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a2 Milk

NZSE:ATM
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ATM
NZSE
NZ$10B
Market Cap
  1. Home
  2. NZ
  3. Food, Beverage & Tobacco
Company description

The a2 Milk Company Limited, together with its subsidiaries, commercializes A1 protein free branded milk and related products in Australia, New Zealand, China, other Asian countries, the United Kingdom, and the United States. The last earnings update was 29 days ago. More info.


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ATM Share Price and Events
7 Day Returns
-3.4%
NZSE:ATM
-3.3%
NZ Food
-0.1%
NZ Market
1 Year Returns
-2.7%
NZSE:ATM
-12.5%
NZ Food
3.8%
NZ Market
ATM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
a2 Milk (ATM) -3.4% 6.6% 30.2% -2.7% 589.4% 1391.3%
NZ Food -3.3% -1% 10.5% -12.5% 56.6% 58.1%
NZ Market -0.1% 0.4% 4.9% 3.8% 21.7% 42.7%
1 Year Return vs Industry and Market
  • ATM outperformed the Food industry which returned -12.5% over the past year.
  • ATM underperformed the Market in New Zealand which returned 3.8% over the past year.
Price Volatility
ATM
Industry
5yr Volatility vs Market

ATM Value

 Is a2 Milk undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of a2 Milk to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for a2 Milk.

NZSE:ATM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:ATM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.56 (1 + (1- 28%) (0%))
0.705
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (0.8 * 5.96%)
7.14%

Discounted Cash Flow Calculation for NZSE:ATM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for a2 Milk is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:ATM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 7.14%)
2019 251.18 Analyst x4 234.44
2020 324.90 Analyst x4 283.05
2021 392.83 Analyst x3 319.43
2022 485.42 Analyst x1 368.42
2023 560.57 Est @ 15.48% 397.11
2024 625.30 Est @ 11.55% 413.46
2025 680.29 Est @ 8.79% 419.85
2026 727.01 Est @ 6.87% 418.78
2027 767.12 Est @ 5.52% 412.45
2028 802.21 Est @ 4.57% 402.58
Present value of next 10 years cash flows NZ$3,669.57
NZSE:ATM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$802.21 × (1 + 2.37%) ÷ (7.14% – 2.37%)
NZ$17,223.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$17,223.53 ÷ (1 + 7.14%)10
NZ$8,643.44
NZSE:ATM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$3,669.57 + NZ$8,643.44
NZ$12,313.02
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$12,313.02 / 734.90
NZ$16.75
NZSE:ATM Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$16.75
Current discount Discount to share price of NZ$13.72
= -1 x (NZ$13.72 - NZ$16.75) / NZ$16.75
18.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price a2 Milk is available for.
Intrinsic value
18%
Share price is NZ$13.72 vs Future cash flow value of NZ$16.75
Current Discount Checks
For a2 Milk to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • a2 Milk's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • a2 Milk's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for a2 Milk's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are a2 Milk's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:ATM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in NZD NZ$0.34
NZSE:ATM Share Price ** NZSE (2019-03-21) in NZD NZ$13.72
New Zealand Food Industry PE Ratio Median Figure of 11 Publicly-Listed Food Companies 23.17x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 17.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of a2 Milk.

NZSE:ATM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:ATM Share Price ÷ EPS (both in NZD)

= 13.72 ÷ 0.34

40.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • a2 Milk is overvalued based on earnings compared to the NZ Food industry average.
  • a2 Milk is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does a2 Milk's expected growth come at a high price?
Raw Data
NZSE:ATM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 40.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
18.3%per year
New Zealand Food Industry PEG Ratio Median Figure of 7 Publicly-Listed Food Companies 1.06x
New Zealand Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NZSE:ATM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 40.07x ÷ 18.3%

