Cal-Maine Foods Revenue vs. Return On Equity
| CM2 Stock | EUR 89.02 1.70 1.87% |
For Cal-Maine Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cal-Maine Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cal Maine Foods utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cal-Maine Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cal Maine Foods over time as well as its relative position and ranking within its peers.
Cal-Maine |
Cal Maine Foods Return On Equity vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cal-Maine Foods's current stock value. Our valuation model uses many indicators to compare Cal-Maine Foods value to that of its competitors to determine the firm's financial worth. Cal Maine Foods is the top company in revenue category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Revenue to Return On Equity for Cal Maine Foods is about 4,356,849,718 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cal-Maine Foods' earnings, one of the primary drivers of an investment's value.Cal-Maine Revenue vs. Competition
Cal Maine Foods is the top company in revenue category among its peers. Market size based on revenue of Packaged Foods industry is currently estimated at about 307.6 Billion. Cal-Maine Foods maintains roughly 1.78 Billion in revenue contributing less than 1% to equities listed under Packaged Foods industry.
Cal-Maine Return On Equity vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Cal-Maine Foods |
| = | 1.78 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Cal-Maine Foods |
| = | 0.41 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Cal-Maine Return On Equity Comparison
Cal Maine is currently under evaluation in return on equity category among its peers.
Cal-Maine Foods Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cal-Maine Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cal-Maine Foods will eventually generate negative long term returns. The profitability progress is the general direction of Cal-Maine Foods' change in net profit over the period of time. It can combine multiple indicators of Cal-Maine Foods, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. The company was founded in 1957 and is based in Jackson, Mississippi. CAL MAINE operates under Packaged Foods classification in Germany and is traded on Frankfurt Stock Exchange. It employs 3312 people.
Cal-Maine Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cal-Maine Foods. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cal-Maine Foods position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cal-Maine Foods' important profitability drivers and their relationship over time.
Use Cal-Maine Foods in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cal-Maine Foods position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cal-Maine Foods will appreciate offsetting losses from the drop in the long position's value.Cal-Maine Foods Pair Trading
Cal Maine Foods Pair Trading Analysis
The ability to find closely correlated positions to Cal-Maine Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cal-Maine Foods when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cal-Maine Foods - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cal Maine Foods to buy it.
The correlation of Cal-Maine Foods is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cal-Maine Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cal Maine Foods moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cal-Maine Foods can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Cal-Maine Foods position
In addition to having Cal-Maine Foods in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Cal-Maine Stock
When determining whether Cal Maine Foods is a strong investment it is important to analyze Cal-Maine Foods' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cal-Maine Foods' future performance. For an informed investment choice regarding Cal-Maine Stock, refer to the following important reports:Check out Trending Equities. For more detail on how to invest in Cal-Maine Stock please use our How to Invest in Cal-Maine Foods guide.You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
To fully project Cal-Maine Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cal Maine Foods at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cal-Maine Foods' income statement, its balance sheet, and the statement of cash flows.