NasdaqGS:CALM

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 193.02% per year

Risk Analysis

No risks detected for CALM from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

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

Stable Share Price: CALM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.08%

CALM

-1.8%

US Food

-1.1%

US Market


1 Year Return

-15.8%

CALM

12.4%

US Food

17.9%

US Market

Return vs Industry: CALM underperformed the US Food industry which returned 12.4% over the past year.

Return vs Market: CALM underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

CALMIndustryMarket
7 Day-0.08%-1.8%-1.1%
30 Day-3.3%-2.2%1.4%
90 Day-12.2%2.0%6.9%
1 Year-15.2%-15.8%15.3%12.4%20.3%17.9%
3 Year1.0%-0.9%-3.1%-10.9%47.8%38.3%
5 Year7.7%-0.1%39.9%23.5%71.9%53.0%

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

Valuation

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

1.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CALM ($37.59) is trading above our estimate of fair value ($3.08)

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


Price To Earnings Ratio

PE vs Industry: CALM is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: CALM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CALM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CALM is good value based on its PB Ratio (2x) compared to the US Food industry average (2x).


Next Steps

Future Growth

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

193.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CALM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CALM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CALM's is expected to become profitable in the next 3 years.

Revenue vs Market: CALM's revenue (9.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CALM's revenue (9.1% 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


Next Steps

Past Performance

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

-30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CALM is currently unprofitable.

Growing Profit Margin: CALM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CALM is unprofitable, and losses have increased over the past 5 years at a rate of -30.2% per year.

Accelerating Growth: Unable to compare CALM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CALM is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-5.6%).


Return on Equity

High ROE: CALM has a negative Return on Equity (-3.81%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cal-Maine Foods's financial position?


Financial Position Analysis

Short Term Liabilities: CALM's short term assets ($448.8M) exceed its short term liabilities ($102.8M).

Long Term Liabilities: CALM's short term assets ($448.8M) exceed its long term liabilities ($74.1M).


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 8.7%.


Balance Sheet

Inventory Level: CALM has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CALM's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CALM has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CALM has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.39%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CALM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CALM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CALM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CALM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CALM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CALM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

8.2yrs

Average management tenure


CEO

Dolph Baker (62yo)

9.3yrs

Tenure

US$1,290,084

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

Compensation vs Market: Dolph's total compensation ($USD1.29M) is below average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Dolph's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Adolphus Baker
Chairman & CEO9.3yrsUS$1.29m1.11% $20.4m
Sherman Miller
President7.6yrsUS$633.46k0.043% $779.9k
Max Bowman
VP, CFO1.3yrsUS$630.80k0.015% $266.7k
Robert Holladay
VP & General Counsel8.2yrsUS$540.93k0.034% $617.8k
Charles Hardin
Vice President of Sales18.1yrsUS$551.90k0.055% $1.0m
Fred Adams
Founder & Chairman Emeritus7.6yrsUS$988.26k10.17% $186.2m
Michael Castleberry
VP & Controller6.1yrsno data0.022% $394.1k
Matthew Arrowsmith
Vice President of Egg Sales0yrsUS$453.96kno data
James Hull
Vice President of Egg Products10.2yrsUS$319.25kno data

8.2yrs

Average Tenure

60yo

Average Age

Experienced Management: CALM's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adolphus Baker
Chairman & CEO9.3yrsUS$1.29m1.11% $20.4m
Sherman Miller
President7.6yrsUS$633.46k0.043% $779.9k
Max Bowman
VP, CFO1.3yrsUS$630.80k0.015% $266.7k
Fred Adams
Founder & Chairman Emeritus7.6yrsUS$988.26k10.17% $186.2m
Steve Sanders
Independent Director10.6yrsUS$147.82k0.036% $650.3k
Mary Letitia Hughes
Independent Director18.6yrsUS$148.82k0.076% $1.4m
James Poole
Independent Director15.3yrsUS$147.82k0.022% $406.0k

7.6yrs

Average Tenure

67yo

Average Age

Experienced Board: CALM's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Cal-Maine Foods, Inc.
  • Ticker: CALM
  • Exchange: NasdaqGS
  • Founded: 1957
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$1.830b
  • 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 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. The company was founded in 1957 and is based in Jackson, Mississippi. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 23:58
End of Day Share Price2020/02/21 00:00
Earnings2019/11/30
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.