If you think selling eggs is a calm, low-drama business, Cal-Maine Foods is here to prove you wrong.
We’re talking about the largest egg producer and distributor in the U.S., an empire that quite literally lays golden eggs.
But just like any bird in the financial barnyard, Cal-Maine has its moments of glory… and its hard-boiled days too.

The Record-Breaking Hen

Over the past few years, Cal-Maine (ticker: CALM, yes, that’s actually its name — talk about ironic) has been riding high.
Egg prices skyrocketed, partly thanks to the bird flu that wiped out millions of hens and sent supply into chaos.
The result? Record profits and mountains of cash.

On the balance sheet, Cal-Maine is sitting on over $1 billion in cash and practically no debt — the dream scenario for any CFO.
And with P/E ratios between 3 and 5, it’s so cheap you’d think the market forgot to price in the fact that these guys make real money.

Golden Eggs, Fragile Shells

Of course, it’s not all sunshine and omelets.
Cal-Maine is currently under investigation by the U.S. Department of Justice for possible price-fixing practices.
In plain English: someone thinks those eggs might’ve been sold at prices that were a little too sunny-side up. 🍳

Then there’s the insane volatility in egg prices — one bad flu outbreak or a spike in feed costs, and margins can collapse faster than a soufflé in a thunderstorm.

The Numbers Don’t Lie

Let’s crack open a few key stats:

• P/E (TTM): around 3–5x — you pay next to nothing for each dollar of earnings.
• EV/EBITDA: roughly 2x — basically a bargain basement valuation.
• Dividend: generous, though variable (yields hovering around 5–9%).
• Cash flow: downright incredible — Cal-Maine has been swimming in cash like Scrooge McDuck in his gold vault.

Financially, this company is as solid as a hard-boiled egg left in the fridge too long.

What About the Future?

Here’s where things get interesting.
Cal-Maine is uniquely positioned: if egg prices stay high, profits will soar higher than an eagle (or, more accurately, a chicken on a rocket).
But if the market normalizes and prices drop back to pre–bird flu levels, earnings could easily get scrambled.

Then there’s that DOJ investigation — if it ends with a light slap on the wrist, no problem.
But if the regulators come down hard, the stock might crack like a dropped egg.

So… Should You Invest?

Depends on your stomach (and not just for scrambled eggs).
If you’re a value investor who loves rock-solid balance sheets and can handle some volatility, Cal-Maine could be a very interesting bet: tons of cash, zero debt, and a dividend that can brighten your breakfast and your portfolio.

If you prefer stability and predictability, though, maybe skip this one — investing in Cal-Maine is a bit like keeping a chicken in your living room: potentially rewarding, but it can make quite a mess when things go wrong.