Eggs-Traordinary Cash Flows, But Is Cal-Maine Foods Still Undervalued?

(11min)

Summary

  • Cal-Maine Foods is the largest producer and distributor of fresh shell eggs in the U.S.
  • CALM is investing heavily in cage-free production and strategic acquisitions like Echo Lake Foods.
  • Cyclicality and commodity price exposure present risks, but long-term demand and regulatory tailwinds support growth opportunities.
  • The company has no debts, pays dividends and has strong free cashflows.

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Cal-Maine Foods (NASDAQ:CALM) is the largest producer and distributor of fresh shell eggs in the United States. The company has a rock-solid balance sheet with no debts, good cashflows and a focus on long-term value

This article was written by

Since 2020, I have been deeply involved in the fundamental analysis of various publicly listed companies. This includes companies like Covestro, Signify, as well as Alibaba, Verizon, and China Mobile. With my background as an accountant at a Big-4 accounting firm, I possess the expertise to thoroughly analyze annual reports and financial information. This foundation enables me to critically assess whether a stock is undervalued or overvalued – which is crucial for making well-informed long-term decisions. I don't focus on any specific sector and am always open to suggestions for interesting companies to analyze. And I like coffee, if you haven't noticed yet.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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