Cal-Maine Foods (CALM) AI Stock Analysis

• Market Cap: $4.53B
• Dividend Yield: 4.63%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.40
• Revenue Growth: 15.57%
• EPS Growth: 38.87%
• Country: US
• Employees: 2,929
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Agricultural Farm Products
• EPS (TTM): 12.86
• Shares Outstanding: 44,245,956
• 10 Day Avg. Volume: 802,760
• 30 Day Avg. Volume: 1,013,394
• PEG Ratio: 0.18
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.42
• Price to Cash Flow (P/CF): 8.90
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $97.00
• Price Target Upside: 5.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Cal-Maine Foods' strong financial performance and attractive valuation underpin its high overall score. The robust balance sheet with zero debt and substantial profit growth are significant strengths. However, mixed technical indicators and historical cash flow volatility introduce moderate risks.

Positive Factors

Distribution Capabilities

Cal-Maine has a strong operational footprint with robust distribution capabilities across 39 states.

Mergers and Acquisitions

The company's strong balance sheet and leading industry position have allowed it to pursue M&A at a reasonable price and remain a consolidator of the space.

Negative Factors

Earnings Valuation

CALM's normalized earnings power remains overvalued at current levels.

Gross Margins

Lower-than-expected gross margins resulting from higher outside egg costs.

Cal-Maine Foods Business Overview & Revenue Model

Company Description

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 Eggs, 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, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States. Cal-Maine Foods, Inc. was founded in 1957 and is headquartered in Ridgeland, Mississippi.

How the Company Makes Money

Cal-Maine Foods makes money primarily through the sale of shell eggs. The company's revenue model revolves around producing and distributing different types of eggs, such as conventional, cage-free, organic, and specialty eggs. Key revenue streams include sales to retail customers, such as grocery stores and supermarkets, and foodservice customers, including restaurants and institutional food providers. Cal-Maine Foods also benefits from strategic partnerships with major retail chains and distributors, which help in expanding its market reach. Additionally, factors such as egg prices, feed costs, and consumer demand significantly influence the company's earnings.

Cal-Maine Foods Financial Statement Overview

Summary

Cal-Maine Foods shows a strong financial position with significant revenue and profit growth. The balance sheet is particularly robust due to zero debt and strong equity, enhancing stability. While cash flow is generally positive, historical fluctuations suggest some risks.

Income Statement

Cal-Maine Foods demonstrates a strong income statement with substantial revenue growth over the years, particularly evident when comparing the TTM revenues against previous annual figures. The gross profit and net profit margins have improved significantly, indicating enhanced operational efficiency and profitability. The EBIT and EBITDA margins also show healthy figures, reinforcing the company's operational strength. However, fluctuations in revenue and profitability in past years suggest some volatility, though recent trends are positive.

Balance Sheet

The balance sheet of Cal-Maine Foods is robust, characterized by zero debt, which results in an excellent debt-to-equity ratio. The company has a strong equity position with a high equity ratio, suggesting financial stability and low leverage risk. Return on equity has improved considerably, indicating effective use of shareholders' equity to generate profits. The company's cash and short-term investments have grown, further enhancing its financial resilience.

Cash Flow

Cal-Maine Foods' cash flow statements show positive trends with significant operating cash flows. The free cash flow has grown over time, reflecting the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio suggests efficient conversion of income into cash flow. However, the free cash flow to net income ratio could be improved, and past fluctuations in free cash flow highlight the need for careful cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.08B	2.33B	3.15B	1.78B	1.35B	1.35B
	Gross Profit
1.01B	541.57M	1.20B	337.06M	160.66M	179.59M
	EBIT
769.99M	312.45M	967.73M	143.54M	-26.26M	1.27M
	EBITDA
883.34M	440.76M	1.07B	234.81M	49.74M	78.66M
	Net Income Common Stockholders
628.99M	277.89M	758.02M	132.65M	2.06M	18.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
167.84M	812.38M	647.91M	174.51M	169.51M	232.29M
	Total Assets
636.68M	2.18B	1.95B	1.43B	1.23B	1.21B
	Total Debt
112.57M	0.00	918.00K	1.44M	2.38M	3.39M
	Net Debt
46.19M	-237.88M	-291.91M	-57.64M	-54.97M	-74.74M
	Total Liabilities
247.01M	387.72M	344.94M	323.14M	216.39M	197.02M
	Stockholders Equity
391.85M	1.80B	1.61B	1.10B	1.01B	1.01B
Cash Flow		Free Cash Flow
473.97M	307.28M	726.44M	53.81M	-68.93M	-50.57M
	Operating Cash Flow
620.90M	454.40M	863.01M	126.21M	26.14M	73.61M
	Investing Cash Flow
-695.81M	-412.59M	-375.11M	-117.02M	-44.19M	-61.37M
	Financing Cash Flow
-146.57M	-93.76M	-254.16M	-7.46M	-2.72M	-3.36M

Cal-Maine Foods Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 92.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CALM, the sentiment is Neutral. The current price of 92.29 is above the 20-day moving average (MA) of 89.81, below the 50-day MA of 95.37, and above the 200-day MA of 84.86, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 58.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CALM.

Cal-Maine Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VITL	78 Outperform	$1.43B	27.07	23.11%	―	29.14%	140.02%
CALM	76 Outperform	$4.53B	7.18	34.26%	4.63%	15.57%	38.87%
AGRO	71 Outperform	$1.11B	12.30	7.11%	3.09%	18.45%	-57.55%
FDP	71 Outperform	$1.46B	10.32	7.32%	3.44%	-0.95%	―
DOLE	71 Outperform	$1.34B	10.69	12.14%	2.28%	2.79%	-13.96%
Sector *	62 Neutral	$20.22B	13.99	-16.14%	3.22%	1.15%	3.41%

Cal-Maine Foods Corporate Events

Cal-Maine Foods Updates Credit Agreement and Governance

On March 25, 2025, Cal-Maine Foods, Inc. entered into a Second Amendment to its Amended and Restated Credit Agreement, which redefines the ‘Change of Control’ terms to accommodate the potential conversion of Class A Common Stock into Common Stock. This amendment aims to prevent a default event under the Credit Agreement, ensuring operational stability. Additionally, the company executed Indemnification Agreements with its directors and certain officers to protect them against personal liabilities, encouraging the retention of skilled personnel. These agreements are part of broader corporate governance enhancements, including the adoption of new charters for various committees and the appointment of a lead independent director, which collectively aim to strengthen the company’s governance framework.

Cal-Maine Foods Announces Ownership Structure Shift

On February 25, 2025, Cal-Maine Foods announced a significant shift in its ownership structure as the family of its founder, Fred R. Adams, Jr., expressed interest in diversifying their financial portfolios. This potential sale of shares could lead to the company losing its ‘controlled company’ status on the Nasdaq Stock Market. The company’s board approved a Conversion Agreement to facilitate this transition smoothly, ensuring compliance with legal requirements. Additionally, Cal-Maine Foods introduced a new $500 million share repurchase program, allowing the company to buy back shares strategically, which may include shares from the founder’s family as part of their diversification efforts.