CALM Weiss

November 15, 2015
NASDAQ: CALM
CAL-MAINE FOODS INC

BUY
A+
A-
HOLD
B+
Annual Dividend Rate

$1.27
B-
C+
Annual Dividend Yield

2.29%
SELL
C-
D+
D-
Beta
0.73
STOCK PERFORMANCE (%)

3 Mo.
Price Change
2.42
E-
Market Capitalization
$2.4 Billion
Sector: Consumer Non-Discretionary

CALM BUSINESS DESCRIPTION
Cal-Maine Foods, Inc. produces, grades, packages,
markets, and distributes shell eggs. It offers
specialty shell eggs, such as nutritionally
enhanced, cage free, organic, and brown eggs
under the Egg-Land's Best, Land O' Lake,
Farmhouse, and 4-Grain brand names, as well as
under private labels.
E+
Weekly Price: (US$)
BUY
52-Week Range
$34.03-$63.25
Sub-Industry: Packaged Foods & Meats
SMA (50)
SMA (100)
RATING SINCE
TARGET PRICE
01/30/2012
$72.50
Price as of 11/12/2015
$55.24
Source: S&P
1 Year
2 Years
80
TARGET
TARGET
TARGETPRICE
PRICE
PRICE$72.50
$72.50
$72.50
60
50
40
1 Yr.
32.34
3 Yr (Ann)
37.51
Last Qtr
70.86
417.16
417.54
12 Mo.
23.72
115.93
115.87
3 Yr CAGR
16.99
42.28
41.74
RETURN ON EQUITY (%)

CALM
Q1 2015
34.60
Q1 2014
20.90
Q1 2013
9.47
Ind Avg
17.93
23.84
28.69
S&P 500
12.91
14.28
13.75
30
GROWTH (%)
Revenues
Net Income
EPS
9.67
28.60
21.56
CALM
Ind Avg
S&P 500
Volume in Millions
10
2013
2014
2015
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
HIGHLIGHTS
CALM's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same
quarter one year prior, revenues leaped by 70.9%. Growth in the company's revenue appears to have helped
boost the earnings per share.
CALM's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying
that there has been very successful management of debt levels. To add to this, CALM has a quick ratio of
2.17, which demonstrates the ability of the company to cover short-term liquidity needs.
2014
Q1 2.95
Q4 0.95
Q2 0.76
The company's current return on equity greatly increased when compared to its ROE from the same quarter
one year prior. This is a signal of significant strength within the corporation. Compared to other companies in
the Food Products industry and the overall market, CAL-MAINE FOODS INC's return on equity significantly
exceeds that of both the industry average and the S&P 500.
Q3 1.05
Q1 0.57
Q3 0.89
Q4 0.65
Q2 0.54
BUY
RECOMMENDATION
We rate CAL-MAINE FOODS INC (CALM) a BUY. This is based on the convergence of positive investment
measures, which should help this stock outperform the majority of stocks that we rate. The company's
strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position
with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and
expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are
unlikely to have a significant impact on results.
EPS ANALYSIS ($)
Q1 0.18
20
Rating History
P/E COMPARISON
2013
70
2015
44.95% is the gross profit margin for CAL-MAINE FOODS INC which we consider to be strong. It has increased
significantly from the same period last year. Along with this, the net profit margin of 23.45% is above that of
the industry average.
NA = not available NM = not meaningful

1 Compustat fiscal year convention is used for all fundamental
data items.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: November 15, 2015
PAGE 1
November 15, 2015

NASDAQ: CALM
CAL-MAINE FOODS INC

Sector: Consumer Non-Discretionary Packaged Foods & Meats Source: S&P
$1.27

2.29%
PEER GROUP ANALYSIS
25%
REVENUE GROWTH AND EBITDA MARGIN*
CALM
V
FA
THS
AB
OR
BGS
LE
AB
-20%
R
VO
FA
SEB
IBA
0%
Companies with higher EBITDA margins and

