Skip to main content

Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it.

Israeli manufacturer Caesarstone Sdot-Yam Ltd. makes quartz surfaces primarily used as kitchen countertops in the renovation and remodeling markets. It has a market cap of $2-billion (U.S.) and its products are sold in 42 countries.

Caesarstone has grown earnings at a 63-per-cent pace over the long term (using an average of the 3-, 4-, and 5-year EPS growth rates).

Its growth rate and 31.9 P/E ratio make for a 0.5 PE-to-growth ratio, which the Peter Lynch model likes.

It has a red-hot 92 12-month relative strength and last quarter grew EPS by 58 per cent and sales by 27 per cent, part of why it is one of the few stocks in the market that gets strong interest from the Motley Fool-based strategy.

The Fool model also like its 4.7-per-cent long term debt/equity ratio and rising profit margins (11.2 per cent, 13.4 per cent and 17.8 per cent over the past three years).

Caesarstone has a strong 26-per-cent return on equity, which, along with its RS and growth is part of why the Momentum Investor model has some interest.

And it has a 2.8 current ratio and just $12-million in long term debt versus $146-million in net current assets, showing the kind of financial strength the Ben Graham-inspired model likes.

Click here for a complete breakdown of Validea's investing guru report.

Read other research reports here.

Report an editorial error

Report a technical issue

Editorial code of conduct

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 18/04/24 6:55pm EDT.

SymbolName% changeLast
CSTE-Q
Caesarstone Sdot-Yam
-1.63%5.44

Interact with The Globe