Analyzing NASDAQ:CALM's Dividend Potential.

Last update: Oct 22, 2024

CAL-MAINE FOODS INC (NASDAQ:CALM) has caught the attention of dividend investors as a stock worth considering. NASDAQ:CALM excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Assessing Dividend for NASDAQ:CALM

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:CALM was assigned a score of 7 for dividend:

With a Yearly Dividend Yield of 4.32%, CALM is a good candidate for dividend investing.
CALM's Dividend Yield is rather good when compared to the industry average which is at 3.51. CALM pays more dividend than 89.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.18, CALM pays a better dividend.
On average, the dividend of CALM grows each year by 16.93%, which is quite nice.
CALM has been paying a dividend for at least 10 years, so it has a reliable track record.
21.69% of the earnings are spent on dividend by CALM. This is a low number and sustainable payout ratio.

Exploring NASDAQ:CALM's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:CALM has received a 9 out of 10:

An Altman-Z score of 8.36 indicates that CALM is not in any danger for bankruptcy at the moment.
CALM has a better Altman-Z score (8.36) than 92.31% of its industry peers.
CALM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 4.13 indicates that CALM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.13, CALM belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
CALM has a Quick Ratio of 3.23. This indicates that CALM is financially healthy and has no problem in meeting its short term obligations.
CALM has a better Quick ratio (3.23) than 93.41% of its industry peers.

How do we evaluate the Profitability for NASDAQ:CALM?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:CALM scores a 9 out of 10:

With an excellent Return On Assets value of 17.86%, CALM belongs to the best of the industry, outperforming 97.80% of the companies in the same industry.
With an excellent Return On Equity value of 22.44%, CALM belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
CALM has a better Return On Invested Capital (18.49%) than 95.60% of its industry peers.
CALM had an Average Return On Invested Capital over the past 3 years of 20.77%. This is significantly above the industry average of 8.95%.
The Profit Margin of CALM (16.09%) is better than 93.41% of its industry peers.
In the last couple of years the Profit Margin of CALM has grown nicely.
With an excellent Operating Margin value of 18.87%, CALM belongs to the best of the industry, outperforming 95.60% of the companies in the same industry.
In the last couple of years the Operating Margin of CALM has grown nicely.
Looking at the Gross Margin, with a value of 28.01%, CALM is in the better half of the industry, outperforming 68.13% of the companies in the same industry.
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.

Our latest full fundamental report of CALM contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.