2.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • a2 Milk is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on a2 Milk's assets?
Raw Data
NZSE:ATM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in NZD NZ$0.88
NZSE:ATM Share Price * NZSE (2019-03-21) in NZD NZ$13.72
New Zealand Food Industry PB Ratio Median Figure of 13 Publicly-Listed Food Companies 1.06x
New Zealand Market PB Ratio Median Figure of 126 Publicly-Listed Companies 1.54x
NZSE:ATM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:ATM Share Price ÷ Book Value per Share (both in NZD)

= 13.72 ÷ 0.88

15.65x

* Primary Listing of a2 Milk.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • a2 Milk is overvalued based on assets compared to the NZ Food industry average.
X
Value checks
We assess a2 Milk's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. a2 Milk has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ATM Future Performance

 How is a2 Milk expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is a2 Milk expected to grow at an attractive rate?
  • a2 Milk's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • a2 Milk's earnings growth is expected to exceed the New Zealand market average.
  • a2 Milk's revenue growth is expected to exceed the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:ATM Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:ATM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 18.3%
NZSE:ATM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 17.2%
New Zealand Food Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
New Zealand Food Industry Revenue Growth Rate Market Cap Weighted Average 15.6%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 5.7%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:ATM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:ATM Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 2,506 548 2
2022-06-30 2,236 474 3
2021-06-30 1,918 404 445 12
2020-06-30 1,612 339 366 13
2019-06-30 1,304 253 283 12
NZSE:ATM Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,101 227 250
2018-09-30 1,012 229 223
2018-06-30 923 231 196
2018-03-31 825 205 173
2017-12-31 728 178 150
2017-09-30 639 139 120
2017-06-30 550 100 91
2017-03-31 510 85 75
2016-12-31 470 70 60
2016-09-30 411 46 45
2016-06-30 353 21 30
2016-03-31 286 4 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • a2 Milk's earnings are expected to grow by 18.3% yearly, however this is not considered high growth (20% yearly).
  • a2 Milk's revenue is expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:ATM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from a2 Milk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:ATM Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.62 0.65 0.53 6.00
2020-06-30 0.50 0.52 0.46 7.00
2019-06-30 0.39 0.40 0.37 7.00
NZSE:ATM Past Financials Data
Date (Data in NZD Millions) EPS *
2018-12-31 0.34
2018-09-30 0.31
2018-06-30 0.27
2018-03-31 0.24
2017-12-31 0.21
2017-09-30 0.17
2017-06-30 0.13
2017-03-31 0.11
2016-12-31 0.08
2016-09-30 0.06
2016-06-30 0.04
2016-03-31 0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • a2 Milk is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess a2 Milk's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the New Zealand market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the New Zealand market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
a2 Milk has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ATM Past Performance

  How has a2 Milk performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare a2 Milk's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • a2 Milk has delivered over 20% year on year earnings growth in the past 5 years.
  • a2 Milk's 1-year earnings growth is less than its 5-year average (66.9% vs 70.9%)
  • a2 Milk's earnings growth has exceeded the NZ Food industry average in the past year (66.9% vs 15.7%).
Earnings and Revenue History
a2 Milk's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from a2 Milk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:ATM Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,101.05 249.91 186.07
2018-09-30 1,011.86 222.80 168.43
2018-06-30 922.68 195.68 150.79
2018-03-31 825.41 172.71 134.86
2017-12-31 728.13 149.73 118.92
2017-09-30 638.83 120.19 108.06
2017-06-30 549.53 90.65 97.20
2017-03-31 509.67 75.18 93.39
2016-12-31 469.81 59.71 89.58
2016-09-30 411.29 45.07 84.68
2016-06-30 352.78 30.44 79.78
2016-03-31 286.10 19.16 63.23
2015-12-31 219.41 7.89 46.68
2015-09-30 187.26 2.90 38.51
2015-06-30 155.11 -2.09 30.35
2015-03-31 143.29 -1.30 27.99
2014-12-31 131.48 -0.51 25.63
2014-09-30 121.16 -0.25 23.86
2014-06-30 110.85 0.01 22.08
2014-03-31 107.58 2.11 19.68
2013-12-31 104.32 4.21 17.27
2013-09-30 99.43 4.16 15.00
2013-06-30 94.55 4.12 12.72
2013-03-31 86.63 2.99 11.62
2012-12-31 78.72 1.86 10.52
2012-09-30 70.67 3.13 9.70
2012-06-30 62.62 4.41 8.88
2012-03-31 56.96 4.36 8.19

