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CaesarStone Sdot-Yam (CSTE) AI Stock Analysis
CaesarStone Sdot-Yam
(NASDAQ:CSTE)
The score is driven primarily by very weak financial performance (deep losses, negative operating/free cash flow, and an eroding equity base). Technicals add further pressure as the stock remains in a clear downtrend with negative MACD. Valuation provides limited support because earnings are negative and no dividend yield is available.
CaesarStone Sdot-Yam (CSTE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $44.26M
- Dividend Yield
- ―
- Average Volume (3M)
- 79.05K
- Price to Earnings (P/E)
- -0.3
- Beta (1Y)
- 1.79
- Revenue Growth
- -6.00%
- EPS Growth
- -137.69%
- Country
- US
- Employees
- 1,266
- Sector
- General
- Sector Strength
- 55
- Industry
- Construction Materials
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 high-...
How the Company Makes Money
CaesarStone makes money primarily by selling countertop and surface materials through a business-to-business channel. Its core revenue stream is the sale of surface slabs and related products to a network of distributors, dealers, and fabricators who...
CaesarStone Sdot-Yam Earnings Call Summary
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.
Q1-2026 Updates
Positive Updates
Negative 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
Financial results are very weak: TTM shows deep losses (net margin ~-37% with similarly negative EBIT margin) and sharply contracting revenue. Cash flow has turned negative again (TTM operating cash flow about -$17M; free cash flow about -$22M). Balance sheet leverage is only moderate, but equity has eroded (debt-to-equity ~0.89) and assets have shrunk materially, increasing resilience risk if losses persist.
Income Statement
12Very NegativeBalance Sheet
38NegativeCash Flow
21Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 381.81M | 397.23M | 443.22M | 565.23M | 690.81M | 643.89M |
| Gross Profit | 75.22M | 73.28M | 96.67M | 91.94M | 163.25M | 171.50M |
| EBITDA | -128.82M | -116.63M | -20.61M | -51.62M | -13.54M | 61.98M |
| Net Income | -142.70M | -137.47M | -42.83M | -107.66M | -57.05M | 18.97M |
Balance Sheet | ||||||
| Total Assets | 353.02M | 398.44M | 549.04M | 579.86M | 752.98M | 867.65M |
| Cash, Cash Equivalents and Short-Term Investments | 51.77M | 59.92M | 106.34M | 91.12M | 59.16M | 85.54M |
| Total Debt | 95.95M | 136.15M | 136.86M | 146.00M | 178.34M | 187.13M |
| Total Liabilities | 250.84M | 259.23M | 275.26M | 257.01M | 324.03M | 365.49M |
| Stockholders Equity | 107.76M | 144.80M | 277.17M | 320.65M | 426.63M | 499.88M |
Cash Flow | ||||||
| Free Cash Flow | -21.64M | -45.11M | 21.45M | 55.36M | -41.11M | -10.79M |
| Operating Cash Flow | -16.93M | -36.07M | 31.87M | 66.53M | -23.31M | 20.68M |
| Investing Cash Flow | -2.96M | -7.46M | -24.36M | -40.53M | -7.29M | -34.88M |
| Financing Cash Flow | -5.09M | -3.92M | -3.04M | -23.78M | 9.16M | -25.25M |
CaesarStone Sdot-Yam Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSTE, the sentiment is Negative. The current price of 1.28 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.67, and below the 200-day MA of 2.07, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 24.87 is Positive, neither overbought nor oversold. The STOCH value of 6.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
3 New RisksCaesarStone Sdot-Yam Peers Comparison
Overall Rating
APOG79Outperform
MAS74Outperform
TGLS69Neutral
FBIN56Neutral
BLDR42Neutral- CSTE42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| APOG | 79Outperform | $1.00B | 14.35 | 13.03% | 2.35% | 3.01% | 55.11% |
| MAS | 74Outperform | $16.74B | 18.14 | -298.23% | 1.53% | 0.95% | 17.94% |
| TGLS | 69Neutral | $1.90B | 19.29 | 13.77% | 1.33% | 12.51% | -38.87% |
| FBIN | 56Neutral | $5.67B | 44.38 | 5.48% | 2.19% | -2.97% | -60.33% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| BLDR | 42Neutral | $7.48B | 177.03 | 0.99% | ― | -8.25% | -92.83% |
| CSTE | 42Neutral | $56.73M | -0.31 | -94.47% | ― | -6.00% | -137.69% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CSTE | CaesarStone Sdot-yam | 1.28 | 0.29 | 29.16% | |
| APOG | Apogee Enterprises | 45.92 | 12.44 | 37.16% | |
| BLDR | Builders Firstsource | 65.50 | -43.92 | -40.14% | |
| FBIN | Fortune Brands Innovations, Inc. | 47.04 | -1.53 | -3.15% | |
| MAS | Masco Corporation | 83.83 | 22.67 | 37.06% | |
| TGLS | Tecnoglass | 45.13 | -3.91 | -7.97% |
CaesarStone Sdot-Yam Corporate Events
Caesarstone Amends AGM Agenda After Director Nominee Withdraws
Caesarstone Ltd. is an Israel-based manufacturer of engineered stone surfaces, serving residential and commercial markets internationally. Its products are used primarily in kitchen and bathroom applications.On November 3, 2026, Caesarstone reported...
Caesarstone Hit With $67 Million Silicosis Verdict in U.S. Court
On October 26, 2026, a Los Angeles County Superior Court jury found Caesarstone liable in a coordinated silicosis proceeding, concluding that a fabricator contracted illness from exposure to silica particles while working with the company’s pro...
Caesarstone Sets November 25, 2026 Annual Meeting to Vote on Board, Pay and Incentive Plan Changes
On October 20, 2026, Caesarstone’s board set November 25, 2026, as the date for its annual general meeting of shareholders, with October 20 as the record date, and furnished a notice and proxy materials via a Form 6-K. The meeting will focus on...
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.
Date of analysis: Oct 30, 2026