Market Cap
AU$7.0b
Last Updated
2021/03/04 07:37 UTC
Data Sources
Company Financials +
Executive Summary
The a2 Milk Company Limited, together with its subsidiaries, sells A2 protein type branded milk and related products in Australia, New Zealand, China, other Asian countries, and the United States. More Details
Rewards
Risk Analysis
No risks detected for A2M from our risk checks.
Snowflake Analysis
Flawless balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has a2 Milk's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: A2M is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: A2M's weekly volatility (10%) has been stable over the past year.
Market Performance
7 Day Return
6.8%
A2M
-0.3%
AU Food
0.3%
AU Market
1 Year Return
-43.6%
A2M
15.2%
AU Food
12.5%
AU Market
Return vs Industry: A2M underperformed the Australian Food industry which returned 15.2% over the past year.
Return vs Market: A2M underperformed the Australian Market which returned 12.5% over the past year.
Shareholder returns
| A2M | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.8% | -0.3% | 0.3% |
| 30 Day | -10.0% | 2.1% | 2.2% |
| 90 Day | -30.5% | 2.5% | 4.0% |
| 1 Year | -43.6%-43.6% | 18.4%15.2% | 16.1%12.5% |
| 3 Year | -23.5%-23.5% | -2.1%-10.7% | 31.1%15.1% |
| 5 Year | 474.8%474.8% | 24.7%10.1% | 62.5%31.3% |
Long-Term Price Volatility Vs. Market
How volatile is a2 Milk's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is a2 Milk undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: A2M (A$9.37) is trading below our estimate of fair value (A$30.06)
Significantly Below Fair Value: A2M is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: A2M is poor value based on its PE Ratio (23.1x) compared to the AU Food industry average (21.4x).
PE vs Market: A2M is poor value based on its PE Ratio (23.1x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: A2M is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: A2M is overvalued based on its PB Ratio (6.3x) compared to the AU Food industry average (1.5x).
Next Steps
Future Growth
How is a2 Milk forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
19.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: A2M's forecast earnings growth (19.1% per year) is above the savings rate (2%).
Earnings vs Market: A2M's earnings (19.1% per year) are forecast to grow faster than the Australian market (15.6% per year).
High Growth Earnings: A2M's earnings are forecast to grow, but not significantly.
Revenue vs Market: A2M's revenue (16.2% per year) is forecast to grow faster than the Australian market (5.6% per year).
High Growth Revenue: A2M's revenue (16.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: A2M's Return on Equity is forecast to be high in 3 years time (21.7%)
Next Steps
Past Performance
How has a2 Milk performed over the past 5 years?
41.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: A2M has high quality earnings.
Growing Profit Margin: A2M's current net profit margins (20%) are lower than last year (21.9%).
Past Earnings Growth Analysis
Earnings Trend: A2M's earnings have grown significantly by 41.6% per year over the past 5 years.
Accelerating Growth: A2M's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: A2M had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Food industry average (-19.6%).
Return on Equity
High ROE: A2M's Return on Equity (27%) is considered high.
Next Steps
Financial Health
How is a2 Milk's financial position?
Financial Position Analysis
Short Term Liabilities: A2M's short term assets (NZ$1.1B) exceed its short term liabilities (NZ$198.6M).
Long Term Liabilities: A2M's short term assets (NZ$1.1B) exceed its long term liabilities (NZ$14.4M).
Debt to Equity History and Analysis
Debt Level: A2M is debt free.
Reducing Debt: A2M has not had any debt for past 5 years.
Debt Coverage: A2M has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: A2M has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is a2 Milk current dividend yield, its reliability and sustainability?
0.61%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate A2M's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate A2M's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if A2M's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if A2M's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of A2M's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
David Bortolussi (51 yo)
0.083
Tenure
Mr. David L. Bortolussi, BComm, FFin, FCA, served as Group President of Innerwear International at Hanesbrands Inc. since April 2019 until February 6, 2021. He serves as Managing Director and Chief Executi...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 0.083yr | no data | no data | |
| Chief Financial Officer | 1.17yrs | no data | 0.0010% NZ$ 71.3k | |
| Chief Operating Officer | no data | no data | 0.054% NZ$ 3.8m | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | 4.33yrs | no data | 0.0020% NZ$ 141.2k | |
| Chief Scientific Advisor to the CEO | 2.58yrs | no data | no data | |
| Chief Growth & Brand Officer | 1.08yrs | no data | no data | |
| Chief Executive Officer of Asia Pacific | 3.75yrs | no data | 0.16% NZ$ 11.5m | |
| Chief Executive of USA Region | 4.83yrs | no data | 0.0091% NZ$ 632.5k | |
| Executive Vice President of Greater China | 3.58yrs | no data | no data | |
| Chief Executive of Greater China | 1.92yrs | no data | no data |
2.6yrs
Average Tenure
Experienced Management: A2M's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 0.083yr | no data | no data | |
| Independent Non-Executive Director | 4.58yrs | NZ$216.50k | 0.013% NZ$ 940.0k | |
| Non-Executive Chairman of the Board | 6yrs | NZ$182.95k | 0.14% NZ$ 9.9m | |
| Independent Non-Executive Director | 0.083yr | no data | no data | |
| Independent Deputy Chairman & Lead Non Executive Director | 6yrs | NZ$256.00k | 0.0067% NZ$ 470.3k | |
| Independent Non-Executive Director | 1.67yrs | NZ$203.50k | no data |
3.1yrs
Average Tenure
59.5yo
Average Age
Experienced Board: A2M's board of directors are considered experienced (3.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The a2 Milk Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The a2 Milk Company Limited
- Ticker: A2M
- Exchange: CHIA
- Founded: 2000
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: NZ$7.508b
- Listing Market Cap: NZ$6.989b
- Shares outstanding: 743.41m
- Website: https://www.thea2milkcompany.com
Number of Employees
Location
- The a2 Milk Company Limited
- 51 Shortland Street
- Level 10
- Auckland
- 1010
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ATM | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | Apr 2004 |
| ACOP.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Apr 2004 |
| 14L | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Apr 2004 |
| A2M | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Apr 2004 |
| A2M | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Apr 2004 |
| ACOP.Y | OTCPK (Pink Sheets LLC) | UNSPONSRED ADS | US | USD | May 2019 |
Biography
The a2 Milk Company Limited, together with its subsidiaries, sells A2 protein type branded milk and related products in Australia, New Zealand, China, other Asian countries, and the United States. The comp...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/04 07:37 |
| End of Day Share Price | 2021/03/03 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.