Cal-Maine Foods Inc. is a NASDAQ listed security that has been trading in a range between $6.14 and $22.73 over the past year. With 23,558,490 shares outstanding, a recent price of $20.09 gives a total market capitalization of $474,703,565. While there are certainly larger companies, Cal-Maine Foods Inc. has definitely earned its place in the pack. Last year, Cal-Maine Foods Inc. created $0.00 in earnings for every share outstanding.
Cal-Maine Foods Inc. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.
With a share price under $50 a share and earnings per share below $1 a share, Cal-Maine Foods Inc. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.
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