Cal Maine Story

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CALM -- USA Stock  

USD 37.25  0.58  1.58%

Lets try to summarize the odds of Cal Maine to fully recover from the new pull down as its shares went up 0.78%. Cal Maine Foods current daily volatility is 1.21 percent, with a beta of 0.36 and an alpha of -0.1 over DOW. While many traders are getting carried away by overanalyzing agriculture, it is reasonable to summarize Cal Maine Foods. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two weeks ago
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Should you acquire Cal Maine after the new volatility pull down?
Cal Maine Foods currently holds roughly 193.33 M in cash with 119.49 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.96. The firm shows a Beta (market volatility) of 0.3641, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Cal Maine's beta means in this case. As returns on the market increase, Cal Maine returns are expected to increase less than the market. However, during the bear market, the loss on holding Cal Maine will be expected to be smaller as well. Even though it is essential to pay attention to Cal Maine Foods historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Cal Maine Foods exposes twenty-one different technical indicators, which can help you to evaluate its performance. Cal Maine Foods has an expected return of -0.0443%. Please be advised to confirm Cal Maine Foods information ratio, as well as the relationship between the value at risk and expected short fall to decide if Cal Maine Foods stock performance from the past will be repeated at some point in the near future.
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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Cal Maine's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Cal Maine in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cal Maine. Your research has to be compared to or analyzed against Cal Maine's peers to derive any actionable benefits. When done correctly, Cal Maine's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Cal Maine Foods.

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 138.14 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 -0.0366, which signifies that the company had -0.0366% 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-one 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 0.8922, and Risk Adjusted Performance of (0.03297) to double-check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Cal Maine may start a recoup in February

The variance is down to 1.38 as of today. Cal Maine Foods exhibits very low volatility with skewness of -0.58 and kurtosis of 0.61. However, we advise investors to further study Cal Maine Foods technical indicators to make sure all market info is available and is reliable.

The Bottom Line

While some firms within the farm products industry are still a little expensive, even after the recent corrections, Cal Maine may offer a potential longer-term growth to stakeholders. To summarize, as of the 5th of January 2021, our latest 30 days buy-sell recommendation on the company is Buy. We believe Cal Maine is currently undervalued with average odds of financial distress for the next two years.

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 Gabriel 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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