Caesarstone Ltd. (CSTE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Luxfer Holdings Plc

Centrus Energy Corp.

Intrepid Potash, Inc.

Haynes International, Inc.

Nexa Resources SA

Gold Royalty Corp.

Caesarstone Ltd.

Ferroglobe PLC

TMC the metals co., Inc.

Atlas Lithium Corp.

Metals Acquisition Ltd.

Why is Caesarstone Ltd. ?

Poor Management Efficiency with a low ROE of 1.58%

The company has been able to generate a Return on Equity (avg) of 1.58% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -210.96% of over the last 5 years

Negative results in Jun 25

PRE-TAX PROFIT(Q) At USD -16.33 MM has Fallen at -70.11%
OPERATING CASH FLOW(Y) Lowest at USD -11.77 MM
NET SALES(HY) At USD 200.68 MM has Grown at -15.58%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -72.51%, its profits have risen by 37.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -72.51% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Caesarstone Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Caesarstone Ltd.

-58.87%

-1.15

68.89%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.16%

EBIT Growth (5y)

-210.96%

EBIT to Interest (avg)

-4.06

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

1.61

Tax Ratio

3.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

39.87%

ROCE (avg)

2.79%

ROE (avg)

1.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.25

EV to EBIT

0.47

EV to EBITDA

0.80

EV to Capital Employed

-0.11

EV to Sales

-0.04

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-15.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET PROFIT(HY)

Higher at USD -26 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.9 times

-25What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -16.33 MM has Fallen at -70.11%

OPERATING CASH FLOW(Y)

Lowest at USD -11.77 MM

NET SALES(HY)

At USD 200.68 MM has Grown at -15.58%

RAW MATERIAL COST(Y)

Grown by 14.8% (YoY

INTEREST(Q)

Highest at USD 5.71 MM

NET PROFIT(Q)

Lowest at USD -16.55 MM

Here's what is working for Caesarstone Ltd.

Inventory Turnover Ratio

Highest at 2.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Caesarstone Ltd.

Pre-Tax Profit

At USD -16.33 MM has Fallen at -70.11%

over average net sales of the previous four periods of USD -9.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -16.55 MM has Fallen at -66.57%

over average net sales of the previous four periods of USD -9.93 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 5.71 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

At USD 200.68 MM has Grown at -15.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Cash Flow

Lowest at USD -11.77 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 5.71 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Lowest at USD -16.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Raw Material Cost

Grown by 14.8% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales