NasdaqGS:CALM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

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

2.2%

CALM

-1.3%

US Food

0.4%

US Market


1 Year Return

-16.1%

CALM

-0.2%

US Food

6.9%

US Market

Return vs Industry: CALM underperformed the US Food industry which returned -0.2% over the past year.

Return vs Market: CALM underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

CALMIndustryMarket
7 Day2.2%-1.3%0.4%
30 Day-8.7%-3.1%-1.1%
90 Day2.0%-1.8%-0.5%
1 Year-15.1%-16.1%2.8%-0.2%9.3%6.9%
3 Year10.6%8.4%-1.9%-10.5%45.8%36.4%
5 Year3.0%-5.5%43.7%26.6%62.9%45.1%

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

Valuation

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

2.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: CALM ($40.17) is trading above our estimate of fair value ($4.49)

Significantly Undervalued: 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

Low 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 (2.1x) compared to the US Food industry average (2.1x).


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?

162.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CALM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CALM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CALM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CALM's revenue (8.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CALM's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-24.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CALM is unprofitable, and losses have increased over the past 5 years at a rate of -24.1% 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 (-22.7%).


Return on Equity

High ROE: CALM has a negative Return on Equity (-0.36%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CALM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CALM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Cal-Maine Foods's financial position?


Financial Position Analysis

Short Term Liabilities: CALM's short term assets ($502.9M) exceeds its short term liabilities ($75.5M)

Long Term Liabilities: CALM's short term assets (502.9M) exceeds its long term liabilities (77.6M)


Debt to Equity History and Analysis

Debt Level: CALM's debt to equity ratio (0.08%) is considered satisfactory

Reducing Debt: CALM's debt to equity ratio has reduced from 9.5% to 0.08% over the past 5 years.

Debt Coverage: CALM's debt is well covered by operating cash flow (4430%).

Interest Coverage: Insufficient data to determine if CALM's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: CALM's debt is covered by short term assets (assets are 670.586660x debt).


Next Steps

Dividend

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

0.61%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

7.8yrs

Average management tenure


CEO

Dolph Baker (62yo)

9yrs

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 ($USD1.29M) is about average for companies of similar size in the US market ($USD4.00M).

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


Management Age and Tenure

7.8yrs

Average Tenure

59yo

Average Age

Experienced Management: CALM's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

67yo

Average Age

Experienced Board: CALM's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$33,56818 Apr 19
Charles Hardin
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares800
Max PriceUS$41.96
SellUS$49,93218 Apr 19
Robert Holladay
EntityIndividual
Role
Chief Legal Officer
VP & General Counsel
Shares1,200
Max PriceUS$41.61
SellUS$106,90012 Apr 19
James Poole
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$42.76

Ownership Breakdown


Management Team

  • Dolph Baker (62yo)

    Chairman & CEO

    • Tenure: 9yrs
    • Compensation: US$1.29m
  • Max Bowman (58yo)

    VP, CFO

    • Tenure: 1yrs
    • Compensation: US$630.80k
  • Charles Hardin (60yo)

    Vice President of Sales

    • Tenure: 17.8yrs
    • Compensation: US$551.90k
  • Sherman Miller (44yo)

    President

    • Tenure: 7.3yrs
    • Compensation: US$633.46k
  • Matthew Arrowsmith

    Vice President of Egg Sales

    • Tenure: 0yrs
    • Compensation: US$453.96k
  • Jim Hull

    Vice President of Egg Products

    • Tenure: 9.8yrs
    • Compensation: US$319.25k
  • Rob Holladay (43yo)

    VP & General Counsel

    • Tenure: 7.8yrs
    • Compensation: US$540.93k
  • Mike Castleberry (61yo)

    VP & Controller

    • Tenure: 5.8yrs

Board Members

  • Steve Sanders (73yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$147.82k
  • Fred Adams (87yo)

    Chairman Emeritus

    • Tenure: 7.3yrs
    • Compensation: US$988.26k
  • Dolph Baker (62yo)

    Chairman & CEO

    • Tenure: 9yrs
    • Compensation: US$1.29m
  • Max Bowman (58yo)

    VP, CFO

    • Tenure: 1yrs
    • Compensation: US$630.80k
  • Mary Letitia Hughes (67yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$148.82k
  • Jim Poole (70yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$147.82k
  • Sherman Miller (44yo)

    President

    • Tenure: 7.3yrs
    • Compensation: US$633.46k

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$1.956b
  • 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 Analysis2019/10/19 23:32
End of Day Share Price2019/10/18 00:00
Earnings2019/08/31
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.