Since February 2026, Cal-Maine has been in a holding pattern, posting a small return of 4.2% while floating around $85.09. The stock also fell short of the S&P 500’s 11% gain during that period.

Is now the time to buy Cal-Maine, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free.

Why Is Cal-Maine Not Exciting?

We don’t have much confidence in Cal-Maine. Here are three reasons you should be careful with CALM, plus one stock we’d rather own.

1. Revenue Spiraling Downwards

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Cal-Maine’s demand was weak and its revenue declined by 2.5% per year. This wasn’t a great result and is a sign of lacking business quality.

2. EPS Trending Down

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Sadly for Cal-Maine, its EPS declined by 25.4% annually over the last three years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.

3. Free Cash Flow Margin Dropping

Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, Cal-Maine’s margin dropped by 13.7 percentage points over the last year. Continued declines could signal it is in the middle of an investment cycle. Cal-Maine’s free cash flow margin for the trailing 12 months was 11.3%.

Final Judgment

Cal-Maine’s business quality ultimately falls short of our standards. With its shares underperforming the market lately, the stock trades at 59.3× forward P/E (or $85.09 per share). This multiple tells us a lot of good news is priced in - we think there are better opportunities elsewhere. Let us point you toward our favorite semiconductor picks and shovels play.

Stocks We Would Buy Instead of Cal-Maine

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