In the current market session, Cal-Maine Foods Inc. CALM stock price is at $109.40, after a 0.09% decrease. However, over the past month, the company's stock spiked by 2.03%, and in the past year, by 58.81%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is not performing up to par in the current session. A Look at Cal-Maine Foods P/E Relative to Its CompetitorsThe P/E ratio is used by long-term shareholders to assess the company's market performance against ...

Cal-Maine Foods Inc. (NASDAQ: CALM ) is an American egg producer headquartered in Mississippi that produces and distributes eggs to every region of the country. During its most recent fiscal year, which ended on May 31, 2025, 66.9%I am Liam Litong Tian, a young investor from San Diego, California, and a student at Cornell University. I have dabbled in investing over the past few years, and believe that it is a vital tool for acquiring wealth. I am deeply interested in real estate, professional services, eme ...

Core Viewpoint - The article discusses seven low beta stocks with dividend yields up to 8%, which are considered more stable during market downturns, providing a cushion against volatility [2][3]. Group 1: Low-Beta Dividend Stocks - Getty Realty (GTY) offers a 6.6% yield with a 5-year beta of 0.86 and a 1-year beta of 0.12, indicating lower volatility compared to the market. The company has a stable cash-flowing tenant base, primarily from convenience stores and car washes [5][7]. - AES Corp. (AES) has a 5.5% yield and operates with a 1-year beta of 0.88 and a 5-year beta of 0.96. It combines traditional utility services with renewable energy sales, providing growth potential [9][10]. - Northwest Bancshares (NWBI) offers a 6.8% yield with a 5-year beta of 0.69 and a 1-year beta of 0.80. The company has a solid balance sheet but faces challenges in consistent growth despite a recent merger [11][12]. - Conagra Brands (CAG) has a yield of 7.4% but faces significant challenges, including supply chain issues and food inflation, with a 1-year beta of -0.05 and a 5-year beta of 0.08 [17][21]. - Cal-Maine Foods (CALM) boasts an 8.0% yield and has seen a 60% increase year-to-date, with a 1-year beta of 0.67 and a 5-year beta of 0.19. The company has benefited from rising egg prices but faces income variability [23][24]. Group 2: Market Performance and Trends - The article highlights that low beta stocks tend to attract buyers during market downturns, which can help stabilize their share prices [3]. - The performance of low beta stocks like Kraft Heinz (KHC) and General Mills (GIS) has been disappointing, with low betas reflecting counter-market movements rather than stability [14][15]. - The overall trend indicates that while some low beta stocks have maintained dividends, their growth has been limited, and challenges remain in the current market environment [16][22].

Group 1 - Cal-Maine Foods (NASDAQ: CALM) reported a strong Q4 FY 2025 earnings beat, contributing to its upward trajectory in the market [1] - The company's growth has been significantly influenced by a commodity supercycle, which has been supported by sustained higher prices [1]

Company Overview - Cal-Maine Foods is the leading fresh egg producer in the US, with 43.8 million laying hens and an annual sales volume of 1.3 billion dozen eggs as of FY2025 [1] Financial Position - The company is reported to be in an excellent financial position as of 2025 [1] Research Background - The analyst has over 10 years of experience researching various companies across multiple sectors, including commodities and technology, which contributes to the depth of analysis provided [1]

Financial Performance - Cal-Maine Foods exceeds earnings and revenue estimates [1] - Higher egg prices and sales volumes contribute to the positive results [1]

