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Cal-Maine Foods
(NASDAQ:CALM)
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Rating:77Outperform
Price Target:
$103.00
▲(14.04% Upside)
Action:Reiterated
Date:07/27/26
The score is driven primarily by strong financial strength (near-zero leverage and substantial liquidity) and solid profitability/cash-generation across the cycle, tempered by meaningful earnings and cash-flow volatility as industry pricing normalizes. Technicals are supportive with the stock trading above key moving averages, while valuation is reasonable but partially offset by the dividend suspension policy and near-term uncertainty highlighted on the earnings call.
Positive Factors
Strong balance sheet & liquidity
Cal‑Maine's near‑$924M cash position and virtually zero debt provide durable financial flexibility. This capital buffer supports cycle management, funds sizeable Prepared Foods capex and M&A, and allows share repurchases and operations to continue through low pricing periods without invoking leverage.
Negative Factors
Pronounced commodity cyclicality
Egg pricing and industry supply swings produce large, persistent revenue and earnings variability. Structural oversupply and low conventional prices can materially compress margins and obscure long‑term earnings visibility, complicating capital allocation and investor predictability across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & liquidity
Cal‑Maine's near‑$924M cash position and virtually zero debt provide durable financial flexibility. This capital buffer supports cycle management, funds sizeable Prepared Foods capex and M&A, and allows share repurchases and operations to continue through low pricing periods without invoking leverage.
Read all positive factors
Cal-Maine Foods Key Performance Indicators (KPIs)
Any
Revenue By Product Category
Shows how much revenue each product category generates, highlighting which segments drive growth and profitability. This can indicate consumer preferences and the company's strategic focus areas.
Shows how much revenue each product category generates, highlighting which segments drive growth and profitability. This can indicate consumer preferences and the company's strategic focus areas.
Data provided by:
The Fly
The FlyCal-Maine Foods (CALM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.12B
Dividend Yield5.48%
Average Volume (3M)936.89K
Price to Earnings (P/E)13.3
Beta (1Y)0.40
Revenue Growth-31.68%
EPS Growth-73.76%
CountryUS
Employees3,828
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)6.58
Shares Outstanding46,917,080
10 Day Avg. Volume1,174,533
30 Day Avg. Volume936,889
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)1.35
Price to Sales (P/S)1.22
P/FCF Ratio10.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$82.33Price Target Upside-8.84% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.79
Revenue Forecast (FY)$2.62B
Cal-Maine Foods Business Overview & Revenue Model
Company Description
Cal-Maine Foods, Inc. (CALM) is a U.S.-based food and agriculture company focused on the production, grading, packaging, marketing, and distribution of shell eggs. It operates primarily in the consumer staples/food products space, selling conventi...
How the Company Makes Money
Cal-Maine makes money primarily by selling shell eggs to customers, generating revenue largely from (1) conventional shell eggs and (2) specialty shell eggs. Its revenue model is volume- and price-driven: the company produces (and in some cases so...
Cal-Maine Foods Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 06, 2026
Earnings Call Sentiment Neutral
The call balanced acute, short-term challenges with clear strategic progress. Management acknowledged a severe trough in conventional egg pricing that produced a steep Q4 revenue decline and Q4 net loss, and noted near-term cash-flow compression and ongoing HPAI risk. Offsetting these pressures, the company delivered full‑year profitability, maintains a strong balance sheet (≈$924M cash, virtually debt-free), executed M&A to diversify into higher-value categories, is expanding Prepared Foods capacity (>60% expected increase by H1 FY2028), and reported sequential operational improvements in Prepared Foods and resilient specialty demand trends. Given the significant strategic and balance-sheet positives alongside material near-term volatility and Q4 weakness, the tone of the call is cautiously constructive but reflects continued uncertainty in the near term.Positive Updates
Strategic M&A and Portfolio Diversification
Completed acquisitions (Creighton Brothers assets, Van's Foods; Echo Lake in 2025) and increased Eggland's Best franchise territory in the Northeast to broaden higher-value, consumer-facing businesses and accelerate specialty mix.
Negative Updates
Severe Q4 Revenue and Earnings Decline
Q4 consolidated revenue $552.6 million, down 49.9% YoY; consolidated gross profit $34.1 million (gross margin 6.2%); consolidated operating loss $58.8 million (operating margin -10.6%); net loss attributable to Cal‑Maine $35.9 million (diluted loss per share $0.76).
Read all updates
Q4-2026 Updates
Positive
Negative
Strategic M&A and Portfolio Diversification
Completed acquisitions (Creighton Brothers assets, Van's Foods; Echo Lake in 2025) and increased Eggland's Best franchise territory in the Northeast to broaden higher-value, consumer-facing businesses and accelerate specialty mix.
