Cal-Maine Foods (CALM) AI Stock Analysis

• Market Cap: $4.47B
• Dividend Yield: 8.81%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.56
• Revenue Growth: 65.80%
• EPS Growth: 197.95%
• Country: US
• Employees: 2,929
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 4.12
• Shares Outstanding: 48,499,607
• 10 Day Avg. Volume: 1,548,022
• 30 Day Avg. Volume: 1,080,105
• PEG Ratio: 0.01
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 4.38
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 2.27
• Enterprise Value/Ebitda: 2.48
• 1Y Price Target: $103.33
• Price Target Upside: 9.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 84 Outperform
• Price Target: ―

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

Financial Stability

Cal-Maine Foods' debt-free status enhances financial stability and flexibility, allowing for strategic investments and resilience against market fluctuations.

Cash Generation

Strong cash flow growth supports strategic investments and shareholder returns, indicating efficient capital management and operational success.

Profitability

High profit margins reflect operational efficiency and strong market demand, positioning the company well for sustained growth and competitive advantage.

Negative Factors

Ownership Structure Change

Changes in ownership structure could lead to loss of 'controlled company' status, impacting governance and strategic decision-making processes.

Market Position Risk

Losing controlled company status may affect market perception and investor confidence, potentially impacting stock performance and strategic initiatives.

Governance Changes

While aiming to retain skilled personnel, governance changes can introduce uncertainty and require time to assess their impact on leadership effectiveness and company culture.

Cal-Maine Foods Business Overview & Revenue Model

Company Description

Cal-Maine Foods, Inc. (NASDAQ: CALM) is the largest producer and distributor of fresh shell eggs in the United States. The company is engaged primarily in the production, grading, packaging, marketing, and distribution of shell eggs. Cal-Maine Foods operates across various sectors, including conventional, cage-free, organic, and nutritionally enhanced eggs. With a robust distribution network, the company serves a diverse customer base, including retail chains, club stores, and foodservice distributors.

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	TTM	Dec 2025	Dec 2020	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	4.40B	4.26B	1.35B	1.36B	1.50B	1.07B
Gross Profit	1.91B	1.85B	179.59M	222.86M	361.05M	45.55M
EBITDA	1.76B	1.70B	78.66M	126.10M	171.63M	-64.86M
Net Income	1.27B	1.22B	18.39M	54.23M	125.93M	-74.28M
Balance Sheet
Total Assets	3.20B	3.10B	1.22B	1.16B	1.15B	1.03B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.39B	232.29M	319.43M	331.02M	156.03M
Total Debt	0.00	0.00	3.39M	2.34M	6.09M	10.94M
Total Liabilities	494.48M	536.47M	206.29M	166.47M	194.76M	1.03B
Stockholders Equity	2.70B	2.56B	1.01B	986.62M	955.68M	844.49M
Cash Flow
Free Cash Flow	1.22B	1.07B	-50.57M	47.10M	180.74M	-115.97M
Operating Cash Flow	1.39B	1.23B	73.61M	115.08M	200.41M	-49.32M
Investing Cash Flow	-851.81M	-579.52M	-61.37M	-47.82M	-163.85M	56.13M
Financing Cash Flow	-463.11M	-386.72M	-3.36M	-46.45M	-5.70M	-18.30M

Cal-Maine Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 94.43 is below the 20-day moving average (MA) of 97.05, below the 50-day MA of 105.25, and below the 200-day MA of 96.92, indicating a bearish trend. The MACD of -4.00 indicates Positive momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 51.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$4.47B	3.54	55.20%	8.81%	65.80%	197.95%
BG	72 Outperform	$16.26B	8.12	13.20%	3.42%	-8.87%	13.21%
FDP	72 Outperform	$1.60B	10.66	7.49%	3.45%	1.41%	―
VITL	71 Outperform	$1.99B	38.73	18.81%	―	21.49%	4.13%
SFD	71 Outperform	$8.57B	―	―	3.54%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DOLE	62 Neutral	$1.24B	52.47	8.29%	2.55%	4.75%	-88.74%

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.