| Stock (Symbol) | Stock Price | |
CaesarStone (CSTE) |
$52 |
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| Data is as of | Expected to Report | Sector |
August 20, 2014 |
Nov 04 – Nov 10 |
Retail & Travel |
| Sharek’s Take | ||
 CaesarStone (CSTE) has temporarily lost its luster, even though sales growth last quarter was the best ever. Israel based CaesarStone manufactures quartz slabs, which are then refined into kitchen counter tops, vanity tops, back splashes, tiles and stairs. “Quartz is cheaper & less prone to stains & cracks than granite” — said CSTE’s CEO in a 2012 interview. Recently, CSTE has started selling in IKEA stores and this helped sales jump 30% last qtr, including a 55% jump in US sales (due to IKEA). The negative with IKEA is the margins are lower. BTW, in the US 30% of all sales are for new homes, 55% for remodels and 15% is ommercial. Looking ahead, the company is building a new $115 million plant in Georgia which should be operational by 2015 Q2. Sales and profits here are good, CSTE was a hot stock earlier in the year and now things have cooled down. The stock’s a good one to buy and hold as quartz use is becoming more mainstream. |
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| Just One-Year Chart | ||
 Well, maybe the reason CSTE’s lot its luster is the P/E of 24 is in line with the Est. LTG of 24%. 9% profit growth was a one quarter thing. There’s good growth coming, CSTE should be rising. |
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| Earnings Table | ||
 Sales growth accelerated from 24% 2QtrsAgo to 30% last qtr. Profit growth was 9%, but that was a one-time thing.CSTE met analyst earnings estimates last quarter. Annual Profit Estimates have stayed consistent for months, but the company is expected to have 25% profit growth this year and 23% the year after. Quarterly estimates look good and I feel this is a good stock to own. |
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| Fair Value | ||
 I think this stock’s worth 26 times earnings. the stocks got 10% upside this year, and 37% upside if we look to next year. Furthermore, as more lines get added in the Georgia plant CeasarStone will make additional revenue, and hopefully profits, for years to come. |
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| Ten-Year Chart | ||
 Overall this has been a good stock since it came public in March of 2012. But it now looks like it got a little ahead of itself. And note profit growth was 35% last year, expected to be only 21% this year. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
13 of 24 |
CaesarStone is a solid growth stock for long-term investors. I can see this company — and its stock — expanding 25% a year for three-to-five years. The only negative is the stock’s only undervalued by 1%. |
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Aggressive Growth Portfolio
N/A |
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