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Cal-Maine Foods, Inc. (CALM)

Company Dividend Discount ModelIndustry: Agricultural Farm ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$610.68 - $1,619.97$933.79
Multi-Stage$421.78 - $460.62$440.84
Blended Fair Value$687.32
Current Price$115.64
Upside494.36%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%21.05%6.771.885.170.130.030.000.860.000.002.48
YoY Growth--259.57%-63.59%4,024.44%270.28%0.00%-100.00%0.00%0.00%-100.00%147.27%
Dividend Yield--5.86%2.61%10.85%0.23%0.09%0.00%2.11%0.00%0.00%5.63%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,269.41
(-) Cash Dividends Paid (M)406.70
(=) Cash Retained (M)862.72
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)253.88158.6895.21
Cash Retained (M)862.72862.72862.72
(-) Cash Required (M)-253.88-158.68-95.21
(=) Excess Retained (M)608.83704.04767.51
(/) Shares Outstanding (M)48.7648.7648.76
(=) Excess Retained per Share12.4914.4415.74
LTM Dividend per Share8.348.348.34
(+) Excess Retained per Share12.4914.4415.74
(=) Adjusted Dividend20.8322.7824.08
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$610.68$933.79$1,619.97
Upside / Downside428.09%707.50%1,300.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,269.411,351.921,439.801,533.391,633.061,739.201,791.38
Payout Ratio32.04%43.63%55.22%66.82%78.41%90.00%92.50%
Projected Dividends (M)406.70589.85795.101,024.541,280.441,565.281,657.03

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)535.58540.66545.74
Year 2 PV (M)655.53668.02680.62
Year 3 PV (M)766.98789.00811.43
Year 4 PV (M)870.37903.84938.27
Year 5 PV (M)966.101,012.771,061.22
PV of Terminal Value (M)16,771.5217,581.5918,422.67
Equity Value (M)20,566.0921,495.8822,459.94
Shares Outstanding (M)48.7648.7648.76
Fair Value$421.78$440.84$460.62
Upside / Downside264.73%281.22%298.32%

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