From a valuation perspective, Cal-Maine Foods presents an attractive opportunity with a trailing PE of just 3.04 and a market cap of
3.8 billion, suggesting the stock may be undervalued relative to its solid net income of
1.2 billion. Additionally, its Price To Earnings To Growth ratio of 0.75X indicates potential for upside as the company maintains a strong gross profit of
1.9 billion and a healthy return on equity of 55.11%.
Main Takeaways
Cal Maine Foods reports liabilities totaling approximately $536.5 million, with a debt-to-equity ratio of zero, indicating the company isn't heavily leveraging debt. Its current ratio stands at 3.31, showing strong liquidity and the ability to meet short-term obligations comfortably. However, when evaluating Cal Maine’s financial health, it’s important to consider its cash reserves and equity alongside its debt levels. Currently, the stock trades at around $80.96 per share, which appears fairly valued based on modest growth expectations. Overall, Cal Maine seems financially stable, but its conservative approach to borrowing might limit growth opportunities.
We determine the current worth of Cal Maine Foods using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cal Maine Foods based exclusively on its
fundamental and basic
technical indicators. By analyzing Cal Maine's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Cal Maine's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cal Maine. We calculate exposure to Cal Maine's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Cal Maine's related companies.
Cal Maine Foods Investment Alerts
Cal investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Cal Maine Foods performance across your portfolios.Please check all
investment alerts for Cal
Cal Maine Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Cal value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cal Maine competition to find
correlations between indicators driving the intrinsic value of Cal.
An Additional Perspective On Cal Maine Foods
Cal Maine reported the previous year's revenue of 4.26
B. Net Income was 1.22
B with profit before overhead, payroll, taxes, and interest of 1.91
B.
Margins Breakdown
Cal profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Cal Maine itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Cal Maine profit margins.
0.34
Operating Profit Margin
| Pretax Profit Margin | 0.36 |
| Operating Profit Margin | 0.34 |
| Net Profit Margin | 0.27 |
| Gross Profit Margin | 0.41 |
Cal Maine Dividend Yield is increasing over the last 8 years.
Moreover, Cal Maine Enterprise Value is increasing over the last 7 years. The previous year's value of Cal Maine Enterprise Value was 850,083,919. A penny saved is a penny earned, and for Cal-Maine Foods (NASDAQ: CALM), its current valuation suggests it’s well-positioned for a rebound. With a robust market cap of $3.84 billion and a Price to Book ratio of 1.42X, the stock trades at a reasonable multiple considering its strong EBITDA of $1.7 billion and net income of $1.22 billion. The company’s solid liquidity, reflected in a current ratio of 3.38X and working capital of $1.66 billion, supports its ability to navigate market fluctuations. Given its forward dividend rate of 8.67 and a potential upside of 1.88, CALM looks poised for a strong February rally, especially as its valuation aligns favorably with its earnings and revenue growth..
Cal showing symptom of lower volatility
Cal-Maine Foods is showing signs of decreased volatility, with its kurtosis dropping to -0.12. This suggests the stock's price swings are becoming more subdued and stable, which sometimes hints at a potential slowdown or sideways movement. While calmer price action can feel reassuring, it’s important to stay alert for further signals that might indicate a trend reversal. With a skewness of just 0.03, the stock’s distribution remains fairly balanced, but the reduced kurtosis points to less extreme price moves. Monitoring these volatility cues can help investors better gauge risk, especially during different market conditions.
Keep in mind, during downturns, increased volatility can lead to sharper declines, prompting portfolio adjustments. Staying attentive to these shifts can help you navigate potential changes more effectively.Investing in Cal Maine Foods now presents a mix of potential upside and inherent risks. With an analyst target price averaging around
95.5 and a valuation that hovers near its real value of approximately
80.96, the stock seems to have room to grow, especially considering the overall consensus remains a solid Buy. However, the low number of strong buy ratings and the modest valuation hype suggest that while there’s enthusiasm, it’s not without caution. If the company can sustain its momentum, there’s a chance for continued gains, but investors should keep an eye on market conditions and company fundamentals before jumping in..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Cal Maine Foods. Please refer to our
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