Cal-maine Foods (CALM)
NASDAQ:CALM
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Cal-Maine Foods
(NASDAQ:CALM)
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Rating:78Outperform
Price Target:
$95.00
▲(24.02% Upside)
Action:Reiterated
Date:04/02/26
The score is driven primarily by strong financial quality (debt-free balance sheet, high margins, solid cash generation) and attractive valuation (low P/E and high dividend yield). Offsetting these positives are weak technical momentum and the earnings call’s clear acknowledgment of a cyclical trough with sharp YoY profit and cash-flow declines, despite constructive recovery guidance.
Positive Factors
Debt-free balance sheet & liquidity
A virtually debt-free balance sheet and >$1.1B of cash provide durable financial flexibility: funds for capex, M&A, buybacks and dividends without reliance on external financing. This lowers solvency risk and gives the firm time to navigate cyclical downturns while executing strategy.
Negative Factors
High revenue and profit cyclicality
Cal‑Maine's top line and earnings exhibit pronounced cyclicality tied to wholesale egg prices; large YoY swings erode forecasting reliability and can compress returns and cash flow in downturns. Persistent revenue volatility complicates capital planning despite strong balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet & liquidity
A virtually debt-free balance sheet and >$1.1B of cash provide durable financial flexibility: funds for capex, M&A, buybacks and dividends without reliance on external financing. This lowers solvency risk and gives the firm time to navigate cyclical downturns while executing strategy.
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
$3.65B
Dividend Yield10.53%
Average Volume (3M)734.67K
Price to Earnings (P/E)20.4
Beta (1Y)0.37
Revenue Growth-8.85%
EPS Growth-29.16%
CountryUS
Employees2,929
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)14.39
Shares Outstanding47,376,587
10 Day Avg. Volume842,558
30 Day Avg. Volume734,673
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.83
Price to Sales (P/S)1.10
P/FCF Ratio4.38
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit2.78
Enterprise Value/Ebitda3.11
Forecast
1Y Price Target
$84.00Price Target Upside9.66% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)7.63
Revenue Forecast (FY)$3.02B
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'...
How the Company Makes Money
Cal-Maine primarily makes money by selling shell eggs and, to a lesser extent, egg products to customers such as grocery retailers, wholesalers, foodservice operators, and further processors. Revenue is largely driven by (1) the volume of eggs sol...
Cal-Maine Foods Earnings Call Summary
Earnings Call Date:Apr 01, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Neutral
The call reflects a company navigating a cyclical trough in commodity egg prices with substantial short‑term financial deterioration (large YoY declines in sales, margins, operating income and EPS), but also strong strategic progress: meaningful shift into specialty and prepared foods, record specialty volumes, active M&A and capacity expansion, solid liquidity and disciplined capital allocation. Management frames near‑term margin pressure in prepared foods and spot price weakness as transitional and expects recovery as new capacity and pricing structures take effect over 2027–2028.Positive Updates
Strategic Mix Shift Toward Specialty and Prepared Foods
Specialty eggs accounted for 50.5% of shell egg sales in 2026Q3 vs 24.4% a year ago; prepared foods were 9.5% of net sales vs 0.8% prior year. Specialty + prepared foods combined were 52.9% of net sales vs 24.0% prior-year quarter (first three quarters combined: 45.7% vs 28.6%).
Negative Updates
Sharp Decline in Net Sales
Net sales for 2026Q3 were $667.0M vs $1.4B a year ago, down 53.0%, driven primarily by steep declines in conventional egg selling prices.
Read all updates
Q3-2026 Updates
Positive
Negative
Strategic Mix Shift Toward Specialty and Prepared Foods
Specialty eggs accounted for 50.5% of shell egg sales in 2026Q3 vs 24.4% a year ago; prepared foods were 9.5% of net sales vs 0.8% prior year. Specialty + prepared foods combined were 52.9% of net sales vs 24.0% prior-year quarter (first three quarters combined: 45.7% vs 28.6%).
