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.

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

0.3%

CSTE

1.2%

US Building

1.0%

US Market


1 Year Return

-1.8%

CSTE

15.1%

US Building

6.7%

US Market

Return vs Industry: CSTE underperformed the US Building industry which returned 15.1% over the past year.

Return vs Market: CSTE underperformed the US Market which returned 6.7% over the past year.


Share holder returns

CSTEIndustryMarket
7 Day0.3%1.2%1.0%
30 Day3.4%-1.3%-1.8%
90 Day9.2%1.2%-1.8%
1 Year-0.8%-1.8%16.8%15.1%9.1%6.7%
3 Year-53.8%-55.1%27.5%16.8%46.1%36.6%
5 Year-66.7%-67.9%64.4%44.5%66.9%48.6%

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?

31.61x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CSTE ($16.57) is trading above our estimate of fair value ($5.82)

Significantly Undervalued: CSTE is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: CSTE is poor value based on its PE Ratio (31.6x) compared to the Building industry average (19.8x).

PE vs Market: CSTE is poor value based on its PE Ratio (31.6x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: CSTE is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

PB vs Industry: CSTE is good value based on its PB Ratio (1.2x) compared to the US Building industry average (2.1x).


Next Steps

  • Explore potentially undervalued companies in the Capital Goods industry.

Future Growth

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

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CSTE's forecast earnings growth (29.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CSTE's earnings (29.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: CSTE's revenue (2.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CSTE's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


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

Earnings Trend: CSTE's earnings have declined by -27.6% per year over the past 5 years.

Accelerating Growth: CSTE's earnings growth over the past year (43.8%) exceeds its 5-year average (-27.6% per year).

Earnings vs Industry: CSTE earnings growth over the past year (43.8%) exceeded the Building industry 7.7%.


Return on Equity

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


Return on Assets

ROA vs Industry: CSTE's Return on Assets is below or equal to the Building industry average last year.


Return on Capital Employed

ROCE Improving: CSTE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Caesarstone's financial position?


Financial Position Analysis

Short Term Liabilities: CSTE's short term assets ($352.1M) exceeds its short term liabilities ($108.7M)

Long Term Liabilities: CSTE's short term assets (352.1M) exceeds its long term liabilities (104.5M)


Debt to Equity History and Analysis

Debt Level: CSTE's debt to equity ratio (0.2%) is considered satisfactory

Reducing Debt: CSTE's debt to equity ratio has reduced from 5.9% to 0.2% over the past 5 years.

Debt Coverage: CSTE's debt is well covered by operating cash flow (6973.3%).

Interest Coverage: CSTE's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

Inventory Level: CSTE has a high level of physical assets or inventory.

Debt Coverage by Assets: CSTE's debt is covered by short term assets (assets are 402.874140x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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.


Current Payout to Shareholders

Dividend Coverage: CSTE is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CSTE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Yuval Dagim (56yo)

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

Compensation vs. Market: Yuval's total compensation ($USD920.46K) is about average for companies of similar size in the US market ($USD1.85M).

Compensation vs Earnings: Insufficient data to compare Yuval's compensation with company performance.


Management Age and Tenure

1.1yrs

Average Tenure

56yo

Average Age

Experienced Management: CSTE's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

63yo

Average Age

Experienced Board: CSTE's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


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: 2.1yrs
    • Compensation: US$636.83k
  • David Cullen (60yo)

    CEO & MD of Australia & Newzealand

    • Tenure: 9.5yrs
    • Compensation: US$485.98k
  • Giora Wegman (67yo)

    Deputy Chief Executive Officer

    • Tenure: 9.2yrs
  • Ophir Yakovian (46yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
  • Yuval Dagim (56yo)

    Chief Executive Officer

    • Tenure: 0yrs
    • Compensation: US$920.46k
  • Ron Mosberg (39yo)

    General Counsel & Corporate Secretary

    • Tenure: 1.1yrs
  • Nirit Muntz (48yo)

    Vice President of Global Human Resources

    • Tenure: 0.9yrs
  • Rinat Efrima

    Global Chief Marketing Officer & MD for Israel

    • Tenure: 0.3yrs
  • Suzie Roth

    Chief Information Officer

    • Tenure: 0.3yrs
  • Amir Reske

    Managing Director of EMEA

    • Tenure: 0.8yrs

Board Members

  • Ron Kaplan (68yo)

    Independent Director

    • Tenure: 3.8yrs
  • Ofer Tsimchi (59yo)

    Independent Director

    • Tenure: 4.8yrs
  • Ariel Halperin (63yo)

    Chairman

    • Tenure: 2.8yrs
  • Eric Herschmann (55yo)

    Independent Director

    • Tenure: 2.8yrs
  • Roger Abravanel (73yo)

    Independent Director

    • Tenure: 2.8yrs
  • Dori Brown (48yo)

    Director

    • Tenure: 2.8yrs
  • Irit Ben-Dov (48yo)

    Independent Director

    • Tenure: 7.6yrs
  • Ofer Borovsky (64yo)

    Independent Director

    • Tenure: 7.6yrs
  • Amit Zvi (67yo)

    Non-Independent Director

    • Tenure: 3.8yrs

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 Analysis2019/10/14 02:47
End of Day Share Price2019/10/11 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.

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