Since January 2025, Cal-Maine has been in a holding pattern, posting a small return of 3.8% while floating around $112.
Is now the time to buy CALM? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.
Why Are We Positive On Cal-Maine?
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Cal-Maine grew its sales at an incredible 33.9% compounded annual growth rate. Its growth beat the average consumer staples company and shows its offerings resonate with customers. 
2. Outstanding Long-Term EPS Growth
Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Cal-Maine’s EPS grew at an astounding 110% compounded annual growth rate over the last three years, higher than its 33.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Excellent Free Cash Flow Margin Boosts Reinvestment Potential
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
Cal-Maine has shown terrific cash profitability, driven by its lucrative business model that enables it to reinvest, return capital to investors, and stay ahead of the competition. The company’s free cash flow margin was among the best in the consumer staples sector, averaging 20.8% over the last two years.
Final Judgment
These are just a few reasons Cal-Maine is a rock-solid business worth owning, but at $112 per share (or 7.9× forward P/E), is now the right time to buy the stock? See for yourself in our full research report, it’s free.
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