Latest news with #Egg-Land'sBest
Yahoo
3 days ago
- Business
- Yahoo
Cal-Maine (CALM): Buy, Sell, or Hold Post Q1 Earnings?
Cal-Maine currently trades at $94.19 per share and has shown little upside over the past six months, posting a small loss of 4%. Given the underwhelming price action, is now a good time to buy CALM? Or should investors expect a bumpy road ahead? Find out in our full research report, it's free. Known for brands such as Egg-Land's Best and Land O' Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs. A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Cal-Maine grew its sales at an incredible 35.3% compounded annual growth rate. Its growth surpassed the average consumer staples company and shows its offerings resonate with customers. 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, enabling it to reinvest, return capital to investors, and stay ahead of the competition while maintaining an ample cushion. The company's free cash flow margin was among the best in the consumer staples sector, averaging 17.9% over the last two years. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Cal-Maine's revenue to drop by 25.8%, a decrease from its 35.3% annualized growth for the past three years. This projection is underwhelming and implies its products will see some demand headwinds. At least the company is tracking well in other measures of financial health. Cal-Maine's merits more than compensate for its flaws, but at $94.19 per share (or 9× forward P/E), is now the right time to buy the stock? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
08-05-2025
- Business
- Yahoo
1 Consumer Stock to Target This Week and 2 to Steer Clear Of
Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. Unfortunately, the sector hasn't provided much protection lately as it pulled back by 14% over the past six months. This performance was worse than the S&P 500's 6.2% loss. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here is one resilient consumer stock we've added to our cart and two best left ignored. Market Cap: $86.99 billion Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands. Why Are We Hesitant About MDLZ? Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 7 percentage points Free cash flow margin dropped by 1.3 percentage points over the last year, implying the company became more capital intensive as competition picked up Below-average returns on capital indicate management struggled to find compelling investment opportunities Mondelez's stock price of $67.56 implies a valuation ratio of 22.3x forward P/E. Dive into our free research report to see why there are better opportunities than MDLZ. Market Cap: $11.95 billion Best known for its fruit jams and spreads, J.M Smucker (NYSE:SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food. Why Are We Wary of SJM? Annual revenue growth of 3.7% over the last three years was below our standards for the consumer staples sector Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Underwhelming 4.1% return on capital reflects management's difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam At $112.26 per share, J. M. Smucker trades at 11x forward P/E. Read our free research report to see why you should think twice about including SJM in your portfolio, it's free. Market Cap: $4.69 billion Known for brands such as Egg-Land's Best and Land O' Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs. Why Do We Like CALM? Impressive 35.3% annual revenue growth over the last three years indicates it's winning market share Incremental sales significantly boosted profitability as its annual earnings per share growth of 278% over the last three years outstripped its revenue performance CALM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety Cal-Maine is trading at $96.91 per share, or 9.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
New York Post
05-05-2025
- Business
- New York Post
US tax dollars subsidizing egg manufacturers' insane profits — while they continue to ‘price gouge' due to bird flu
America's egg producers are making record profits while receiving tens of millions of dollars from taxpayers via the USDA for bird-flu related culls, The Post has learned. Cal-Maine, the country's largest egg producer, made $876 million net profit over the last nine months, it announced in April. The figure was five times the $164 million it had made in the same period during their 2024 financial year. The profits are being driven by the continued sky high price of eggs for consumers — currently $4.60 per dozen — pushed up by birds being culled due to avian influenza. 8 Chart showing how Cal-Maine's net income profit has grown tremendously in the last five years. In 2024 the company spent a significant amount buying out competitors, affecting overall profits. Jack Forbes / NY Post Design Cal-Maine – whose brands include Land O' Lakes and Egg-Land's Best – said price increases were 'a direct result of the reduced supply of shell eggs across the industry due to [avian flu] during a period of peak seasonal demand for eggs and egg products,' according to its quarterly report. Publicly traded Cal-Maine, which has approximately 47 million laying hens, had to cull about 4% of its flock amid bird flu outbreaks, which started in 2022. For each of those birds they receive between $15 and $17 per hen from the US Department of Agriculture (USDA). The company temporarily shuttered one of its facilities in Texas last year, slaughtering nearly two million hens and receiving $21m in USDA money. A cull of 1.5m hens at one of its facilities in Chase, Kansas, the year before resulted in a payment of $22m, according to Inside Indiana Business. Taxpayers have shelled out $1.25 billion in bird flu compensation payments since 2020 through to November of last year, according to the Federal Register. Cal-maine isn't the biggest beneficiary of USDA payments to date. Hillandale, one of the top five egg producers in the country with facilities in Ohio and Pennsylvania, received $53 million, according to the Washington Post. Another of the top producers, Versova, which has around 20 million hens at operations in Iowa and Ohio, has been allotted more than $107 million, according to the report. 8 Dead chickens killed as a precaution in a bird flu infected area being loaded onto a truck. AP Those companies areall privately owned and therefore not required to publicly disclose profit figures. Neither does Iowa-based Rembrandt Foods, which received $26 million in USDA payments when it was owned by billionaire Glen Taylor, according to local news reports from the time. It's unclear whether Taylor still owns a stake, according to The Washington Post. Angela Huffman, who is the president and co-founder of Farm Action – a group backed by smaller farmers to take aim at 'corporate monopolies' – accused the egg producers of 'corporate greed' for accepting millions in taxpayer-funded relief payments from the federal government while quietly breaking the bank. 