Part I [Business](index=4&type=section&id=Item%201.%20Business) Cal-Maine Foods, the largest U.S. shell egg producer, pursues organic growth in specialty eggs and strategic acquisitions, facing volatile prices and customer concentration - The company is the largest producer and distributor of shell eggs in the United States, with a total flock of approximately **48.3 million layers** and **11.5 million pullets and breeders** as of May 31, 2025[11](index=11&type=chunk)[13](index=13&type=chunk) - The company's growth strategy is centered on both organic growth, particularly in cage-free and specialty eggs, and accretive acquisitions to expand its shell egg, egg product, and prepared foods businesses[61](index=61&type=chunk) - Subsequent to fiscal year 2025, the company acquired Echo Lake Foods, a prepared foods company, for approximately **$258 million**, expanding its product offerings[16](index=16&type=chunk)[49](index=49&type=chunk) FY2025 Product Sales Breakdown | Product Category | Revenue % | Volume % | | :--- | :--- | :--- | | **Total Conventional Eggs** | **66.9%** | **63.3%** | | **Total Specialty Eggs** | **27.6%** | **36.7%** | | **Egg Products and Prepared Foods** | **4.6%** | N/A | - Feed is a primary cost, representing **53.4% of farm production costs** in fiscal 2025. The company formulates and produces the vast majority of its own feed[29](index=29&type=chunk) - Significant customer concentration exists, with the top three customers accounting for **49.2% of net sales** in fiscal 2025. Walmart Inc. is the largest customer, representing **33.6% of net sales**[56](index=56&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from volatile egg and feed prices, HPAI outbreaks, customer concentration, cage-free transition costs, and the recent loss of "controlled company" status - Operating results are significantly affected by volatile wholesale shell egg market prices, which are cyclical and outside the company's control. Small changes in industry production or demand can have a large adverse effect on prices[80](index=80&type=chunk)[81](index=81&type=chunk) - Feed costs, the largest element of farm production cost (**53% to 63% in the last five fiscal years**), are volatile and subject to global supply/demand factors, weather, and geopolitical instability[84](index=84&type=chunk)[85](index=85&type=chunk) - Outbreaks of agricultural diseases, particularly Highly Pathogenic Avian Influenza (HPAI), have harmed and could continue to harm the business by requiring flock depopulation and impacting supply and prices[87](index=87&type=chunk) - The business is exposed to customer concentration risk, with the top three customers accounting for **49.2% of net sales** in fiscal 2025. The loss of or reduced purchases by a large customer could materially affect results[100](index=100&type=chunk)[101](index=101&type=chunk) - The company faces significant uncertainty and costs related to the transition to cage-free eggs, driven by state legislation and customer demands. This requires substantial capital investment and creates risk of misjudging future demand[115](index=115&type=chunk)[117](index=117&type=chunk)[121](index=121&type=chunk) - On April 14, 2025, the company ceased to be a **"controlled company"** under Nasdaq rules after the founding family's Class A super-voting shares were converted to common stock. This could disrupt business and increase susceptibility to outside influence[137](index=137&type=chunk)[139](index=139&type=chunk) [Unresolved Staff Comments](index=22&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[143](index=143&type=chunk) [Cybersecurity](index=23&type=section&id=Item%201C.%20Cybersecurity) The company manages cybersecurity risk using the NIST framework with Board oversight, reporting no material threats as of the report date - The company's cybersecurity risk management strategy is based on the **National Institute of Standards and Technology (NIST) Cybersecurity Framework**[146](index=146&type=chunk) - The Board of Directors oversees cybersecurity risk management, with the Audit Committee receiving quarterly reports from the Director of Information Technology[150](index=150&type=chunk) - As of July 22, 2025, the company is not aware of any risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect the company[149](index=149&type=chunk) [Properties](index=24&type=section&id=Item%202.