Cal-Maine Foods, Inc. (CALM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vital Farms, Inc.

Archer-Daniels-Midland Co.

Seaboard Corp.

Fresh Del Monte Produce, Inc.

Cal-Maine Foods, Inc.

Mission Produce, Inc.

Bunge Ltd.

Pilgrim's Pride Corp.

Tilray Brands, Inc.

MGP Ingredients, Inc.

Adecoagro SA

Why is Cal-Maine Foods, Inc. ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Net Sales has grown by an annual rate of 23.97% and Operating profit at 82.23%
Company has a low Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 51.24% signifying high profitability per unit of total capital (equity and debt)

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 1,361.24 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 64.59%
CASH AND EQV(HY) Highest at USD 2,392.38 MM

With ROE of 42.90%, it has a very attractive valuation with a 2.41 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.94%, its profits have risen by 88.2% ; the PEG ratio of the company is 0.1

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cal-Maine Foods, Inc. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cal-Maine Foods, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Cal-Maine Foods, Inc.

-10.94%

1.03

34.14%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.97%

EBIT Growth (5y)

82.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

1.55

Tax Ratio

24.03%

Dividend Payout Ratio

27.15%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

51.24%

ROE (avg)

23.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.41

EV to EBIT

3.69

EV to EBITDA

3.43

EV to Capital Employed

3.44

EV to Sales

1.27

PEG Ratio

0.08

Dividend Yield

5.43%

ROCE (Latest)

93.38%

ROE (Latest)

42.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,361.24 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 64.59%

CASH AND EQV(HY)

Highest at USD 2,392.38 MM

DIVIDEND PER SHARE(HY)

Highest at USD 14.53

-21What is not working for the Company

INTEREST(9M)

At USD 0.51 MM has Grown at 50.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 77,664.18

RAW MATERIAL COST(Y)

Grown by 28.49% (YoY

NET SALES(Q)

Lowest at USD 769.5 MM

OPERATING PROFIT(Q)

Lowest at USD 156.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.29 %

PRE-TAX PROFIT(Q)

Lowest at USD 137.58 MM

NET PROFIT(Q)

Lowest at USD 103.89 MM

EPS(Q)

Lowest at USD 2.13

Here's what is working for Cal-Maine Foods, Inc.

Operating Cash Flow

Highest at USD 1,361.24 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 2,392.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 14.53

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 64.59%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 30.11 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Cal-Maine Foods, Inc.

Net Sales

At USD 769.5 MM has Fallen at -30.02%

over average net sales of the previous four periods of USD 1,099.65 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 137.58 MM has Fallen at -67.05%

over average net sales of the previous four periods of USD 417.52 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 103.89 MM has Fallen at -67.29%

over average net sales of the previous four periods of USD 317.67 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 77,664.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 0.51 MM has Grown at 50.6%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Lowest at USD 769.5 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 156.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 20.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 137.58 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 103.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 2.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 28.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.09 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income