Core Insights - Cal-Maine Foods, Inc. is the largest egg producer in the United States, specializing in shell and specialty eggs, competing with producers like Rose Acre Farms and Hillandale Farms [1] Financial Performance - On January 7, 2026, Cal-Maine reported earnings per share (EPS) of $2.13, exceeding the estimated $1.75, indicating strong profitability despite revenue falling short at $769.5 million compared to the estimated $846.4 million [2][6] - The company's price-to-earnings (P/E) ratio is 3.01, suggesting that the stock is undervalued relative to its earnings [3][6] - Cal-Maine's earnings yield stands at 33.18%, providing a substantial return on its earnings relative to its share price [5] Valuation Metrics - The price-to-sales ratio is 0.87, indicating that the stock is trading at less than one times its sales, which may attract value-seeking investors [3] - The enterprise value to sales ratio is 0.81 and the enterprise value to operating cash flow ratio is 2.58, reflecting efficient cash flow generation relative to market valuation [4] Liquidity and Financial Stability - Cal-Maine's current ratio is 6.84, highlighting its strong liquidity position and ability to cover short-term liabilities with current assets [5][6]

Cal-Maine Foods (NasdaqGS:CALM) Q2 2026 Earnings Call January 07, 2026 09:00 AM ET Company ParticipantsBenjamin Mayhew - VP of Equity ResearchMax Bowman - VP and CFOHeather L. Jones - Equity ResearchSherman Miller - President and CEOConference Call ParticipantsLeah Jordan - Equity Research AnalystPooran Sharma - Equity Research AnalystBen Klieve - Equity Research AnalystOperatorGood morning, everyone, and welcome to the Cal-Maine Foods second quarter fiscal 2026 earnings conference call. All participants ar ...

Cal-Maine Foods, Inc. (NASDAQ:CALM) stock rose Wednesday after the egg producer delivered a second-quarter earnings beat, easing investor concerns over falling egg prices even as revenue and profitability slid sharply year over year.The company reported second-quarter earnings per share of $2.13, beating the analyst consensus estimate of $1.94.Quarterly sales of $769.50 million (down 19.4% year over year) missed the Street view of $826.395 million.“With lower egg prices, our increasingly diversified busines ...

As part of our ongoing series at The Acquirer’s Multiple, each week we spotlight a stock from our Stock Screeners that may represent a deeply undervalued opportunity hiding in plain sight. This week’s spotlight is Cal-Maine Foods, Inc. (CALM) — the largest producer and distributor of shell eggs in the United States, operating a uniquely cash-rich, debt-free balance sheet and generating extraordinary free cash flow through the current egg pricing cycle.Business OverviewCal-Maine Foods is the leading U.S. pro ...

Core Insights - Agriculture stocks are currently highlighted as significant investment opportunities, with Deere & Company, Corteva, Bunge Global, Cal-Maine Foods, and Gates Industrial being the top five to watch according to MarketBeat's stock screener tool [2] - These stocks provide exposure to various factors such as commodity prices, weather variability, input costs, and government policies, making them cyclical but valuable for diversification and inflation protection [2] Company Summaries - **Deere & Company (DE)**: Engages in manufacturing and distributing equipment for agriculture, construction, forestry, and turf care, operating through segments including Agriculture and Turf, Construction and Forestry, and Financial Services [3] - **Corteva (CTVA)**: Operates in agriculture with two segments, Seed and Crop Protection, focusing on developing advanced germplasm and traits for optimal farm yields, enhancing resistance to various agricultural challenges [3] - **Bunge Global (BG)**: Functions as an agribusiness and food company with four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy, involved in purchasing, storing, and processing agricultural commodities [4] - **Cal-Maine Foods (CALM)**: Produces, grades, packages, markets, and distributes shell eggs, offering a variety of specialty eggs under several brand names [5] - **Gates Industrial (GTES)**: Engages in manufacturing and distributing industrial products, with further details available in the latest research report [5]

