Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, egg producer Cal-Maine Foods (Nasdaq: CALM ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Cal-Maine and see what CAPS investors are saying about the stock right now.
Cal-Maine facts
| Headquarters (founded) |
Jackson, Miss. (1969) |
| Market Cap |
$700.7 million |
| Industry |
Farm products |
| Trailing-12-Month Revenue |
$942 million |
| Management |
CEO Adolphus Baker (since 2010)
CFO Timothy Dawson (since 2005)
|
| Return on Equity (average, past 3 years) |
19.8% |
| Cash/Debt |
$176.4 million / $88.2 million |
| Trailing Dividend Yield |
2.9% |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 793 members who have rated Cal-Maine believe the stock will outperform the S&P 500 going forward. These bulls include carsondyle and gamblingkev.
Earlier this month, carsondyle tapped Cal-Maine as an egg-cellent opportunity:
High unemployment, people trying to save more, cooking at home more, and going to [McDonald's] or Denny's type places more instead of expensive restaurants, means eggs should hold up pretty good. They pay 1/3 of their earnings out in dividends, so div fluctuates a bit.
Cal-Maine even sports a solid three-year average operating margin of 11.1%. That's higher than that of other "protein plays" such as Tyson Foods (NYSE: TSN ) (3.6%), Hormel Foods (NYSE: HRL ) (8.5%), and Smithfield Foods (NYSE: SFD ) (2.5%).
CAPS member gamblingkev elaborates on the bull case:
CALM will struggle with higher feed prices but the company is so well managed and they've done a good job of converting customers to higher priced eggs over their lower priced ones. Since their dividend is based on earnings, they won't strap themselves paying divs when they lose money in a quarter but good quarters will handsomely reward the patient investor.
What do you think about Cal-Maine, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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