Balancing Dividends and Fundamentals: The Case of NASDAQ:CALM.

Last update: Jan 13, 2025

Consider CAL-MAINE FOODS INC (NASDAQ:CALM) as a top pick for dividend investors, identified by our stock screening tool. NASDAQ:CALM shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Looking at the Dividend

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:CALM has been assigned a 7 for dividend:

With a Yearly Dividend Yield of 5.85%, CALM is a good candidate for dividend investing.
CALM's Dividend Yield is rather good when compared to the industry average which is at 3.84. CALM pays more dividend than 91.86% of the companies in the same industry.
CALM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
On average, the dividend of CALM grows each year by 16.93%, which is quite nice.
CALM has paid a dividend for at least 10 years, which is a reliable track record.
22.63% of the earnings are spent on dividend by CALM. This is a low number and sustainable payout ratio.

Health Assessment of NASDAQ:CALM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:CALM scores a 9 out of 10:

CALM has an Altman-Z score of 9.99. This indicates that CALM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.99, CALM belongs to the best of the industry, outperforming 96.51% of the companies in the same industry.
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 5.46. This indicates that CALM is financially healthy and has no problem in meeting its short term obligations.
CALM's Current ratio of 5.46 is amongst the best of the industry. CALM outperforms 96.51% of its industry peers.
A Quick Ratio of 4.32 indicates that CALM has no problem at all paying its short term obligations.
CALM has a Quick ratio of 4.32. This is amongst the best in the industry. CALM outperforms 96.51% of its industry peers.

How do we evaluate the Profitability for NASDAQ:CALM?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:CALM, the assigned 9 is a significant indicator of profitability:

With an excellent Return On Assets value of 25.26%, CALM belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
The Return On Equity of CALM (30.75%) is better than 97.67% of its industry peers.
CALM has a better Return On Invested Capital (25.48%) than 98.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CALM is significantly above the industry average of 8.87%.
The last Return On Invested Capital (25.48%) for CALM is above the 3 year average (20.77%), which is a sign of increasing profitability.
CALM has a better Profit Margin (20.39%) than 96.51% of its industry peers.
CALM's Profit Margin has improved in the last couple of years.
CALM has a Operating Margin of 24.15%. This is amongst the best in the industry. CALM outperforms 98.84% of its industry peers.
In the last couple of years the Operating Margin of CALM has grown nicely.
The Gross Margin of CALM (32.68%) is better than 73.26% of its industry peers.
CALM's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

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.