Cal maine Foods Inc (NASDAQ: CALM) |
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Price: $106.7450
$-1.56
-1.436%
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Day's High:
| $109.69
| Week Perf:
| -0.83 %
|
Day's Low: |
$ 108.56 |
30 Day Perf: |
1.92 % |
Volume (M): |
19 |
52 Wk High: |
$ 116.41 |
Volume (M$): |
$ 2,103 |
52 Wk Avg: |
$75.95 |
Open: |
$109.63 |
52 Wk Low: |
$54.53 |
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Market Capitalization (Millions $) |
5,227 |
Shares
Outstanding (Millions) |
49 |
Employees |
3,067 |
Revenues (TTM) (Millions $) |
3,083 |
Net Income (TTM) (Millions $) |
627 |
Cash Flow (TTM) (Millions $) |
-221 |
Capital Exp. (TTM) (Millions $) |
147 |
Cal Maine Foods Inc
Cal-Maine Foods, Inc. is the largest producer and marketer of shell eggs in
the United States. Our total flock of approximately 33.9 million layers and
9.4 million pullets and breeders is the largest in the U.S. Layers are mature
female chickens, pullets are young female chickens usually under 18 weeks of
age, and breeders are male and female chickens used to produce fertile eggs
to be hatched for egg production flocks.
The Company has one operating segment, which is the production, grading, packaging,
marketing and distribution of shell eggs. The majority of our customers rely
on us to provide most of their shell egg needs, including specialty and non-specialty
eggs. Specialty eggs represent a broad range of products. We classify nutritionally
enhanced, cage free, organic and brown eggs as specialty products for accounting
and reporting purposes. We classify all other shell eggs as non-specialty products.
While we report separate sales information for these types of eggs, there are
a number of cost factors which are not specifically available for non-specialty
or specialty eggs due to the nature of egg production. We manage our operations
and allocate resources to these types of eggs on a consolidated basis based
on the demands of our customers.
We sell most of our shell eggs in the southwestern, southeastern, mid-western
and mid-Atlantic regions of the U.S. We market our shell eggs through our extensive
distribution network to a diverse group of customers, including national and
regional grocery store chains, club stores, foodservice distributors and egg
product consumers. Some of our sales are completed through co-pack agreements
– a common practice in the industry whereby production and processing
of certain products is outsourced to another producer. The strength of our position
is evidenced by having the largest market share in the grocery segment for shell
eggs. We sell shell eggs to a majority of the largest food retailers in the
U.S.
We are one of the largest producers and marketers of value-added specialty shell
eggs in the U.S. For accounting and tax purposes, we classify nutritionally
enhanced, cage-free, organic and brown eggs as specialty shell eggs. They have
been a significant and growing segment of the market in recent years. During
our fiscal 2016 an increasing number of food service customers, large restaurant
chains, and major retailers, including our largest customers, have committed
to exclusive offerings of cage-free eggs by specified future dates. We are working
with our customers to ensure a smooth transition in meeting their goals, and
have been making and expect to continue to make significant investments in new
and remodeled facilities to meet this demand. Prices for specialty eggs are
less cyclical than non-specialty shell egg prices and are generally higher due
to consumer willingness to pay for the perceived increased benefits from those
products. We market our specialty shell eggs under the following brands: Egg-Land’s
Best®, Land O’ Lakes®, Farmhouse®, and 4-Grain®. We are
a member of the Egg-Land’s Best, Inc. (“EB”) cooperative and
produce, market and distribute Egg-Land’s Best® and Land O’
Lakes® branded eggs, along with our associated joint ventures, under exclusive
license agreements for a number of states in the southeast, south central, and
southwest U.S. as well as the New York City area. We market cage-free eggs under
our trademarked Farmhouse® brand and distribute them across the southeast
and southwest regions of the U.S. We market organic, wholesome, cage-free, vegetarian,
and omega-3 eggs under our 4-Grain® brand. We also produce, market, and
distribute private label specialty shell eggs to several customers.
