Caesarstone (CSTE)
Market Price (12/4/2025): $1.75 | Market Cap: $60.5 MilSector: Industrials | Industry: Building Products
Caesarstone (CSTE)
Market Price (12/4/2025): $1.75Market Cap: $60.5 MilSector: IndustrialsIndustry: Building Products
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -49% | Weak multi-year price returns2Y Excs Rtn is -109%, 3Y Excs Rtn is -145% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -44 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -11% |
| Megatrend and thematic driversMegatrends include Advanced Materials, Sustainable Resource Management, and Sustainable & Green Buildings. Themes include Specialty Chemicals for Performance, Show more. | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 63% | |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -20%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -16%, Rev Chg QQuarterly Revenue Change % is -15% | ||
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -2.9%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -5.7% | ||
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -92% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -49% |
| Megatrend and thematic driversMegatrends include Advanced Materials, Sustainable Resource Management, and Sustainable & Green Buildings. Themes include Specialty Chemicals for Performance, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -109%, 3Y Excs Rtn is -145% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -44 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -11% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 63% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -20%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -16%, Rev Chg QQuarterly Revenue Change % is -15% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -2.9%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -5.7% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -92% |
Valuation, Metrics & Events
CSTE Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Here are key points influencing Caesarstone (CSTE) stock during the approximate period from August 31, 2025, to December 4, 2025:
1. Q3 2025 Earnings Report and Market Reaction.
Caesarstone announced its third-quarter 2025 financial results on November 12, 2025. While the reported revenue of $102.1 million surpassed analyst estimates of $99.55 million, the company posted a wider-than-expected net loss of $18.1 million, or $0.52 per share, and an adjusted diluted net loss of $0.40 per share, significantly missing anticipated losses. The gross margin also declined to 17.3% from 19.9% in the prior year quarter, and the operating loss widened to $16.0 million. Following this announcement, the stock experienced a 2.91% drop in premarket trading.
2. Strategic Manufacturing Network Optimization and Expected Future Savings.
As part of its ongoing business transformation, Caesarstone announced the closure of its Bar-Lev manufacturing facility during the Q3 2025 earnings call. This strategic move is aimed at optimizing its global manufacturing network and is projected to lead to annualized cash savings of approximately $22 million once fully implemented, contributing to total annualized savings exceeding $85 million compared to 2022. The company anticipates that these measures will help it return to positive Adjusted EBITDA by the third quarter of 2026. However, the closure is also expected to incur noncash impairment expenses of $40 million to $45 million and cash costs of $4 million to $8 million starting in the fourth quarter of 2025.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CSTE Return | -13% | -10% | -48% | -35% | 14% | -62% | -89% |
| Peers Return | 41% | 55% | -11% | 62% | 9% | 13% | 285% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| CSTE Win Rate | 33% | 50% | 25% | 58% | 42% | 40% | |
| Peers Win Rate | 65% | 63% | 43% | 63% | 55% | 54% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| CSTE Max Drawdown | -45% | -17% | -49% | -38% | 0% | -80% | |
| Peers Max Drawdown | -37% | -3% | -37% | -8% | -12% | -14% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: WMS, WTS, UFPI, GFF, TT.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/3/2025 (YTD)
How Low Can It Go
| Event | CSTE | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -79.2% | -25.4% |
| % Gain to Breakeven | 381.5% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -47.4% | -33.9% |
| % Gain to Breakeven | 90.0% | 51.3% |
| Time to Breakeven | 415 days | 148 days |
| 2018 Correction | ||
| % Loss | -71.0% | -19.8% |
| % Gain to Breakeven | 245.2% | 24.7% |
| Time to Breakeven | Not Fully Recovered days | 120 days |
Compare to WMS, WTS, UFPI, GFF, TT
In The Past
Caesarstone's stock fell -79.2% during the 2022 Inflation Shock from a high on 5/26/2021. A -79.2% loss requires a 381.5% gain to breakeven.
