Caesarstone Ltd Stock Fair Value Calculation – CAESARSTONE LTD Reports 20.3% Decrease in Revenue for Q2 FY2023
August 12, 2023
🌥️Earnings Overview
CAESARSTONE LTD ($NASDAQ:CSTE) reported total revenue of USD 143.7 million for the second quarter of FY2023, a 20.3% decrease from the same period of the previous year. This was accompanied by a decrease in net income for the quarter to USD -52.5 million, compared to the net income of 11.2 million reported in the same period of last year. Figures were reported as of June 30 2023 on August 9 2023.
Analysis – Caesarstone Ltd Stock Fair Value Calculation
GoodWhale have conducted an analysis of CAESARSTONE LTD‘s well-being, and concluded that the fair value of the company’s share is around $8.6. This value was determined by our proprietary Valuation Line, which takes into account a range of factors such as the company’s financials, competitive positioning and potential for growth. At present, CAESARSTONE LTD stock is trading at $5.2, meaning that it is currently undervalued by 39.6%. This represents a great opportunity for investors looking to invest in a solid company at a discounted price. Investing in CAESARSTONE LTD now could be a sound financial decision, as the stock is likely to reach its fair value in the near future. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Caesarstone Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 634.41 | -130.68 | -12.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Caesarstone Ltd. More…
| Operations | Investing | Financing |
| 29.59 | -9.29 | -18.72 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Caesarstone Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 637.77 | 266.12 | 10.7 |
Key Ratios Snapshot
Some of the financial key ratios for Caesarstone Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.1% | -29.2% | -14.8% |
| FCF Margin | ROE | ROA |
| 2.5% | -14.9% | -9.2% |
Peers
The competition between Caesarstone Ltd and its competitors Masonite International Corp, JELD-WEN Holding Inc and Volution Group PLC is fierce, as each of these companies are vying for market share in the home improvement industry. All four companies have their own unique offerings and strategies that they are utilizing to gain an edge in the market. As such, competition between them is always intense, with each striving to provide the best products and services to their customers.
– Masonite International Corp ($NYSE:DOOR)
Masonite International Corp is a leading global manufacturer and marketer of interior and exterior doors. With a market cap of 2.03B as of 2023, the company is doing well and its success is further evidenced by its impressive Return on Equity (ROE) of 29.23%. This figure indicates that Masonite has been able to generate a positive return on its equity investments, which is a sign of a healthy company. Masonite’s strong performance can be attributed to its focus on innovation and creating high-quality products that meet customer needs. The company has also grown through strategic acquisitions and partnerships, which have allowed it to expand its product offerings.
– JELD-WEN Holding Inc ($NYSE:JELD)
JELD-WEN Holding Inc is a leading manufacturer of windows, doors, and other related products. With a market cap of 1.17 billion as of 2023, the company has established itself as a leader in the windows and doors industry. Additionally, the company boasts a Return on Equity of 14.93%, indicating that the company is making efficient use of its resources and achieving strong financial performance. The company has a presence in more than 20 countries and offers a wide range of products and services to its customers.
– Volution Group PLC ($LSE:FAN)
Volution Group PLC is an international provider of ventilation products and services. It designs, manufactures and supplies ventilation products for the residential and commercial sectors, including extractor fans, air conditioning and heating systems. The company’s market cap as of 2023 is 715.6M, which is an indication of its strong financial performance and market position. Its strong financial performance is also evident from its return on equity (ROE) of 15.65%, which indicates that the company is able to generate returns for its shareholders.
Summary
CAESARSTONE LTD experienced a drop in total revenue of 20.3% for the second quarter of FY2023, amounting to a total of USD 143.7 million. Additionally, net income for the quarter dropped to a loss of USD -52.5 million from a profit of 11.2 million reported in the same period of the previous year. This resulted in a decrease in the stock price on the same day these results were reported. Investors may be wary of investing in CAESARSTONE LTD due to the unexpected downturn in the company’s financial performance.
However, potential investors may be encouraged by the company’s ability to continue to turn profits despite significant decreases in revenue.
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