Cal-Maine Foods (CALM) AI Stock Analysis

• Market Cap: $4.13B
• Dividend Yield: 5.08%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.56
• Revenue Growth: 15.57%
• EPS Growth: 38.87%
• Country: US
• Employees: 3,067
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Consumer Products - Foods
• EPS (TTM): 12.86
• Shares Outstanding: 44,245,956
• 10 Day Avg. Volume: 1,106,939
• 30 Day Avg. Volume: 1,050,433
• PEG Ratio: 0.17
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.34
• Price to Cash Flow (P/CF): 8.40
• P/FCF Ratio: 7.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $97.00
• Price Target Upside: 11.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Cal-Maine Foods demonstrates solid financial performance with strong revenue growth and a robust balance sheet, underscored by a lack of debt. While technical analysis shows bearish trends, the stock's valuation is compelling with a low P/E ratio and a good dividend yield. The absence of recent earnings call insights or major corporate events means the overall outlook is primarily driven by financials and valuation metrics.

Positive Factors

Distribution Capabilities

Cal-Maine has a strong operational footprint with robust distribution capabilities across 39 states.

Mergers and Acquisitions

The company's strong balance sheet and leading industry position have allowed it to pursue M&A at a reasonable price and remain a consolidator of the space.

Negative Factors

Valuation

Higher outside egg costs drive FY1Q miss, valuation remains stretched.

Cal-Maine Foods Business Overview & Revenue Model

Company Description

Cal-Maine Foods, Inc. (NASDAQ: CALM) is the largest producer and distributor of fresh shell eggs in the United States. The company is engaged primarily in the production, grading, packaging, marketing, and distribution of shell eggs. Cal-Maine Foods operates across various sectors, including conventional, cage-free, organic, and nutritionally enhanced eggs. With a robust distribution network, the company serves a diverse customer base, including retail chains, club stores, and foodservice distributors.

How the Company Makes Money

Cal-Maine Foods makes money primarily through the sale of shell eggs. The company's revenue model revolves around producing and distributing different types of eggs, such as conventional, cage-free, organic, and specialty eggs. Key revenue streams include sales to retail customers, such as grocery stores and supermarkets, and foodservice customers, including restaurants and institutional food providers. Cal-Maine Foods also benefits from strategic partnerships with major retail chains and distributors, which help in expanding its market reach. Additionally, factors such as egg prices, feed costs, and consumer demand significantly influence the company's earnings.

Cal-Maine Foods Financial Statement Overview

Summary

Cal-Maine Foods presents a strong financial position with impressive revenue and profit growth, robust balance sheet metrics, and healthy cash flow generation. The company's lack of debt enhances its financial stability, though the past volatility in profitability and free cash flow suggests some operational risks. Nevertheless, the current financial trajectory is positive, positioning the company well within the Consumer Products - Foods industry.

Income Statement

Cal-Maine Foods demonstrates a strong income statement with substantial revenue growth over the years, particularly evident when comparing the TTM revenues against previous annual figures. The gross profit and net profit margins have improved significantly, indicating enhanced operational efficiency and profitability. The EBIT and EBITDA margins also show healthy figures, reinforcing the company's operational strength. However, fluctuations in revenue and profitability in past years suggest some volatility, though recent trends are positive.

Balance Sheet

The balance sheet of Cal-Maine Foods is robust, characterized by zero debt, which results in an excellent debt-to-equity ratio. The company has a strong equity position with a high equity ratio, suggesting financial stability and low leverage risk. Return on equity has improved considerably, indicating effective use of shareholders' equity to generate profits. The company's cash and short-term investments have grown, further enhancing its financial resilience.

Cash Flow

Cal-Maine Foods' cash flow statements show positive trends with significant operating cash flows. The free cash flow has grown over time, reflecting the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio suggests efficient conversion of income into cash flow. However, the free cash flow to net income ratio could be improved, and past fluctuations in free cash flow highlight the need for careful cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.08B	2.33B	3.15B	1.78B	1.35B	1.35B
	Gross Profit
1.01B	541.57M	1.20B	337.06M	160.66M	179.59M
	EBIT
751.73M	312.45M	967.73M	143.54M	-15.76M	-56.67M
	EBITDA
837.06M	440.76M	1.07B	206.82M	49.74M	59.45M
	Net Income Common Stockholders
628.99M	277.89M	758.02M	132.65M	2.06M	18.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
797.18M	812.38M	647.91M	174.51M	169.51M	232.29M
	Total Assets
2.49B	2.18B	1.95B	1.43B	1.23B	1.21B
	Total Debt
0.00	0.00	918.00K	1.44M	2.38M	3.39M
	Net Debt
-140.30M	-237.88M	-291.91M	-57.64M	-54.97M	-74.74M
	Total Liabilities
438.62M	387.72M	344.94M	323.14M	216.39M	197.02M
	Stockholders Equity
2.05B	1.80B	1.61B	1.10B	1.01B	1.01B
Cash Flow		Free Cash Flow
473.97M	307.28M	726.44M	53.81M	-68.93M	-50.57M
	Operating Cash Flow
620.90M	454.40M	863.01M	126.21M	26.14M	73.61M
	Investing Cash Flow
-695.81M	-412.59M	-375.11M	-117.02M	-44.19M	-61.37M
	Financing Cash Flow
-146.57M	-93.76M	-254.16M	-7.46M	-2.72M	-3.36M

Cal-Maine Foods Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CALM, the sentiment is Neutral. The current price of 87.18 is below the 20-day moving average (MA) of 94.16, below the 50-day MA of 101.50, and above the 200-day MA of 81.62, indicating a neutral trend. The MACD of -5.15 indicates Positive momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 18.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CALM.

Cal-Maine Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	81 Outperform	$12.66B	11.51	28.70%	―	2.93%	237.51%
POST	75 Outperform	$6.42B	19.23	10.01%	―	7.32%	34.44%
TSN	75 Outperform	$21.21B	20.09	5.74%	3.26%	1.27%	―
CALM	71 Outperform	$4.13B	6.55	34.26%	5.08%	15.57%	38.87%
SEB	67 Neutral	$2.62B	29.83	1.88%	0.33%	-4.83%	-55.63%
HRL	64 Neutral	$15.82B	20.88	9.54%	3.96%	-1.84%	-5.14%
Sector *	63 Neutral	$20.85B	13.27	-10.88%	7.48%	1.13%	11.50%

Cal-Maine Foods Corporate Events

Cal-Maine Foods Announces Ownership Structure Shift

On February 25, 2025, Cal-Maine Foods announced a significant shift in its ownership structure as the family of its founder, Fred R. Adams, Jr., expressed interest in diversifying their financial portfolios. This potential sale of shares could lead to the company losing its ‘controlled company’ status on the Nasdaq Stock Market. The company’s board approved a Conversion Agreement to facilitate this transition smoothly, ensuring compliance with legal requirements. Additionally, Cal-Maine Foods introduced a new $500 million share repurchase program, allowing the company to buy back shares strategically, which may include shares from the founder’s family as part of their diversification efforts.