Caesarstone (CSTE)
Market Price (9/29/2026): $2.86 | Market Cap: $98.9 MilSector: Industrials | Industry: Building Products
Caesarstone (CSTE)
Market Price (9/29/2026): $2.86Market Cap: $98.9 MilSector: IndustrialsIndustry: Building Products
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
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 -72%, 3Y Excs Rtn is -113% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -46 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -12% Stock price has recently run up significantly6M Rtn6 month market price return is 181% Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -6.0%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -15%, Rev Chg QQuarterly Revenue Change % is -4.5% Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -4.7%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -5.9% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 171% 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 -148% High stock price volatilityVol 12M is 101% Key risksCSTE key risks include [1] significant legal liability from ongoing silicosis claims and [2] adverse regulatory changes targeting crystalline silica in its engineered stone products. |
| 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 -72%, 3Y Excs Rtn is -113% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -46 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -12% |
| Stock price has recently run up significantly6M Rtn6 month market price return is 181% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -6.0%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -15%, Rev Chg QQuarterly Revenue Change % is -4.5% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -4.7%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -5.9% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 171% |
| 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 -148% |
| High stock price volatilityVol 12M is 101% |
| Key risksCSTE key risks include [1] significant legal liability from ongoing silicosis claims and [2] adverse regulatory changes targeting crystalline silica in its engineered stone products. |
Qualitative Assessment
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Caesarstone (CSTE) stock has gained about 55% since 5/31/2026 because of the following key factors:
1. Stronger-than-expected fiscal Q2 2026 financial results driven by improved profitability. Caesarstone reported its fiscal Q2 2026 (ended June 30, 2026) earnings on August 5, 2026, significantly beating analyst expectations with an EPS of -$0.10 against a consensus estimate of -$0.26. The company's net loss narrowed by 16% to $15.6 million, or $0.45 per share, compared to $18.6 million, or $0.54 per share, in fiscal Q2 2025. Gross margin expanded to 24.0% from 19.6% year-over-year, and adjusted gross margin reached 26.5% compared to 19.7% in the prior year quarter. This improved profitability was a key factor in the stock's positive movement.
2. Benefits realized from an optimized production network and disciplined restructuring. The substantial improvement in gross margin and the sharp narrowing of the Adjusted EBITDA loss to $1.0 million from $6.4 million year-over-year were primarily attributed to cost savings derived from the company's restructured global production network and plant closures. Management noted that these structural changes are creating a leaner, more flexible operating model. Furthermore, restructuring efforts are anticipated to generate over $100 million in savings by 2027. The company also repaid all debt to financial institutions, increasing its net cash to $51.8 million.
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Caesarstone (CSTE) stock has gained about 55% since 5/31/2026 because of the following key factors:
1. Stronger-than-expected fiscal Q2 2026 financial results driven by improved profitability. Caesarstone reported its fiscal Q2 2026 (ended June 30, 2026) earnings on August 5, 2026, significantly beating analyst expectations with an EPS of -$0.10 against a consensus estimate of -$0.26. The company's net loss narrowed by 16% to $15.6 million, or $0.45 per share, compared to $18.6 million, or $0.54 per share, in fiscal Q2 2025. Gross margin expanded to 24.0% from 19.6% year-over-year, and adjusted gross margin reached 26.5% compared to 19.7% in the prior year quarter. This improved profitability was a key factor in the stock's positive movement.
2. Benefits realized from an optimized production network and disciplined restructuring. The substantial improvement in gross margin and the sharp narrowing of the Adjusted EBITDA loss to $1.0 million from $6.4 million year-over-year were primarily attributed to cost savings derived from the company's restructured global production network and plant closures. Management noted that these structural changes are creating a leaner, more flexible operating model. Furthermore, restructuring efforts are anticipated to generate over $100 million in savings by 2027. The company also repaid all debt to financial institutions, increasing its net cash to $51.8 million.
3. Positive shift in analyst sentiment and strong momentum. Despite a historical "Sell" consensus rating, there was a noticeable improvement in analyst sentiment during the period. Wall Street Zen upgraded Caesarstone from a "strong sell" to a "hold" rating in August 2026. As of late September 2026, the consensus recommendation from 7 analysts shifted to "Buy," with an average price target of $4.08, suggesting a potential upside of 33.77% from the stock's price around September 26, 2026. This positive re-evaluation by analysts, combined with a "Very Strong" Momentum Score of 95 from AAII, indicated growing investor confidence.
