Cal-Maine Foods (NasdaqGS:CALM) - Share price, News & Analysis

CALM fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	2/6

CALM Stock Overview

Cal-Maine Foods, Inc., together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs.

Risk Analysis

Earnings are forecast to decline by an average of 22.4% per year for the next 3 years

Large one-off items impacting financial results

Profit margins (1.2%) are lower than last year (4.6%)

Significant insider selling over the past 3 months

Cal-Maine Foods Competitors

Vital Farms

NasdaqGM:VITL

US$404.5m

Price History & Performance

Summary of all time highs, changes and price drops for Cal-Maine Foods
Historical stock prices
Current Share Price	US$46.89
52 Week High	US$59.95
52 Week Low	US$33.85
Beta	-0.13
1 Month Change	-12.32%
3 Month Change	6.18%
1 Year Change	33.14%
3 Year Change	25.21%
5 Year Change	24.05%
Change since IPO	-37.48%

Recent News & Updates

Apr 04

Cal-Maine Foods: Far From Egg-Cellent

Cal-Maine Foods is finally showing some promise, fundamentally, after experiencing years of declining sales, profits, and cash flows. The company also has a low risk profile due to the virtual absence of debt and its surplus cash. Even so, shares look drastically overpriced at this point in time and it's difficult to see a scenario where shares might warrant upside.

Shareholder Returns

	CALM	US Food	US Market
7D	1.6%	2.7%	1.0%
1Y	33.1%	-1.9%	-15.1%

Return vs Industry: CALM exceeded the US Food industry which returned -1.9% over the past year.

Return vs Market: CALM exceeded the US Market which returned -15.1% over the past year.

Price Volatility

Is CALM's price volatile compared to industry and market?
CALM volatility
CALM Average Weekly Movement	5.3%
Food Industry Average Movement	6.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: CALM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CALM's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1957	3,219	Dolph Baker	https://www.calmainefoods.com

Cal-Maine Foods, Inc., together with its subsidiaries, 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 Egg-Land’s Best, Land O’ Lakes, Farmhouse, and 4-Grain brand names, as well as under private labels. It sells its products to various customers, including national and regional grocery store chains, club stores, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States.

Cal-Maine Foods Fundamentals Summary

How do Cal-Maine Foods's earnings and revenue compare to its market cap?
CALM fundamental statistics
Market Cap	US$2.29b
Earnings (TTM)	US$18.42m
Revenue (TTM)	US$1.53b

124.6x

P/E Ratio

1.5x

P/S Ratio

Is CALM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CALM income statement (TTM)
Revenue	US$1.53b
Cost of Revenue	US$1.35b
Gross Profit	US$180.10m
Other Expenses	US$161.68m
Earnings	US$18.42m

Last Reported Earnings

Feb 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.38
Gross Margin	11.74%
Net Profit Margin	1.20%
Debt/Equity Ratio	0%

How did CALM perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

33%

Payout Ratio

Valuation

Is Cal-Maine Foods undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

124.58x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: CALM ($46.89) is trading above our estimate of fair value ($15.26)

Significantly Below Fair Value: CALM is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: CALM is poor value based on its Price-To-Earnings Ratio (124.6x) compared to the US Food industry average (18.6x).

PE vs Market: CALM is poor value based on its Price-To-Earnings Ratio (124.6x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: CALM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: CALM is overvalued based on its Price-To-Book Ratio (2.2x) compared to the US Food industry average (1.9x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-22.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CALM's earnings are forecast to decline over the next 3 years (-22.4% per year).

Earnings vs Market: CALM's earnings are forecast to decline over the next 3 years (-22.4% per year).

High Growth Earnings: CALM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CALM's revenue (6% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: CALM's revenue (6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if CALM's Return on Equity is forecast to be high in 3 years time

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CALM has a large one-off gain of $3.3M impacting its February 26 2022 financial results.

Growing Profit Margin: CALM's current net profit margins (1.2%) are lower than last year (4.6%).

Past Earnings Growth Analysis

Earnings Trend: CALM has become profitable over the past 5 years, growing earnings by 5.8% per year.

Accelerating Growth: CALM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CALM had negative earnings growth (-72.4%) over the past year, making it difficult to compare to the Food industry average (7.7%).

Return on Equity

High ROE: CALM's Return on Equity (1.8%) is considered low.

Financial Health

How is Cal-Maine Foods's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CALM's short term assets ($522.7M) exceed its short term liabilities ($121.4M).

Long Term Liabilities: CALM's short term assets ($522.7M) exceed its long term liabilities ($130.4M).

Debt to Equity History and Analysis

Debt Level: CALM is debt free.

Reducing Debt: CALM has no debt compared to 5 years ago when its debt to equity ratio was 2.6%.

Debt Coverage: CALM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CALM has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CALM's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: CALM's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (4.01%).

Stability and Growth of Payments

Stable Dividend: CALM's dividend payments have been volatile in the past 10 years.

Growing Dividend: CALM's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.1%), CALM's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: CALM is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

10.4yrs

Average management tenure

CEO

Dolph Baker (64 yo)

11.58yrs

Tenure

US$1,174,401

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 till April 07, 2018. Mr. Baker is...

CEO Compensation Analysis

Compensation vs Market: Dolph's total compensation ($USD1.17M) is below average for companies of similar size in the US market ($USD5.40M).

Compensation vs Earnings: Dolph's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: CALM's management team is seasoned and experienced (10.4 years average tenure).

Board Members

Experienced Board: CALM's board of directors are seasoned and experienced ( 12.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: CALM insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/02/26
Annual Earnings	2021/05/29