revenue growth rates are outperforming companies
with lower EBITDA margins and revenue growth
rates. Companies for this scatter plot have a market
capitalization between $1.5 Billion and $3.6 Billion.
Companies with NA or NM values do not appear.
*EBITDA Earnings Before Interest, Taxes, Depreciation and
Amortization.
25%
REVENUE GROWTH AND EARNINGS YIELD
INDUSTRY ANALYSIS
The US food products industry is dominated by a few multinational corporations like HJ Heinz (HNZ), Kraft
Foods (KFT), General Mills (GIS), and Kellogg (K). The entire industry, from growing to processing, is extremely
competitive and margins are typically so low that earning profit becomes a challenge. The worldwide
processed food industry is facing low growth rates, high energy costs and continuously changing consumer
preferences. Nonetheless, there are a few high growth segments, like health, frozen, and organic food.
V
FA
AB
OR
LE
LANC
BGS
JJSF
UN
R
VO
FA
SEB
LE
AB
-2.5%
Brand value is gaining prominence among producers as demand is declining. Factors contributing to the rise
in prices include high feed prices caused by ethanol demand, less inventory with heifer calves being retained
and a possible increase in demand for exports due to a depreciating dollar. Multinational companies with
diversified customer bases are best positioned to overcome this high-price/low-demand trend. Nestl, the
world's biggest food firm, and Kraft, one of America's biggest food firms, fit this description.
PEER GROUP: Food Products
SAFM
TR
DF
The industry is being squeezed from all sides. Prices for milk, eggs, corn, wheat, oils and almost all other
edible commodities continue to surge. The prices of electricity and fuel are also increasing, making
processing and distribution more expensive. With high unemployment, modest inflation and weak economic
growth, passing on the entire price hike to consumers is not an option with apprehensions of substantially
reducing overall demand.
We expect higher input costs to negatively impact margins, leading manufacturers to seek greater production
and supply-chain efficiencies. Increased awareness and acceptance of rising food prices should lead to
greater home-dining trends, stimulating brand building and niche market initiatives at major food processors.
These issues, among others, will drive industry trends and M&A activity going forward.
CALM
THS
LNCE
-20%
$55.24
40%
EBITDA Margin (TTM)
Revenue Growth (TTM)
52-Week Range
$34.03-$63.25
Increasing health concerns are impacting all sectors within the industry as obesity levels continue to rise to
alarming rates. Various branches of the US government, including the Food and Drug Administration (FDA),
along with a host of consumer groups are squaring off with food producers over nutrition and the
responsibilities and ethical issues inherent in the production and marketing of food. The treatment of
agricultural animals is rapidly gaining consumer awareness and has forced a realignment of research
methods.
UN
Revenue Growth (TTM)
SAFM
$2.4 Billion
Globalization has led to the rise of massive multinational food processing companies, which sell their
products under local names in local languages after producing them in regional factories. Taste,
convenience and health continue to be the primary drivers of food choices. Growing popularity of ethnic food,
including Greek, Latin, Asian, Korean, Cuban, and Japanese foods, is expected to drive demand.
LE
LNCE
Beta
0.73
IBA
20%
Earnings Yield (TTM)

Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -15.5% and
23.7%. Companies with NA or NM values do not
appear.
Ticker
CALM
THS
SEB
LANC
LNCE
IBA
JJSF
BGS
TR
DF
SAFM
Recent
Company Name
Price ($)
CAL-MAINE FOODS INC
55.24
TREEHOUSE FOODS INC
84.50
SEABOARD CORP
3,040.50
LANCASTER COLONY CORP
109.77
SNYDERS-LANCE INC
37.39
INDUSTRIAS BACHOCO SAB DE CV 50.88
J & J SNACK FOODS CORP
113.93
B&G FOODS INC
35.88
TOOTSIE ROLL INDUSTRIES INC
31.79
DEAN FOODS CO
19.06
SANDERSON FARMS INC
67.57
Market
Cap ($M)
2,414
3,642
3,560
3,004
2,647
2,544
2,128
2,080
2,005
1,741
1,514
Price/
Earnings
9.67
33.01
19.11
28.22
37.77
9.90
30.54
28.94
30.24
NM
5.49
Net Sales
TTM ($M)
1,829.08
3,244.50
5,951.78
1,138.61
1,689.54
2,579.92
976.26
867.38
537.36
8,494.17
2,884.74
Net Income
TTM ($M)
276.62
111.57
186.26
106.55
69.97
256.12
70.18
69.58
64.41
-21.71
281.74
The peer group comparison is based on Major Packaged Foods & Meats companies of comparable size.
PAGE 2
November 15, 2015

