Caesarstone Ltd. 20-F: Goodwill Impairment & Tax Carry-forwards
Ticker: CSTE · Form: 20-F · Filed: Mar 5, 2025 · CIK: 1504379
| Field | Detail |
|---|---|
| Company | Caesarstone Ltd. (CSTE) |
| Form Type | 20-F |
| Filed Date | Mar 5, 2025 |
| Risk Level | medium |
| Sentiment | neutral |
Sentiment: neutral
Topics: impairment, tax, financials
TL;DR
Caesarstone took a $44.8M goodwill hit in '22, but has $197M in tax loss carry-forwards.
AI Summary
Caesarstone Ltd. filed its 20-F for the period ending December 31, 2024. In the fourth quarter of 2022, the company recorded a pre-tax, non-cash goodwill impairment charge of $44,829 due to factors including a decrease in market value and lower projected cash flows. The filing also mentions tax loss carry-forwards totaling approximately $197,396.
Why It Matters
This filing provides insight into Caesarstone's financial health and potential future tax benefits, impacting investor understanding of the company's asset valuation and tax strategy.
Risk Assessment
Risk Level: medium — The goodwill impairment charge indicates potential overvaluation of past acquisitions or declining business performance, while tax loss carry-forwards suggest past losses that could impact future profitability.
Key Numbers
- $44.8M — Goodwill Impairment Charge (Recorded in Q4 2022 due to market value decrease and lower cash flows.)
- $197.4M — Tax Loss Carry-forwards (Available to offset future taxable income for the parent company and certain subsidiaries.)
Key Players & Entities
- Caesarstone Ltd. (company) — Filer of the 20-F
- Magrab (company) — Acquisition mentioned in relation to goodwill
- $44,829 (dollar_amount) — Pre-tax, non-cash goodwill impairment charge recorded in Q4 2022
- $197,396 (dollar_amount) — Total tax loss carry-forwards for parent company and certain subsidiaries
FAQ
What specific factors led to the goodwill impairment charge in Q4 2022?
The filing states the impairment was due to factors such as a decrease in the Company's market value, lower-than-expected projected future cash flows, and higher interest rates.
What is the total amount of tax loss carry-forwards mentioned in the filing?
The parent company and certain subsidiaries have tax loss carry-forwards totaling approximately $197,396.
When was the goodwill impairment test conducted?
The company performs its annual testing of goodwill in the fourth quarter of each year, and the impairment test mentioned was conducted during the fourth quarter of 2022.
What is the SIC code for Caesarstone Ltd.?
The Standard Industrial Classification code for Caesarstone Ltd. is 3281, which corresponds to CUT STONE & STONE PRODUCTS.
What was the former name of Caesarstone Ltd. and when did the name change occur?
The former company name was CaesarStone Sdot-Yam Ltd., and the date of the name change was October 27, 2010.
Filing Details
This Form 20-F (Form 20-F) was filed with the SEC on March 5, 2025 regarding Caesarstone Ltd. (CSTE).