Is Caesarstone Stock a Good Investment?

Caesarstone Investment Advice

CSTE

To provide specific investment advice or recommendations on Caesarstone stock, we recommend investors consider the following general factors when evaluating Caesarstone. This will help you to make an informed decision on whether to include Caesarstone in one of your diversified portfolios:

Examine Caesarstone's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Caesarstone's leadership team and their track record. Good management can help Caesarstone navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Building Products space and any emerging trends that could impact Caesarstone's business and its evolving consumer preferences.
Compare Caesarstone's performance and market position to its competitors. Analyze how Caesarstone is positioned in terms of product offerings, innovation, and market share.
Check if Caesarstone pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Caesarstone's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Caesarstone stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Caesarstone is a good investment.

Sell

Buy

Strong Sell

We provide trade advice to complement the prevailing expert consensus on Caesarstone. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Caesarstone is not overpriced, please confirm all Caesarstone fundamentals, including its gross profit, book value per share, and the relationship between the price to earning and cash per share . Given that Caesarstone has a price to earning of 14.77 X, we suggest you to validate Caesarstone market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Insignificant	Details
Volatility	Moderately volatile	Details
Hype Condition	Low key	Details
Current Valuation	Fairly Valued	Details
Odds Of Distress	Below Average	Details
Economic Sensitivity	Moves totally opposite to the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Caesarstone Stock

Researching Caesarstone's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 30.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.56. Some equities with similar Price to Book (P/B) outperform the market in the long run. Caesarstone has Price/Earnings To Growth (PEG) ratio of 1.03. The entity recorded a loss per share of 2.0. The firm last dividend was issued on the 16th of August 2022.

To determine if Caesarstone is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Caesarstone's research are outlined below:

	Caesarstone had very high historical volatility over the last 90 days
	The company reported the previous year's revenue of 565.23 M. Net Loss for the year was (107.66 M) with profit before overhead, payroll, taxes, and interest of 163.48 M.
	About 30.0% of the company shares are held by company insiders
	Latest headline from finance.yahoo.com: Rising Consumer Demand Fuels Robust Expansion of the United States Countertop Market to USD 138,218.8 million by 2033 Future Market Insights, Inc.

Caesarstone uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Caesarstone. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Caesarstone's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	6th of March 2024 Upcoming Quarterly Report	View
	8th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	6th of March 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Caesarstone's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Caesarstone's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2024-05-08	2024-03-31	-0.16	-0.13	0.03	18
2023-11-08	2023-09-30	-0.16	-0.2	-0.04	25
2023-03-01	2022-12-31	0.02	-0.02	-0.04	200
2022-08-03	2022-06-30	0.24	0.2	-0.04	16
2020-05-06	2020-03-31	0.09	0.13	0.04	44
2018-11-07	2018-09-30	0.27	0.31	0.04	14
2022-05-11	2022-03-31	0.09	0.14	0.05	55
2022-02-09	2021-12-31	0.06	0.01	-0.05	83

Know Caesarstone's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Caesarstone is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Caesarstone backward and forwards among themselves. Caesarstone's institutional investor refers to the entity that pools money to purchase Caesarstone's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Northern Trust Corp	2024-09-30	143.1 K
Legato Capital Management Llc	2024-09-30	130.4 K
Vanguard Group Inc	2024-09-30	120.2 K
Morgan Stanley - Brokerage Accounts	2024-09-30	115.6 K
Federation Des Caisses Desjardins Du Quebec	2024-09-30	111.1 K
Millennium Management Llc	2024-09-30	98.7 K
Meitav Dash Investments Ltd	2024-09-30	73.6 K
Goldman Sachs Group Inc	2024-09-30	71.7 K
Two Sigma Advisers, Llc	2024-09-30	52.4 K
Phoenix Financial Ltd	2024-09-30	3.7 M
Global Alpha Capital Management Ltd.	2024-09-30	3 M

Note, although Caesarstone's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Caesarstone's market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 171.66 M.

Market Cap

828.46 Million

Caesarstone's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.19)	(0.18)
Return On Capital Employed	(0.19)	(0.18)
Return On Assets	(0.19)	(0.18)
Return On Equity	(0.34)	(0.32)

The company has Profit Margin (PM) of (0.13) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.04) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.04.

Determining Caesarstone's profitability involves analyzing its financial statements and using various financial metrics to determine if Caesarstone is a good buy. For example, gross profit margin measures Caesarstone's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Caesarstone's profitability and make more informed investment decisions.

Please note, the presentation of Caesarstone's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Caesarstone's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Caesarstone's management manipulating its earnings.

