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, the United Kingdom, and the United States.
No risks detected for ATM from our risk checks.
Flawless balance sheet with solid track record.
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: ATM has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ATM exceeded the NZ Food industry which returned -1.6% over the past year.
Return vs Market: ATM underperformed the NZ Market which returned 22.4% over the past year.
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
1 week ago | Simply Wall StIs The a2 Milk Company Limited’s (NZSE:ATM) 52% ROCE Any Good?
3 weeks ago | Simply Wall StIs Now The Time To Put a2 Milk (NZSE:ATM) On Your Watchlist?
1 month ago | Simply Wall StWhat Kind Of Shareholder Appears On The The a2 Milk Company Limited's (NZSE:ATM) Shareholder Register?
Is a2 Milk undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ATM (NZ$16.38) is trading below our estimate of fair value (NZ$16.58)
Significantly Below Fair Value: ATM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ATM is poor value based on its PE Ratio (41.7x) compared to the Food industry average (16.1x).
PE vs Market: ATM is poor value based on its PE Ratio (41.7x) compared to the NZ market (20.8x).
Price to Earnings Growth Ratio
PEG Ratio: ATM is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: ATM is overvalued based on its PB Ratio (15.3x) compared to the NZ Food industry average (1.2x).
How is a2 Milk forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ATM's forecast earnings growth (16.1% per year) is above the savings rate (1.3%).
Earnings vs Market: ATM's earnings (16.1% per year) are forecast to grow faster than the NZ market (7% per year).
High Growth Earnings: ATM's earnings are forecast to grow, but not significantly.
Revenue vs Market: ATM's revenue (16.7% per year) is forecast to grow faster than the NZ market (5.5% per year).
High Growth Revenue: ATM's revenue (16.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ATM's Return on Equity is forecast to be high in 3 years time (27.8%)
How has a2 Milk performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ATM has high quality earnings.
Growing Profit Margin: ATM's current net profit margins (22.1%) are higher than last year (21.2%).
Past Earnings Growth Analysis
Earnings Trend: ATM's earnings have grown significantly by 65% per year over the past 5 years.
Accelerating Growth: ATM's earnings growth over the past year (47%) is below its 5-year average (65% per year).
Earnings vs Industry: ATM earnings growth over the past year (47%) exceeded the Food industry -9.7%.
Return on Equity
High ROE: ATM's Return on Equity (36.5%) is considered high.
Return on Assets
Return on Capital Employed
How is a2 Milk's financial position?
Financial Position Analysis
Short Term Liabilities: ATM's short term assets (NZ$675.7M) exceed its short term liabilities (NZ$205.4M).
Long Term Liabilities: ATM's short term assets (NZ$675.7M) exceed its long term liabilities (NZ$227.0K).
Debt to Equity History and Analysis
Debt Level: ATM is debt free.
Reducing Debt: ATM has not had any debt for past 5 years.
Debt Coverage: ATM has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: ATM has no debt, therefore coverage of interest payments is not a concern.
Inventory Level: ATM has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if ATM's debt is covered by short term assets.
What is a2 Milk's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ATM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ATM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ATM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ATM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ATM's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Geoff Babidge (66yo)
Mr. Geoffrey H. Babidge, also known as Geoff, (Geo), B.Comm., ACA serves as Chief Executive Officer at The a2 Milk Company Limited since 2020 and served as its Interim Chief Executive Officer since Decembe ...
CEO Compensation Analysis
Compensation vs Market: Geoff's total compensation ($USD963.81K) is about average for companies of similar size in the NZ market ($USD1.16M).
Compensation vs Earnings: Geoff's compensation has been consistent with company performance over the past year.
|Chief Executive Officer||0.2yrs||NZ$1.46m||no data|
|Chief Financial Officer||0.08yrs||no data||no data|
|Chief Operating Officer||0yrs||no data||0.027% NZ$3.3m|
|Head of Investor Relations||0yrs||no data||no data|
|General Counsel & Company Secretary||3.3yrs||no data||no data|
|Chief Marketing Officer||6.4yrs||no data||0.11% NZ$13.4m|
|Chief People Officer||1.3yrs||no data||no data|
|Chief Scientific Advisor to the CEO||1.5yrs||no data||0.020% NZ$2.5m|
|Chief Executive Officer of Asia Pacific||2.7yrs||no data||0.0081% NZ$982.4k|
|Deputy Chief Financial Officer||0yrs||no data||0.014% NZ$1.6m|
Experienced Management: ATM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
|Independent Non-Executive Director||3.5yrs||NZ$193.00k||0.014% NZ$1.6m|
|Independent Non-Executive Director||2.8yrs||NZ$213.00k||0.0037% NZ$442.4k|
|Chairman of the Board||4.9yrs||NZ$231.55k||0.014% NZ$1.6m|
|Deputy Chairman & Lead Non Executive Director||4.9yrs||NZ$232.50k||0.0068% NZ$818.4k|
|Independent Non-Executive Director||0.6yrs||no data||no data|
Experienced Board: ATM's board of directors are considered experienced (3.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ATM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The a2 Milk Company Limited's company bio, employee growth, exchange listings and data sources
- Name: The a2 Milk Company Limited
- Ticker: ATM
- Exchange: NZSE
- Founded: 2000
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: NZ$12.054b
- Shares outstanding: 735.88m
- Website: https://www.thea2milkcompany.com
Number of Employees
- The a2 Milk Company Limited
- 51 Shortland Street
- Level 10
- New Zealand
|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|
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, the United Kingdom, and the United States. The company offers fresh milk under the a2 Milk brand; and infant formula under the a2 Platinum brand. It also provides a2 Platinum premium stage 4 junior milk drink; premium a2 Milk powder blended with Manuka honey; and a2 Platinum premium pregnancy milk formula. The company was formerly known as A2 Corporation Limited and changed its name to The a2 Milk Company Limited in April 2014. The a2 Milk Company Limited was founded in 2000 and is based in Auckland, New Zealand.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/22 10:33|
|End of Day Share Price||2020/02/21 00:00|
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.