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CALM

Cal-Maine Foods, Inc. – Chicken Egg Production
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally enhanced eggs. The Company, which is headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.
Analysis Results
Intrinsic Value $23.30
Latest Price $46.12
Relative Value 98% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -8.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -8.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 51.2 49.0
2023 47.0 43.0
2024 43.2 37.8
2025 39.7 33.2
2026 36.4 29.2
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 1090 million. This corresponds to a present value of 836 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 192 million. Adding in the terminal value gives a total present value of 1030 million.

There are presently 44.1 million outstanding shares, so the intrinsic value per share is 23.3.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 519,931,000
Current Cash 169,510,000
Current Liabilities 90,097,000
Current Debt 215,000
Non-Cash Working Capital (NCWC) 260,539,000
Change in NCWC 63,559,000
EBIT -22,660,000
Tax Provision -12,009,000
Depreciation and Amortization 59,477,000
Capital Expenditure -95,069,000
Unlevered Free Cash Flow 5,307,000
Current Assets 522,251,000
Current Cash 232,293,000
Current Liabilities 93,183,000
Current Debt 205,000
Non-Cash Working Capital (NCWC) 196,980,000
Change in NCWC 21,866,000
EBIT 3,885,000
Tax Provision 1,731,000
Depreciation and Amortization 58,103,000
Capital Expenditure -124,178,000
Unlevered Free Cash Flow -40,659,257
Current Assets 567,753,000
Current Cash 319,428,000
Current Liabilities 74,907,000
Current Debt 1,696,000
Non-Cash Working Capital (NCWC) 175,114,000
Change in NCWC 22,913,000
EBIT 52,840,000
Tax Provision 15,743,000
Depreciation and Amortization 54,650,000
Capital Expenditure -67,989,000
Unlevered Free Cash Flow 50,665,392
Current Assets 587,520,000
Current Cash 331,017,000
Current Liabilities 107,838,000
Current Debt 3,536,000
Non-Cash Working Capital (NCWC) 152,201,000
Change in NCWC -68,126,000
EBIT 187,415,000
Tax Provision -8,859,000
Depreciation and Amortization 54,026,000
Capital Expenditure -19,671,000
Unlevered Free Cash Flow 153,644,000
Current Assets 436,206,000
Current Cash 156,026,000
Current Liabilities 64,679,000
Current Debt 4,826,000
Non-Cash Working Capital (NCWC) 220,327,000
Change in NCWC 50,720,000
EBIT -127,040,000
Tax Provision -39,867,000
Depreciation and Amortization 49,113,000
Capital Expenditure -66,657,000
Unlevered Free Cash Flow -93,864,000
Current Assets 626,283,000
Current Cash 389,545,000
Current Liabilities 83,451,000
Current Debt 16,320,000
Non-Cash Working Capital (NCWC) 169,607,000
Change in NCWC 41,143,000
EBIT 475,330,000
Tax Provision 169,202,000
Depreciation and Amortization 44,592,000
Capital Expenditure -76,125,000
Unlevered Free Cash Flow 319,876,989
Current Assets 508,964,000
Current Cash 258,628,000
Current Liabilities 131,937,000
Current Debt 10,065,000
Non-Cash Working Capital (NCWC) 128,464,000
Change in NCWC 3,215,000
EBIT 237,992,000
Tax Provision 84,268,000
Depreciation and Amortization 40,708,000
Capital Expenditure -82,263,000
Unlevered Free Cash Flow 118,308,697
Current Assets 445,393,000
Current Cash 209,259,000
Current Liabilities 121,101,000
Current Debt 10,216,000
Non-Cash Working Capital (NCWC) 125,249,000
Change in NCWC 13,078,000
EBIT 149,564,000
Tax Provision 52,035,000
Depreciation and Amortization 37,203,000
Capital Expenditure -59,188,000
Unlevered Free Cash Flow 92,569,589
Current Assets 414,881,000
Current Cash 182,888,000
Current Liabilities 130,195,000
Current Debt 10,373,000
Non-Cash Working Capital (NCWC) 112,171,000
Change in NCWC 59,918,000
EBIT 91,073,000
Tax Provision 24,807,000
Depreciation and Amortization 34,173,000
Capital Expenditure -26,290,000
Unlevered Free Cash Flow 128,977,113
Current Assets 442,202,000
Current Cash 260,751,000
Current Liabilities 140,656,000
Current Debt 11,458,000
Non-Cash Working Capital (NCWC) 52,253,000
Change in NCWC -30,620,000
EBIT 96,147,000
Tax Provision 49,110,000
Depreciation and Amortization 30,752,000
Capital Expenditure -26,845,000
Unlevered Free Cash Flow 35,483,172

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