%20Properties) The company owns extensive production facilities across multiple states and 33,200 acres of land, with ongoing cage-free expansion projects Operational Facilities Summary (as of May 31, 2025) | Type | Quantity | Production Capacity Highlights | | :--- | :--- | :--- | | Shell Egg Production | 49 | House up to 51.8 million layers | | Feed Mills | 30 | 1,000 tons of feed per hour | | Processing and Packaging | 50 | ~674,700 dozen shell eggs per hour | | Pullet Facilities | 37 | House up to 14.3 million pullets | | Egg Products/Prepared Foods | 5 | 72,700 lbs. per hour | - The company has ongoing construction projects to expand cage-free egg production, which are expected to be completed through fiscal 2026[153](index=153&type=chunk) - As of May 31, 2025, the company owned approximately **33,200 acres of land**, with no material mortgages or liens on its properties[154](index=154&type=chunk) [Legal Proceedings](index=24&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in significant legal proceedings, including antitrust investigations and litigation, with a $19.6 million accrual for one case - The company refers to Note 16 of the Consolidated Financial Statements for a detailed description of its legal proceedings[155](index=155&type=chunk) [Mine Safety Disclosures](index=24&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[156](index=156&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq, with a variable dividend policy and a new $500 million share repurchase program, having lost its "controlled company" status - The company's variable dividend policy is to pay a quarterly dividend equal to **one-third (1/3) of the quarterly net income** attributable to Cal-Maine Foods, Inc[159](index=159&type=chunk) - On February 25, 2025, the company announced a **$500 million share repurchase program**. During the fourth quarter of fiscal 2025, **551,876 shares** were repurchased for approximately **$50 million**[164](index=164&type=chunk)[232](index=232&type=chunk) - Following the conversion of all Class A Common Stock to Common Stock in fiscal 2025, the company is no longer a **"controlled company"** under Nasdaq rules[158](index=158&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2025 saw record net sales of $4.3 billion and net income of $1.2 billion, driven by higher egg prices due to HPAI and increased sales volume, with strong liquidity Fiscal Year 2025 vs 2024 Performance | Metric | Fiscal 2025 | Fiscal 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $4,261.9M | $2,326.4M | +83.2% | | Gross Profit | $1,850.9M | $541.6M | +241.7% | | Net Income (to CALM) | $1,220.0M | $277.9M | +339.0% | | Diluted EPS | $24.95 | $5.69 | +338.5% | | Net Avg. Shell Egg Price/Doz | $3.134 | $1.932 | +62.2% | | Feed Costs/Doz Produced | $0.490 | $0.550 | -10.9% | - The significant increase in net sales and profit in fiscal 2025 was primarily driven by higher average selling prices for shell eggs, especially conventional eggs, due to reduced national supply caused by HPAI outbreaks[185](index=185&type=chunk)[186](index=186&type=chunk) - Total dozens sold increased by **11.8%** in fiscal 2025, supported by the acquisition of ISE's commercial shell egg business and increased outside egg purchases to meet customer demand[187](index=187&type=chunk) - The company's liquidity remains strong, with working capital increasing to **$1.7 billion** at fiscal year-end 2025 from **$1.0 billion** in 2024, and cash from operations was **$1.2 billion**[223](index=223&type=chunk)[224](index=224&type=chunk) - As of May 31, 2025, the company has approved material construction projects with a remaining projected cost of **$53.2 million**, primarily for cage-free layer and pullet houses[235](index=235&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Net sales surged 83.2% to $4.3 billion in fiscal 2025, driven by higher shell egg prices and increased egg product sales, significantly expanding gross profit margin Shell Egg Sales Analysis (FY2025 vs FY2024) | Category | FY2025 Sales ($M) | FY2024 Sales ($M) | Dozens Sold (M) FY25 | Dozens Sold (M) FY24 | Avg. Price/Doz FY25 | Avg. Price/Doz FY24 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Conventional | $2,835.4 | $1,291.7 | 812.4 | 746.7 | $3.490 | $1.730 | | Specialty | $1,184.5 | $925.7 | 470.2 | 400.9 | $2.519 | $2.309 | | **Total** | **$4,019.9** | **$2,217.4** | **1,282.6** | **1,147.6** | **$3.134** | **$1.932** | Cost of Sales Analysis (FY2025 vs FY2024) | Cost Component | FY2025 ($M) | FY2024 ($M) | % Change | | :--- | :--- | :--- | :--- | | Farm production | $1,035.6 | $987.9 | +4.8% | | Processing, packaging, warehouse | $396.1 | $335.9 | +17.9% | | Egg purchases and other | $819.6 | $380.2 | +115.6% | | Egg products and prepared foods | $159.6 | $80.9 | +97.4% | | **Total Cost of Sales** | **$2,411.0** | **$1,784.9** | **+35.1%** | - Farm production costs per dozen produced decreased by **6.6%** to **$0.918**, primarily due to a **10.9% drop in feed costs per dozen** to **$0.490**[200](index=200&type=chunk)[205](index=205&type=chunk) - SG&A expenses increased by **$61.8 million (24.5%)**, mainly due to a **$20.7 million increase in delivery expense**, and a **$59.2 million increase in other general and administrative expenses**, which included a **$15 million adjustment to contingent consideration**[207](index=207&type=chunk)[211](index=211&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity significantly improved in fiscal 2025 with working capital at $1.7 billion and $1.2 billion in operating cash flow, supporting acquisitions and capital projects Key Liquidity Metrics | Metric | May 31, 2025 | June 1, 2024 | | :--- | :--- | :--- | | Working Capital | $1.7 billion | $1.0 billion | | Current Ratio | 6.4 | 5.5 | | Cash and Cash Equivalents | $499.4 million | $237.9 million | Cash Flow Summary (Fiscal 2025) | Cash Flow Activity | Amount ($M) | | :--- | :--- | | Net Cash from Operating Activities | $1,224.7 | | Net Cash used in Investing Activities | ($575.5) | | Net Cash used in Financing Activities | ($386.7) | | **Increase in Cash** | **$262.5** | - Subsequent to fiscal year-end, the company acquired Echo Lake Foods for approximately **$258 million**, funded with available cash on hand[228](index=228&type=chunk) - The company has a **$250 million** senior secured revolving credit facility which was undrawn as of May 31, 2025[229](index=229&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include volatile commodity prices for eggs and feed, with significant credit risk concentration from Walmart Inc - The primary market risk arises from volatile prices of conventional eggs and feed ingredients like corn and soybean meal, which the company ordinarily does not hedge with long-term contracts[253](index=253&type=chunk) - A sensitivity analysis indicates that a **$0.28 change in the price per bushel of corn** or a **$25.46 change in the price per ton of soybean meal** each result in a **$0.01 change to the feed cost per dozen eggs**[253](index=253&type=chunk) - A significant concentration of credit risk exists with Walmart Inc. (including Sam's Club), which represented **28.1% of the company's net accounts receivable balance** as of May 31, 2025[256](index=256&type=chunk) [Financial Statements and Supplementary Data](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited financial statements received an unqualified opinion, with contingent liabilities from litigation identified as a Critical Audit Matter, reflecting strong fiscal 2025 performance - The independent registered public accounting firm, Frost, PLLC, issued an **unqualified opinion** on the consolidated financial statements[258](index=258&type=chunk) - The auditor identified **"Contingent Liabilities – Litigation and Claims"** as a Critical Audit Matter due to the subjective judgment required to assess the likelihood and amount of potential losses[262](index=262&type=chunk)[263](index=263&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | May 31, 2025 | June 1, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,968,110 | $1,241,839 | | Total Assets | $3,084,619 | $2,184,761 | | Total Current Liabilities | $308,371 | $227,743 | | Total Liabilities | $518,604 | $387,718 | | Total Stockholders' Equity | $2,566,015 | $1,797,043 | - Note 16 (Commitments and Contingencies) details ongoing litigation, including a DOJ antitrust investigation and an accrued expense of **$19.6 million** in Q2 FY24 related to the Kraft Foods antitrust case[390](index=390&type=chunk)[397](index=397&type=chunk) - Note 17 (Subsequent Events) discloses the acquisition of Echo Lake Foods on June 2, 2025, for approximately **$258 million**[401](index=401&type=chunk) - Note 11 (Equity) details the conversion of all Class A Common Stock on April 14, 2025, after which the company was no longer a **"controlled company"**[366](index=366&type=chunk)[371](index=371&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=66&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles or practices, or financial statement disclosure - None[403](index=403&type=chunk) [Controls and Procedures](index=66&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective, with the auditor issuing an unqualified attestation report - Management concluded that the company's disclosure controls and procedures were **effective** as of May 31, 2025[404](index=404&type=chunk) - Management determined that the company's internal control over financial reporting was **effective** as of May 31, 2025, based on the COSO 2013 framework[405](index=405&type=chunk) - The independent registered public accounting firm, Frost, PLLC, issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of May 31, 2025[406](index=406&type=chunk) [Other Information](index=68&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 trading arrangement during the fourth quarter of fiscal 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of fiscal 2025[413](index=413&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=68&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's definitive proxy statement for its 2025 annual meeting of stockholders - Information is incorporated by reference from the registrant's Definitive Proxy Statement for its 2025 annual meeting of stockholders[416](index=416&type=chunk) [Executive Compensation](index=68&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item concerning executive compensation is incorporated by reference from the company's definitive proxy statement - Information is incorporated by reference from the registrant's Definitive Proxy Statement for its 2025 annual meeting of stockholders[419](index=419&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=68&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item regarding security ownership is incorporated by reference from the company's definitive proxy statement - Information is incorporated by reference from the registrant's Definitive Proxy Statement for its 2025 annual meeting of stockholders[420](index=420&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=68&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item concerning related party transactions and director independence is incorporated by reference from the company's definitive proxy statement - Information is incorporated by reference from the registrant's Definitive Proxy Statement for its 2025 annual meeting of stockholders[421](index=421&type=chunk) [Principal Accountant Fees and Services](index=69&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item regarding principal accountant fees and services is incorporated by reference from the company's definitive proxy statement - Information is incorporated by reference from the registrant's Definitive Proxy Statement for its 2025 annual meeting of stockholders[423](index=423&type=chunk) Part IV [Exhibit and Financial Statement Schedules](index=69&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section details the financial statements, schedules, and exhibits included in the Form 10-K filing - This section lists the financial statements included in Item 8 and all exhibits filed with or incorporated by reference into the Form 10-K[424](index=424&type=chunk)[426](index=426&type=chunk) [Form 10-K Summary](index=71&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None[429](index=429&type=chunk)

[Overview and Key Highlights](index=1&type=section&id=Fourth%20Quarter%20and%20Fiscal%202025%20Financial%2C%20Operational%20and%20Business%20Highlights) Cal-Maine Foods reported a strong finish to fiscal 2025, with significant year-over-year growth in net sales and net income for both the fourth quarter and the full fiscal year, driven by record sales of specialty eggs, increased layer hen production, strategic acquisitions, and substantial shareholder returns through dividends and share repurchases Summary Financial Results | Metric | Q4 Fiscal 2025 | Fiscal Year 2025 | | :--- | :--- | :--- | | **Net Sales** | $1.1 billion | $4.3 billion | | **Net Income** | $342.5 million | $1.2 billion | | **Diluted EPS** | $7.04 | $24.95 | - The company achieved record total specialty dozens sold in Q4, driven by strong consumer demand and additional production