Nasdaq:CALM
CAL-MAINE FOODS INC
A leading US-based producer of farmed Atlantic salmon driving growth through aggressive capital deployment and strategic acquisitions.
Key Metrics
Investment Thesis
Bull Case
Investors should consider this stock for its aggressive growth trajectory evidenced by a 83% revenue jump to $4.26B and massive cash generation of $1.22B. The company's ability to convert high capital expenditures into immediate revenue growth, coupled with a healthy cash balance of nearly $500M, positions it as a dominant player in the growing US salmon sector.
Bear Case
The primary concern is the extreme volatility in recent earnings, with net income dropping sharply from $756.7M in 2023 to $276.3M in 2024 before recovering. Additionally, the massive cash outflow for investing activities ($-575.5M) suggests heavy reliance on debt or equity issuance to fund expansion, which could strain liquidity if market conditions worsen.
About CAL-MAINE FOODS INC
Cal-Maine Foods Inc. specializes in the breeding, growing, and marketing of Atlantic salmon across North America, with a primary focus on the United States market. The company operates through integrated farming facilities and actively pursues strategic acquisitions to expand its production capacity and geographic footprint.
Analysis
Management Discussion
The company demonstrated exceptional financial performance in 2025, delivering a net profit of $1.22B against revenue of $4.26B, a significant rebound from the previous year. This surge was supported by strong operational efficiency and successful integration of recent acquisitions, resulting in robust operating cash flow that exceeds net income.
Industry Overview
The global aquaculture industry is experiencing a structural shift as wild-caught fish stocks decline and consumer demand for sustainable protein surges in North America. Atlantic salmon remains the fastest-growing segment of this sector, with Cal-Maine Foods well-positioned to capture market share through its vertically integrated model.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $3.15B | $2.33B | $4.26B |
| Cost of Revenue | $1.95B | $1.78B | $2.41B |
| Gross Profit | $1.20B | $541.6M | $1.85B |
| Operating Expenses | $228.7M | $229.1M | $314.3M |
| Operating Income | $967.7M | $312.5M | $1.54B |
| G&A | $232.2M | $252.6M | $314.4M |
| Stock-Based Comp | $4.2M | $4.4M | $4.5M |
| D&A | $72.2M | $80.2M | $94.0M |
| Depreciation | $69.4M | $77.2M | $91.1M |
| Amortization | $2.2M | $2.2M | $2.2M |
| Other OpEx | $-3.5M | $-23.5M | $-103.0K |
| Non-Operating Income | $30.8M | $47.5M | $66.6M |
| Interest Expense | $583.0K | $549.0K | — |
| Interest Income | $18.6M | $32.3M | $48.7M |
| Pre-Tax Income | $998.5M | $360.0M | $1.60B |
| Income Tax | $241.8M | $83.7M | $384.9M |
| Continuing Ops | $756.7M | $276.3M | $1.22B |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $756.7M | $276.3M | $1.22B |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $756.7M | $276.3M | $1.22B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.12B | $1.24B | $1.97B |
| Cash & Equivalents | $292.8M | $237.9M | $499.4M |
| Accounts Receivable | $111.0M | $138.6M | $244.1M |
| Inventory | $284.4M | $261.8M | $295.7M |
| Prepaid Expenses | $5.4M | $5.2M | $8.0M |
| Other Current Assets | $431.3M | $598.4M | $921.0M |
| Long-Term Assets | $829.6M | $942.9M | $1.12B |
| PP&E (Net) | $744.5M | $857.2M | $1.03B |
| Intangibles | $15.9M | $16.0M | $15.2M |
| Goodwill | $44.0M | $45.8M | $46.8M |
| Other LT Assets | $15.5M | $15.7M | $17.6M |
| Total Assets | $1.95B | $2.18B | $3.08B |
| Current Liabilities | $182.7M | $227.7M | $308.4M |
| Accounts Payable | $82.6M | $75.9M | $101.0M |
| Taxes Payable | $8.3M | $43.3M | $0 |
| Other Current Liab | $38.7M | $33.0M | $60.3M |
| Long-Term Liabilities | $162.2M | $160.0M | $210.2M |
| Total Liabilities | $344.9M | $387.7M | $518.6M |
| Shareholders' Equity | $1.61B | $1.80B | $2.57B |
| Retained Earnings | $1.57B | $1.76B | $2.57B |
| AOCI | $-2.9M | $-1.8M | $-1.0M |
| Treasury Stock | $30.0M | $31.6M | $85.9M |
| Total L&E | $1.95B | $2.18B | $3.08B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $756.7M | $276.3M | $1.22B |
| Non-Cash Adjustments | $88.0M | $74.9M | $-135.4M |
| Working Capital Changes | $18.3M | $100.2M | $141.9M |
| Cash from Operations | $863.0M | $451.4M | $1.22B |
| Capital Expenditures | $136.6M | $147.1M | $161.3M |
| Cash from Investing | $-375.1M | $-412.6M | $-575.5M |
| Debt Repayments | — | — | $2.5M |
| Dividends Paid | $252.3M | $91.9M | $330.3M |
| Cash from Financing | $-254.2M | $-93.8M | $-386.7M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $233.7M | $-54.9M | $262.5M |
| Beginning Cash | $59.1M | $292.8M | $237.9M |
| Ending Cash | $292.8M | $237.9M | $500.4M |
Frequently Asked Questions
How does CAL-MAINE FOODS INC make money?
Primary revenue comes from the sale of live fish, chilled fillets, and processed seafood products. Growth is largely driven by the company's acquisitions program, which added significant capacity in 2025 alongside organic market expansion in the US retail and foodservice channels.
What are the main risks for CALM?
1. Feed Cost Volatility: High reliance on fishmeal and fish oil makes margins sensitive to global commodity price swings. 2. Regulatory Environment: Potential changes in US offshore leasing or environmental regulations could impact expansion plans. 3. Concentration Risk: Heavy dependence on the North American market, particularly the US, exposes the firm to regional economic downturns.
What is CALM's competitive advantage?
1. Integrated Production Model: Control over hatcheries and grow-out facilities ensures consistent supply and quality. 2. Aggressive Expansion Strategy: Heavy capital expenditure ($161.3M) and acquisitions ($116.2M) rapidly scale capacity to meet surging domestic demand. 3. Strong Cash Generation: Robust operating cash flow ($1.22B) provides the liquidity needed for debt reduction and reinvestment.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.