| 2013 | 2019 | 2023 | 2024 (projected) | Consolidated Income | 55.1M | 756.7M | 109.8M | 145.0M | Direct Expenses | 1.1B | 1.9B | 1.1B | 1.1B |
Ownership Breakdown
| Insiders11.03% | Institutions93.94% |
| Retail Investors | -4.97 | |
| Insiders | 11.03 | |
| Institutions | 93.94 |
Should you hold on to your Cal Maine position?
 | By Raphi Shpitalnik | Macroaxis Story |
Cal-Maine Foods, a leading player in the Packaged Foods & Meats sector, has seen a slight dip of 1.24% in its stock price, presenting a potential buying opportunity for investors. The company has a robust operating income of 967.7M, indicating strong financial health. Despite a quarterly earnings growth reported as a loss of 0.99, the company's PEG ratio of 0.75 suggests that the stock may be undervalued, providing room for potential upside of 3.97.
Main Takeaways
The company, Cal Maine Foods, reported last year's revenue of $3.15 billion. Its net income was $756.73 million, with a profit before overhead, payroll, taxes, and interest of $337.06 million. The company has a Profit Margin (PM) of 0.22%, which means that even a minor decline in its revenue could wipe out profits, resulting in a net loss. This is significantly below average. Similarly, it has an Operating Margin (OM) of -0.01%, suggesting that for every $100 of sales, it generated a net operating loss of $0.01.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Rifka Kats
Cal-Maine Foods (CALM), a leading player in the Consumer Defensive sector, specializing in Packaged Foods & Meats, has recently seen a 1% dip in its share price, presenting a potential buying opportunity for discerning investors. With a market capitalization of $2.8B and an enterprise value of $2.6B, the company has demonstrated robust financial health. Despite a recent quarterly earnings growth loss of 0.99, the company's EPS estimate for the next year stands at 1.52, indicating potential for future profitability. Furthermore, Cal-Maine Foods boasts a PE ratio of 4.42, suggesting that the stock could be undervalued. However, investors should note the analyst overall consensus currently leans towards 'Sell', with a target price estimated at $45. Currently, Cal Maine's Invested Capital is exhibiting remarkable stability compared to the previous year. As of January 2, 2024, the Invested Capital Average is projected to grow to approximately $874.8 million, while Revenue Per Employee is expected to decrease to about $502.6 thousand. As interest in the food products sector intensifies, it is pertinent to scrutinize Cal Maine Foods in more depth. We will assess whether Cal Maine's shares are reasonably priced heading into February. This article aims to highlight key factors influencing Cal Maine's products and services, as well as their potential impact on the investment outlook for Cal Maine in February.The performance of Cal Maine Foods in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Cal Maine's stock prices. When investing in Cal Maine, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Cal Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Cal Maine carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of Cal Maine earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cal Maine dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cal one year expected dividend income is about USD2.74 per share.
As of the 30th of November 2024, Dividends Paid is likely to grow to about (87.3 M). In addition to that, Dividend Yield is likely to drop to 0.01. | Last Reported | Projected for Next Year | ||
| Dividends Paid | -91.9 M | -87.3 M | |
| Dividend Yield | 0.03 | 0.01 | |
| Dividend Payout Ratio | 0.33 | 0.22 | |
| Dividend Paid And Capex Coverage Ratio | 1.90 | 1.48 |
Investing in dividend-paying stocks, such as Cal Maine Foods is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Cal Maine must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cal Maine. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Cal Maine's Liquidity
Cal Maine financial leverage refers to using borrowed capital as a funding source to finance Cal Maine Foods ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cal Maine financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cal Maine's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cal Maine's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cal Maine's total debt and its cash.
Cal Maine Gross Profit
Cal Maine Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cal Maine previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cal Maine Gross Profit growth over the last 10 years. Please check Cal Maine's gross profit and other fundamental indicators for more details.
An Additional Perspective On Cal Maine Foods
Cal Maine holds a total of fourty-four million one hundred eighty-two thousand six hundred outstanding shares. The majority of Cal Maine Foods outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cal-Maine Foods to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cal Maine. Please pay attention to any change in the institutional holdings of Cal Maine Foods as this could imply that something significant has changed or about to change at the company. Also note that nearly two million two hundred nine thousand one hundred thirty invesors are currently shorting Cal Maine expressing very little confidence in its future performance.
"Buy when others are fearful," is a well-known investment adage that may apply to Cal-Maine Foods stock right now.Despite a 1% dip in share price, the company's fundamentals suggest a potential buying opportunity. With an EPS estimate of 2.78 for the current year and a book value of 32.94 per share, the company's financial health appears robust. Furthermore, Cal-Maine Foods has a strong operating income of $967.7M and a net income of $756.73M, indicating solid profitability. The company's debt is also impressively low, with total debt standing at just $1.44M, giving it a debt-to-equity ratio of 0%. Lastly, with 93.94% of shares owned by institutions, there's significant confidence in the company's long-term prospects. Therefore, this temporary dip may present an attractive entry point for investors. .
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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 Raphi Shpitalnik do not own shares of Cal Maine Foods. Please refer to our Terms of Use for any information regarding our disclosure principles.