Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes community and education in investment practices, suggesting that investors should not navigate the market alone [2] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to support investors [2][4] Group 2 - The article mentions a long position in CALM, indicating a beneficial interest in the company's shares [3] - It highlights the importance of monitoring investment positions and providing alerts to members regarding buy and sell recommendations [4]

RIDGELAND, Miss., Sept. 17, 2025 (GLOBE NEWSWIRE) -- Cal-Maine Foods, Inc. (NASDAQ: CALM), the largest egg company in the United States and a leading player in the egg-based prepared food industry, today announced it will host its first-ever quarterly earnings conference call and webcast in conjunction with the release of its fiscal first quarter 2026 results. The company will report results for the quarter ended August 30, 2025, at approximately 6:00 a.m. ET on Wednesday, October 1, 2025. The earnings rele ...

Core Viewpoint - Cal-Maine Foods, Inc. (CALM) is highlighted as a potentially undervalued stock in the food production sector, demonstrating strong financial metrics and a solid balance sheet despite operating in a volatile agricultural market [2][12]. Financial Metrics - Cal-Maine Foods has an Intrinsic Value to Price (IV/P) ratio of 5.20, indicating its intrinsic value is estimated to be over five times its current market price, suggesting a significant margin of safety for investors [4][12]. - The company has a market capitalization of approximately $5.6 billion and an enterprise value of around $4.3 billion, reflecting a large net cash position [11]. - Free cash flow for the trailing twelve months (TTM) is approximately $1.06 billion, with a free cash flow yield of about 18.9% [11]. - Revenue for the TTM stands at approximately $4.26 billion, with an operating margin of around 36% and a net income of about $1.22 billion, resulting in a net margin of approximately 29% [11]. - Return on equity (ROE) is notably high at approximately 47.7%, with a trailing P/E ratio of about 4.6x [11]. Balance Sheet Strength - Cal-Maine Foods maintains a strong balance sheet with no debt, significant cash reserves of around $500 million, and rising book value, providing rare downside protection in its sector [8][15]. Capital Returns - The company has a shareholder-friendly policy, paying a healthy dividend yield of approximately 5.2% linked to earnings and engaging in opportunistic buybacks, supported by strong free cash flow [9][11]. Investment Thesis - Despite potential undervaluation due to its exposure to egg pricing, Cal-Maine's superior execution and capital discipline have masked the cyclical nature of its business [15]. - The combination of a 2.70 Acquirer's Multiple and a 5.20 IV/P ratio positions Cal-Maine Foods among the lowest in the large-cap food sector, presenting a compelling deep value opportunity [12][15]. - The stock offers both growth and income potential at a steep discount, making it an attractive option for investors seeking strong cash generation and capital return [15].

Core Viewpoint - Cal-Maine Foods Inc. has experienced a stock price decrease of 0.09% in the current session, but has seen a significant increase of 2.03% over the past month and 58.81% over the past year, raising questions about its valuation despite current performance concerns [1]. Group 1: Stock Performance - The current stock price of Cal-Maine Foods Inc. is $109.40, reflecting a slight decrease [1]. - Over the past month, the stock has increased by 2.03% [1]. - In the past year, the stock has surged by 58.81% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate market performance against historical earnings and industry standards [5]. - Cal-Maine Foods Inc. has a P/E ratio of 4.39, which is significantly lower than the industry average P/E ratio of 21.21 in the Food Products sector [6]. - A lower P/E ratio may suggest that shareholders expect poorer performance compared to industry peers or indicate potential undervaluation [6]. Group 3: Investment Considerations - While the P/E ratio is a useful tool for assessing a company's market performance, it should be interpreted cautiously as it may reflect weak growth prospects or financial instability [9]. - Investors are encouraged to consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of a company's financial health [9].

Company Overview - Cal-Maine Foods Inc. is an American egg producer based in Mississippi, distributing eggs nationwide [1]. Financial Performance - In the most recent fiscal year ending May 31, 2025, Cal-Maine Foods reported a revenue increase of 66.9% [1].

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)