NASDAQ: CALM
CAL-MAINE FOODS INC

$1.27

2.29%
COMPANY DESCRIPTION
Cal-Maine Foods, Inc. produces, grades, packages,
markets, and distributes shell eggs. It offers specialty
shell eggs, such as nutritionally enhanced, cage free,
organic, and brown eggs under the Egg-Land's Best, Land
O' Lake, Farmhouse, and 4-Grain brand names, as well as
under private labels. The company sells its products to
various customers, including national and regional
grocery store chains, club stores, foodservice
distributors, and egg product consumers primarily in the
southeastern, southwestern, mid-western, and
mid-Atlantic regions of the United States. Cal-Maine
Foods, Inc. was founded in 1969 and is based in Jackson,
Mississippi.
CAL-MAINE FOODS INC
3320 Woodrow Wilson Avenue
Jackson, MS 39209
USA
Phone: 601-948-6813
Fax: 601-969-0905
http://www.calmainefoods.com
Beta
0.73
$2.4 Billion
52-Week Range
$34.03-$63.25
$55.24
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of CALM shares. It is provided in order to give you a deeper understanding of our
rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stocks
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR
SCORE
5.0
Growth
out of 5 stars
weak
Measures the growth of both the company's income statement and
cash flow. On this factor, CALM has a growth score better than 90% of
the stocks we rate.
strong
4.5
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 80% of the companies we
cover.
strong
5.0
Efficiency
out of 5 stars
weak
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 90% of the companies we review.
strong
4.5
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is less volatile than 80% of the stocks we monitor.
strong
5.0
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 90% of the companies we analyze.
strong
4.0
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. The company's
dividend is higher than 70% of the companies we track.
strong
THESTREET RATINGS RESEARCH METHODOLOGY

TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
PAGE 3
November 15, 2015

NASDAQ: CALM
CAL-MAINE FOODS INC

$1.27

2.29%
Consensus EPS Estimates ($)

IBES consensus estimates are provided by Thomson Financial
3.10
11.40 E
6.75 E
Q2 FY15
2016(E)
2017(E)
Beta
0.73
$2.4 Billion
52-Week Range
$34.03-$63.25
$55.24
FINANCIAL ANALYSIS
CAL-MAINE FOODS INC's gross profit margin for the first quarter of its fiscal year 2015 has significantly
increased when compared to the same period a year ago. The company has grown sales and net income
significantly, outpacing the average growth rates of competitors within its industry. CAL-MAINE FOODS INC
is extremely liquid. Currently, the Quick Ratio is 2.17 which clearly shows the ability to cover any short-term
cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 30.46% from the same quarter
last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial
difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Q1 FY15
609.90
231.17
220.11
143.02
Q1 FY14
356.94
50.53
41.40
27.66
Q1 FY15
355.85
1,136.17
42.55
799.48
Q1 FY14
210.98
829.36
58.47
612.78
Q1 FY15
44.95%
37.90%
36.09%
1.61
24.34%
34.60%
Q1 FY14
25.28%
14.15%
11.60%
1.78
15.44%
20.90%
Q1 FY15
2.78
0.05
NA
NA
Q1 FY14
3.66
0.09
0.53
77.53
Q1 FY15
49
0.32
2.95
16.48
NA
983,967
Q1 FY14
48
0.22
0.57
12.67
NA
802,360
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to

use of median consensus estimates.
PAGE 4
November 15, 2015

NASDAQ: CALM
CAL-MAINE FOODS INC

$1.27

2.29%
RATINGS HISTORY
Our rating for CAL-MAINE FOODS INC has not
changed since 1/30/2012. As of 11/12/2015, the
stock was trading at a price of $55.24 which is
12.7% below its 52-week high of $63.25 and 62.3%
above its 52-week low of $34.03.
2 Year Chart
BUY: $25.97
$75
Beta
0.73
$2.4 Billion
premium
2014
MOST RECENT RATINGS CHANGES

Date
Price
Action
11/12/13
$25.97 No Change
From
Buy
To
Buy
Price reflects the closing price as of the date listed, if available
RATINGS DEFINITIONS &

