Cal-Maine Foods (CALM) AI Stock Analysis

• Market Cap: $5.16B
• Dividend Yield: 7.09%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.48
• Revenue Growth: 60.00%
• EPS Growth: 259.01%
• Country: US
• Employees: 2,929
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Agricultural Farm Products
• EPS (TTM): 10.38
• Shares Outstanding: 48,494,080
• 10 Day Avg. Volume: 1,000,971
• 30 Day Avg. Volume: 1,150,182
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.89
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $98.50
• Price Target Upside: 8.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Cal-Maine Foods scores highly due to its excellent financial performance, characterized by strong growth, profitability, and financial stability. The technical analysis indicates a positive trend, though not overly strong, and the stock's valuation is very attractive, offering both value and income. The absence of recent earnings call data and corporate events does not detract from the robust fundamental and technical aspects, resulting in a strong overall score.

Positive Factors

Acquisition Impact

The Echo Lake Foods acquisition could be accretive to F2026 EPS, adding to CALM's growth potential.

Share Repurchase

CALM is increasing the rate of cash return to shareholders through a new $500 million share repurchase authorization.

Negative Factors

Commodity Prices

Lower commodity egg prices will lead to normalization of earnings, creating a tough setup for investing in CALM.

Earnings Volatility

Earnings are subject to inherent volatility given CALM's large commodity business.

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 demonstrates excellent financial health across all verticals. The income statement reveals strong growth and profitability, the balance sheet reflects a conservative financial structure with no debt, and the cash flow statement shows strong cash generation and effective capital deployment. The company's fiscal strength positions it well for future growth and weathering industry fluctuations.

Income Statement

Cal-Maine Foods shows strong profitability with a high gross profit margin of 39.6% and a net profit margin of 26.1% for TTM (Trailing-Twelve-Months). Significant revenue growth of 63.2% from the previous annual report indicates robust demand and operational efficiency. The EBIT and EBITDA margins are impressive at 32.7% and 36.1% respectively, highlighting efficient cost management.

Balance Sheet

The company maintains a solid balance sheet with no debt, resulting in a debt-to-equity ratio of 0. The equity ratio is strong at 77.3%, reflecting financial stability. Return on Equity (ROE) is highly favorable at 41.6%, indicating effective use of equity to generate profits. The strong cash position further enhances financial resilience.

Cash Flow

The cash flow statement is robust, showing substantial free cash flow growth of 180.1% year-over-year, which supports strategic investments and shareholder returns. The operating cash flow to net income ratio is healthy at 1.04, indicating strong cash generation relative to profits. The free cash flow to net income ratio of 0.87 signifies efficient capital expenditure management.

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

Cal-Maine Foods Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 90.73
• 50DMA: Positive
• 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 90.73 is below the 20-day moving average (MA) of 92.01, above the 50-day MA of 88.58, and above the 200-day MA of 85.71, indicating a neutral trend. The MACD of 1.15 indicates Negative momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 57.77 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
CALM	84 Outperform	$5.16B	4.59	48.27%	7.09%	60.00%	259.01%
VITL	78 Outperform	$1.60B	30.26	23.11%	―	29.14%	140.02%
FDP	76 Outperform	$1.60B	10.92	7.51%	3.15%	-0.64%	―
SFD	72 Outperform	$8.75B	―		―	―	―
DOLE	68 Neutral	$1.39B	11.09	12.14%	2.19%	2.79%	-13.96%
Sector *	64 Neutral	$8.87B	14.81	5.05%	174.26%	3.56%	3.68%
AGRO	61 Neutral	$866.94M	9.44	7.11%	3.95%	18.45%	-57.55%

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.