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • a2 Milk has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • a2 Milk used its assets more efficiently than the NZ Food industry average last year based on Return on Assets.
  • a2 Milk has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess a2 Milk's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
a2 Milk has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ATM Health

 How is a2 Milk's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up a2 Milk's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • a2 Milk is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • a2 Milk's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of a2 Milk's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • a2 Milk has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from a2 Milk Company Filings, last reported 2 months ago.

NZSE:ATM Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 643.98 0.00 287.93
2018-09-30 643.98 0.00 287.93
2018-06-30 555.71 0.00 340.46
2018-03-31 555.71 0.00 340.46
2017-12-31 389.63 0.00 240.17
2017-09-30 389.63 0.00 240.17
2017-06-30 241.48 0.00 121.02
2017-03-31 241.48 0.00 121.02
2016-12-31 174.36 0.00 108.38
2016-09-30 174.36 0.00 108.38
2016-06-30 133.08 0.00 69.36
2016-03-31 133.08 0.00 69.36
2015-12-31 109.78 0.00 36.43
2015-09-30 109.78 0.00 36.43
2015-06-30 58.63 0.00 6.09
2015-03-31 58.63 0.00 6.09
2014-12-31 57.64 0.00 9.86
2014-09-30 57.64 0.00 9.86
2014-06-30 58.64 0.00 15.98
2014-03-31 58.64 0.00 15.98
2013-12-31 58.96 0.00 13.16
2013-09-30 58.96 0.00 13.16
2013-06-30 59.93 0.00 20.19
2013-03-31 59.93 0.00 20.19
2012-12-31 57.36 2.56 21.50
2012-09-30 57.36 2.56 21.50
2012-06-30 37.35 4.46 6.57
2012-03-31 37.35 4.46 6.57
  • a2 Milk has no debt.
  • a2 Milk had no debt 5 years ago.
  • a2 Milk has no debt, it does not need to be covered by operating cash flow.
  • a2 Milk has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess a2 Milk's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. a2 Milk has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ATM Dividends

 What is a2 Milk's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from a2 Milk dividends. Estimated to be 0.96% next year.
If you bought NZ$2,000 of a2 Milk shares you are expected to receive NZ$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate a2 Milk's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate a2 Milk's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:ATM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
New Zealand Food Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.5%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 75 Stocks 4%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 1.9%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:ATM Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.25 7.00
2020-06-30 0.13 7.00
2019-06-30 0.01 7.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as a2 Milk has not reported any payouts.
  • Unable to verify if a2 Milk's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of a2 Milk's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as a2 Milk has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of a2 Milk's dividends in 3 years as they are not expected to pay a notable one for New Zealand.
X
Income/ dividend checks
We assess a2 Milk's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can a2 Milk afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. a2 Milk has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ATM Management

 What is the CEO of a2 Milk's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jayne Hrdlicka
TENURE AS CEO 0.7 years
CEO Bio