'During [the early months of 2025 when Cal-Maine made $508 million profit], they were blaming high egg prices on losses from avian flu, which prompted USDA Secretary Rollins to commit one billion dollars to the egg industry,' Farm Action president Angela Huffman told The Post. 'There is no reason that the largest egg producer in the nation should be bailed out by our government while simultaneously tripling their profits.' Ironically, the egg companies have been laughing all the way to the bank since the epidemic began. In the first three months of 2021, Cal-Maine made $359 million in sales. Four years later, its revenue has quadrupled — even though they only sold about 20% more eggs, Fortune reports. 8 Cal-Maine, which produces roughly one-fifth of the nation's eggs, lost about 4% of its flock in recent years to bird flu outbreaks. Getty Images Cal-Maine's financial reports show it has been able to more than triple its average price for a dozen eggs, from about $1.30 before the outbreak to as high as $4.06. However, the consumer pays even more – with American shoppers reaching a record peak of $6.23 for a dozen eggs in March, according to the Consumer Price Index. According to Huffman, instead of using the windfall profits they are earning from the record egg prices to rebuild or expand their egg-laying flocks, the largest egg producers are using them to buy up smaller rivals and further consolidate market power. 8 Federal regulations require farmers to kill all birds in a flock if avian flu is discovered. Cal-Maine Foods Although Cal-Maine produces 90% of their own eggs, farms who have a contract to supply eggs to them are paid just $0.27 per dozen, per an investigation by Farm Action. An investigation to alleged price-fixing for eggs has been launched by the Department of Justice. In January, egg prices rose 15.2% — and the USDA predicts egg prices will increase at least another 41% this year, The Post previously reported. In some New York City supermarkets, the price for a dozen regular eggs has hit or surpassed the $10 mark. Stores offering lower prices, including Trader Joe's and Costco, have imposed limits on how many customers can buy. 'If taxpayers are going to subsidize egg producers for flocks lost to bird flu, then the least those companies could do is not price gouge consumers,' a source, who spoke on condition of anonymity, told The Post. 8 Nationwide, the price of eggs hit a record in February, and is expected to rise as much as 40% more this year, according to the USDA. AP 8 The USDA's indemnity program pays a set price per bird killed, with some added compensation for cleaning and disinfecting. Getty Images In a March letter to the Federal Trade Commission and Department of Justice, Farm Action claimed that Cal-Maine Foods has taken advantage of the avian flu crisis to 'raise prices, amass record profits and consolidate market power'. While US egg farms have destroyed some 115 million hens over 24 months to stop the spread of bird flu, the largest suppliers are showing 'a remarkable unwillingness' to invest in expanding their flocks, according to the letter. The group has accused leading egg producers are keeping the supply of new egg-laying hens 'stagnant' in order to prolong their run of record profits. The other companies accused of colluding with Cal-Maine are the four other largest egg producers, each with between 15 and 30 million hens: Rose Acre Farms, Daybreak Foods, Hillandale Farms, and Versova Holdings. 8 Egg company Cal-Maine Foods ell short of the market's revenue expectations in Q1 CY2025, but sales rose 102% year on year to $1.42 billion. Christopher Sadowski 8 In February, the Trump administration announced an additional $1 billion in funding for combatting bird flu. AP Cal-Maine did not respond to The Post's request for comment. The Trump administration has announced new measures to tackle bird flu including ramping up biosecurity measures and increasing the compensation paid out when infected flocks are killed. The US egg-laying flock has yet to return to its pre-epidemic size of around 330 million hens. During the last bird flu outbreak from 2014 to 2015, producers lost and replaced over 35 million hens in less than a year, making a full recovery from the outbreak. This time around, there is no recovery in sight after two years. In 2023, Cal-Maine and three other egg producers were ordered to pay $17.7 million in damages by a federal jury after food suppliers accused the companies of conspiring to limit the egg supply in the US.
Yahoo
09-04-2025
- Business
- Yahoo
Cal-Maine (NASDAQ:CALM) Reports Sales Below Analyst Estimates In Q1 Earnings
Egg company Cal-Maine Foods (NASDAQ:CALM) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 102% year on year to $1.42 billion. Its GAAP profit of $10.38 per share was 4.8% below analysts' consensus estimates. Is now the time to buy Cal-Maine? Find out in our full research report. Revenue: $1.42 billion vs analyst estimates of $1.43 billion (102% year-on-year growth, 0.8% miss) EPS (GAAP): $10.38 vs analyst expectations of $10.91 (4.8% miss) Operating Margin: 44.8%, up from 21.7% in the same quarter last year Market Capitalization: $4.58 billion Known for brands such as Egg-Land's Best and Land O' Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs. The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements. Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. With $3.80 billion in revenue over the past 12 months, Cal-Maine carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. As you can see below, Cal-Maine's 35.3% annualized revenue growth over the last three years was incredible. This is an encouraging starting point for our analysis because it shows Cal-Maine's demand was higher than many consumer staples companies. This quarter, Cal-Maine achieved a magnificent 102% year-on-year revenue growth rate, but its $1.42 billion of revenue fell short of Wall Street's lofty estimates. Looking ahead, sell-side analysts expect revenue to decline by 24.6% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and suggests its products will see some demand headwinds. At least the company is tracking well in other measures of financial health. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. 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 robust cash profitability, giving it an edge over its competitors and the ability to reinvest or return capital to investors. The company's free cash flow margin averaged 12.3% over the last two years, quite impressive for a consumer staples business. We struggled to find many positives in these results. Its EPS fell short of Wall Street's estimates. Also, sales missed analysts' estimates despite the strong topline growth, as expectations were likely high ahead of the announcement. Overall, this quarter could have been better. The stock traded down 5% to $86 immediately after reporting. The latest quarter from Cal-Maine's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
