73
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

	CSTE	US Building	US 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 Movement	5.7%
Building Industry Average Movement	6.3%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

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

Founded	Employees	CEO	Website
1987	2,272	Yuval Dagim	https://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 Cap	US$294.77m
Earnings (TTM)	US$9.61m
Revenue (TTM)	US$668.30m

31.6x

P/E Ratio

0.5x

P/S Ratio

Is CSTE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSTE income statement (TTM)
Revenue	US$668.30m
Cost of Revenue	US$496.93m
Gross Profit	US$171.37m
Other Expenses	US$161.76m
Earnings	US$9.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.28
Gross Margin	25.64%
Net Profit Margin	1.44%
Debt/Equity Ratio	3.7%

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31