Ms. Jayne Hrdlicka, MBA, BA (Economics and Mathematics) has been Managing Director, Chief Executive Officer and Director at The a2 Milk Company Ltd since July 16, 2018. Ms. Hrdlicka served as Group Chief Executive Officer at Jetstar Airways Pty Ltd since July 2012. Ms. Hrdlicka is a senior executive with extensive experience in strategy formulation and execution, insight into customer-centricity and innovation and, importantly, an understanding of operating in a disruptive environment. Ms. Hrdlicka served as the Chief Executive Officer of Jetstar at Qantas Frequent Flyer Limited since November 2012. Ms. Hrdlicka served as Strategy Head of Qantas Group at Qantas Frequent Flyer Limited until November 2012. She served as Group Executive of Strategy and Technology at Qantas from 2010 to 2012. She served as Senior Partner at Bain & Company Sydney from 1997 to 2010, where she was focussed on consumer orientated businesses. She served as Chief Executive Officer and Transformation Director - consumer products businesses from 1991 to 1997. She worked at Arthur Young and Company (now Ernst and Young). She has been a Director of Tennis Australia Limited since January 28, 2016 and also serves as its Chairman. Ms. Hrdlicka serves as President of Tennis Australia Limited since October 23, 2017. She served as a Non-executive Director at Woolworths Limited from 2010 to 2016. She is a member of Chief Executive Women and a member of the Scotch College Council in Melbourne. She holds an MBA from Dartmouth College, New Hampshire USA and a Bachelor of Arts degree in Mathematics and Economics from the Colorado College, Colorado USA.

CEO Compensation
  • Insufficient data for Jayne to compare compensation growth.
  • Insufficient data for Jayne to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure of the a2 Milk management team in years:

1.6
Average Tenure
  • The average tenure for the a2 Milk management team is less than 2 years, this suggests a new team.
Management Team

Jayne Hrdlicka

TITLE
MD, CEO & Director
TENURE
0.7 yrs

Craig Louttit

TITLE
Chief Financial Officer
TENURE
4.9 yrs

Shareef Khan

TITLE
Chief Operating Officer

Jaron McVicar

TITLE
General Counsel & Company Secretary
TENURE
2.3 yrs

Susan Massasso

TITLE
Chief Marketing Officer
TENURE
5.5 yrs

Lisa Burquest

TITLE
Human Resources Director
TENURE
0.3 yrs

Andrew Clarke

TITLE
Chief Scientific Advisor to the CEO
TENURE
0.6 yrs

Blake Waltrip

TITLE
Chief Executive of USA Region
TENURE
2.8 yrs

Jane Xu

TITLE
Executive Vice President of Greater China
TENURE
1.6 yrs

Melanie Kansil

TITLE
Chief Commercial Officer
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the a2 Milk board of directors in years:

2.8
Average Tenure
62
Average Age
  • The average tenure for the a2 Milk board of directors is less than 3 years, this suggests a new board.
Board of Directors

David L. Hearn

TITLE
Chairman
COMPENSATION
NZ$282K
AGE
62
TENURE
4 yrs

Jayne Hrdlicka

TITLE
MD, CEO & Director
TENURE
0.7 yrs

Julia Hoare

TITLE
Deputy Chairman & Lead Non Executive Director
COMPENSATION
NZ$209K
TENURE
4 yrs