4. Favorable macroeconomic tailwinds in the broader construction materials sector. The construction materials sector entered 2026 on "steadier footing, supported by firm pricing, steady demand and improving operating conditions." Public infrastructure spending, bolstered by significant unspent funds from the Infrastructure Investment and Jobs Act (IIJA), continues to anchor demand through and beyond 2026. Additionally, large private construction projects, including data centers and advanced manufacturing, are contributing to multi-year demand in specific markets. The global building materials market is projected to grow at a CAGR of 3.91% from 2026 to 2035, with North America expected to expand at the fastest rate.
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Stock Movement Drivers
Fundamental Drivers
The 54.3% change in CSTE stock from 5/31/2026 to 9/28/2026 was primarily driven by a 56.2% change in the company's P/S Multiple.| (LTM values as of) | 5312026 | 9282026 | Change |
|---|---|---|---|
| Stock Price ($) | 1.86 | 2.87 | 54.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 386 | 382 | -1.2% |
| P/S Multiple | 0.2 | 0.3 | 56.2% |
| Shares Outstanding (Mil) | 35 | 35 | 0.0% |
| Cumulative Contribution | 54.3% |
Market Drivers
5/31/2026 to 9/28/2026| Return | Correlation | |
|---|---|---|
| CSTE | 54.3% | |
| Market (SPY) | 1.5% | 15.9% |
| Sector (XLI) | -2.3% | 20.5% |
Fundamental Drivers
The 109.5% change in CSTE stock from 2/28/2026 to 9/28/2026 was primarily driven by a 120.0% change in the company's P/S Multiple.| (LTM values as of) | 2282026 | 9282026 | Change |
|---|---|---|---|
| Stock Price ($) | 1.37 | 2.87 | 109.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 401 | 382 | -4.7% |
| P/S Multiple | 0.1 | 0.3 | 120.0% |
| Shares Outstanding (Mil) | 35 | 35 | -0.1% |
| Cumulative Contribution | 109.5% |
Market Drivers
2/28/2026 to 9/28/2026| Return | Correlation | |
|---|---|---|
| CSTE | 109.5% | |
| Market (SPY) | 12.2% | 13.6% |
| Sector (XLI) | -4.2% | 21.0% |
Fundamental Drivers
The 102.1% change in CSTE stock from 8/31/2025 to 9/28/2026 was primarily driven by a 115.2% change in the company's P/S Multiple.| (LTM values as of) | 8312025 | 9282026 | Change |
|---|---|---|---|
| Stock Price ($) | 1.42 | 2.87 | 102.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 406 | 382 | -6.0% |
| P/S Multiple | 0.1 | 0.3 | 115.2% |
| Shares Outstanding (Mil) | 35 | 35 | -0.1% |
| Cumulative Contribution | 102.1% |
Market Drivers
8/31/2025 to 9/28/2026| Return | Correlation | |
|---|---|---|
| CSTE | 102.1% | |
| Market (SPY) | 20.0% | 17.6% |
| Sector (XLI) | 12.5% | 15.7% |
Fundamental Drivers
The -31.0% change in CSTE stock from 8/31/2023 to 9/28/2026 was primarily driven by a -39.8% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 8312023 | 9282026 | Change |
|---|---|---|---|
| Stock Price ($) | 4.16 | 2.87 | -31.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 634 | 382 | -39.8% |
| P/S Multiple | 0.2 | 0.3 | 14.9% |
| Shares Outstanding (Mil) | 35 | 35 | -0.2% |
| Cumulative Contribution | -31.0% |
Market Drivers
8/31/2023 to 9/28/2026| Return | Correlation | |
|---|---|---|
| CSTE | -31.0% | |
| Market (SPY) | 76.5% | 16.9% |
| Sector (XLI) | 62.8% | 16.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CSTE Return | -10% | -48% | -35% | 14% | -56% | 58% | -76% |
| Peers Return | 56% | -25% | 40% | 6% | -2% | -10% | 52% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| CSTE Win Rate | 50% | 25% | 58% | 42% | 50% | 67% | |
| Peers Win Rate | 63% | 45% | 55% | 60% | 50% | 42% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 56% | |
Max Drawdowns [4] | |||||||
| CSTE Max Drawdown | -39% | -55% | -45% | -43% | -81% | -75% | |
| Peers Max Drawdown | -20% | -41% | -25% | -24% | -30% | -32% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MHK, DD, BLDR, HD, LOW.