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Asset Allocation
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Latest Trefis Analyses
| Title | Topic | |
|---|---|---|
| DASHBOARDS | ||
| Can Caesarstone Stock Hold Up When Markets Turn? | Return |
| Title | |
|---|---|
| ARTICLES |
Trade Ideas
Select past ideas related to CSTE. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | CNM | Core & Main | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 7.3% | 7.3% | -1.6% |
| 11212025 | VRRM | Verra Mobility | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 2.3% | 2.3% | -1.2% |
| 11212025 | LII | Lennox International | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 4.8% | 4.8% | 0.0% |
| 11212025 | ADP | Automatic Data Processing | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 1.6% | 1.6% | -1.2% |
| 11212025 | CW | Curtiss-Wright | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 2.2% | 2.2% | 0.0% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | CNM | Core & Main | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 7.3% | 7.3% | -1.6% |
| 11212025 | VRRM | Verra Mobility | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 2.3% | 2.3% | -1.2% |
| 11212025 | LII | Lennox International | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 4.8% | 4.8% | 0.0% |
| 11212025 | ADP | Automatic Data Processing | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 1.6% | 1.6% | -1.2% |
| 11212025 | CW | Curtiss-Wright | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 2.2% | 2.2% | 0.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Caesarstone
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 122.33 |
| Mkt Cap | 7.2 |
| Rev LTM | 2,752 |
| Op Inc LTM | 445 |
| FCF LTM | 319 |
| FCF 3Y Avg | 416 |
| CFO LTM | 465 |
| CFO 3Y Avg | 546 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | -0.4% |
| Rev Chg 3Y Avg | -2.2% |
| Rev Chg Q | 0.1% |
| QoQ Delta Rev Chg LTM | 0.1% |
| Op Mgn LTM | 18.2% |
| Op Mgn 3Y Avg | 15.9% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 14.0% |
| CFO/Rev 3Y Avg | 14.8% |
| FCF/Rev LTM | 11.9% |
| FCF/Rev 3Y Avg | 12.7% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 7.2 |
| P/S | 2.5 |
| P/EBIT | 15.4 |
| P/E | 26.2 |
| P/CFO | 12.1 |
| Total Yield | 4.1% |
| Dividend Yield | 0.8% |
| FCF Yield 3Y Avg | 4.6% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 0.8% |
| 3M Rtn | 0.2% |
| 6M Rtn | 2.1% |
| 12M Rtn | -4.5% |
| 3Y Rtn | 68.9% |
| 1M Excs Rtn | 0.9% |
| 3M Excs Rtn | -6.5% |
| 6M Excs Rtn | -12.6% |
| 12M Excs Rtn | -19.3% |
| 3Y Excs Rtn | 2.7% |
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 6302025 | 8062025 | 6-K 6/30/2025 |
| 3312025 | 5072025 | 6-K 3/31/2025 |
| 12312024 | 3052025 | 20-F 12/31/2024 |
| 9302024 | 11132024 | 6-K 9/30/2024 |
| 6302024 | 8072024 | 6-K 6/30/2024 |
| 3312024 | 5082024 | 6-K 3/31/2024 |
| 12312023 | 3062024 | 20-F 12/31/2023 |
| 9302023 | 11082023 | 6-K 9/30/2023 |
| 6302023 | 8092023 | 6-K 6/30/2023 |
| 3312023 | 5102023 | 6-K 3/31/2023 |
| 12312022 | 3152023 | 20-F 12/31/2022 |
| 9302022 | 11092022 | 6-K 9/30/2022 |
| 6302022 | 8032022 | 6-K 6/30/2022 |
| 3312022 | 5112022 | 6-K 3/31/2022 |
| 12312021 | 3152022 | 20-F 12/31/2021 |
| 9302021 | 11032021 | 6-K 9/30/2021 |
External Quote Links
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