NasdaqGS:CSTE

Stock Analysis Report

Executive Summary

Caesarstone Ltd., together with its subsidiaries, manufactures and sells engineered quartz surfaces under the Caesarstone brand in the United States, Australia, Canada, Israel, Europe, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Risks

  • Caesarstone is covered by less than 3 analysts.

Share Price & News

How has Caesarstone's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

NasdaqGS:CSTE

0.4%

US Building

0.9%

US Market


1 Year Return

-17.8%

NasdaqGS:CSTE

-3.1%

US Building

0.3%

US Market

CSTE underperformed the Building industry which returned -2.3% over the past year.

CSTE underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

CSTEIndustryMarket
7 Day-3.1%0.4%0.9%
30 Day4.2%0.4%-1.9%
90 Day7.7%4.5%1.6%
1 Year-17.0%-17.8%-1.5%-3.1%2.6%0.3%
3 Year-58.8%-60.0%16.4%7.1%41.0%31.8%
5 Year-69.5%-70.7%40.8%23.2%55.2%38.0%

Price Volatility Vs. Market

How volatile is Caesarstone's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Caesarstone undervalued based on future cash flows and its price relative to the stock market?

29.57x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Caesarstone's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Caesarstone's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Caesarstone is overvalued based on earnings compared to the US Building industry average.

Caesarstone is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Caesarstone is good value based on expected growth next year.


Price Based on Value of Assets

Caesarstone is good value based on assets compared to the US Building industry average.


Next Steps

Future Growth

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

38.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Caesarstone's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

Caesarstone's earnings are expected to grow significantly at over 20% yearly.

Caesarstone's revenue growth is positive but not above the United States of America market average.

Caesarstone's earnings growth is expected to exceed the United States of America market average.

Caesarstone's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Caesarstone will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Caesarstone performed over the past 5 years?

-27.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Caesarstone's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Caesarstone's 1-year earnings growth exceeds its 5-year average (43.8% vs -27.6%)

Caesarstone's earnings growth has exceeded the US Building industry average in the past year (43.8% vs 8.2%).


Return on Equity

Caesarstone has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Caesarstone used its assets less efficiently than the US Building industry average last year based on Return on Assets.


Return on Capital Employed

Caesarstone's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Caesarstone's financial position?


Financial Position Analysis

Caesarstone is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Caesarstone's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Caesarstone's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (5.2% vs 0.2% today).

Debt is well covered by operating cash flow (6973.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 402.9x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Caesarstone's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Caesarstone's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Caesarstone has not reported any payouts.

Unable to verify if Caesarstone's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Caesarstone has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Caesarstone's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Yuval Dagim (56yo)

0.0yrs

Tenure

US$920,463

Compensation

Mr. Yuval Dagim serves as the Chief Executive Officer of Caesarstone Ltd. Mr. Dagim served as Chief Executive Officer of Shikun & Binui Ltd. since December 26, 2017. He was the Managing Director of Austral ...


CEO Compensation Analysis

Yuval's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Yuval to compare compensation growth.


Management Age and Tenure

0.9yrs

Average Tenure

56yo

Average Age

The average tenure for the Caesarstone management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

63yo

Average Age

The tenure for the Caesarstone board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$3,735,05721 Nov 18
Ariel Halperin
EntityIndividual
Role
Chairman of the Board
Chairman
Shares255,927
Max PriceUS$14.67

Ownership Breakdown


Management Team

  • Israel Sandler (61yo)

    VP & Chief Commercial Officer

    • Tenure: 1.9yrs
    • Compensation: US$636.83k
  • David Cullen (60yo)

    CEO & MD of Australia & Newzealand

    • Tenure: 9.3yrs
    • Compensation: US$485.98k
  • Giora Wegman (67yo)

    Deputy Chief Executive Officer

    • Tenure: 9.0yrs
  • Ophir Yakovian (46yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
  • Yuval Dagim (56yo)

    Chief Executive Officer

    • Tenure: 0.0yrs
    • Compensation: US$920.46k
  • Ron Mosberg (39yo)

    General Counsel & Corporate Secretary

    • Tenure: 0.9yrs
  • Nirit Muntz (48yo)

    Vice President of Global Human Resources

    • Tenure: 0.8yrs
  • Rinat Efrima

    Global Chief Marketing Officer & MD for Israel

    • Tenure: 0.1yrs
  • Suzie Roth

    Chief Information Officer

    • Tenure: 0.2yrs
  • Amir Reske

    Managing Director of EMEA

    • Tenure: 0.6yrs

Board Members

  • Ron Kaplan (67yo)

    Independent Director

    • Tenure: 3.7yrs
  • Ofer Tsimchi (59yo)

    Independent Director

    • Tenure: 4.7yrs
  • Ariel Halperin (63yo)

    Chairman

    • Tenure: 2.7yrs
  • Eric Herschmann (55yo)

    Director

    • Tenure: 2.7yrs
  • Roger Abravanel (73yo)

    Director

    • Tenure: 2.7yrs
  • Dori Brown (48yo)

    Director

    • Tenure: 2.7yrs
  • Irit Ben-Dov (48yo)

    Independent Director

    • Tenure: 7.4yrs
  • Ofer Borovsky (64yo)

    Independent Director

    • Tenure: 7.4yrs
  • Amit Zvi (67yo)

    Non-Independent Director

    • Tenure: 3.7yrs

Company Information

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


Key Information


Number of Employees


Location

  • Caesarstone Ltd.
  • Kibbutz Sdot-Yam
  • MP Menashe
  • 37804
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSTENasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDMar 2012
19CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2012

Biography

Caesarstone Ltd., together with its subsidiaries, manufactures and sells engineered quartz surfaces under the Caesarstone brand in the United States, Australia, Canada, Israel, Europe, and internationally. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:33
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.