Financial Performance - Cal-Maine Foods achieved record first quarter results in FY26, with net sales of $922.6 million, a 17.4% increase year-over-year[5] - Gross profit reached $311.3 million, up 25.9% year-over-year[5] - Operating income increased to $249.2 million, a 33.3% increase year-over-year[5] - Net income rose to $199.3 million, a 32.9% increase year-over-year[5] - Diluted EPS increased to $4.12, a 34.6% increase year-over-year[5] - Net cash flow from operations was $278.6 million, a 137.2% increase year-over-year[5] Strategic Initiatives and Diversification - Specialty Eggs and Prepared Foods grew to nearly 40% of net sales in Q1 FY26[9] - Prepared Foods increased to more than 9% of net sales[9] - Specialty Eggs expanded to nearly 36% of shell egg sales[9] Echo Lake Foods Acquisition - Echo Lake Foods contributed $70.5 million in revenue in Q1 FY26 since the acquisition[16] - A new $15 million investment was approved to expand capacity, add automation, and improve packaging at Echo Lake Foods[17] Shareholder Returns - The company aims to sustain dividends, representing one-third of GAAP net income[19] - Opportunistic share repurchases are planned under a $500 million authorization, with $450 million remaining[19]

Financial Performance & Market Position - Cal-Maine Foods is the 1 shell egg producer and distributor in the U S [6] - For Fiscal Year to Date 2023, Cal-Maine Foods' revenue reached $2 5 billion and EBITDA was $907 million [13] - In Q3 2023, revenue was $998 million and EBITDA was $444 million [34] - Cal-Maine Foods holds approximately 20% of the retail egg market share [11] and about 14% of the U S table egg layer flock [11] Production & Sales - Cal-Maine Foods sold 858 million dozens of eggs and 49 million lbs of egg products Fiscal Year to Date [13] - In Q3 2023, Cal-Maine Foods sold 291 million dozens of eggs [34] - Specialty egg sales accounted for 29% of category sales Fiscal Year to Date [12] and 27% in Q3 2023 [34] - Conventional egg sales made up 67% of category sales Fiscal Year to Date [12] and 69% in Q3 2023 [34] Cage-Free Transition & Sustainability - Approximately 37% of Cal-Maine Foods' flock is currently housed in cage-free conditions [124] - Cal-Maine Foods has committed $685 million to expand cage-free production capabilities since 2008 [86] - Cage-free egg sales accounted for 18% of total net shell egg sales in Q3 2023 [123]

Core Viewpoint Cal-Maine Foods, Inc. (CALM) has reported significant financial improvements in the third quarter of fiscal 2025, driven by high demand and elevated egg prices, despite challenges posed by avian influenza outbreaks affecting supply. Financial Performance - Earnings per share (EPS) reached $10.38, a substantial increase from $3.00 in the same quarter last year [1] - Total sales surged to $1.42 billion, reflecting a 102% year-over-year increase due to higher net average selling prices and increased volumes sold [3] - Gross profit was approximately $716 million, marking a 228% increase from the previous year, with a gross margin of 50.5%, up from 31.1% [7] Pricing and Sales Volume - The net average selling price per dozen eggs was $4.06, an 80.7% increase year-over-year, with conventional eggs seeing a 121.5% rise to $4.766 per dozen [4] - Cal-Maine sold a record 331.4 million dozen shell eggs, a 10% increase from the previous year, with conventional egg sales up 11% and specialty egg sales up 9% [5] Cost and Margin Analysis - Farm production costs per dozen decreased by 5.7% year-over-year, while feed costs per dozen fell by 9.6% [6] - Operating profit was reported at $636 million, compared to $163 million in the prior year, with an operating margin of 44.8% [8] Cash Position and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $1.24 billion, up from $812 million at the end of fiscal 2024 [9] - A $500 million share repurchase program was approved, and a cash dividend of $3.46 per share was declared [9][10] Industry Challenges - Ongoing outbreaks of highly pathogenic avian influenza (HPAI) have led to significant depopulation of commercial laying hens, impacting overall supply [12] - The USDA reported the table-egg layer flock at approximately 285 million as of March 1, 2025, the lowest level since September 2015 [12] Growth Initiatives - Cal-Maine is investing $60 million in capital projects to expand cage-free capacity, including the addition of new layer houses [14] - The company is acquiring Echo Lake Foods for $258 million, which is expected to enhance its presence in the value-added food segment [16][17] Stock Performance - Cal-Maine shares have increased by 44.7% over the past year, contrasting with a 19.8% decline in the industry [18]