[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] 2026 data is for the year up to 9/28/2026 (YTD)
How Low Can It Go
| Event | CSTE | S&P 500 |
|---|---|---|
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -17.0% | -7.8% |
| % Gain to Breakeven | 20.4% | 8.5% |
| Time to Breakeven | 14 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -33.8% | -9.5% |
| % Gain to Breakeven | 51.0% | 10.5% |
| Time to Breakeven | 166 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -41.9% | -6.7% |
| % Gain to Breakeven | 72.2% | 7.1% |
| Time to Breakeven | 357 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -30.8% | -33.7% |
| % Gain to Breakeven | 44.6% | 50.9% |
| Time to Breakeven | 81 days | 140 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -31.8% | -3.7% |
| % Gain to Breakeven | 46.7% | 3.9% |
| Time to Breakeven | 145 days | 6 days |
In The Past
Caesarstone's stock fell -17.0% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 20.4% gain to breakeven.
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Asset Allocation
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| Event | CSTE | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -33.8% | -9.5% |
| % Gain to Breakeven | 51.0% | 10.5% |
| Time to Breakeven | 166 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -41.9% | -6.7% |
| % Gain to Breakeven | 72.2% | 7.1% |
| Time to Breakeven | 357 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -30.8% | -33.7% |
| % Gain to Breakeven | 44.6% | 50.9% |
| Time to Breakeven | 81 days | 140 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -31.8% | -3.7% |
| % Gain to Breakeven | 46.7% | 3.9% |
| Time to Breakeven | 145 days | 6 days |
In The Past
Caesarstone's stock fell -17.0% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 20.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Caesarstone (CSTE)
Caesarstone Ltd. (CSTE) is a global manufacturer and marketer specializing in high-quality engineered surfaces, primarily known for its flagship Caesarstone brand quartz products. The company's core business involves developing and producing these durable and aesthetically pleasing engineered quartz slabs, which are predominantly used as kitchen countertops in both indoor and outdoor renovation and remodeling construction markets. Operating across significant regions including the United States, Australia, Canada, Europe, Asia, and the Middle East, Caesarstone maintains a strong international presence.
In addition to its signature engineered quartz, Caesarstone offers a diversified product portfolio that includes porcelain surfaces under the Lioli brand, suitable for flooring and cladding applications. The company also resells natural stones and provides a range of ancillary fabrication tools, installation accessories, and sinks. These products extend beyond kitchen countertops to various other residential and non-residential applications such as vanity tops, wall panels, backsplashes, and furniture, offering comprehensive surfacing solutions.
Caesarstone distributes its extensive product line through a multi-channel approach, selling directly to fabricators, sub-distributors, and resellers. This strategy ensures broad market reach for its engineered quartz, porcelain, and natural stone offerings, effectively catering to the diverse needs of customers in the renovation, remodeling, and new construction sectors worldwide, encompassing both residential and commercial projects.
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CSTE is like **Mohawk Industries, but focused on engineered stone countertops and premium surfaces** for kitchens and other applications.
Think of CSTE as a **Kohler, but for engineered kitchen and bath surfaces** instead of fixtures.
AI Analysis | Feedback
- Engineered Quartz Surfaces: Premium engineered quartz slabs primarily used for kitchen countertops, but also for various other interior and exterior surface applications under the Caesarstone brand.
- Porcelain Products: Porcelain surfaces sold under the Lioli brand, mainly utilized for flooring and cladding applications.
- Natural Stones: Various types of natural stones that the company resells to its customers.
- Ancillary Fabrication Tools and Installation Accessories: Tools and accessories necessary for the fabrication and installation of their surfacing products.
- Sinks and Materials: A range of sinks and other related materials offered alongside their primary surfacing products.
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Caesarstone (CSTE) sells primarily to other companies.