According to U.S. Department of Agriculture (“USDA”), annual per
capita U.S. consumption varied between 249 and 263 eggs, since 2000.
Production. Our operations are fully integrated. We hatch chicks, grow and
maintain flocks of pullets, layers, and breeders, manufacture feed, and produce,
process, package, and distribute shell eggs. We produce approximately 78% of
our total shell eggs sold, with 96% of such production coming from company-owned
facilities, and the other 4% coming from contract producers. Under a typical
arrangement with a contract producer, we own the flock, furnish all feed and
critical supplies, own the shell eggs produced and assume market risks.
The commercial production of shell eggs requires a source of baby chicks for
laying flock replacement. We produce the majority of our chicks in our own hatcheries
and obtain the balance from commercial sources. We own breeder and hatchery
facilities capable of producing 21.2 million pullet chicks per year in a computer-controlled
environment. These pullets are distributed to 44 state-of-the-art laying operations
around the southwestern, southeastern, mid-western and mid-Atlantic regions
of the U.S. The facilities produce an average of 2.2 million dozen shell eggs
per day. The shell eggs are processed, graded and packaged predominantly without
handling by human hands. We have spent a cumulative total of $270.7 million
over the past five years to expand and upgrade our facilities with the most
advanced equipment and technology available in our industry. We believe our
constant attention to production efficiencies and focus on automation throughout
the supply chain enables us to be a low cost supplier in all the markets in
which we compete.
Feed cost represents the largest element of our farm egg production cost, ranging
from 60% to 69% of total farm production cost in the last five fiscal years.
Although feed ingredients are available from a number of sources, we have little,
if any, control over the prices of the ingredients we purchase, which are affected
by weather, speculators, and various supply and demand factors. For example,
the severe drought in the summer of 2012 and resulting damage to the national
corn and soybean crop resulted in high and volatile feed costs. Increases in
feed costs unaccompanied by increases in the selling price of eggs can have
a material adverse effect on our operations. However, higher feed costs can
encourage shell egg producers to reduce production, resulting in higher egg
prices. Alternatively, low feed costs can encourage industry overproduction,
possibly resulting in lower egg prices.
After the eggs are produced, they are graded and packaged. Substantially all
of our farms have modern “in-line” facilities to mechanically gather,
grade and package the eggs produced. The increased use of in-line facilities
has generated significant cost savings compared to the cost of eggs produced
from non-in-line facilities. In addition to greater efficiency, the in-line
facilities produce a higher percentage of USDA Grade A eggs, which sell at higher
prices. Eggs produced on farms owned by contractors are brought to our processing
plants to be graded and packaged. Since shell eggs are perishable, we maintain
very low egg inventories, usually consisting of approximately four days of production.
Egg production activities are subject to risks inherent in the agriculture industry,
such as weather conditions and disease. These risks are outside our control
and could have a material adverse effect on our operations. The marketability
of shell eggs is subject to risks such as possible changes in food consumption
preferences and practices reflecting perceived health concerns.
We operate in a cyclical industry with total demand that is generally steady
and a product that is generally price-inelastic. Thus, small increases in production
or decreases in demand can have a large adverse effect on prices and vice-versa.
However, economic conditions in the egg industry are expected to exhibit less
cyclicality in the future. The industry is concentrating into fewer but stronger
hands, which should help lessen the extreme cyclicality of the past.
Company Address: 1052 Highland Colony Pkwy Ridgeland 39157 MS
Company Phone Number: 948-6813 Stock Exchange / Ticker: NASDAQ CALM
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Customers Net Income grew by |
CALM's Customers Net Profit Margin grew to |
42.23 % |
7.24 %
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Stock Performances by Major Competitors |
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Business Update
Published Mon, Oct 7 2024 8:47 PM UTC
Cal-Maine Foods Announces Strategic Investments to Expand Cage-Free Production In a significant move poised to bolster its market position, Cal-Maine Foods, Inc. has unveiled plans for a substantial expansion of its cage-free egg production capabilities. On October 4, 2024, the company s Board of Directors approved an investment of $40 million directed towards this expansion...
