a2 Milk (NZSE:ATM) May Have Issues Allocating Its Capital
Apr 16
New Zealand (NZX) Food Industry Analysis
UpdatedApr 26, 2024
DataAggregated Company Financials
Companies11
- 7D2.1%
- 3M10.9%
- 1Y-4.5%
- YTD11.4%
In the last week, the Food industry is up 2.3%, with a2 Milk up 4.7%. Meanwhile, Synlait Milk actually underperformed within the industry, shrinking 7.4% in the last week. However, the industry is down 4.8% over the past year. Earnings are forecast to grow by 17% annually.
Industry Valuation and Performance
Has the New Zealand Food Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Apr 2024 | NZ$10.3b | NZ$30.5b | NZ$1.5b | 11.9x | 6.8x | 0.3x |
| Sun, 24 Mar 2024 | NZ$10.7b | NZ$30.5b | NZ$1.6b | 12.5x | 6.7x | 0.4x |
| Tue, 20 Feb 2024 | NZ$10.6b | NZ$31.9b | NZ$1.5b | 6.4x | 7.3x | 0.3x |
| Thu, 18 Jan 2024 | NZ$10.0b | NZ$31.9b | NZ$1.4b | 6.9x | 6.9x | 0.3x |
| Sat, 16 Dec 2023 | NZ$9.8b | NZ$31.9b | NZ$1.4b | 6.8x | 6.8x | 0.3x |
| Mon, 13 Nov 2023 | NZ$9.1b | NZ$31.8b | NZ$1.5b | 6.1x | 6.1x | 0.3x |
| Wed, 11 Oct 2023 | NZ$9.7b | NZ$31.8b | NZ$1.5b | 6.2x | 6.5x | 0.3x |
| Fri, 08 Sep 2023 | NZ$10.4b | NZ$33.3b | NZ$1.5b | 11.7x | 6.8x | 0.3x |
| Sun, 06 Aug 2023 | NZ$11.1b | NZ$33.3b | NZ$1.5b | 15x | 7.2x | 0.3x |
| Tue, 04 Jul 2023 | NZ$11.2b | NZ$33.2b | NZ$1.5b | 18.4x | 7.3x | 0.3x |
| Thu, 01 Jun 2023 | NZ$11.2b | NZ$32.7b | NZ$1.1b | 18.7x | 10x | 0.3x |
| Sat, 29 Apr 2023 | NZ$10.9b | NZ$32.7b | NZ$1.1b | 18.9x | 9.8x | 0.3x |
| Mon, 27 Mar 2023 | NZ$11.7b | NZ$32.7b | NZ$1.0b | 14.5x | 11.1x | 0.4x |
| Wed, 22 Feb 2023 | NZ$12.1b | NZ$30.4b | NZ$886.6m | 16.4x | 13.6x | 0.4x |
| Fri, 20 Jan 2023 | NZ$12.6b | NZ$30.3b | NZ$876.1m | 15.4x | 14.3x | 0.4x |
| Sun, 18 Dec 2022 | NZ$12.1b | NZ$30.3b | NZ$876.1m | 15.5x | 13.9x | 0.4x |
| Tue, 15 Nov 2022 | NZ$11.8b | NZ$30.3b | NZ$828.6m | 17.3x | 14.3x | 0.4x |
| Thu, 13 Oct 2022 | NZ$11.8b | NZ$30.3b | NZ$828.6m | 18.2x | 14.2x | 0.4x |
| Sat, 10 Sep 2022 | NZ$12.0b | NZ$28.7b | NZ$686.0m | 18x | 17.5x | 0.4x |
| Mon, 08 Aug 2022 | NZ$11.6b | NZ$28.3b | NZ$588.9m | 20.8x | 19.7x | 0.4x |
| Wed, 06 Jul 2022 | NZ$11.3b | NZ$28.3b | NZ$601.7m | 13.4x | 18.7x | 0.4x |
| Fri, 03 Jun 2022 | NZ$11.4b | NZ$28.3b | NZ$601.4m | 13.7x | 18.9x | 0.4x |
| Sun, 01 May 2022 | NZ$11.1b | NZ$28.3b | NZ$609.0m | 14.4x | 18.2x | 0.4x |
| Tue, 29 Mar 2022 | NZ$12.2b | NZ$28.1b | NZ$648.6m | 13.9x | 18.9x | 0.4x |
| Thu, 24 Feb 2022 | NZ$12.9b | NZ$27.1b | NZ$606.1m | 9x | 21.2x | 0.5x |
| Sat, 22 Jan 2022 | NZ$12.4b | NZ$27.1b | NZ$661.5m | 7.8x | 18.7x | 0.5x |
| Mon, 20 Dec 2021 | NZ$12.4b | NZ$27.1b | NZ$661.5m | 15.4x | 18.8x | 0.5x |
| Wed, 17 Nov 2021 | NZ$13.1b | NZ$27.1b | NZ$664.9m | 15.4x | 19.7x | 0.5x |
| Fri, 15 Oct 2021 | NZ$14.0b | NZ$27.1b | NZ$664.9m | 13.1x | 21x | 0.5x |
| Sun, 12 Sep 2021 | NZ$12.4b | NZ$26.3b | NZ$758.7m | 12.1x | 16.3x | 0.5x |
| Tue, 10 Aug 2021 | NZ$12.9b | NZ$26.3b | NZ$758.7m | 12.9x | 17x | 0.5x |
| Mon, 03 May 2021 | NZ$16.1b | NZ$26.5b | NZ$872.8m | 15.2x | 18.4x | 0.6x |
Price to Earnings Ratio
18.4x
Current Industry PE
- Investors are pessimistic on the New Zealander Food industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 6.8x which is lower than its 3-year average PE of 13.7x.
- The industry is trading close to its 3-year average PS ratio of 0.40x.
Past Earnings Growth
- The earnings for companies in the Food industry have grown 20% per year over the last three years.
- Revenues for these companies have grown 4.8% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the New Zealand Consumer Staples industry?
| NZ Market | 0.66% | |
| Consumer Staples | 1.82% | |
| Food | 2.11% | |
| Packaged Foods and Meats | 2.40% | |
| Agricultural Products | -0.60% | |
Industry PE
- Investors are most optimistic about the Packaged Foods and Meats industry even though it's trading below its 3-year average PE ratio of 13.2x.
- Analysts are expecting annual earnings growth of 15.3%, which is lower than the prior year's growth of 70.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Agricultural Products industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings decline of 60% per year.
- In contrast, the Packaged Foods and Meats industry is expected to see its earnings grow by 15% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ATM a2 Milk | NZ$6.50 | 4.7% +NZ$209.7m | 10.2% | PE28.1x | |
| FCG Fonterra Co-operative Group | NZ$2.38 | 1.7% +NZ$64.3m | -14.4% | PE2.7x | |
| TGG T&G Global | NZ$1.85 | 4.5% +NZ$9.8m | -10.2% | PS0.2x | |
| LIC Livestock Improvement | NZ$1.21 | 0.8% +NZ$1.4m | 4.3% | PE7.5x | |
| SEK Seeka | NZ$2.90 | 1.0% +NZ$1.3m | 2.5% | PS0.4x |
