Analyzing NASDAQ:CALM's Dividend Potential.

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.

Unpacking NASDAQ:CALM's Dividend Rating

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 5.48%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.94, CALM pays a better dividend. On top of this CALM pays more dividend than 89.41% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.30, CALM pays a better dividend.
• 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.
• 22.63% of the earnings are spent on dividend by CALM. This is a low number and sustainable payout ratio.

Unpacking NASDAQ:CALM's Health Rating

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 10.20 indicates that CALM is not in any danger for bankruptcy at the moment.
• CALM has a better Altman-Z score (10.20) than 96.47% 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 5.46 indicates that CALM has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 5.46, CALM belongs to the best of the industry, outperforming 96.47% of the companies in the same industry.
• A Quick Ratio of 4.32 indicates that CALM has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 4.32, CALM belongs to the best of the industry, outperforming 95.29% 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:

• CALM has a Return On Assets of 25.26%. This is amongst the best in the industry. CALM outperforms 97.65% of its industry peers.
• CALM has a Return On Equity of 30.75%. This is amongst the best in the industry. CALM outperforms 96.47% of its industry peers.
• With an excellent Return On Invested Capital value of 25.48%, CALM belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for CALM is significantly above the industry average of 8.96%.
• The 3 year average ROIC (20.77%) for CALM is below the current ROIC(25.48%), indicating increased profibility in the last year.
• CALM has a better Profit Margin (20.39%) than 96.47% 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 98.82% of its industry peers.
• CALM's Operating Margin has improved in the last couple of years.
• The Gross Margin of CALM (32.68%) is better than 72.94% of its industry peers.
• In the last couple of years the Gross Margin of CALM has grown nicely.

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For an up to date full fundamental analysis you can check the fundamental report of CALM

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.