Cal Maine Story

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CALM -- USA Stock  

USD 39.31  0.44  1.11%

Lets try to summarize the odds of Cal Maine to fully recover from the new pull down as its shares went up 0.21%. The firm's current daily volatility is 1.97 percent, with a beta of 0.19 and an alpha of -0.13 over DOW. As many millenniums are excited about current market swings, it is only fair to summarize Cal Maine Foods. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three weeks ago
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Will the new Cal Maine volatility hike frighten stakeholders?
Cal Maine Foods currently holds roughly 232.29 M in cash with 73.61 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.81. Cal Maine Foods currently holds 3.39 M in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest Cal Maine is not taking enough advantage from borrowing. The entity has a current ratio of 5.5, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Cal Maine, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Cal Maine along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

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. Please check the breakdown between Cal Maine's total debt and its cash.

How Cal Maine utilizes its cash?

To perform a cash flow analysis of Cal Maine, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cal Maine is receiving and how much cash it distributes out in a given period. The Cal Maine cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Cal Maine Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 103.96 Million

Cal Maine Correlation with Peers

Investors in Cal Maine can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Cal Maine Foods. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Cal Maine and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Cal Maine is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Cal Maine for more details

Breaking it down

Cal Maine Foods secures Sharpe Ratio (or Efficiency) of -0.0939, which signifies that the company had -0.0939% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Cal Maine Foods exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Cal Maine Foods mean deviation of 1.29, and Risk Adjusted Performance of (0.043896) to double-check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Cal Maine may start a throwback in October

New potential upside is at 3.18. Cal Maine Foods exhibits very low volatility with skewness of -2.16 and kurtosis of 10.34. However, we advise investors to further study Cal Maine Foods technical indicators to make sure all market info is available and is reliable.

Our Conclusion on Cal Maine

While some other firms in the farm products industry are either recovering or due for a correction, Cal Maine may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 28th of September 2020, our analysis shows that Cal Maine barely shadows the market. The company is undervalued and projects average probability of distress for the next 2 years. Our final 30 days buy-or-sell advice on the company is Strong Hold.

About Contributor

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.

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