Read all positive updates
Company Guidance
The company guided that prepared foods is a near-term trough with a progressive recovery beginning in Q4 FY2026 and margins expected to trend back toward baseline through FY2027–FY2028 (management referenced a ~19% baseline at Echo Lake); prepared foods capacity is expected to increase by more than 30% over the next 18–24 months driven by Echo Lake’s ~17 million pounds of annual scrambled-egg capacity in FY2027, a high-speed pancake line adding ~12 million pounds in FY2027, and Kupini’s $7.0 million investment through FY2028 to add ~18 million pounds (collectively supporting the >30% capacity target); Q3 prepared foods sales were $63.6 million (up 441.2% YoY) and represented 9.5% of net sales (9.3% YTD), specialty eggs comprised 50.5% of shell egg sales in Q3 (42.7% YTD) and specialty + prepared foods made up 52.9% of net sales in Q3 (45.7% YTD), specialty pricing is expected to remain relatively stable (only ~12% tied to the CA market), produced-to-sold rose 3.1 percentage points to 91.5%, and the company reiterated capital priorities including returning capital (approx. $0.36/share variable dividend payable May 2026), $24.3 million of Q3 buybacks (329,830 shares) with ~$350.8 million remaining authorization, and a strong liquidity position with ~$1.152 billion cash and temporary investments.Cal-Maine Foods Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
93
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.46B | 4.26B | 2.33B | 3.15B | 1.78B | 1.35B |
| Gross Profit | 1.17B | 1.85B | 541.57M | 1.20B | 337.06M | 160.66M |
| EBITDA | 1.05B | 1.70B | 440.76M | 1.07B | 234.81M | 49.74M |
| Net Income | 695.03M | 1.22B | 277.89M | 758.02M | 132.65M | 2.06M |
Balance Sheet | ||||||
| Total Assets | 3.14B | 3.10B | 2.20B | 1.96B | 1.44B | 1.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 1.39B | 812.38M | 647.91M | 174.51M | 169.51M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 1.44M | 2.38M |
| Total Liabilities | 432.13M | 536.47M | 401.89M | 354.14M | 332.96M | 229.31M |
| Stockholders Equity | 2.70B | 2.56B | 1.80B | 1.61B | 1.10B | 1.01B |
Cash Flow | ||||||
| Free Cash Flow | 722.86M | 1.07B | 304.28M | 726.44M | 53.81M | -68.93M |
| Operating Cash Flow | 892.43M | 1.23B | 451.40M | 863.01M | 126.21M | 26.14M |
| Investing Cash Flow | -459.32M | -579.52M | -412.59M | -375.11M | -117.02M | -44.19M |
| Financing Cash Flow | -535.28M | -386.72M | -93.76M | -254.16M | -7.46M | -2.72M |
Cal-Maine Foods Technical Analysis
Negative
76.60
Price Trends
77.82
Negative
79.77
Negative
86.61
Negative
Market Momentum
0.02
Negative
48.72
Neutral
46.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CALM, the sentiment is Negative. The current price of 76.6 is below the 20-day moving average (MA) of 76.98, below the 50-day MA of 77.82, and below the 200-day MA of 86.61, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 46.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CALM.
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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.65B | 20.41 | 26.11% | 10.53% | -8.85% | -29.16% | |
78 Outperform | $10.36B | 10.87 | 15.25% | 4.44% | 8.00% | -1.43% | |
63 Neutral | $23.42B | 90.61 | 4.47% | 3.14% | 56.89% | -45.77% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $434.05M | -96.68 | 14.47% | ― | 26.40% | -9.26% | |
57 Neutral | $1.58B | 45.63 | 3.43% | 3.34% | 0.22% | -52.50% | |
57 Neutral | $1.37B | 10.86 | 3.18% | 2.23% | 11.38% | -38.18% |
* Consumer Defensive Sector Average
CALM
Cal-Maine Foods
77.01
-13.35
-14.78%
BG
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120.71
44.75
58.91%
FDP
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33.29
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-1.04%
VITL
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10.13
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-69.52%
DOLE
Dole
14.43
0.77
5.65%
SFD
Smithfield Foods
26.34
4.50
20.60%
Cal-Maine Foods Corporate Events
Business Operations and StrategyExecutive/Board Changes
Cal-Maine Foods Strengthens Board With New Independent Director
Positive
Apr 1, 2026
On March 31, 2025, Cal-Maine Foods appointed Dudley D. Wooley as an independent Class III director to serve through the 2027 annual meeting, succeeding the late Jim Poole and joining the board’s Compensation, Audit, and Nominating and Corpor...
Business Operations and StrategyM&A Transactions
Cal-Maine Foods expands footprint with Creighton Brothers acquisition
Positive
Mar 3, 2026
On March 2, 2026, Cal-Maine Foods announced it had acquired the shell egg, egg products, and prepared foods assets of Creighton Brothers LLC, including Crystal Lake LLC, for about $128.5 million in cash, subject to customary adjustments. The trans...
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.