| Stock (Symbol) | Stock Price | |
CaesarStone (CSTE) |
$64 |
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| Data is as of | Expected to Report | Sector |
June 10, 2015 |
Aug 4 – Aug 10 |
Retail & Travel |
| Sharek’s Take | ||
| Caesarstone, a quartz counter top manufacturer, opened its first plant outside of Israel in May. Located in Georgia, this new plant will help demand in CSTE’s top market — the United States. Right now just one line is operational and the 2nd line should go live in the fourth qtr. Last qtr CSTE had overall sales growth of 14%, with 27% growth in the US, 19% in Canada (would have been +32% without foreign exchange), Australia 10% (26% without FX), and Israel had sales down 13% (-1% without FX). IKEA is selling Caesarstone countertops and this is driving sales in the US and Canada. Profit growth might slow the next few qtrs as management gets the new plant clicking, but investors don’t mind as CSTE is close to an All-Time high. Still, my Fair Value on this $64 stock is $58 for 2015, so CSTE is a tad overpriced right now. But the future is bright and the company might be able to grow faster than 20% a year the next 3-to-5 years. My 2016 Fair Value is $78, and with quartz gaining in popularity I feel this stock is one to buy-and-hold. | ||
| Just One-Year Chart | ||
 The Estimates look poor, but that hasn’t held the stock back. P/E is currently 26 which is a little high for a 22% grower. Although the stock is doing well, it’s not that timely with blah profit growth on deck. |
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| Earnings Table | ||
 Profits grew 18% last qtr on 14% sales growth.CSTE beat the street by 5 cents but this hasn’t been a leading indicator for the stock. Annual Profit Estimates stayed consistent with last qtr. Profit growth could be slow the next few qtrs, then accelerate in 2016. |
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| Fair Value | ||
 The stocks a little high right now, but I would stick with it because lots of stocks are overvalued today and are still going higher. 23% upside through 2016 is good, and I can see that kind of growth in future years as well. |
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| Ten-Year Chart | ||
 Great looking ten-year chart other than the 4% profit growth expected this year. But sometimes you have to take a step back to take two steps forward. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
11 of 23 |
The future is so bright for Caesarstone. This new plant will give the company ample room to grow well into the future. I see this stock as a +20% grower but its a tad high to buy right now. |
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Aggressive Growth Portfolio
N/A |
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