Is NASDAQ:CALM a Good Fit for Dividend Investing?

Last update: Nov 15, 2024

CAL-MAINE FOODS INC (NASDAQ:CALM) was identified as a stock worth exploring by dividend investors by our stock screener. NASDAQ:CALM scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

ChartMill's Evaluation of Dividend

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 4.56%, CALM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.76, CALM pays a better dividend. On top of this CALM pays more dividend than 88.89% of the companies listed in the same industry.
CALM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
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.
21.69% of the earnings are spent on dividend by CALM. This is a low number and sustainable payout ratio.

Health Assessment of NASDAQ:CALM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:CALM has earned a 9 out of 10:

An Altman-Z score of 8.37 indicates that CALM is not in any danger for bankruptcy at the moment.
The Altman-Z score of CALM (8.37) is better than 93.33% 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.
CALM has a Current Ratio of 4.13. This indicates that CALM is financially healthy and has no problem in meeting its short term obligations.
CALM's Current ratio of 4.13 is amongst the best of the industry. CALM outperforms 93.33% of its industry peers.
A Quick Ratio of 3.23 indicates that CALM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.23, CALM belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.

Exploring NASDAQ:CALM's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:CALM has earned a 9 out of 10:

With an excellent Return On Assets value of 17.86%, CALM belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.44%, CALM belongs to the top of the industry, outperforming 92.22% of the companies in the same industry.
CALM has a better Return On Invested Capital (18.49%) than 95.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CALM is significantly above the industry average of 8.95%.
CALM's Profit Margin of 16.09% is amongst the best of the industry. CALM outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of CALM has grown nicely.
Looking at the Operating Margin, with a value of 18.87%, CALM belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
CALM's Operating Margin has improved in the last couple of years.
CALM has a Gross Margin of 28.01%. This is in the better half of the industry: CALM outperforms 67.78% of its industry peers.
CALM's Gross Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.