from the newly acquired ISE America, Inc[3](index=3&type=chunk) - Significant progress was made to increase production capacity, evidenced by an **18% increase** in average layer hens, a **48% increase** in breeder flocks, and a **56% increase** in total chicks hatched in Q4 YoY[3](index=3&type=chunk) - Announced the acquisition of Echo Lake Foods to expand into the prepared foods market, with the transaction closing on June 2, 2025[3](index=3&type=chunk)[5](index=5&type=chunk) - A cash dividend of approximately **$114.2 million**, or **$2.35 per share**, was declared. The company also repurchased approximately **$50 million** of its Common Stock under a new **$500 million** share repurchase program[3](index=3&type=chunk)[18](index=18&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Key%20Fourth%20Quarter%20and%20Fiscal%202025%20Financial%20Drivers) The company's robust financial performance was primarily driven by a significant increase in the net average selling price of shell eggs, a direct result of HPAI-related industry supply reductions during a period of high demand, complemented by a 9.0% rise in sales volume in Q4, while feed costs per dozen decreased slightly, overall farm production costs remained flat due to higher facility costs [Q4 & Fiscal 2025 Results](index=2&type=section&id=Q4%20%26%20Fiscal%202025%20Results) In Q4 fiscal 2025, net sales surged to $1.1 billion from $640.8 million YoY, with net income attributable to the company rising to $342.5 million from $113.2 million, and for the full fiscal year 2025, net sales more than doubled to $4.3 billion, and net income attributable to the company increased more than fourfold to $1.2 billion, driven by higher egg prices and sales volumes Q4 Financial Results | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $1.1 B | $640.8 M | +72.2% | | **Net Income** | $342.5 M | $113.2 M | +202.5% | | **Diluted EPS** | $7.04 | $2.32 | +203.4% | Fiscal Year Financial Results | Metric | Fiscal Year 2025 | Fiscal Year 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $4.3 B | $2.3 B | +85.7% | | **Net Income** | $1.2 B | $277.9 M | +339.0% | | **Diluted EPS** | $24.95 | $5.69 | +338.5% | [Sales Volume and Pricing](index=2&type=section&id=Sales%20Volume%20and%20Pricing) Total shell eggs sold in Q4 increased by 9.0% to 311.4 million dozens, with specialty eggs showing strong growth of 16.0% to a record 121.8 million dozens, and the net average selling price per dozen jumped to $3.305 in Q4 from $2.133 in the prior year, with conventional egg prices experiencing the most significant rise to $3.784 per dozen Sales Volume (Dozens) | Sales Volume (Dozens) | Q4 FY2025 | Q4 FY2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Dozens Sold** | 311.4 M | 285.6 M | +9.0% | | **Conventional Eggs** | 189.6 M | 180.5 M | +5.0% | | **Specialty Eggs** | 121.8 M | 105.0 M | +16.0% | Net Average Selling Price (per dozen) | Net Average Selling Price (per dozen) | Q4 FY2025 | Q4 FY2024 | % Change | | :--- | :--- | :--- | :--- | | **Total** | $3.305 | $2.133 | +54.9% | | **Conventional Eggs** | $3.784 | $2.062 | +83.5% | | **Specialty Eggs** | $2.559 | $2.254 | +13.5% | [Cost and Operations](index=2&type=section&id=Cost%20and%20Operations) Farm production costs per dozen remained relatively flat in Q4 YoY, as a 2.2% decrease in feed costs per dozen ($0.493 vs $0.504) was offset by higher facility expenses, and the company also faced significantly higher costs for purchasing outside eggs due to elevated market prices - Feed costs per dozen decreased by **2.2%** to **$0.493** in Q4 FY2025 compared to **$0.504** in Q4 FY2024[10](index=10&type=chunk)[13](index=13&type=chunk) - The benefit from lower feed costs was offset by higher facility costs, resulting in relatively flat farm production costs per dozen compared to the prior-year period[10](index=10&type=chunk) - Costs for outside egg purchases increased significantly due to higher shell egg prices in the market[10](index=10&type=chunk) [Key Operational Factors and Corporate Actions](index=3&type=section&id=Key%20Operational%20Factors%20and%20Corporate%20Actions) The company continues to navigate the significant risks posed by Highly Pathogenic Avian Influenza (HPAI), which has led to the depopulation of millions of hens