NasdaqGS:CALM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

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

1.8%

CALM

-1.6%

US Food

-0.8%

US Market


1 Year Return

-1.2%

CALM

9.4%

US Food

18.0%

US Market

Return vs Industry: CALM underperformed the US Food industry which returned 8.8% over the past year.

Return vs Market: CALM underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CALMIndustryMarket
7 Day1.8%-1.6%-0.8%
30 Day1.2%6.0%6.8%
90 Day-11.1%2.2%8.9%
1 Year-1.2%-1.2%12.2%9.4%20.7%18.0%
3 Year-10.9%-12.6%12.0%2.8%41.5%32.1%
5 Year-23.5%-26.8%16.5%0.6%84.6%63.8%

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?

42.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CALM ($39.14) is trading above our estimate of fair value ($10.12)

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 PE Ratio (42.4x) compared to the US Food industry average (25.8x).

PE vs Market: CALM is poor value based on its PE Ratio (42.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CALM is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CALM is good value based on its PB Ratio (1.9x) 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?

33.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CALM's forecast earnings growth (33.2% per year) is above the savings rate (2.2%).

Earnings vs Market: CALM's earnings (33.2% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CALM's revenue (4.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CALM's revenue (4.4% 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

  • Explore growth companies in the Food, Beverage & Tobacco industry.

Past Performance

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

-40.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CALM has high quality earnings.

Growing Profit Margin: CALM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CALM's earnings have declined by 40.5% per year over the past 5 years.

Accelerating Growth: CALM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CALM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (-6.4%).


Return on Equity

High ROE: CALM's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is Cal-Maine Foods's financial position?


Financial Position Analysis

Short Term Liabilities: CALM's short term assets ($473.2M) exceed its short term liabilities ($77.9M).

Long Term Liabilities: CALM's short term assets ($473.2M) exceed its long term liabilities ($98.1M).


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 5.3%.

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


Next Steps

Dividend

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

1.24%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

8.8yrs

Average management tenure


CEO

Dolph Baker (63 yo)

10yrs

Tenure

US$1,243,527

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 ($USD1.24M) is below average for companies of similar size in the US market ($USD4.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adolphus Baker
Chairman & CEO10yrsUS$1.24m1.11%
$ 21.2m
Sherman Miller
President8.25yrsUS$567.95k0.043%
$ 819.5k
Max Bowman
VP, CFO2yrsUS$606.54k0.015%
$ 285.2k
Robert Holladay
VP & General Counsel8.83yrsUS$487.48k0.034%
$ 650.6k
Charles Hardin
Vice President of Sales18.75yrsUS$564.18k0.057%
$ 1.1m
Michael Castleberry
VP & Controller6.75yrsno data0.021%
$ 410.2k
Matthew Arrowsmith
Vice President of Egg Salesno dataUS$453.96kno data
James Hull
Vice President of Egg Products10.83yrsUS$319.25kno data

8.8yrs

Average Tenure

60yo

Average Age

Experienced Management: CALM's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adolphus Baker
Chairman & CEO10yrsUS$1.24m1.11%
$ 21.2m
Sherman Miller
President8.25yrsUS$567.95k0.043%
$ 819.5k
Max Bowman
VP, CFO2yrsUS$606.54k0.015%
$ 285.2k
Steve Sanders
Independent Director11.25yrsUS$143.69k0.035%
$ 677.3k
Mary Letitia Hughes
Independent Director19.25yrsUS$143.69k0.076%
$ 1.4m
James Poole
Independent Director16yrsUS$143.69k0.022%
$ 422.8k

9.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: CALM's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CALM insiders have sold more shares than they have bought 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$1.909b
  • Shares outstanding: 48.77m
  • Website: https://www.calmainefoods.com

Number of Employees


Location

  • Cal-Maine Foods, Inc.
  • 3320 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 Analysis2020/10/23 00:41
End of Day Share Price2020/10/22 00:00
Earnings2020/08/29
Annual Earnings2020/05/30


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.