DB:CM2

Stock Analysis Report

Executive Summary

Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Risks

  • Cal-Maine Foods is covered by less than 3 analysts.

Share Price & News

How has Cal-Maine Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

DB:CM2

4.0%

DE Food

0.8%

DE Market


1 Year Return

-12.2%

DB:CM2

6.9%

DE Food

-10.9%

DE Market

CM2 underperformed the Food industry which returned 6.9% over the past year.

CM2 underperformed the Market in Germany which returned -10.9% over the past year.


Share holder returns

CM2IndustryMarket
7 Day-0.8%4.0%0.8%
30 Day9.2%6.0%-5.0%
90 Day7.7%7.9%-2.9%
1 Year-11.2%-12.2%8.7%6.9%-8.1%-10.9%
3 Year-0.3%-2.3%-7.4%-13.2%10.4%0.9%
5 Year39.2%27.7%40.7%28.0%25.5%8.1%

Price Volatility Vs. Market

How volatile is Cal-Maine Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cal-Maine Foods undervalued based on future cash flows and its price relative to the stock market?

36.29x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cal-Maine Foods's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cal-Maine Foods's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cal-Maine Foods is overvalued based on earnings compared to the DE Food industry average.

Cal-Maine Foods is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Cal-Maine Foods is poor value based on expected growth next year.


Price Based on Value of Assets

Cal-Maine Foods is good value based on assets compared to the DE Food industry average.


Next Steps

Future Growth

How is Cal-Maine Foods expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cal-Maine Foods's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Cal-Maine Foods's earnings are expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

Cal-Maine Foods's revenue growth is positive but not above the Germany market average.

Cal-Maine Foods's earnings growth is positive but not above the Germany market average.

Cal-Maine Foods's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Cal-Maine Foods will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Cal-Maine Foods performed over the past 5 years?

-18.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cal-Maine Foods's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Cal-Maine Foods's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Cal-Maine Foods's 1-year earnings growth is negative, it can't be compared to the DE Food industry average.


Return on Equity

Cal-Maine Foods has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cal-Maine Foods used its assets less efficiently than the DE Food industry average last year based on Return on Assets.


Return on Capital Employed

Cal-Maine Foods's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cal-Maine Foods's financial position?


Financial Position Analysis

Cal-Maine Foods is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cal-Maine Foods's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Cal-Maine Foods's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (10.3% vs 0.2% today).

Debt is well covered by operating cash flow (4924.5%, greater than 20% of total debt).

Cal-Maine Foods earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 242.9x debt.


Next Steps

Dividend

What is Cal-Maine Foods's current dividend yield, its reliability and sustainability?

0.69%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Cal-Maine Foods's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Cal-Maine Foods's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Cal-Maine Foods has not reported any payouts.

Unable to verify if Cal-Maine Foods's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Cal-Maine Foods has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Cal-Maine Foods's dividends in 3 years as they are not expected to pay a notable one for Germany.


Next Steps

Management

What is the CEO of Cal-Maine Foods's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Dolph Baker (62yo)

8.8yrs

Tenure

US$1,282,377

Compensation

Mr. Adolphus B. Baker, also known as Dolph, has been the Chief Executive Officer of Cal-Maine Foods, Inc. since October 2010 and served as its President from January 1997 to 2018. Mr. Baker is a Partner at ...


CEO Compensation Analysis

Dolph's remuneration is about average for companies of similar size in Germany.

Dolph's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.7yrs

Average Tenure

59yo

Average Age

The average tenure for the Cal-Maine Foods management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.1yrs

Average Tenure

67yo

Average Age

The tenure for the Cal-Maine Foods board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$29,73118 Apr 19
Charles Hardin
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares800
Max PriceUS$37.16
SellUS$44,22518 Apr 19
Robert Holladay
EntityIndividual
Role
Chief Legal Officer
VP & General Counsel
Shares1,200
Max PriceUS$36.85
SellUS$94,86312 Apr 19
James Poole
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$37.95
BuyUS$78,77812 Oct 18
Max Bowman
EntityIndividual
Role
Member of the Board of Directors
VP, CFO
Shares2,000
Max PriceUS$39.39

Ownership Breakdown


Management Team

  • Dolph Baker (62yo)

    Chairman & CEO

    • Tenure: 8.8yrs
    • Compensation: US$1.28m
  • Max Bowman (58yo)

    VP, CFO

    • Tenure: 0.8yrs
  • Charles Hardin (60yo)

    Vice President of Sales

    • Tenure: 17.6yrs
    • Compensation: US$555.01k
  • Sherman Miller (44yo)

    President

    • Tenure: 7.1yrs
    • Compensation: US$578.60k
  • Matthew Arrowsmith

    Vice President of Egg Sales

    • Tenure: 0.0yrs
    • Compensation: US$453.96k
  • Jim Hull

    Vice President of Egg Products

    • Tenure: 9.7yrs
    • Compensation: US$319.25k
  • Rob Holladay (43yo)

    VP & General Counsel

    • Tenure: 7.7yrs
    • Compensation: US$521.51k
  • Mike Castleberry (61yo)

    VP & Controller

    • Tenure: 5.6yrs

Board Members

  • Steve Sanders (73yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$170.26k
  • Fred Adams (87yo)

    Chairman Emeritus

    • Tenure: 7.1yrs
    • Compensation: US$988.26k
  • Dolph Baker (62yo)

    Chairman & CEO

    • Tenure: 8.8yrs
    • Compensation: US$1.28m
  • Max Bowman (58yo)

    VP, CFO

    • Tenure: 0.8yrs
  • Mary Letitia Hughes (67yo)

    Independent Director

    • Tenure: 18.1yrs
    • Compensation: US$176.26k
  • Jim Poole (70yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$170.26k
  • Sherman Miller (44yo)

    President

    • Tenure: 7.1yrs
    • Compensation: US$578.60k

Company Information

Cal-Maine Foods, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cal-Maine Foods, Inc.
  • Ticker: CM2
  • Exchange: DB
  • Founded: 1957
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$1.977b
  • Listing Market Cap: US$1.775b
  • Shares outstanding: 48.69m
  • Website: https://www.calmainefoods.com

Number of Employees


Location

  • Cal-Maine Foods, Inc.
  • 3320 West Woodrow Wilson Avenue
  • Jackson
  • Mississippi
  • 39209
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CALMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
CM2DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 20:42
End of Day Share Price2019/08/23 00:00
Earnings2019/06/01
Annual Earnings2019/06/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.