DISTRIBUTION OF THESTREET RATINGS
(as of 11/12/2015)
32.35% Hold - We do not believe this stock offers

conclusive evidence to warrant the purchase or sale of
shares at this time and that its likelihood of positive total
return is roughly in balance with the risk of loss.
28.26% Sell - We believe that this stock is likely to
decline by more than 10% over the next 12 months, with
the risk involved too great to compensate for any
possible returns.
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
Research Contact: 212-321-5381
Sales Contact: 866-321-8726
Price/Projected Earnings
premium
premium
Price/Sales
premium
Price to Earnings/Growth
discount
premium
discount
CALM 0.04
Peers 1.29
Discount. The PEG ratio is the stocks P/E divided
by the consensus estimate of long-term earnings
growth. Faster growth can justify higher price
multiples.
CALM trades at a significant discount to its peers.
Earnings Growth
lower
5
higher
CALM 115.87
Peers 109.70
Average. Elevated earnings growth rates can lead
to capital appreciation and justify higher
price-to-earnings ratios.
CALM is expected to keep pace with its peers on
the basis of earnings growth.
Sales Growth
discount
CALM 1.46
Peers 2.77
Discount. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
CALM is trading at a significant discount to its
industry on this measurement.
CALM 8.60
Peers 33.20
Discount. The P/CF ratio, a stocks price divided by
the company's cash flow from operations, is useful
for comparing companies with different capital
requirements or financing structures.
peers.
discount
CALM 3.35
Peers 5.49
Discount. A lower price-to-book ratio makes a
stock more attractive to investors seeking stocks
with lower market values per dollar of equity on the
balance sheet.
peers.
premium
discount
CALM 8.18
Peers 23.12
Discount. A lower price-to-projected earnings ratio
than its peers can signify a less expensive stock or
lower future growth expectations.
peers.
Price/CashFlow
discount
CALM 9.67
Peers 28.60
Discount. A lower P/E ratio than its peers can
signify a less expensive stock or lower growth
expectations.
peers.
Price/Book
39.39% Buy - We believe that this stock has the
opportunity to appreciate and produce a total return of
more than 10% over the next 12 months.
$55.24
VALUATION
BUY. CAL-MAINE FOODS INC's P/E ratio indicates a significant discount compared to an average of 28.60 for
the Food Products industry and a significant discount compared to the S&P 500 average of 21.56. Conducting
a second comparison, its price-to-book ratio of 3.35 indicates a premium versus the S&P 500 average of 2.72
and a significant discount versus the industry average of 5.49. The price-to-sales ratio is below the S&P 500
average and is well below the industry average, indicating a discount. Upon assessment of these and other
key valuation criteria, CAL-MAINE FOODS INC proves to trade at a discount to investment alternatives within
the industry.
Price/Earnings
$50
52-Week Range
$34.03-$63.25
lower
5
higher
CALM 23.72
Peers -0.69
Higher. A sales growth rate that exceeds the
industry implies that a company is gaining market
share.
CALM has a sales growth rate that significantly
exceeds its peers.
DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
other third-party data providers.
TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.
PAGE 5

CALM Weiss

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CALM Weiss

Uploaded by

Copyright:

Available Formats

November 15, 2015

CAL-MAINE FOODS INC

Annual Dividend Rate

Annual Dividend Yield

STOCK PERFORMANCE (%)

Sector: Consumer Non-Discretionary

Weekly Price: (US$)

Sub-Industry: Packaged Foods & Meats

RETURN ON EQUITY (%)

EPS ANALYSIS ($)

NA = not available NM = not meaningful

Report Date: November 15, 2015

November 15, 2015

CAL-MAINE FOODS INC

Annual Dividend Yield

PEER GROUP ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*

Companies with higher EBITDA margins and

REVENUE GROWTH AND EARNINGS YIELD

PEER GROUP: Food Products

EBITDA Margin (TTM)

Revenue Growth (TTM)

Revenue Growth (TTM)

Earnings Yield (TTM)

Report Date: November 15, 2015

November 15, 2015

CAL-MAINE FOODS INC

Annual Dividend Yield

THESTREET RATINGS RESEARCH METHODOLOGY

Report Date: November 15, 2015

November 15, 2015

CAL-MAINE FOODS INC

Annual Dividend Yield

Consensus EPS Estimates ($)

2 Sum of quarterly figures may not match annual estimates due to

Report Date: November 15, 2015

November 15, 2015

CAL-MAINE FOODS INC

Annual Dividend Yield

MOST RECENT RATINGS CHANGES

Price reflects the closing price as of the date listed, if available

RATINGS DEFINITIONS &

32.35% Hold - We do not believe this stock offers

Report Date: November 15, 2015

You might also like