industry-wide, while on the corporate front, Cal-Maine declared a substantial dividend of approximately $2.35 per share for Q4 and initiated its new $500 million share repurchase program, buying back $50 million in stock during the quarter [HPAI Impact](index=3&type=section&id=HPAI%20Comments) Highly Pathogenic Avian Influenza (HPAI) remains a major industry risk, with 39.0 million commercial layer hens and pullets depopulated in calendar year 2025 through May, and while the human health risk is considered low and no eggs have been recalled, the spread of HPAI in wild birds and dairy cattle increases risks to egg producers' operations - In calendar year 2025 through May, **39.0 million** commercial layer hens and pullets have been depopulated due to HPAI, following **40.2 million** in calendar year 2024[15](index=15&type=chunk) - HPAI is widespread in the wild bird population, and its recent spread in dairy cattle increases risks to Cal-Maine Foods' operations[15](index=15&type=chunk) - According to the USDA and CDC, the human health risk is low, HPAI cannot be transmitted through properly cooked eggs, and no eggs have been recalled due to HPAI[15](index=15&type=chunk) [Capital Allocation (Dividends & Repurchases)](index=3&type=section&id=Dividend%20Payment%20and%20Share%20Repurchases) The company declared a Q4 cash dividend of approximately $2.35 per share, totaling about $114.2 million, consistent with its policy of distributing one-third of quarterly net income, and additionally, it repurchased $50 million of its Common Stock from the founder's family members under a new $500 million authorization, leaving $450 million available for future repurchases - A cash dividend of approximately **$2.35 per share** will be paid for Q4 fiscal 2025, based on the company's policy to pay one-third of quarterly net income[16](index=16&type=chunk)[17](index=17&type=chunk) - The Board approved a new **$500 million** share repurchase program on February 25, 2025[18](index=18&type=chunk) - During Q4, the company repurchased **$50 million** of its Common Stock (**551,876 shares**), with approximately **$450 million** remaining under the program[18](index=18&type=chunk)[19](index=19&type=chunk) [Business Outlook and Strategy](index=4&type=section&id=Looking%20Ahead) Looking to fiscal 2026, management is confident in its resilient operating model and growth strategy, with the recent acquisition of Echo Lake Foods being a key strategic move to diversify into the prepared foods market, leveraging existing distribution to expand its customer base, and the company will continue to focus on expanding production capacity, both organically and through strategic acquisitions, to meet customer demand and deliver stakeholder value - The acquisition of Echo Lake Foods provides a significant opportunity to grow the prepared foods portfolio, diversifying product offerings and expanding reach to retail, QSR, and other foodservice customers[20](index=20&type=chunk) - The company believes it is well-positioned for fiscal 2026 to deliver on its growth and returns strategy, leveraging its production capability, integrated operations, and expanding portfolio[21](index=21&type=chunk) - The core mission remains to be the most sustainable producer and reliable supplier of high-quality fresh shell eggs, egg products, and prepared foods in the country[21](index=21&type=chunk) [Financial Statements](index=6&type=section&id=FINANCIAL%20HIGHLIGHTS) This section provides the unaudited summary statements of income and balance sheets for the fourth quarter and fiscal year ended May 31, 2025, showing significant year-over-year growth in revenue, profitability, and total assets, reflecting a strong financial position [Summary Statements of Income](index=6&type=section&id=SUMMARY%20STATEMENTS%20OF%20INCOME) The income statement highlights a substantial increase in profitability, with Q4 FY25 gross profit reaching $531.5 million and operating income at $435.9 million, compared to $186.4 million and $142.2 million in the prior-year quarter, respectively, and for the full fiscal year, operating income grew to $1.54 billion from $312.5 million in fiscal 2024 Summary Statements of Income (Amounts in Millions/Billions) | Metric | 13 Weeks Ended May 31, 2025 | 13 Weeks Ended June 1, 2024 | 52 Weeks Ended May 31, 2025 | 52 Weeks Ended June 1, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1.10 B | $640.8 M | $4.26 B | $2.33 B | | **Gross profit** | $531.5 M | $186.4 M | $1.85 B | $541.6 M | | **Operating income** | $435.9 M | $142.2 M | $1.54 B | $312.5 M | | **Net income attributable to Cal-Maine Foods, Inc.