Based on the provided information, Caesarstone's major customers are the businesses it sells its products to directly. These customer categories include:
- Fabricators
- Sub-distributors
- Resellers
- Independent distributors
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Yosef (Yos) Shiran, Chief Executive Officer
Mr. Shiran has served as CEO of Caesarstone Ltd. since 2023, and previously held the position from January 2009 until August 2016. He possesses over 25 years of CEO experience across both private and publicly traded companies. During the period between his two tenures at Caesarstone (2016-2023), he founded several start-up companies in the e-commerce and technology sectors and also provided management services for various companies. Prior to his initial term as CEO of Caesarstone, he served as CEO of various public companies listed on the NYSE, LSE, and TASE, including Tefron Ltd. (NYSE: TFR) from 2001 to 2008 and Technoplast Industries Ltd. from 1995 to 2000. He also co-founded and served as CEO of SENSEQ Ltd., founded and was CEO of Elight Ltd., and co-founded and chaired the board of Inflow Ltd.
Nahum Trost, Chief Financial Officer
Mr. Trost was appointed Chief Financial Officer effective September 1, 2021, and is responsible for the company's overall financial operations and strategy. Before becoming CFO, he served as Caesarstone's Director of Finance, leading corporate finance since 2014. He brings over 18 years of experience in various financial roles, including extensive experience in financing, capital, and accounting, primarily with companies focused internationally. Prior to joining Caesarstone in April 2014, Mr. Trost held various positions at Lumenis Ltd., with his last role being Vice President of Corporate Finance. He also began his career as a CPA with Ernst & Young Israel.
Chen Livne, Chief Information Officer & Global Operations
Mr. Livne has been serving as Chief Information Officer & Global Operations since December 2025, having previously held the role of Chief Information Officer of the company since March 2024. Before joining Caesarstone, he held senior executive IT leadership positions, most recently as Vice President of IT at ProteanTecs from May 2021 to March 2024, where he led transformative IT initiatives in a high-growth startup environment.
Kenneth Williams, President, Canada
Mr. Williams joined Caesarstone in March 2016 and specializes in building strong teams that prioritize high performance, people, innovation, customer focus, and credibility. He previously held various senior executive-level leadership positions, including Executive VP of Sales and Marketing in several Masco Corporation divisions, as well as general management and leadership roles at Fortune Brands, the Redhill Company Ltd., and Thorn Stevenson Kellogg Management Consultants.
Kobi Brener, President, US
Mr. Brener has served as President of Caesarstone US since October 2025. Prior to this role, he was the Chief Financial Officer of Caesarstone US starting in December 2023. From 2022 to 2023, Mr. Brener served as CFO of Energix, a renewable energy company, and from 2013 to 2021, he was CFO of Master Meter, a company specializing in water measurement and end-to-end solutions and management. He also worked as a CPA with KPMG between 1999 and 2004.
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Silicosis-related Legal Liabilities and Regulatory Changes
Caesarstone is exposed to significant legal and financial risks due to ongoing bodily injury litigation related to respirable crystalline silica exposure. The company has already made substantial provisions for silicosis claims, with potential for additional liabilities from pending cases. Regulatory changes, such as the ban on engineered stone containing crystalline silica in Australia and the possibility of similar actions in other regions, pose a direct threat to Caesarstone's core product offerings and business model. Management has warned that adverse verdicts and limited insurance coverage could materially harm the company's equity, cash flow, and even solvency. *Market Softness, Economic Downturns, and Intense Competition
The company is experiencing revenue contraction driven by global economic headwinds, particularly a slowdown in the residential repair and remodeling (R&R) market, especially in the United States, which is Caesarstone's largest market. This market sensitivity to high interest rates and economic uncertainty significantly impacts demand for their products. Furthermore, Caesarstone faces intense competitive pressures from low-cost quartz manufacturers, which has led to persistent margin pressure and operational headwinds. *Restructuring and Operational Challenges
Caesarstone is undergoing a significant strategic restructuring, including the closure of manufacturing facilities and a shift towards an asset-light, outsourced production model for quartz. While this transformation aims for long-term efficiency and annual savings, it entails substantial near-term risks such as non-cash impairment expenses and estimated cash costs. The transition itself presents operational challenges and complexities that could impact profitability and stability during the overhaul period.AI Analysis | Feedback
The increasing regulatory scrutiny and potential bans on engineered stone due to health concerns related to silicosis among fabrication workers. Australia has already announced a ban on engineered stone, and if similar restrictions or prohibitions are adopted in other significant markets, it could severely impact the demand and viability of Caesarstone's core engineered quartz product line.
