Caesarstone Ltd.

Engineered-stone maker in a deep loss cycle with shrinking revenue, plant closures and mounting silicosis litigation.

Strengths

• Net income comparison flatters (91st pct) only because prior loss was large; cash runway ~5 quarters and current ratio 1.83 give some buffer
• Gross margin still positive (18%) and restructuring is shifting toward lower-cost third-party production

Risks

• Operating margin -32%, ROE -99% (12th pct) and FCF margin -12% with $137M net loss and $46M impairments
• Silicosis bodily-injury claims, insurance-coverage disputes, the Australian quartz ban and a -10% revenue decline threaten the franchise

Notable findings

• No interest coverageInterest coverage -1821.87 (cannot cover interest)
• Net lossNet loss (net margin -34.6%)
• Cash burnNegative free cash flow (-47.1M)
• Customer concentration~100% of revenue from one customer/distributor — dollars) Consolidated Income Statement Data: Revenues: $ 397,228 100 % $ 443,221 100 % 565,231 100 % Cost of revenues 323,948 81
• Revenue declineRevenue -10.4% YoY