Assessing Cal-Maine Foods’ Performance in Fiscal 1Q17

Price movement

Cal-Maine Foods (CALM) fell 8.6% to close at $38.54 per share during the fourth week of September 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -8.6%, -16.1%, and -14.8%, respectively, on September 30.

CALM is trading 9.8% below its 20-day moving average, 9.9% below its 50-day moving average, and 17.1% below its 200-day moving average.

Assessing Cal-Maine Foods’ Performance in Fiscal 1Q17

Related ETFs and peers

The Vanguard Small-Cap ETF (VB) invests 0.04% of its holdings in Cal-Maine Foods. The ETF tracks the CRSP US Small Cap Index. The market cap–weighted index includes the bottom 2%–15% of the investable universe. The YTD price movement of VB was 11.6% on September 30, 2016.

The Vanguard Consumer Staples ETF (VDC) invests 0.10% of its holdings in Cal-Maine Foods. The ETF tracks a market cap–weighted index of stocks in the US Consumer Staples sector.

The market caps of Cal-Maine Foods’ competitors are as follows:

  • Pilgrim’s Pride (PPC) — $5.3 billion
  • Industrias Bachoco (IBA) — $2.6 billion

Performance of Cal-Maine Foods in fiscal 1Q17

Cal-Maine Foods reported fiscal 1Q17 net sales of $239.8 million, a fall of 60.7% compared to its net sales of $609.9 million in fiscal 1Q16. A dozen eggs sold and produced fell 6.4% and 1.9%, respectively, in fiscal 1Q17 compared to the prior year’s period.

Its net income and EPS (earnings per share) fell to -$30.9 million and -$0.64, respectively, in fiscal 1Q17, compared to $143.0 million and $2.95, respectively, in fiscal 1Q16.

CALM’s cash and short-term investments and inventories fell 21.2% and 0.13%, respectively, in fiscal 1Q17 compared to 4Q16. Its current ratio rose to 7.6x in fiscal 1Q17 compared to 7.5x in fiscal 4Q16. It reported a debt-to-equity ratio of 0.21x in fiscals 1Q17 and 4Q16.

Next, we’ll look at BorgWarner (BWA).