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Addressable Markets for Caesarstone (CSTE)
Caesarstone Ltd. primarily develops, manufactures, and markets engineered quartz and other surfacing products, including porcelain. The addressable markets for their main products are substantial across global and regional levels.
Engineered Quartz Surfaces/Stone/Countertops
- The global engineered quartz surface market was valued at approximately USD 24.88 billion in 2025 and is projected to reach USD 37.31 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 8.6%. Another estimate places the global engineered quartz surface market at USD 10.25 billion in 2023, with a projection to reach USD 27.48 billion by 2033, demonstrating a CAGR of 10.36% from 2023 to 2033.
- For global quartz countertops specifically, the market was valued at USD 85.63 billion in 2024 and is projected to reach USD 99.54 billion by 2032, growing at a CAGR of 1.90% from 2026 to 2032. The global quartz kitchen countertops market size was approximately USD 6.83 billion in 2024 and is projected to grow to USD 9.85 billion by 2032, at a CAGR of 5.4% during the forecast period.
- In North America, which holds a significant share of the global quartz countertop market (over 31.5% as of 2024), the U.S. Engineered Quartz Stone (EQS) Market was valued at USD 4.06 billion in 2024 and is anticipated to reach USD 7.56 billion by 2032, with a CAGR of 7.52% from 2025 to 2032. North America is identified as the largest market for engineered quartz surfaces, holding approximately 40% of the global market share. The U.S. alone accounts for 29% of global quartz countertop demand.
Porcelain Products (for flooring and cladding)
- The global porcelain tiles market is expected to grow from USD 9.73 billion in 2024 to USD 18.33 billion by 2035, at a CAGR of 5.93% from 2025 to 2035.
- The broader global ceramic and porcelain tiles market was valued at approximately USD 449.86 billion in 2025 and is projected to reach USD 845.80 billion by 2034, with a CAGR of 7.3%. The porcelain tiles segment alone accounted for nearly 33% of the global market earnings in 2023.
- In the U.S. ceramic tiles market, which includes porcelain, the market size was calculated at USD 5.19 billion in 2025 and is expected to reach USD 9.64 billion by 2034, growing at a CAGR of 7.11% from 2025 to 2034. Porcelain tiles held 55.12% of the U.S. ceramic tiles market share in 2025.
Overall Countertops Market (inclusive of various materials like quartz, granite, etc.)
- The global countertops market was estimated at USD 157.74 billion in 2025 and is projected to reach USD 267.38 billion by 2033, growing at a CAGR of 6.8% from 2026 to 2033.
- The global kitchen countertop market was valued at USD 52.7 billion in 2020 and is projected to reach USD 80.4 billion by 2032, with a CAGR of 3.9% from 2023 to 2032.
- The U.S. countertops market was estimated at USD 33.77 billion in 2025 and is expected to reach USD 52.48 billion by 2033, witnessing a CAGR of 5.7% from 2026 to 2033. Another estimate for the U.S. countertop market in 2025 is USD 86.4 billion, forecast to expand to USD 156.2 billion by 2035.
- Demand for kitchen countertops in the U.S. is forecast to rise to USD 37.3 billion in 2026.
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Caesarstone (CSTE) is focusing on several key drivers to fuel its revenue growth over the next 2-3 years, primarily through product innovation, strategic market expansion, and operational efficiencies.
One of the primary drivers is the **expansion of its porcelain product line and multi-material portfolio**. Caesarstone is actively investing in and growing its porcelain offerings, which is identified as a major growth factor, especially as the global countertop market diversifies. The company completed the acquisition of majority ownership in Lioli Ceramica, an India-based porcelain producer, and increased its stake to 81% in July 2024. This strategy aims to diversify revenue beyond its core engineered quartz into porcelain, sintered slabs, and complementary natural stone, thereby expanding its addressable market and mitigating risks associated with crystalline silica restrictions in some regions.
Another significant driver is the **introduction of crystalline silica-free products and innovation in surface technology**. Responding to evolving occupational health standards and regulatory changes, such as the engineered stone ban in Australia (2024-2025), Caesarstone is accelerating its pipeline of silica-free alternatives. The company launched its "Caesarstone ICON™" advanced fusion surface category, which is crystalline silica-free and incorporates approximately 80% recycled materials, in October 2024, with additional designs slated for release in April and June 2025. This initiative is crucial for maintaining market share in regulated jurisdictions and capturing new market segments.
