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CALMCal-Maine Foods, Inc.Sell4.1·$81.07-1.84%
SellModerate Confidence
Investment thesis

Cal-Maine sits at a cyclical earnings peak with consensus expecting a roughly 75% decline in profits ahead and the stock trading above its near-term resistance target — the reward-to-risk geometry is deeply unfavorable and a confirmed technical downtrend reinforces the case for caution.

Thesis pillars

  • Weak Free Cash Flow ConversionStable
  • Cyclical Earnings Decline AheadImproving
  • Price Above Resistance Negative RatioImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

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Cal-Maine Foods, Inc. (CALM) Stock Analysis

SellValueModerate Confidence

Consumer Defensive · Farm Products

Sell if holding. Engine safety override at $81.07: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 13%; Below-average business quality; Negative price momentum.

Cal-Maine Foods is the largest producer and distributor of shell eggs in the United States, with a flock of approximately 48.3 million layers and 11.5 million pullets and breeders as of May 31, 2025. Fresh shell eggs made up 94.3% to 95.3% of net sales over the last three fiscal... Read more

$81.07-7.8% A.UpsideScore 4.1/10#7 of 8 Farm Products
QualityF-score6 / 9FCF yield0.23%
IncomeYield5.81%(5y avg 4.91%)Payout72.40%
Stop $78.01Target $93.34(resistance)A.R:R -1.1:1
Analyst target$88.00+8.5%4 analysts
$93.34our TP
$81.07price
$88.00mean
$100

Sell if holding. Engine safety override at $81.07: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 13%; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.1/10, moderate confidence.

Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 45d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

10-K grounded · weekly refresh

About Cal-Maine Foods, Inc.

About Cal-Maine Foods, Inc.

Cal-Maine Foods' largest customer, Walmart (including Sam's Club), accounted for 33.6% of net sales in fiscal 2025, and its top three customers together made up 49.2%. Fresh shell eggs generated 94.3% to 95.3% of net sales over the company's last three fiscal years, with cage-free eggs reaching approximately 22.5% of total shell egg sales in fiscal 2025. Retail customers accounted for 86% of shell egg revenue, versus 13% from foodservice.

Cal-Maine earns nearly all of its revenue from producing, grading, packing, and marketing fresh shell eggs, supplemented by a growing cage-free and specialty-egg line sold under brands including Egg-Land's Best and 4-Grain, along with egg-products processing for further-processed uses. The company sells primarily to national and regional grocery chains, club stores, and foodservice distributors, with Walmart and Sam's Club representing its single largest revenue relationship. Feed costs — driven by corn and soybean meal, which the company stockpiles up to 215 thousand tons at a time to manage volatile pricing — are the largest input cost, and Cal-Maine does not fully hedge against commodity price swings. The company grows partly through vertical integration of its supply chain (hatcheries, pullet-growing, feed mills) and partly through acquisition of other egg producers, consolidating share in an industry that remains fragmented among independent producers.

Show full overview

Cal-Maine's single largest operational risk is biological rather than financial: the industry has been affected by repeated highly pathogenic avian influenza (HPAI) outbreaks, most recently a wave that began in early 2022, which can force the depopulation of entire flocks with little warning and has historically driven sharp swings in egg prices and supply. Because fresh shell eggs make up 94% or more of Cal-Maine's net sales with no meaningfully diversified product line to fall back on, an HPAI event at the company's own facilities — or an industry-wide outbreak that disrupts national supply and demand — would flow almost directly into consolidated results in a way a more diversified food company would not experience.

