Cal-Maine Foods, Inc. (NASDAQ:CALM) reported earnings per share (EPS) of $2.13, surpassing the estimated $1.75, indicating strong profitability.
The company's price-to-earnings (P/E) ratio of 3.01 suggests that the stock is undervalued relative to its earnings.
Cal-Maine's current ratio of 6.84 highlights its financial stability and ability to cover short-term liabilities.
Cal-Maine Foods, Inc. (NASDAQ:CALM) is the largest egg producer in the United States, known for its production and distribution of shell eggs, including specialty eggs. Competing with other producers like Rose Acre Farms and Hillandale Farms, Cal-Maine stands out in the egg industry.
On January 7, 2026, Cal-Maine reported earnings per share (EPS) of $2.13, exceeding the estimated $1.75. This performance indicates strong profitability despite revenue falling short of expectations at $769.5 million, compared to the estimated $846.4 million. The market is closely watching how specialty eggs might influence future earnings, as highlighted by Barrons.
Cal-Maine's financial metrics reveal a low valuation with a price-to-earnings (P/E) ratio of 3.01. This suggests that the stock is undervalued relative to its earnings. The price-to-sales ratio of 0.87 indicates that the stock is trading at less than one times its sales, which can be attractive to investors looking for value.
The enterprise value to sales ratio of 0.81 and the enterprise value to operating cash flow ratio of 2.58 further reflect Cal-Maine's valuation in relation to its revenue and cash flow. These metrics suggest that the company is efficiently generating cash flow relative to its market valuation.
Cal-Maine's earnings yield of 33.18% offers a substantial return on its earnings relative to its share price. Additionally, the company's strong liquidity position, with a current ratio of 6.84, highlights its ability to cover short-term liabilities with its current assets, providing financial stability.