TICKER CSTE
ISIN IL0011259137
Market cap. USD
71,664,631
Shs outstanding 34,558,823
Caesarstone Ltd., together with its subsidiaries, develops, manufactures, and markets engineered quartz and other surfaces under the Caesarstone brand in the United States, Australia, Canada, Latin America, Asia, Israel, Europe, the Middle East, and Africa. The company’s engineered quartz slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling construction end markets. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for flooring and cladding applications, as well as resells natural stones, various ancillary fabrication tools, and installation accessories; and sells sinks and materials. It sells its products directly to fabricators, sub-distributors, and resellers; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.
Return at exit: Live
Undervalued Gem With Turnaround Potential
• Caesarstone Ltd. presents a compelling turnaround opportunity with its stock showing strong recent momentum (3-month return of 20.78%) despite longer-term challenges. • Significantly undervalued at just 0.28x book value with fair value estimates ($2.10-$4.00) suggesting 10-110% upside potential from current price levels. • Robust restructuring initiatives targeting $22 million in annual savings from facility closures and transition to outsourced production model, with total cost reductions exceeding $85 million since 2023. • Healthy balance sheet with $69.3 million cash versus minimal debt ($2.6 million), providing strong financial foundation during transformation. • New product innovations addressing market concerns (silica-free surfaces) while strategic shift toward outsourced production aims to achieve positive adjusted EBITDA by Q3 2026.