Finally, **operational efficiencies and cost optimization initiatives** are expected to contribute to future revenue growth by improving profitability and competitiveness. Caesarstone has been undergoing significant restructuring, including optimizing its manufacturing footprint by transitioning from in-house production to a global network of third-party manufacturing partners. The closure of facilities like Bar-Lev in November 2025 and Sdot-Yam and Richmond-Hill are projected to generate substantial annualized cost savings. These efforts are part of a broader plan to enhance efficiency, align production with demand, and achieve a return to positive adjusted EBITDA by the third quarter of 2026.
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Capital Allocation Decisions of Caesarstone (CSTE) Over the Last 3-5 Years
Share Repurchases
- Caesarstone has not reported any significant share repurchase programs or made substantial share repurchases over the last 3-5 years.
Share Issuance
- The number of shares outstanding for Caesarstone showed a minor increase from approximately 34 million at the end of 2022 to 35 million at the end of 2023, remaining at that level through September 2025.
- This slight increase (approximately 1 million shares) likely reflects minor dilution from employee stock compensation plans rather than significant capital-raising share issuances.
Outbound Investments
- Caesarstone has focused on expanding its porcelain capabilities, including increasing its stake in an Indian manufacturing facility.
- The company continues to invest in brand strength and product innovation, particularly in its porcelain offerings.
Capital Expenditures
- For the last 12 months ending December 31, 2025, capital expenditures amounted to approximately $9.04 million.
- Capital expenditures in the fourth quarter of 2025 were approximately $2.93 million.
- The primary focus of capital expenditures includes strategic restructuring initiatives, such as the closure of certain manufacturing facilities (e.g., Bar-Lev and Sdot Yam) and the transition towards a global network of third-party production partners to optimize operations and achieve cost savings.
Peer Outperformance in Building Products
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| CSTE | Caesarstone | -15.3% | -0.7x | 95.2% | -32.9% | -76.8% | — |
| WOR | Worthington Enterprises | -16.6% | 19.0x | 13.5% | 54.8% | 84.4% | +161pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Construction & Engineering | 31 | 4.6% | 112.2% | 181.7% | FIX 2219% · STRL 2066% · CDNL 2032% |
| Marine Transportation | 9 | 73.4% | 97.7% | 146.2% | HOS 41689% · ASC 475% · MATX 193% |
| Construction Machinery & Heavy Transportation Equipment | 13 | 3.9% | 46.6% | 117.6% | CAT 352% · WAB 242% · ALSN 241% |
| Aerospace & Defense | 55 | -9.6% | 67.4% | 70.1% | ATI 969% · FTAI 836% · HWM 626% |
| Rail Transportation | 7 | 19.0% | 58.6% | 52.1% | FSTR 139% · CSX 65% · RAIL 57% |
| Industrial Machinery & Supplies & Components | 72 | 10.9% | 52.2% | 47.3% | CRS 1133% · PSIX 1083% · EROC 583% |
| Trading Companies & Distributors | 19 | 5.0% | 36.0% | 45.4% | DXPE 533% · AIT 282% · WCC 221% |
| Diversified Support Services | 32 | 14.8% | 32.4% | 32.1% | LIME 3263% · TH 412% · WLFC 332% |
