Is Cal-Maine Foods, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Cal-Maine Foods, Inc. has moved from attractive to very attractive, indicating a strong positive outlook. The company appears to be undervalued, supported by a P/E ratio of 8, a PEG ratio of 0.03, and an impressive dividend yield of 207.87%. In comparison, Pilgrim's Pride Corp. has a P/E of 8.20, while Seaboard Corp. is deemed very expensive with a P/E of 24.31, highlighting Cal-Maine's relative attractiveness in the market.
Despite recent underperformance with a 1-week return of -5.89% compared to the S&P 500's 1.05%, Cal-Maine has shown strong long-term growth, achieving a 5-year return of 167.67% versus the S&P 500's 96.61%. This performance, combined with its favorable valuation ratios, reinforces the conclusion that Cal-Maine Foods, Inc. is indeed undervalued.