Is Cal-Maine Foods growth trend slowing down?

CALM Stock  USD 54.47  0.27  0.49%   
While many traders are getting carried away by overanalyzing food products space, it is reasonable to summarize Cal-Maine Foods. We will analyze why Cal-Maine Foods investors may still consider a stake in the business. Is Cal-Maine Foods valuation justified? I am going to cover the entity perspective on valuation to give you a better outlook on taking a position in it.
Published over a month ago
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Cal-Maine Foods currently holds 1.44 M in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest the firm is not taking enough advantage from borrowing.
Macroaxis provides unbiased investment recommendation on Cal-Maine Foods that should be used to complement current analysts and expert consensus on Cal-Maine Foods. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
We determine the current worth of Cal-Maine Foods using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cal-Maine Foods based exclusively on its fundamental and basic technical indicators. By analyzing Cal-Maine Foods's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cal-Maine Foods's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cal-Maine Foods. We calculate exposure to Cal-Maine Foods's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cal-Maine Foods's related companies.

Cal-Maine Foods Investment Alerts

Cal-Maine investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Cal-Maine Foods performance across your portfolios.Please check all investment alerts for Cal-Maine

Cal-Maine Foods Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Cal-Maine value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cal-Maine Foods competition to find correlations between indicators driving the intrinsic value of Cal-Maine.

How does Cal-Maine utilize its cash?

To perform a cash flow analysis of Cal-Maine Foods, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cal-Maine Foods is receiving and how much cash it distributes out in a given period. The Cal-Maine Foods cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cal-Maine Foods Net Cash Flow from Operations is very stable at the moment as compared to the past year. Cal-Maine Foods reported last year Net Cash Flow from Operations of 123.92 Million

An Additional Perspective On Cal-Maine Foods

The entity reported the previous year's revenue of 1.78 B. Net Income was 132.44 M with profit before overhead, payroll, taxes, and interest of 337.06 M.

Margins Breakdown

Cal-Maine profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Cal-Maine Foods itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Cal-Maine Foods profit margins.
Profit Margin
Operating Margin
Operating Margin9.44
EBITDA Margin13.9
Gross Margin21.04
Profit Margin7.92

Our perspective of the new Cal-Maine Foods hike

New Jensen Alpha is up to 0.08. Price may pull down again.
As of the 27th of December, Cal-Maine Foods shows the Mean Deviation of 1.58, downside deviation of 2.26, and Risk Adjusted Performance of 0.0925. Cal-Maine Foods technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for Cal-Maine Foods, which can be compared to its rivals. Please 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 is priced correctly, providing market reflects its regular price of 64.63 per share. Given that Cal-Maine Foods has jensen alpha of 0.0841, we suggest you to validate Cal-Maine Foods's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Take On Cal-Maine Foods

While other companies within the farm products industry are still a little expensive, even after the recent corrections, Cal-Maine Foods may offer a potential longer-term growth to stakeholders. To sum up, as of the 27th of December 2022, our final 90 days buy-sell recommendation on the company is Cautious Hold. We believe Cal-Maine Foods is overvalued with below average probability of financial unrest for the next two years.

Editorial Staff

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 Ellen Johnson 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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