Caesarstone Ltd

The company's capital structure is characterized by a low debt-to-equity ratio of 0.02, indicating minimal leverage, and a current ratio of 2.9, suggesting strong short-term liquidity. With $103.57 million in cash and equivalents, Caesarstone maintains a robust liquidity position, which is further supported by a market price of $1.58 and a market cap of $54.63 million. The price-to-book ratio of 0.18 and price-to-tangible-book ratio of 0.18 suggest the company is trading at a significant discount to its book value.

Profitability metrics reveal a challenging operating environment for Caesarstone. The company reported a net loss of $9.18 million and an operating loss of $9.25 million, resulting in a negative return on equity of -3.01% and a negative return on assets of -1.67%. These figures fall well below the industry's preferred metrics for profitability and returns, indicating a need for operational improvements or cost reductions to align with sector benchmarks.

Geographically, Caesarstone's revenue is concentrated in key markets, with a significant portion derived from North America and Europe. The company's exposure to these regions may pose risks in the event of economic downturns or regulatory changes. Additionally, the company's revenue concentration in a few major markets could limit its ability to diversify and mitigate regional economic volatility.

Looking ahead, Caesarstone's growth trajectory appears uncertain. The company's free cash flow is negative at -$6.49 million, and capital expenditures of -$4.38 million suggest ongoing investment in operations. However, the lack of positive revenue growth and the presence of a net loss indicate that the company may face challenges in achieving sustainable growth in the near term. The outlook for the current fiscal year and the next fiscal year remains cautious, with no significant revenue increases projected.

Risk factors for Caesarstone include the potential for dilution, although the risk is currently assessed as low. The company has no immediate filing-based liquidity or dilution flags, and the dilution potential is minimal. However, the company's negative net income and operating income could impact its ability to maintain financial stability without additional capital injections. The risk assessment indicates that while there are no immediate concerns, the company must address its profitability issues to avoid long-term financial risks.

Recent events and filings do not indicate any significant changes in the company's financial or operational status. The company's ESG scores, including a Social pillar score of 55.61 and a Governance pillar score of 62.94, suggest moderate ESG performance. The ESG controversies score of 100.00 indicates that the company has not been involved in any major controversies, which is a positive sign for its reputation and stakeholder relations.

Caesarstone maintains a low debt-to-equity ratio of 0.02, significantly below the cohort median of 0.29.

The company exhibits low dilution and liquidity risks according to internal risk flag assessments.

Caesarstone's current ratio of 1.83 indicates adequate short-term liquidity to cover immediate obligations.

Capital expenditure relative to revenue is above the cohort median, suggesting continued investment in operations.

Long-term debt decreased substantially to $3.1 million in FY2026 from $7.9 million in FY2024.

Operating and net margins rank in the bottom quartile compared to 248 cohort peers.

The company faces high credit risk and negative returns on equity, assets, and invested capital.

Revenue $94.4M, −3,5% YoY; Operating income −258,6% YoY.

• ▍Revenue $94.4M, −3,5% YoY
• ▍Operating income −258,6% YoY
• ▍Net income −261,2% YoY
• ▍Free cash flow −286,7% YoY
• ▍Net margin -93.1%

Revenue $102.1M, −5,1% YoY; Operating income −293,4% YoY.

• ▍Revenue $102.1M, −5,1% YoY
• ▍Operating income −293,4% YoY
• ▍Net income −328,6% YoY
• ▍Free cash flow −361,2% YoY
• ▍Net margin -17.7%

Revenue $101.1M, −15,3% YoY; Operating income −36,4% YoY.

• ▍Revenue $101.1M, −15,3% YoY
• ▍Operating income −36,4% YoY
• ▍Net income −102,1% YoY
• ▍Free cash flow −192,5% YoY
• ▍Net margin -18.3%

Revenue $99.6M; Operating income -$14.8M.

• ▍Revenue $99.6M
• ▍Operating income -$14.8M
• ▍Net margin -12.9%

Revenue $97.9M; Operating income -$23.0M.

• ▍Revenue $97.9M
• ▍Operating income -$23.0M
• ▍Net margin -24.9%

Revenue $107.6M; Operating income -$4.1M.

• ▍Revenue $107.6M
• ▍Operating income -$4.1M
• ▍Net margin -3.9%

Revenue $119.4M; Operating income -$9.3M.

• ▍Revenue $119.4M
• ▍Operating income -$9.3M
• ▍Net margin -7.7%

Revenue $397.2M, −10,4% YoY; Operating income −200,1% YoY.

• ▍Revenue $397.2M, −10,4% YoY
• ▍Operating income −200,1% YoY
• ▍Net income −220,9% YoY
• ▍Free cash flow −267,3% YoY
• ▍Net margin -34.6%

Revenue $443.2M, −21,6% YoY; Operating income +52,4% YoY.

• ▍Revenue $443.2M, −21,6% YoY
• ▍Operating income +52,4% YoY
• ▍Net income +60,2% YoY
• ▍Free cash flow +59,8% YoY
• ▍Net margin -9.7%

Revenue $565.2M, −18,2% YoY; Operating income −50,0% YoY.

• ▍Revenue $565.2M, −18,2% YoY
• ▍Operating income −50,0% YoY
• ▍Net income −88,7% YoY
• ▍Free cash flow −92,5% YoY
• ▍Net margin -19.0%

Revenue $690.8M, +7,3% YoY; Operating income −314,0% YoY.

• ▍Revenue $690.8M, +7,3% YoY
• ▍Operating income −314,0% YoY
• ▍Net income −400,8% YoY
• ▍Free cash flow −539,9% YoY
• ▍Net margin -8.3%

Revenue $643.9M; Operating income $27.4M.

• ▍Revenue $643.9M
• ▍Operating income $27.4M
• ▍Net margin 2.9%