Evaluate Caesarstone's management efficiency

Caesarstone has return on total asset (ROA) of (0.0243) % which means that it has lost $0.0243 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1942) %, meaning that it created substantial loss on money invested by shareholders. Caesarstone's management efficiency ratios could be used to measure how well Caesarstone manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to -0.18. The current year's Return On Capital Employed is expected to grow to -0.18. At present, Caesarstone's Other Assets are projected to increase significantly based on the last few years of reporting. The current year's Intangible Assets is expected to grow to about 9.3 M, whereas Net Tangible Assets are forecasted to decline to about 420.6 M.

	Last Reported	Projected for Next Year
Book Value Per Share	9.35	8.91
Tangible Book Value Per Share	9.17	8.03
Enterprise Value Over EBITDA	(4.27)	(4.06)
Price Book Value Ratio	0.41	0.39
Enterprise Value Multiple	(4.27)	(4.06)
Price Fair Value	0.41	0.39
Enterprise Value	1.3 B	824.3 M

Understanding the operational decisions made by Caesarstone management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.

Beta

0.143

Basic technical analysis of Caesarstone Stock

As of the 11th of December 2024, Caesarstone shows the mean deviation of 2.39, and Risk Adjusted Performance of 0.0501. Caesarstone technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Caesarstone jensen alpha, and the relationship between the coefficient of variation and potential upside to decide if Caesarstone is priced correctly, providing market reflects its regular price of 4.99 per share. Given that Caesarstone has jensen alpha of 0.2793, we suggest you to validate Caesarstone's prevailing market performance to make sure the company can sustain itself at a future point.

Caesarstone's Outstanding Corporate Bonds

Caesarstone issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Caesarstone uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Caesarstone bonds can be classified according to their maturity, which is the date when Caesarstone has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	Morgan Stanley 3591 Corp Bond US61744YAK47	View
	Morgan Stanley 3971 Corp Bond US61744YAL20	View

View All Caesarstone Corporate Bonds

Understand Caesarstone's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Caesarstone's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0501
	Market Risk Adjusted Performance	(0.22)
	Mean Deviation	2.39
	Semi Deviation	2.95
	Downside Deviation	3.13
	Coefficient Of Variation	1708.24
	Standard Deviation	3.37
	Variance	11.34
	Information Ratio	0.0216
	Jensen Alpha	0.2793
	Total Risk Alpha	(0.35)
	Sortino Ratio	0.0232
	Treynor Ratio	(0.23)
	Maximum Drawdown	19.91
	Value At Risk	(4.54)
	Potential Upside	4.8
	Downside Variance	9.82
	Semi Variance	8.72
	Expected Short fall	(2.66)
	Skewness	0.6506
	Kurtosis	2.84

	Risk Adjusted Performance	0.0501
	Market Risk Adjusted Performance	(0.22)
	Mean Deviation	2.39
	Semi Deviation	2.95
	Downside Deviation	3.13
	Coefficient Of Variation	1708.24
	Standard Deviation	3.37
	Variance	11.34
	Information Ratio	0.0216
	Jensen Alpha	0.2793
	Total Risk Alpha	(0.35)
	Sortino Ratio	0.0232
	Treynor Ratio	(0.23)
	Maximum Drawdown	19.91
	Value At Risk	(4.54)
	Potential Upside	4.8
	Downside Variance	9.82
	Semi Variance	8.72
	Expected Short fall	(2.66)
	Skewness	0.6506
	Kurtosis	2.84

Consider Caesarstone's intraday indicators

Caesarstone intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Caesarstone stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0239
	Rate Of Daily Change	1.0
	Day Median Price	4.97
	Day Typical Price	4.98
	Market Facilitation Index	0.12
	Price Action Indicator	0.02
	Relative Strength Index	52.67

Caesarstone Corporate Filings

13A	14th of November 2024 An amended filing to the original Schedule 13G	View Verify
6K	13th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	6th of March 2024 Other Reports	View Verify

Caesarstone time-series forecasting models is one of many Caesarstone's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Caesarstone's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Caesarstone Stock media impact

Far too much social signal, news, headlines, and media speculation about Caesarstone that are available to investors today. That information is available publicly through Caesarstone media outlets and privately through word of mouth or via Caesarstone internal channels. However, regardless of the origin, that massive amount of Caesarstone data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Caesarstone news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Caesarstone relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Caesarstone's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Caesarstone alpha.

Caesarstone Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Caesarstone can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

When determining whether Caesarstone is a strong investment it is important to analyze Caesarstone's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Caesarstone's future performance. For an informed investment choice regarding Caesarstone Stock, refer to the following important reports: