Cal-Maine Foods Z Score vs. Net Income
| CM2 Stock | 91.60 0.10 0.11% |
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 Net Income vs. Z Score 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 rated below average in z score category among its peers. It also is rated below average in net income category among its peers making up about 132,650,000 of Net Income per Z Score. 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 Net Income vs. Z Score
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Cal-Maine Foods |
| = | 1.0 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Cal-Maine Foods |
| = | 132.65 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Cal-Maine Net Income Comparison
Cal Maine is currently under evaluation in net income category among its peers.
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?
Run Sector ETFs Thematic Idea Now
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Sector ETFs theme has 439 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sector ETFs Theme or any other thematic opportunities.
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Additional Tools for Cal-Maine Stock Analysis
When running Cal-Maine Foods' price analysis, check to measure Cal-Maine Foods' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cal-Maine Foods is operating at the current time. Most of Cal-Maine Foods' value examination focuses on studying past and present price action to predict the probability of Cal-Maine Foods' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cal-Maine Foods' price. Additionally, you may evaluate how the addition of Cal-Maine Foods to your portfolios can decrease your overall portfolio volatility.