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CaesarStone Sdot-Yam
(NASDAQ:CSTE)
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Rating:47Neutral
Price Target:
$2.50
▲(31.58% Upside)
Action:Reiterated
Date:07/07/26
The score is primarily held down by weak financial performance (shrinking revenue, deep losses, and renewed cash burn). Technicals provide some support via a clear uptrend, while valuation remains pressured by negative earnings. Earnings-call commentary is mixed: restructuring progress and an EBITDA improvement target are offset by demand weakness, tariff uncertainty, and significant litigation exposure.
Positive Factors
Asset-light production model
Shifting quartz production to third-party manufacturing reduces fixed capital needs and operating leverage, improving long-term cost flexibility. An asset-light footprint makes the company less exposed to utilization swings, enabling faster margin recovery if demand normalizes and freeing cash for strategic uses.
Negative Factors
Persistent revenue decline
Multi-year top-line deterioration evidences structural demand or competitive pressures in core markets, especially North America. Sustained revenue shrinkage limits operating leverage, forces higher per-unit SG&A, and makes it harder to achieve durable profitability even after cost cuts unless volume or pricing recovers.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light production model
Shifting quartz production to third-party manufacturing reduces fixed capital needs and operating leverage, improving long-term cost flexibility. An asset-light footprint makes the company less exposed to utilization swings, enabling faster margin recovery if demand normalizes and freeing cash for strategic uses.
Read all positive factors
CaesarStone Sdot-Yam (CSTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.95M
Dividend YieldN/A
Average Volume (3M)61.21K
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth-8.98%
EPS Growth-187.59%
CountryUS
Employees1,532
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)-4.21
Shares Outstanding34,577,076
10 Day Avg. Volume51,553
30 Day Avg. Volume61,207
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.44
Price to Sales (P/S)0.16
P/FCF Ratio-1.43
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit1.61
Enterprise Value/Ebitda-0.86
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1
Revenue Forecast (FY)$402.80M
CaesarStone Sdot-Yam Business Overview & Revenue Model
Company Description
Caesarstone Ltd., headquartered in Menashe, Israel, since its founding in 1987, is a global developer, manufacturer, and marketer of engineered quartz and various other surfacing materials. Operating primarily under the Caesarstone brand, their hi...
How the Company Makes Money
CaesarStone makes money by selling surfacing products—primarily engineered stone slabs and related materials—into the building and remodeling value chain. Revenue is generated when the company sells product to distribution and fabrication channels...
CaesarStone Sdot-Yam Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call communicated clear structural progress — margin expansion, transition to a third‑party manufacturing model, cost‑saving milestones, recoveries in Australia and a path to positive adjusted EBITDA in Q3 2026 — but was balanced by significant near‑term challenges: a ~15% revenue decline, marked weakness in North America, operating expense leverage, meaningful legal exposure (711 silica claims and a $48.8M reserve), and material tariff/trade risks that could compress margins. Management emphasized active mitigation (pricing, supply‑chain optimization, insurance actions) and liquidity, but uncertainty from geopolitical and trade developments leaves the outlook mixed.Positive Updates
Gross Margin Expansion
Reported gross margin of 22.3% versus 21.3% year‑over‑year (an improvement of 100 basis points); adjusted gross margin improved to 23.9% from 21.2% (approximately +270 basis points), reflecting benefits from the transition to an asset‑light production model.
Negative Updates
Significant Revenue Decline
Global revenue of $88.7 million, down approximately 14.9% year‑over‑year on a constant currency basis (management also referenced ~15% decline), primarily due to macroeconomic softness and competitive pressures.
Read all updates
Q1-2026 Updates
Positive
Negative
Gross Margin Expansion
Reported gross margin of 22.3% versus 21.3% year‑over‑year (an improvement of 100 basis points); adjusted gross margin improved to 23.9% from 21.2% (approximately +270 basis points), reflecting benefits from the transition to an asset‑light production model.