| Cargo Ground Transportation | 16 | 34.9% | -0.4% | 28.6% | XPO 257% · R 213% · CVLG 140% |
| Security & Alarm Services | 10 | -24.6% | 48.2% | 25.0% | CIX 163% · VRME 151% · MG 111% |
| Electrical Components & Equipment | 41 | 2.6% | 45.6% | 19.4% | POWL 2297% · BE 1317% · VRT 910% |
| Building Products ← | 34 | -12.6% | 0.9% | 17.0% | LMB 583% · GFF 373% · PPIH 325% |
| Industrial Conglomerates | 17 | 9.9% | 5.8% | -5.8% | RCMT 566% · CSW 135% · DD 74% |
| Passenger Ground Transportation | 3 | -32.0% | 41.2% | -6.4% | UBER 53% · CAR -6% · LYFT -72% |
| Agricultural & Farm Machinery | 17 | 3.3% | 0.3% | -8.6% | BLBD 172% · DE 109% · GENC 57% |
| Environmental & Facilities Services | 30 | -15.4% | 11.3% | -10.5% | CECO 909% · ADUR 440% · NVRI 306% |
| Research & Consulting Services | 13 | -18.1% | -26.6% | -14.1% | HURN 202% · CRAI 75% · GRNQ 66% |
| Data Processing & Outsourced Services | 6 | -34.5% | -15.9% | -30.0% | EXLS 37% · BR 6% · G -27% |
| Office Services & Supplies | 9 | 15.9% | 17.8% | -33.2% | PBI 168% · TILE 134% · HNI 46% |
| Passenger Airlines | 11 | 16.6% | 16.3% | -34.3% | LTM 2778% · UAL 129% · DAL 101% |
| Human Resource & Employment Services | 22 | 0.2% | -16.1% | -38.2% | BBSI 67% · ADP 47% · HQI 12% |
| Air Freight & Logistics | 12 | -23.3% | -23.7% | -38.6% | CHRW 89% · FDX 81% · EXPD 65% |
| Airport Services | 3 | -71.5% | -77.9% | -68.0% | JOBY -37% · ASLE -68% · UP -100% |
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Would You Still Hold Caesarstone Stock If It Fell 30%? | 10/17/2025 |
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 127.72 |
| Mkt Cap | 12.7 |
| Rev LTM | 12,813 |
| Op Inc LTM | 513 |
| FCF LTM | 725 |
| FCF 3Y Avg | 901 |
| CFO LTM | 1,157 |
| CFO 3Y Avg | 1,322 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 1.5% |
| Rev Chg 3Y Avg | -4.3% |
| Rev Chg Q | 4.9% |
| QoQ Delta Rev Chg LTM | 1.5% |
| Op Inc Chg LTM | -2.8% |
| Op Inc Chg 3Y Avg | -11.2% |
| Op Mgn LTM | 6.8% |
| Op Mgn 3Y Avg | 8.5% |
| QoQ Delta Op Mgn LTM | 0.2% |
| CFO/Rev LTM | 10.7% |
| CFO/Rev 3Y Avg | 10.8% |
| FCF/Rev LTM | 7.5% |
| FCF/Rev 3Y Avg | 6.6% |
Price Behavior
| Market Price | $2.87 | |
| Market Cap ($ Bil) | 0.1 | |
| First Trading Date | 03/22/2012 | |
| Distance from 52W High | -19.4% | |
| 50 Days | 200 Days | |
| DMA Price | $2.82 | $1.98 |
| DMA Trend | up | up |
| Distance from DMA | 1.9% | 44.6% |
| 3M | 1YR | |
| Volatility | 76.7% | 101.0% |
| Downside Capture | -140.70 | 97.35 |
| Upside Capture | 29.86 | 157.90 |
| Correlation (SPY) | 9.8% | 17.7% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.03 | 1.40 | 1.21 | 1.19 | 1.49 | 0.87 |
| Up Beta | 3.91 | 3.99 | 3.06 | 2.73 | 2.53 | 1.46 |
| Down Beta | 4.82 | 2.22 | 2.17 | -0.17 | 0.73 | 0.11 |
| Up Capture | 184% | 133% | 130% | 221% | 250% | 41% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 10 | 19 | 32 | 64 | 117 | 332 |
| Down Capture | -628% | -118% | -101% | 38% | 110% | 102% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 10 | 21 | 28 | 57 | 119 | 379 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSTE | |
|---|---|---|---|---|
| CSTE | 93.1% | 100.7% | 1.10 | - |
| Sector ETF (XLI) | 12.6% | 17.2% | 0.52 | 15.3% |
