Caesarstone Ltd. Ordinary Shares (CSTE)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at a discount to intrinsic value. Caesarstone, as of the 2026-10-13 close at $2.78, has a $57.2 million market cap. The latest filed quarter, fiscal Q2 2026, showed $96.6 million of revenue and a $15.6 million net loss, a -16.12% net margin. At that close, the provided FairStock figures list EPS of -$4.13, a P/E of -0.67, P/B of 0.94, ROE of -81.30%, ROCE of -5.64%, and D/E of 0.94. Revenue growth is -4.52%, while profit growth is 16.11%—likely an improvement from a worse loss, but not enough to offset the latest red ink. Free cash flow is -$22.5 million, a -39.3% FCF yield. That combination tells me the company is consuming cash and not earning its cost of capital. The product is engineered stone and porcelain, a cyclical building product with many competitors. No obvious moat appears in these numbers: pricing power is weak if revenue is shrinking and margins are negative. The Piotroski F-Score of 7/9 is a modest positive, suggesting some accounting strengths, but the Altman Z-Score of 0.60 is deep in distress territory. P/B below 1 may look cheap, but book value can be eroded by losses, and debt-to-equity near 1 amplifies risk. The Lynch category is none because FairStock sees only 0 years of filed annual results and needs 3, so I cannot classify it. Beta 0.44 means the stock has been less volatile than the market, but low volatility is not a substitute for profitability. Until revenue stabilizes and free cash flow turns positive, the asset discount is speculative.

In plain English: Caesarstone makes engineered stone and porcelain countertops and related products for homes and buildings. The business looks weak: in fiscal Q2 2026, the latest reported quarter, it had about $96.6 million of revenue but lost about $15.6 million, and it burned cash over the past year. At $2.78 a share on 2026-10-13, the price is close to the value of its net assets on the books, but the losses and debt make it hard to call it clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer