(CSTE) Caesarstone - Ratings and Ratios

Caesarstone Ltd. (NASDAQ:CSTE) is a global leader in the design, development, and manufacturing of engineered stone and related materials, operating under the Caesarstone brand. The company serves a diverse range of markets worldwide, including the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East, Africa, and Israel. Its engineered stone slabs are predominantly utilized for indoor and outdoor kitchen countertops, as well as in renovation, remodeling, and new residential construction projects. Beyond countertops, Caesarstones products are applied in various residential and non-residential settings, including vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces. The company also markets porcelain products under the Lioli brand, targeting countertops, flooring, and cladding applications. Additionally, Caesarstone offers natural stone, sinks, and fabrication tools, while providing resale services for natural stones, fabrication accessories, and installation services. Its distribution network includes direct sales to wholesalers, resellers, and fabricators, as well as indirect sales through independent distributors. Originally established in 1987 as Caesarstone Sdot Yam Ltd., the company rebranded as Caesarstone Ltd. in 2016 and maintains its headquarters in Menashe, Israel.

Over the next three months, CSTE is expected to experience continued volatility, with the stock price potentially stabilizing near its current level of 3.66. The 20-day SMA of 3.99 and 50-day SMA of 4.20 suggest recent downward momentum, while the 200-day SMA of 4.74 indicates a broader downtrend. The ATR of 0.20 signals moderate volatility. On the fundamental side, the companys market cap of 129.52M USD and forward P/E of 8.69 suggest potential undervaluation, though the negative RoE of -9.04 raises concerns about profitability. The P/B ratio of 0.42 and P/S ratio of 0.27 further support the case for undervaluation. Overall, while the stock may see some near-term support, the negative earnings and broader market trends could limit upside potential.