Cal-Maine Foods, Inc. Fundamental Analysis (NASDAQ: CALM)
Cal-Maine Foods, Inc. Fundamental Analysis (NASDAQ: CALM)
Cal-Maine Foods, Inc. (NASDAQ: CALM) shows weak financial fundamentals with a PE ratio of 50.92, profit margin of 2.32%, and ROE of 2.22%. The company generates $2.5B in annual revenue with strong year-over-year growth of 83.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CALM's fundamental strength across five key dimensions:
Efficiency Score
WeakCALM struggles to generate sufficient returns from assets.
Valuation Score
ModerateCALM shows balanced valuation metrics.
Growth Score
ModerateCALM shows steady but slowing expansion.
Financial Health Score
ExcellentCALM maintains a strong and stable balance sheet.
Profitability Score
WeakCALM struggles to sustain strong margins.
Key Financial Metrics
Is CALM Expensive or Cheap?
P/E Ratio
CALM trades at 50.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CALM's PEG of -0.53 indicates potential undervaluation.
Price to Book
The market values Cal-Maine Foods, Inc. at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.24 times EBITDA. This signals the market has high growth expectations.
How Well Does CALM Make Money?
Net Profit Margin
For every $100 in sales, Cal-Maine Foods, Inc. keeps $2.32 as profit after all expenses.
Operating Margin
Core operations generate 0.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.22 in profit for every $100 of shareholder equity.
ROA
Cal-Maine Foods, Inc. generates $1.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cal-Maine Foods, Inc. generates limited operating cash flow of $103.03M, signaling weaker underlying cash strength.
Free Cash Flow
Cal-Maine Foods, Inc. generates weak or negative free cash flow of $-29.52M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.63 in free cash annually.
FCF Yield
CALM converts -1.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How CALM Stacks Against Its Sector Peers
| Metric | CALM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.92 | 21.40 | Worse (Expensive) |
| ROE | 2.22% | 678.00% | Weak |
| Net Margin | 2.32% | -2339.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 7.70 | 2.28 | Strong Liquidity |
| ROA | 1.95% | 313.00% | Weak |
CALM outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cal-Maine Foods, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
213.69%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
6499.63%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
1560.70%
Industry Style: Defensive, Dividend, Low Volatility
High Growth