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
Flawless balance sheet and undervalued.
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 is more volatile than 90% of NZ stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: ATM's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of NZ stocks.
7 Day Return
1 Year Return
Return vs Industry: ATM underperformed the NZ Food industry which returned -43.8% over the past year.
Return vs Market: ATM underperformed the NZ Market which returned 15.7% over the past year.
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
12 hours ago | Simply Wall StCould The Market Be Wrong About The a2 Milk Company Limited (NZSE:ATM) Given Its Attractive Financial Prospects?
12 hours ago | Simply Wall StThe Consensus EPS Estimates For The a2 Milk Company Limited (NZSE:ATM) Just Fell Dramatically
2 weeks ago | Simply Wall Sta2 Milk (NZSE:ATM) Could Become A Multi-Bagger
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$6.03) is trading below our estimate of fair value (NZ$23.32)
Significantly Below Fair Value: ATM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ATM is good value based on its PE Ratio (13.9x) compared to the NZ Food industry average (16.6x).
PE vs Market: ATM is good value based on its PE Ratio (13.9x) compared to the NZ market (23.9x).
Price to Earnings Growth Ratio
PEG Ratio: ATM is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: ATM is overvalued based on its PB Ratio (3.8x) compared to the NZ Food industry average (1x).
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 (21.2% per year) is above the savings rate (2.1%).
Earnings vs Market: ATM's earnings (21.2% per year) are forecast to grow faster than the NZ market (7.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ATM's revenue (11.7% per year) is forecast to grow faster than the NZ market (6.2% per year).
High Growth Revenue: ATM's revenue (11.7% 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 low in 3 years time (19.3%).
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 (20%) are lower than last year (21.9%).
Past Earnings Growth Analysis
Earnings Trend: ATM's earnings have grown significantly by 41.6% per year over the past 5 years.
Accelerating Growth: ATM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ATM had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Food industry average (1.2%).
Return on Equity
High ROE: ATM's Return on Equity (27%) is considered high.
How is a2 Milk's financial position?
Financial Position Analysis
Short Term Liabilities: ATM's short term assets (NZ$1.1B) exceed its short term liabilities (NZ$198.6M).
Long Term Liabilities: ATM's short term assets (NZ$1.1B) exceed its long term liabilities (NZ$14.4M).
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.
What is a2 Milk 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 recent payouts.
High Dividend: Unable to evaluate ATM'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 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
David Bortolussi (51 yo)
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...
Experienced Management: ATM's management team is considered experienced (3.3 years average tenure).
Experienced Board: ATM's board of directors are considered experienced (3.3 years average tenure).
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
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$4.483b
- Shares outstanding: 743.41m
- Website: https://www.thea2milkcompany.com
Number of Employees
- The a2 Milk Company Limited
- 51 Shortland Street
- Level 10
- New Zealand
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||2021/05/16 07:01|
|End of Day Share Price||2021/05/14 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.