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Cal Maine Foods Inc
Why Cal-Maine Foods is a Bearish Proposition for Investors: An In-Depth AnalysisCal-Maine Foods, Inc. (NASDAQ: CALM) recently reported its first-quarter results for fiscal 2025, showcasing an impressive revenue increase of 71.283% to $785.22 million and a staggering 15,200% surge in earnings per share (EPS) to $3.06. While at first glance these numbers present a picture of an industry leader thriving against the odds, we must delve deeper to assess the sustainability of this performance and the broader implications for investors. The Illusion of Growth Amidst Industry DeclineCal-Maine?s reported growth comes at a time when the broader food processing industry is experiencing a decline, with an overall drop in business by -1.15%. This anomaly raises questions about the sustainability of Cal-Maine?s performance. Is it possible that the company is merely benefitting from temporary market dynamics rather than solid, long-term growth strategies? The contrast is pronounced: while CALM's revenues are soaring, other companies in the same sector are struggling. Volatile Earnings: A Cause for ConcernThe reported net income of $149.59 million represents a 36,296.59% increase from the previous year's break-even results, which could be indicative of extreme volatility rather than genuine growth. In financial markets, numbers that appear too good to be true often are. Investors need to consider whether this outsized performance was driven primarily by external factors?such as commodity price fluctuations, inventory dynamics, or one-off sales wins?rather than consistent operational performance. Moreover, while the operating margin rose to 23.81% and the net margin to 19.05%, it?s essential to analyze what is baked into these margins. Are they reflective of genuine operational efficiency, or are they merely the result of passing increased costs onto consumers? With inflationary pressures and supply chain challenges impacting food production, maintaining these margins could prove shaky.
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Business Update
Published Wed, Oct 2 2024 12:47 AM UTC
Cal-Maine Foods Reports Strong First Quarter Results for Fiscal 2025 and Shares Commitment to SustainabilityCal-Maine Foods, Inc. (NASDAQ: CALM), the leading producer and distributor of fresh shell eggs in the United States, has announced its financial results for the first quarter of fiscal 2025, achieving remarkable growth amidst ongoing challenges in the agricultural sec...
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Business Update
Published Tue, Oct 1 2024 10:47 PM UTC
In an economic landscape characterized by shifting consumer preferences and fluctuating costs, Cal-Maine Foods, Inc. (NASDAQ: CALM), the nation s leading producer and distributor of fresh shell eggs, has reported robust results for the first quarter of fiscal 2025, signaling resilience and strategic prowess in the face of various market challenges. For the thirteen-week peri...
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Dividend
Published Wed, Jul 24 2024 12:06 AM UTC
Cal-Maine Foods Continues Growth Trend with Strong Fourth Quarter and Fiscal Year 2024 Results Cal-Maine Foods, Inc. (NASDAQ: CALM) has once again proved its position as the largest producer and distributor of fresh shell eggs in the United States with its impressive financial results for the fourth quarter and fiscal year 2024. The company reported quarterly net sales o...
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Per Share |
Current |
Earnings (TTM) |
12.84 $ |
Revenues (TTM) |
62.96 $
|
Cash Flow (TTM) |
- |
Cash |
16.28 $
|
Book Value |
41.89 $
|
Dividend (TTM) |
2.91 $ |
|
Per Share |
|
Earnings (TTM) |
12.84 $
|
Revenues (TTM) |
62.96 $ |
Cash Flow (TTM) |
- |
Cash |
16.28 $
|
Book Value |
41.89 $ |
Dividend (TTM) |
2.91 $ |
|
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Conventional shell egg sales |
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64.66 % |
of total Revenue |
Specialty shell egg sales |
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30.08 % |
of total Revenue |
Egg products |
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4.26 % |
of total Revenue |
Other |
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1.06 % |
of total Revenue |
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