Is NASDAQ:CALM suited for dividend investing?

Last update: Aug 22, 2024

Take a closer look at CAL-MAINE FOODS INC (NASDAQ:CALM), a stock of interest to dividend investors uncovered by our stock screener. NASDAQ:CALM excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Analyzing Dividend Metrics

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NASDAQ:CALM scores a 7 out of 10:

CALM has a Yearly Dividend Yield of 4.37%, which is a nice return.
CALM's Dividend Yield is rather good when compared to the industry average which is at 3.73. CALM pays more dividend than 89.01% of the companies in the same industry.
CALM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
The dividend of CALM is nicely growing with an annual growth rate of 16.93%!
CALM has been paying a dividend for at least 10 years, so it has a reliable track record.
33.06% of the earnings are spent on dividend by CALM. This is a low number and sustainable payout ratio.

What does the Health looks like for NASDAQ:CALM

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:CALM has earned a 9 out of 10:

An Altman-Z score of 8.71 indicates that CALM is not in any danger for bankruptcy at the moment.
CALM has a Altman-Z score of 8.71. This is amongst the best in the industry. CALM outperforms 93.41% of its industry peers.
There is no outstanding debt for CALM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
A Current Ratio of 5.45 indicates that CALM has no problem at all paying its short term obligations.
CALM's Current ratio of 5.45 is amongst the best of the industry. CALM outperforms 97.80% of its industry peers.
A Quick Ratio of 4.30 indicates that CALM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.30, CALM belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.

Exploring NASDAQ:CALM's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:CALM, the assigned 9 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 12.72%, CALM belongs to the top of the industry, outperforming 91.21% of the companies in the same industry.
The Return On Equity of CALM (15.44%) is better than 80.22% of its industry peers.
The Return On Invested Capital of CALM (12.02%) is better than 89.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CALM is significantly above the industry average of 8.85%.
The last Return On Invested Capital (12.02%) for CALM is well below the 3 year average (20.77%), which needs to be investigated, but indicates that CALM had better years and this may not be a problem.
Looking at the Profit Margin, with a value of 11.94%, CALM belongs to the top of the industry, outperforming 90.11% of the companies in the same industry.
CALM's Profit Margin has improved in the last couple of years.
The Operating Margin of CALM (13.26%) is better than 82.42% of its industry peers.
In the last couple of years the Operating Margin of CALM has grown nicely.
CALM's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of CALM for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.