Cal-maine Foods Inc

CALM

Agricultural Prod-Livestock & Animal Specialties

Mkt Cap

$2.265B

PE

3.58

Debt

Cash

$360.3M

EV

FCF

$578.3M

Market Cap

$2.265B

P/E Ratio

3.58

Debt

Cash

$360.3M

EV

FCF

$578.3M

Cal-Maine Foods, Inc., together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, and 4-Grain brand names, as well as under private labels. It sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States. Cal-Maine Foods, Inc. was founded in 1957 and is headquartered in Ridgeland, Mississippi.

Sector

10-Q
9/2/23
10-K
6/3/23
10-Q
2/25/23
10-Q
11/26/22
10-Q
8/27/22
10-K
5/28/22
10-Q
2/26/22
10-Q
11/27/21
10-Q
8/28/21
10-K
5/29/21
10-Q
2/27/21
10-Q
11/28/20
10-Q
8/29/20
10-K
5/30/20
10-Q
2/29/20
10-Q
11/30/19
10-Q
8/31/19
10-K
6/1/19
10-Q
3/2/19
10-Q
12/1/18
10-Q
9/1/18
10-K
6/2/18
10-Q
3/3/18
10-Q
12/2/17

DCF

Discounted Cash Flow Valuation of Cal-maine Foods Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$578.3M	$610.8M	$644.7M	$680M	$716.8M	$755.1M	$794.9M	$836.3M	$879.2M	$923.8M	$970M	$9.7B
DCF		$531.1M	$487.5M	$447.1M	$409.8M	$375.4M	$343.6M	$314.4M	$287.4M	$262.6M	$239.8M	$2.398B
Value	$6.096B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -2.3%

Earnings Stability -36%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	05-2015	05-2016	06-2017	06-2018	05-2019	05-2020	05-2021	05-2022	06-2023	TTM
Net Margin	10%	17%	-6.9%	3.4%	4%	0%	0.15%	7.5%	24%	21%
ROA	27%	44%	-11%	10%	6.1%	1.7%	-0.81%	12%	51%	44%
ROE	23%	34%	-8.8%	5.4%	5.5%	0%	0.2%	12%	47%	39%

What is the average Net Margin?

The average Net Margin over the past 5 years is +6.51%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +3.25%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +13.32%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +6.24%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.67%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +6.51%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	05-2015	05-2016	06-2017	06-2018	05-2019	05-2020	05-2021	05-2022	06-2023	TTM
Debt FCF	0.54	0.14	-0.14	0.05	0.09	0.00	-	-	-	-
Debt Equity	0.09	0.05	0.02	0.01	0.00	0.00	-	-	-	-
MIN
Graham Stability	-	-	-38%	38%	56%	0%	5.9%	100%	100%	-38%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.03.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.38.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	05-2016	06-2018	05-2020	05-2022	Trend
Revenue	7.4%	16%	33%	77%	5.8%
Net Income	13%	71%	-	470%	410%
Stockholders Equity	8.4%	11%	17%	46%	0.86%
FCF	13%	32%	-	1.3K%	140%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +15.92%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +5.82%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +71.32%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +407.89%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +11.01%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.86%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +32.08%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +135.64%.