| Equity (SPY) | 17.4% | 13.0% | 0.96 | 17.7% |
| Gold (GLD) | 9.7% | 29.6% | 0.31 | 5.9% |
| Commodities (DBC) | 42.7% | 20.7% | 1.60 | -9.6% |
| Real Estate (VNQ) | 4.3% | 13.6% | 0.06 | -0.3% |
| Bitcoin (BTCUSD) | -23.0% | 44.8% | -0.46 | 1.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSTE | |
|---|---|---|---|---|
| CSTE | -24.5% | 65.8% | -0.16 | - |
| Sector ETF (XLI) | 12.9% | 17.6% | 0.56 | 21.4% |
| Equity (SPY) | 13.5% | 17.2% | 0.60 | 21.1% |
| Gold (GLD) | 18.1% | 18.9% | 0.77 | 3.5% |
| Commodities (DBC) | 11.0% | 19.5% | 0.44 | 1.3% |
| Real Estate (VNQ) | 0.9% | 18.9% | -0.06 | 14.7% |
| Bitcoin (BTCUSD) | 14.4% | 52.4% | 0.45 | 10.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSTE | |
|---|---|---|---|---|
| CSTE | -21.5% | 56.1% | -0.20 | - |
| Sector ETF (XLI) | 13.4% | 20.0% | 0.59 | 27.2% |
| Equity (SPY) | 15.4% | 17.9% | 0.73 | 26.6% |
| Gold (GLD) | 11.7% | 16.4% | 0.58 | 4.2% |
| Commodities (DBC) | 8.5% | 18.1% | 0.38 | 7.5% |
| Real Estate (VNQ) | 4.7% | 20.7% | 0.19 | 20.1% |
| Bitcoin (BTCUSD) | 63.8% | 66.2% | 1.03 | 7.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 0 | 0 | 0 |
| Median Positive | |||
| Median Negative | |||
| Max Positive | |||
| Max Negative | |||
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 0 | 0 | 0 |
| Median Positive | |||
| Median Negative | |||
| Max Positive | |||
| Max Negative | |||
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/05/2026 | 6-K |
| 03/31/2026 | 05/13/2026 | 6-K |
| 12/31/2025 | 03/04/2026 | 20-F |
| 09/30/2025 | 11/12/2025 | 6-K |
| 06/30/2025 | 08/06/2025 | 6-K |
| 03/31/2025 | 05/07/2025 | 6-K |
| 12/31/2024 | 03/05/2025 | 20-F |
| 09/30/2024 | 11/13/2024 | 6-K |
| 06/30/2024 | 08/07/2024 | 6-K |
| 03/31/2024 | 05/08/2024 | 6-K |
| 12/31/2023 | 03/06/2024 | 20-F |
| 09/30/2023 | 11/08/2023 | 6-K |
| 06/30/2023 | 08/09/2023 | 6-K |
| 03/31/2023 | 05/10/2023 | 6-K |
| 12/31/2022 | 03/15/2023 | 20-F |
| 09/30/2022 | 11/09/2022 | 6-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/05/2026 | 6-K |
| 03/31/2026 | 05/13/2026 | 6-K |
| 12/31/2025 | 03/04/2026 | 20-F |
| 09/30/2025 | 11/12/2025 | 6-K |
| 06/30/2025 | 08/06/2025 | 6-K |
| 03/31/2025 | 05/07/2025 | 6-K |
| 12/31/2024 | 03/05/2025 | 20-F |
| 09/30/2024 | 11/13/2024 | 6-K |
| 06/30/2024 | 08/07/2024 | 6-K |
| 03/31/2024 | 05/08/2024 | 6-K |
| 12/31/2023 | 03/06/2024 | 20-F |
| 09/30/2023 | 11/08/2023 | 6-K |
| 06/30/2023 | 08/09/2023 | 6-K |
| 03/31/2023 | 05/10/2023 | 6-K |
| 12/31/2022 | 03/15/2023 | 20-F |
| 09/30/2022 | 11/09/2022 | 6-K |
| 06/30/2022 | 08/03/2022 | 6-K |
| 03/31/2022 | 05/11/2022 | 6-K |
| 12/31/2021 | 03/15/2022 | 20-F |
| 09/30/2021 | 11/03/2021 | 6-K |
| 06/30/2021 | 08/04/2021 | 6-K |
| 03/31/2021 | 05/05/2021 | 6-K |
| 12/31/2020 | 03/22/2021 | 20-F |
| 09/30/2020 | 11/04/2020 | 6-K |
| 06/30/2020 | 08/05/2020 | 6-K |
| 03/31/2020 | 05/06/2020 | 6-K |
| 12/31/2019 | 03/23/2020 | 20-F |
| 09/30/2019 | 11/06/2019 | 6-K |
Caesarstone — Investor Video Playlist
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Building Products Resources |
| Building Design+Construction |
| Construction Dive |
| Architectural Record |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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