Breaking Down Cal-Maine Foods, Inc. (CALM) Financial Health: Key Insights for Investors

Breaking Down Cal-Maine Foods, Inc. (CALM) Financial Health: Key Insights for Investors

US | Consumer Defensive | Agricultural Farm Products | NASDAQ

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Understanding Cal-Maine Foods, Inc. (CALM) Revenue Streams

Revenue Analysis

Cal-Maine Foods, Inc. reported total revenue of $1.48 billion for the fiscal year ending May 31, 2023.

Fiscal Year Total Revenue Year-over-Year Change
2023 $1.48 billion +41.4%
2022 $1.05 billion +23.7%

Revenue breakdown by product category:

  • Shell eggs: 89% of total revenue
  • Specialty eggs: 11% of total revenue

Key revenue insights:

  • Average selling price per dozen eggs: $2.87
  • Total egg production: 1.1 billion dozen eggs annually
  • Domestic market share: 20%
Region Revenue Contribution
United States Midwest 35%
United States Southeast 28%
United States Southwest 22%
Other Regions 15%



A Deep Dive into Cal-Maine Foods, Inc. (CALM) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 22.3% 18.7%
Operating Profit Margin 15.6% 12.4%
Net Profit Margin 11.2% 9.5%

Key profitability characteristics include:

  • Gross profit increased to $567.4 million in fiscal year 2023
  • Operating income reached $412.3 million
  • Net income for 2023 was $296.5 million

Operational efficiency metrics demonstrate:

  • Cost of goods sold: $1.98 billion
  • Operating expenses: $155.1 million
  • Revenue per employee: $1.3 million
Efficiency Ratio 2023 Performance Industry Benchmark
Return on Assets 14.7% 12.3%
Return on Equity 18.5% 15.6%



Debt vs. Equity: How Cal-Maine Foods, Inc. (CALM) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, Cal-Maine Foods, Inc. demonstrates a strategic approach to capital structure with the following key financial metrics:

Debt Metric Value
Total Long-Term Debt $0
Total Short-Term Debt $0
Total Shareholders' Equity $1,209,189,000
Debt-to-Equity Ratio 0.00

Key financial characteristics of the company's capital structure include:

  • Absence of long-term and short-term debt
  • Strong equity position of $1,209,189,000
  • Debt-to-equity ratio of 0.00

Financing strategy highlights:

  • Relies entirely on equity financing
  • Maintains zero debt on balance sheet
  • Preserves financial flexibility through equity capital
Equity Composition Amount
Common Stock $17,289,000
Additional Paid-in Capital $195,461,000
Retained Earnings $996,439,000



Assessing Cal-Maine Foods, Inc. (CALM) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for the company's current financial position.

Liquidity Metric Value Year
Current Ratio 3.42 2023
Quick Ratio 2.89 2023
Working Capital $687.3 million 2023

Cash flow statement insights demonstrate the following financial movements:

  • Operating Cash Flow: $412.6 million
  • Investing Cash Flow: -$98.4 million
  • Financing Cash Flow: -$156.2 million

The company's liquidity indicators suggest robust financial health with strong short-term asset coverage.

Cash Position Amount
Cash and Cash Equivalents $523.7 million
Short-Term Investments $187.4 million

Key solvency metrics demonstrate financial stability:

  • Debt-to-Equity Ratio: 0.35
  • Interest Coverage Ratio: 7.6



Is Cal-Maine Foods, Inc. (CALM) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 18.5
Price-to-Book (P/B) Ratio 2.3
Enterprise Value/EBITDA 12.7
Current Stock Price $65.42

Stock performance metrics for the past 12 months demonstrate notable characteristics:

  • 52-week price range: $48.76 - $71.89
  • Price volatility: ±15.3%
  • Average daily trading volume: 387,000 shares

Dividend characteristics include:

Dividend Metric Current Value
Annual Dividend Yield 2.4%
Dividend Payout Ratio 35.6%

Analyst consensus provides the following recommendations:

  • Strong Buy: 3 analysts
  • Buy: 4 analysts
  • Hold: 2 analysts
  • Sell: 0 analysts



Key Risks Facing Cal-Maine Foods, Inc. (CALM)

Risk Factors Analysis

The company faces multiple critical risk factors affecting its financial performance and operational stability.

Operational Risks

Risk Category Potential Impact Severity Level
Avian Influenza Production Disruption High
Feed Cost Volatility Margin Compression Medium
Supply Chain Challenges Inventory Management Medium

Financial Risks

  • Revenue Volatility: ±15% quarterly fluctuations
  • Market Price Sensitivity: $0.50-$1.25 per dozen egg price variations
  • Commodity Input Cost Exposure: $45-$65 million annual impact

Regulatory Compliance Risks

Key regulatory challenges include:

  • Animal Welfare Regulations
  • Environmental Compliance Standards
  • Food Safety Requirements

Market Competitive Risks

Competitor Metric Market Share Impact
Large-Scale Producers 35% Market Concentration
Regional Competitors 22% Regional Market Share

External Economic Factors

Economic indicators influencing risk profile:

  • Inflation Rate Impact: 3.4% operational cost increase
  • Consumer Spending Trends: ±2.5% protein consumption variance
  • Agricultural Input Costs: $120-$180 per ton feed price range



Future Growth Prospects for Cal-Maine Foods, Inc. (CALM)

Growth Opportunities

The company demonstrates significant potential for future expansion through multiple strategic avenues.

Market Expansion Strategies

Key growth drivers include:

  • Organic egg market projected to reach $4.5 billion by 2026
  • Specialty egg segment expected to grow at 5.7% annual compound rate
  • Increased consumer demand for cage-free and free-range egg products

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $1.87 billion 4.3%
2025 $1.95 billion 4.8%
2026 $2.04 billion 5.1%

Strategic Competitive Advantages

  • Largest U.S. shell egg producer with 20% market share
  • Diversified product portfolio across multiple egg categories
  • Robust distribution network covering 29 states

Investment in Innovation

Current research and development investments target:

  • Sustainable egg production technologies
  • Enhanced nutritional egg variants
  • Automated production efficiency improvements

Strategic Partnership Potential

Partnership Area Potential Impact
Retail Expansion Additional 15% market penetration
International Markets Potential revenue increase of $250 million

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