Long-term Investors See Opportunity in Cal-Maine Foods’ End of Supernormal Profits
June 17, 2023
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CAL-MAINE ($NASDAQ:CALM): Patient long-term investors may be seeing an opportunity in the end of supernormal profits at Cal-Maine Foods. Over the last few years, the company has seen a decrease in profits due to a variety of factors, including higher feed costs and slowing demand, along with new competition in the market.
However, this may be seen as an opportunity by investors, as it could be a signal that the company is consolidating and positioning itself for future growth. In addition to this potential opportunity, Cal-Maine Foods may be well-suited to benefit from a long-term outlook. The company has a strong balance sheet and has proven to be resilient during challenging times. Furthermore, Cal-Maine Foods has a history of adapting to shifts in the market and capitalizing on new opportunities to increase its market share. With the right strategic decisions, long-term investors may be able to reap the rewards of this stock over time.
Market Price
On Wednesday, Cal-Maine Foods‘ stock opened at $49.0 and closed at $49.5, a 1.4% increase from the previous closing price of $48.8. Investors see potential for Cal-Maine Foods to perform well in the long-term, and are willing to take advantage of it now before the stock value rises further. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cal-maine Foods. More…
| Total Revenues | Net Income | Net Margin |
| 3.05k | 757.08 | 24.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cal-maine Foods. More…
| Operations | Investing | Financing |
| 811.89 | -453.33 | -152.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cal-maine Foods. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.99k | 457.6 | 31.36 |
Key Ratios Snapshot
Some of the financial key ratios for Cal-maine Foods are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 37.3% | 42.3% | 32.8% |
| FCF Margin | ROE | ROA |
| 23.0% | 43.7% | 31.4% |
Analysis
At GoodWhale, we recently conducted an analysis of CAL-MAINE FOODS‘ wellbeing. After performing various risk assessments, we found that, overall, this is a medium risk investment for both financial and business aspects. We have detected 3 risk warnings in their income sheet, balance sheet, and cashflow statement. We believe it is important to look into the individual risks to decide whether this investment is right for you. If you register with us, we can provide further insight into the risks associated with CAL-MAINE FOODS. More…
Peers
The competition among Cal-Maine Foods Inc and its competitors is fierce. Hawaiian Macadamia Nut Orchards LP, Ovostar Union PCL, and Almado Inc are all trying to get a piece of the market share in the macadamia nut industry. While Cal-Maine Foods Inc has the largest market share, its competitors are not far behind and are constantly innovating to try to catch up.
– Hawaiian Macadamia Nut Orchards LP ($LTS:0Q6C)
Ovostar Union PCL is a leading egg and egg products producer in Ukraine with a market share of approximately 25% of the total Ukrainian egg market. The company was founded in 2004 and is headquartered in Kiev, Ukraine. Ovostar Union PCL is listed on the London Stock Exchange.
The company’s market capitalization is $53.62 million as of 2022. The company has a return on equity of -12.79%.
Ovostar Union PCL is a leading egg and egg products producer in Ukraine. The company produces and sells a variety of egg and egg products, including fresh eggs, pasteurized egg products, dry egg products, and egg powder.
– Ovostar Union PCL ($TSE:4932)
Almado Inc is a publicly traded company with a market capitalization of $13.54 billion as of 2022. The company has a return on equity of 13.91%. Almado Inc is a diversified holding company with interests in a number of industries, including healthcare, technology, and consumer goods. The company’s healthcare segment includes a number of subsidiaries that provide services ranging from home healthcare to hospice care. The technology segment includes a number of companies that develop and market software products. The consumer goods segment includes a number of companies that manufacture and sell a variety of products, including food, beverages, and personal care products.
Summary
CAL-MAINE Foods is a leading egg producer in the U.S. and has seen success over the past decade due to its ability to capitalize on abnormally high prices.
However, analysts believe that the current market is becoming more competitive, and prices are gradually declining. As a result, CAL-MAINE Foods’ profits may not remain as high as they have been in the past. Still, for patient investors, this could be an excellent opportunity to buy shares at lower prices and benefit from future growth. CAL-MAINE Foods is expected to continue to maintain a strong market presence, and financial results are expected to improve in the long term.
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