Read all positive updates
Company Guidance
Management guided that, assuming no material deterioration in global economic or geopolitical conditions, Caesarstone is on track to achieve positive adjusted EBITDA in Q3 2026; they expect additional cash restructuring costs of approximately $3–5 million for the remainder of 2026 (Q1 restructuring cash costs were $0.4M) and cited expected annualized cash savings by 2027 (management referenced approximately $22M by 2027 and, separately, stated an expectation to realize more than $100M of annual cash savings versus full‑year 2023 based on actions completed to date). Key quarterly metrics cited alongside the guidance include Q1 revenue of ~$88.7M (down ~14.9% constant currency / ~15% YoY), U.S. revenue of ~$40M (vs $49.1M LY), Australia $17.1M (up ~11.2% CC), Israel $4.2M (vs $5.0M LY), gross margin 22.3% (up 100 bps), adjusted gross margin 23.9%, operating expenses $39.2M (44.1% of revenue; ~34.5% ex certain items), adjusted EBITDA loss $7.5M (vs $7.1M LY), adjusted diluted net loss per share $0.32 on 34.6M shares, cash and short‑term deposits $52.3M, total debt $1.8M (net cash $50.4M), and that ~45% of revenues are generated in the U.S. where the average import tariff is ~15% (the ITC proposed a 4‑year tariff‑rate‑quota with in‑quota 25% and out‑of‑quota 40% ad valorem).CaesarStone Sdot-Yam Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 386.38M | 397.23M | 443.22M | 565.23M | 690.81M | 643.89M |
| Gross Profit | 71.90M | 73.28M | 96.67M | 91.94M | 163.25M | 171.50M |
| EBITDA | -134.06M | -116.63M | -20.61M | -51.62M | -13.54M | 61.98M |
| Net Income | -145.69M | -137.47M | -42.83M | -107.66M | -57.05M | 18.97M |
Balance Sheet | ||||||
| Total Assets | 370.13M | 398.44M | 549.04M | 579.86M | 752.98M | 867.65M |
| Cash, Cash Equivalents and Short-Term Investments | 52.27M | 59.92M | 106.34M | 91.12M | 59.16M | 85.54M |
| Total Debt | 104.92M | 136.15M | 136.86M | 146.00M | 178.34M | 187.13M |
| Total Liabilities | 251.82M | 259.23M | 275.26M | 257.01M | 324.03M | 365.49M |
| Stockholders Equity | 123.89M | 144.80M | 277.17M | 320.65M | 426.63M | 499.88M |
Cash Flow | ||||||
| Free Cash Flow | -36.76M | -45.11M | 21.45M | 55.36M | -41.11M | -10.79M |
| Operating Cash Flow | -29.12M | -36.07M | 31.87M | 66.53M | -23.31M | 20.68M |
| Investing Cash Flow | -5.90M | -7.46M | -24.36M | -40.53M | -7.29M | -34.88M |
| Financing Cash Flow | -3.61M | -3.92M | -3.04M | -23.78M | 9.16M | -25.25M |
CaesarStone Sdot-Yam Technical Analysis
Positive
1.90
Price Trends
1.79
Positive
1.53
Positive
1.59
Positive
Market Momentum
0.17
Negative
72.58
Negative
64.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSTE, the sentiment is Positive. The current price of 1.9 is below the 20-day moving average (MA) of 2.06, above the 50-day MA of 1.79, and above the 200-day MA of 1.59, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 72.58 is Negative, neither overbought nor oversold. The STOCH value of 64.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSTE.
CaesarStone Sdot-Yam Risk Analysis
CaesarStone Sdot-Yam disclosed 51 risk factors in its most recent earnings report. CaesarStone Sdot-Yam reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CaesarStone Sdot-Yam Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $722.08M | 80.62 | 2.13% | ― | 8.34% | ― | |
47 Neutral | $81.95M | -0.57 | -78.42% | ― | -8.98% | -187.59% | |
47 Neutral | $421.57M | -106.86 | -0.65% | ― | 1.38% | -111.51% | |
46 Neutral | $1.25B | 136.98 | 0.94% | ― | -4.66% | -201.96% | |
45 Neutral | $799.15M | -3.14 | -35.45% | 2.12% | 14.25% | -1038.06% | |
43 Neutral | $104.24M | -0.21 | -291.24% | ― | -12.11% | -43.71% |
* Industrials Sector Average
CSTE
CaesarStone Sdot-Yam
2.37
0.59
33.15%
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CaesarStone Sdot-Yam Corporate Events
Caesarstone First-Quarter Loss Widens as U.S. Trade Case and Silicosis Claims Cloud Outlook
May 13, 2026
On May 13, 2026, Caesarstone reported first-quarter 2026 revenue of $88.7 million, down from $99.6 million a year earlier, as weak global demand and competitive pressures, especially in North America, offset strength in Australia. Despite the top-...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.