** | $342.5 M | $113.2 M | $1.22 B | $277.9 M | | **Diluted EPS** | $7.04 | $2.32 | $24.95 | $5.69 | [Summary Balance Sheets](index=7&type=section&id=SUMMARY%20BALANCE%20SHEETS) The balance sheet as of May 31, 2025, reflects a significantly stronger financial position, with total assets growing to $3.08 billion from $2.18 billion a year prior, driven by a substantial increase in cash and short-term investments to $1.39 billion, and stockholders' equity also rose sharply to $2.57 billion from $1.80 billion Summary Balance Sheets (Amounts in Millions/Billions) | Metric | May 31, 2025 | June 1, 2024 | | :--- | :--- | :--- | | **Cash and short-term investments** | $1.39 B | $812.4 M | | **Total current assets** | $1.97 B | $1.24 B | | **Total assets** | $3.08 B | $2.18 B | | **Total current liabilities** | $308.4 M | $227.7 M | | **Stockholders' equity** | $2.57 B | $1.80 B | | **Total liabilities and stockholders' equity** | $3.08 B | $2.18 B |

Company Overview - Cal-Maine Foods is the 1 U S producer and distributor of fresh eggs [7] - The company's mission is to be the most sustainable producer and reliable supplier of fresh eggs, egg products, and prepared foods in the United States [10, 126] - Cal-Maine Foods operates with a fully integrated operation, processing approximately 81 million eggs per hour [22, 23] - Cal-Maine Foods has acquired 26 companies through July 22, 2025 [43, 46] Financial Performance and Strategy - Cal-Maine Foods' financial strategy prioritizes operational efficiency, a strong balance sheet, and disciplined capital allocation [30] - The company has a variable dividend policy, allocating one-third (1/3) of net income to shareholders [40, 140] - Cal-Maine Foods has paid over $796 million in total dividends as of FY25 [40] - The company's average dividends declared or paid for FY2025 is $326 per share [40] - Cal-Maine Foods' adjusted EBITDA margin for FY25 is 400% [136] Market Dynamics and Growth - 97% of U S households purchase eggs [12] - Cal-Maine Foods' largest customer accounts for 34% of revenue as of FY25 [81] - Approximately 27% of U S households are expected to be in states with cage-free mandates by 2030 [102]

Industry Overview - The Zacks Agriculture - Products industry is facing challenges due to lower commodity prices, high input costs, and labor shortages, but increasing consumer awareness regarding food ingredients and healthier alternatives is expected to support growth [1][4] - The industry includes companies involved in storing agricultural commodities, distributing ingredients, and farming crops, livestock, and poultry products [3] Current Trends - Agricultural commodity prices are under pressure from ample supply, while rising labor, packaging, and distribution costs are impacting profitability [4] - Global food demand is projected to increase by 50% by 2050 due to population growth, with the global population expected to reach 9.6 billion [5] - Hydroponics and vertical farming are emerging as key agricultural technologies, with hydroponic equipment sales projected to reach $67 billion by 2033, growing at a CAGR of 16.2% [6] Company Insights - **Bunge Global S.A.** is focusing on strategic mergers, including a $34 billion merger with Viterra Ltd, to enhance its position in grain exports and oilseed processing [18][19] - **CalMaine Foods** is expanding its cage-free operations and product portfolio, with a projected earnings growth of 299.5% for fiscal 2025 [22][23] - **Hydrofarm** is streamlining operations and focusing on proprietary brands, with a significant increase in the sales mix of proprietary brands to 55% in Q1 2025 [26][27] Market Performance - The Zacks Agriculture - Products industry has underperformed compared to the Basic Materials sector and the S&P 500, with a 12.9% decline over the past 12 months [9] - The industry is currently trading at an EV/EBITDA ratio of 5.98X, significantly lower than the S&P 500's 17.51X [12][17]