CAL-MAINE FOODS INC (NASDAQ:CALM): good value for what you're paying.

Consider CAL-MAINE FOODS INC (NASDAQ:CALM) as a top value stock, identified by our stock screening tool. CALM shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of CALM

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of CALM, the assigned 8 reflects its valuation:

• A Price/Earnings ratio of 7.48 indicates a rather cheap valuation of CALM.
• Compared to the rest of the industry, the Price/Earnings ratio of CALM indicates a rather cheap valuation: CALM is cheaper than 94.51% of the companies listed in the same industry.
• CALM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.59.
• CALM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CALM is cheaper than 79.12% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of CALM to the average of the S&P500 Index (22.36), we can say CALM is valued slightly cheaper.
• Based on the Enterprise Value to EBITDA ratio, CALM is valued cheaper than 91.21% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of CALM indicates a rather cheap valuation: CALM is cheaper than 82.42% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of CALM may justify a higher PE ratio.

Analyzing Profitability Metrics

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 CALM, the assigned 9 is noteworthy for profitability:

• CALM has a better Return On Assets (25.26%) than 97.80% of its industry peers.
• CALM's Return On Equity of 30.75% is amongst the best of the industry. CALM outperforms 96.70% of its industry peers.
• CALM has a better Return On Invested Capital (25.48%) than 97.80% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for CALM is significantly above the industry average of 8.80%.
• The 3 year average ROIC (20.77%) for CALM is below the current ROIC(25.48%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 20.39%, CALM belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.
• In the last couple of years the Profit Margin of CALM has grown nicely.
• CALM has a Operating Margin of 24.15%. This is amongst the best in the industry. CALM outperforms 97.80% 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 74.73% of its industry peers.
• CALM's Gross Margin has improved in the last couple of years.

A Closer Look at Health for 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. CALM scores a 9 out of 10:

• An Altman-Z score of 9.96 indicates that CALM is not in any danger for bankruptcy at the moment.
• CALM's Altman-Z score of 9.96 is amongst the best of the industry. CALM outperforms 96.70% 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 5.46 indicates that CALM has no problem at all paying its short term obligations.
• The Current ratio of CALM (5.46) is better than 96.70% of its industry peers.
• CALM has a Quick Ratio of 4.32. This indicates that CALM is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 4.32, CALM belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of CALM, the assigned 4 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 31.97% over the past year.
• Measured over the past years, CALM shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.26% on average per year.
• Looking at the last year, CALM shows a quite strong growth in Revenue. The Revenue has grown by 15.58% in the last year.
• CALM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.32% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

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.