See also: Consumer Defensive · Farm Products

From Cal-Maine Foods, Inc.'s most recent 10-K filing, extracted August 9, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-08-16
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Sep 30, 202645d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Product: fresh shell eggs (94.3%)
Target reached (-7.8% upside)
Quality below floor (3.4 < 4.0)

Key Metrics

P/E (TTM)12.5
P/E (Fwd)22.6
Mkt Cap$3.8B
EV/EBITDA6.2
Profit Mgn10.9%
ROE12.2%
Rev Growth-49.9%
Beta0.23
Dividend5.81%
Rating analysts11

Quality Signals

Piotroski F6/9

Options Flow

P/C0.66bullish
IV48%normal

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerWalmart (including Sam's Club)34%
    10-K Item 1: 'Our largest customer, Walmart Inc. (including Sam's Club), accounted for 33.6%, 34.0% and 34.2% of net sales dollars for fiscal 2025, 2024 and 2023, respectively.'
  • MEDIUMCustomertop three customers49%
    10-K Item 1: 'Our top three customers accounted for an aggregate of 49.2%, 49.0% and 50.1% of our net sales dollars for fiscal 2025, 2024 and 2023, respectively.'
  • HIGHProductfresh shell eggs94%
    10-K Item 1A: 'The production and sale of fresh shell eggs, which accounted for 94.3% to 95.3% of our net sales in our last three fiscal years, is intensely competitive.'

Material Events(8-K, last 90d)

  • 2026-04-01Item 5.02LOW
    Dudley Wooley appointed as an independent Class III director effective March 31, 2026, serving until the 2027 annual meeting; routine board appointment with committee assignments and a $100,000 annual RSA grant.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

4 floor-breakers

Revenue shrinking — -49.9% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Declining revenue: -50%
Low model confidence on this dimension (33%).

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Obv
1.0
Ma Position
1.0
Volume
1.2
Rsi
3.5
Volume distribution (falling OBV)Below 200-MA, MA slope -1.0%/30d — confirmed downtrend

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Operating Margin
0.0
Fcf Quality
0.2
Gross Margin
0.6
Roe
4.1
Moat
4.1
Roa
4.6
Current Ratio
5.3
Net Margin
5.4
Piotroski F
6.7
Earnings quality RED FLAG: 3% FCF/NINo competitive moat

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.0
Earnings History
3.3
Dividend Safety
4.8
Erm
5.0
Earnings Timing
5.0
Earnings concerns: 2B/2MYield trap warning: high yield but unsafe
GatesMomentum 1.3<4.5A.R:R -1.1=NEGATIVEExecutive change: officer departure/appointmentInsider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 45d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
33 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $80.42Resistance $95.25

Price Targets

$78
$93
A.Upside-7.8%
A.R:R-1.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-7.8% upside)
! Quality below floor (3.4 < 4.0)
! momentum at 1.3 (below the engine's 4.5 threshold)

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-09-30 (45d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CALM stock a buy right now?

Sell if holding. Engine safety override at $81.07: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 13%; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $78.01. Score 4.1/10, moderate confidence.

What is the CALM stock price target?

Take-profit target: $93.34 (-7.8% upside). Prior stop was $78.01. Stop-loss: $78.01.

What are the risks of investing in CALM?

Concentration risk — Product: fresh shell eggs (94.3%); Target reached (-7.8% upside); Quality below floor (3.4 < 4.0).

Is CALM overvalued or undervalued?

Cal-Maine Foods, Inc. trades at a P/E of 12.5 (forward 22.6). TrendMatrix value score: 6.4/10. Verdict: Sell.

What do analysts say about CALM?

11 analysts cover CALM with a consensus score of 3.7/5. Average price target: $88.

What does Cal-Maine Foods, Inc. do?Cal-Maine Foods is the largest producer and distributor of shell eggs in the United States, with a flock of...

Cal-Maine Foods is the largest producer and distributor of shell eggs in the United States, with a flock of approximately 48.3 million layers and 11.5 million pullets and breeders as of May 31, 2025. Fresh shell eggs made up 94.3% to 95.3% of net sales over the last three fiscal years, and the company's largest customer, Walmart (including Sam's Club), accounted for 33.6% of fiscal 2025 net sales dollars, with its top three customers together at 49.2%.

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