CSTE

CaesarStone Sdot - Yam Ltd.

Industrial/Transportation, Consumer


Presented:10/29/2014
Price:$55.28
Cap:$1.93B
Current Price:$4.36
Cap:$0.15B

Presented

Date10/29/2014
Price$55.28
Market Cap$1.93B
Ent Value$1.87B
P/E Ratio29.47x
Book Value$9.21
Div YieldN/A
Shares O/S34.86M
Ave Daily Vol240,000
Short Int1.29%

Current

Price$4.36
Market Cap$0.15B
Caesarstone Sdot-Yam Ltd. manufactures and sells engineered quartz surfaces under the Caesarstone brand primarily the United States, Australia, Canada, and Israel. Its products consist of engineered quartz slabs, which are used as kitchen countertops in the renovation and remodeling end markets, as well as other applications, including vanity tops, wall panels, back splashes, floor tiles, stair, and other interior surfaces that are used in various residential and non-residential applications. Caesarstone Sdot-Yam Ltd. sells its products directly to fabricators, sub-distributors, and resellers; and indirectly through a network of independent distributors to fabricators. The company was founded in 1987 and is based in MP Menashe, Israel. Caesarstone Sdot-Yam Ltd. is a subsidiary of Mifalei Sdot-Yam Agricultural Cooperative Society Ltd.

Presented by: Brian Zied, Founder & Portfolio Manager, Charter Bridge Capital Management, L.P. at The Excellence in Investing: San Francisco conference

Publicly traded companies mentioned herein: Caesarstone Sdot-Yam Ltd (CSTE), The Home Depot Corporation (HD)

Highlights

Israel-based Caesarstone (CSTE) has been creating quartz surfaces since 1987, and appears to be extremely well positioned to grow its market share in key global markets. Its products resonate with both professional and individual customers alike due to the durability, look, and cost of engineered quartz compared to naturals (granite and marble), and this product appeal/ adaptability in an evolving market is something Mr. Zied looks for in the consumer companies he invests in. Overall, CSTE has just 16% share of the domestic market, and quartz is only 6% of the US market (giving CSTE just 1% share in the largest global market). Zied argued that CSTE’s runway for growth is nearly open-ended, and given the price/ value ratio and great aesthetics they will grow their share.

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