Caesarstone Stock Story

CSTE
 Stock
  

USD 10.50  0.25  2.44%   

Caesarstone Sdot-Yam is scheduled to announce its earnings today. Caesarstone Sdot-Yam Earnings before Tax are projected to decrease significantly based on the last few years of reporting. The past year's Earnings before Tax were at 20.92 Million. The current year Enterprise Value is expected to grow to about 621 M, whereas Average Equity is forecasted to decline to about 479.3 M. As many millenniums are trying to avoid industrials space, it makes sense to digest Caesarstone Sdot-Yam a little further and try to understand its current market patterns. We will analyze why Caesarstone Sdot-Yam investors may still consider a stake in the business.
Published over three months ago
View all stories for Caesarstone Sdot-Yam | View All Stories

Will Caesarstone (NASDAQ:CSTE) continue to grow in June?

The company currently holds 151.58 M in liabilities with Debt to Equity (D/E) ratio of 0.3, which may suggest Caesarstone Sdot-Yam is not taking enough advantage from borrowing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Caesarstone Sdot-Yam has an asset utilization ratio of 115.1 percent. This indicates that the company is making $1.15 for each dollar of assets. An increasing asset utilization means that Caesarstone Sdot-Yam is more efficient with each dollar of assets it utilizes for everyday operations.
Caesarstone Sdot-Yam financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Caesarstone Sdot-Yam, including all of Caesarstone Sdot-Yam's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Caesarstone Sdot-Yam assets, the company is considered highly leveraged. Understanding the composition and structure of overall Caesarstone Sdot-Yam debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Caesarstone Total Liabilities

Caesarstone Sdot-Yam liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Caesarstone Sdot-Yam has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Caesarstone Sdot-Yam balance sheet include debt obligations and money owed to different Caesarstone Sdot-Yam vendors, workers, and loan providers. Below is the chart of Caesarstone short long-term liabilities accounts currently reported on its balance sheet.
You can use Caesarstone Sdot-Yam financial leverage analysis tool to get a better grip on understanding its financial position

How important is Caesarstone Sdot-Yam's Liquidity

Caesarstone Sdot-Yam financial leverage refers to using borrowed capital as a funding source to finance Caesarstone Sdot-Yam ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Caesarstone Sdot-Yam financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Caesarstone Sdot-Yam's total debt and its cash.

Detailed Perspective On Caesarstone Sdot-Yam

The latest Caesarstone Sdot-Yam price dip could raise concerns from shareholders as the firm is trading at a share price of 9.55 on 169,417 in volume. The company directors and management were unable to exploit market volatilities in April. However, diversifying your overall positions with Caesarstone Sdot-Yam can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.2. The current volatility is consistent with the ongoing market swings in April 2022 as well as with Caesarstone Sdot-Yam unsystematic, company-specific events.

Asset Breakdown

398 M
Assets Non Current
Goodwill
382.9 M
Current Assets
Total Assets780.91 Million
Current Assets382.88 Million
Assets Non Current398.03 Million
Goodwill54.11 Million
Tax Assets9.38 Million

Another 3 percent surge for Caesarstone Sdot-Yam

Latest treynor ratio is at -0.71.
As of the 11th of May 2022, Caesarstone Sdot-Yam shows the mean deviation of 1.5, and Risk Adjusted Performance of (0.34). Caesarstone Sdot-Yam technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Caesarstone Sdot-Yam, which can be compared to its rivals. Please confirm Caesarstone Sdot-Yam jensen alpha, and the relationship between the coefficient of variation and potential upside to decide if Caesarstone Sdot-Yam is priced correctly, providing market reflects its regular price of 9.55 per share. Given that Caesarstone Sdot-Yam has jensen alpha of (0.42), we suggest you to validate Caesarstone Sdot-Yam's prevailing market performance to make sure the company can sustain itself at a future point.

Although many other companies under the building products & equipment industry are still a bit expensive, Caesarstone Sdot-Yam may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Caesarstone as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Caesarstone Sdot-Yam.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Caesarstone Sdot-Yam. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com