Read all positive updates
Company Guidance
Guidance from the call emphasized stronger positioning as markets normalize and substantial Prepared Foods capacity expansion: a new $54 million investment (mostly spent in 2027 with a tail into 2028) is expected to add ~30% incremental Prepared Foods capacity beginning H1 FY2028, which together with a prior 30% organic expansion and ~6% Van's-driven increase will raise Prepared Foods capacity by over 60% from end of FY2026 through H1 FY2028 (including ~12M lb pancakes, ~17M lb scrambled eggs and ~18M lb Crepini additions); management expects Prepared Foods top-line growth to begin accelerating in Q2 as utilization improves. They noted market pricing dynamics — Q1’s first five weeks averaged ~$0.72 (≈54% below Q4’s ~$1.08) but prices strengthened >90% in a few weeks and should improve through the Q1 tail into the fall — and reiterated no cash dividend until cumulative losses are recovered ( ~$35.9M to be recovered as of May 30, 2026). Financial/portfolio context included cash and temporary investments of $924.1M, virtually debt-free, share repurchases of 396,083 shares for $30.1M (≈$320.7M remaining on a $500M authorization), FY26 Prepared Foods sales of $244.8M and operating income $33.9M (13.8% margin; Q4 PF sales $60.4M, op income $8.8M at 14.6%), Prepared Foods mix rising to 10.9% of Q4 net sales (8.4% FY) and Specialty+Prepared Foods comprising 53% of Q4 (44.4% FY), with maintenance CapEx running ~$50–60M and FY26 CapEx ~$151M.Cal-Maine Foods Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.91B | 4.26B | 2.33B | 3.15B | 1.78B |
| Gross Profit | 672.05M | 1.85B | 541.57M | 1.20B | 337.06M |
| EBITDA | 467.10M | 1.70B | 440.76M | 1.07B | 234.81M |
| Net Income | 316.68M | 1.22B | 277.89M | 758.02M | 132.65M |
Balance Sheet | |||||
| Total Assets | 3.13B | 3.10B | 2.20B | 1.96B | 1.44B |
| Cash, Cash Equivalents and Short-Term Investments | 930.36M | 1.39B | 812.38M | 647.91M | 174.51M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 1.44M |
| Total Liabilities | 488.24M | 536.47M | 401.89M | 354.14M | 332.96M |
| Stockholders Equity | 2.63B | 2.56B | 1.80B | 1.61B | 1.10B |
Cash Flow | |||||
| Free Cash Flow | 331.79M | 1.07B | 304.28M | 726.44M | 53.81M |
| Operating Cash Flow | 483.01M | 1.23B | 451.40M | 863.01M | 126.21M |
| Investing Cash Flow | -507.14M | -579.52M | -412.59M | -375.11M | -117.02M |
| Financing Cash Flow | -362.75M | -386.72M | -93.76M | -254.16M | -7.46M |
Cal-Maine Foods Risk Analysis
Cal-Maine Foods disclosed 38 risk factors in its most recent earnings report. Cal-Maine Foods reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cal-Maine Foods Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.12B | 13.34 | 11.82% | 5.33% | -31.68% | -73.76% | |
73 Outperform | $10.25B | 10.13 | 15.25% | 4.28% | 8.00% | -1.43% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $545.46M | 11.83 | 14.47% | ― | 26.40% | -9.26% | |
58 Neutral | $20.41B | 20.63 | 6.35% | 2.32% | 80.50% | -48.63% | |
54 Neutral | $1.35B | 23.10 | 3.18% | 2.40% | 11.38% | -38.18% |
* Consumer Defensive Sector Average
CALM
Cal-Maine Foods
87.06
-14.96
-14.67%
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31.50%
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DOLE
Dole
14.29
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SFD
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25.98
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7.81%
Cal-Maine Foods Corporate Events
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
Cal-Maine Foods Resolves Egg Antitrust Investigation Settlement
Positive
Jun 30, 2026
On June 29, 2026, Cal-Maine Foods announced it had reached an agreement with the U.S. Department of Justice and 17 state attorneys general to resolve alleged antitrust claims tied to a 15‑month investigation into cooperative activities among...
Business Operations and StrategyExecutive/Board Changes
Cal-Maine Foods Expands Board, Strengthens Independent Governance
Positive
Jun 23, 2026
On June 23, 2026, Cal-Maine Foods expanded its board of directors from eight to ten members, appointing Haley R. Fisackerly as an independent Class II director and Michael J. Highfield as an independent Class III director, with terms running to th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.