Peter Hinton

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$159K
TENURE
3.1 yrs

Warwick Every-Burns

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$245K
AGE
65
TENURE
2.6 yrs

Jesse Wu

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$191K
AGE
61
TENURE
1.8 yrs

William Keane

TITLE
Director of The a2 Milk Company Limited (Uk)
COMPENSATION
NZ$53K
Who owns this company?
Recent Insider Trading
  • a2 Milk insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
27. Feb 19 Sell Peter Hinton Individual 21. Feb 19 21. Feb 19 -325,000 NZ$14.00 NZ$-4,550,000
18. Dec 18 Sell The Vanguard Group, Inc. Company 30. Nov 18 06. Dec 18 -13,169 NZ$10.78 NZ$-141,903
27. Nov 18 Sell Macquarie Investment Management Australia Limited Company 29. Oct 18 06. Nov 18 -6,696 NZ$10.50 NZ$-27,027
27. Nov 18 Buy Macquarie Investment Management Australia Limited Company 31. Oct 18 23. Nov 18 77,903 NZ$10.56 NZ$0
27. Nov 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 29. Oct 18 23. Nov 18 -781,472 NZ$11.10 NZ$0
27. Nov 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 29. Oct 18 23. Nov 18 3,528,601 NZ$11.19 NZ$0
27. Nov 18 Buy Macquarie Capital Investment Management LLC Company 20. Nov 18 20. Nov 18 13,051 NZ$10.42 NZ$136,025
27. Nov 18 Sell Macquarie Investment Management Limited Company 29. Oct 18 21. Nov 18 -28,093 NZ$10.42 NZ$0
27. Nov 18 Buy Macquarie Investment Management Limited Company 29. Oct 18 23. Nov 18 21,203 NZ$10.73 NZ$0
18. Nov 18 Sell UBS Asset Management Company 12. Oct 18 14. Nov 18 -22,493,392 NZ$10.24 NZ$-226,164,069
18. Nov 18 Buy UBS Asset Management Company 12. Oct 18 14. Nov 18 18,163,410 NZ$10.53 NZ$184,077,705
30. Oct 18 Sell Macquarie Investment Management Australia Limited Company 18. Oct 18 24. Oct 18 -29,257 NZ$10.65 NZ$-1,149
30. Oct 18 Buy Macquarie Investment Management Australia Limited Company 17. Oct 18 17. Oct 18 6,120 NZ$10.56 NZ$64,614
30. Oct 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 18. Oct 18 25. Oct 18 -46 NZ$10.41 NZ$0
30. Oct 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 18. Oct 18 25. Oct 18 46 NZ$10.41 NZ$0
30. Oct 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 16. Oct 18 26. Oct 18 -784,687 NZ$10.64 NZ$0
30. Oct 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 16. Oct 18 26. Oct 18 405,661 NZ$11.45 NZ$0
30. Oct 18 Sell Macquarie Investment Management Limited Company 18. Oct 18 26. Oct 18 -2,847 NZ$10.44 NZ$0
30. Oct 18 Buy Macquarie Investment Management Limited Company 16. Oct 18 25. Oct 18 6,817 NZ$10.55 NZ$0
31. May 18 Sell Realindex Investments Pty Limited Company 14. Feb 17 18. May 18 -1,300,994 NZ$8.43 NZ$-10,972,247
31. May 18 Buy Realindex Investments Pty Limited Company 07. Feb 17 12. Apr 18 1,886,436 NZ$4.81 NZ$9,083,002
17. Oct 18 Sell Macquarie Investment Management Limited Company 14. Jun 18 11. Oct 18 -126,363 NZ$12.94 NZ$0
17. Oct 18 Buy Macquarie Investment Management Limited Company 14. Jun 18 11. Oct 18 610,935 NZ$12.87 NZ$0
18. Oct 18 Buy Macquarie Investment Management Limited Company 15. Oct 18 15. Oct 18 1,701 NZ$9.92 NZ$0
17. Oct 18 Sell Macquarie Investment Management Australia Limited Company 13. Jun 18 11. Oct 18 -632,336 NZ$12.75 NZ$0
17. Oct 18 Buy Macquarie Investment Management Australia Limited Company 15. Jun 18 11. Oct 18 230,094 NZ$12.44 NZ$0
17. Oct 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 15. Jun 18 12. Oct 18 -1,150,795 NZ$12.74 NZ$0
17. Oct 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 15. Jun 18 12. Oct 18 1,150,795 NZ$12.74 NZ$0
17. Oct 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 13. Jun 18 12. Oct 18 -5,901,404 NZ$13.67 NZ$0
17. Oct 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 13. Jun 18 12. Oct 18 7,062,573 NZ$13.37 NZ$0
17. Oct 18 Sell Macquarie Capital Investment Management LLC Company 08. Aug 18 11. Oct 18 -63,992 NZ$10.30 NZ$0
17. Oct 18 Buy Macquarie Capital Investment Management LLC Company 28. Aug 18 28. Aug 18 3,672 NZ$12.46 NZ$45,753
04. Oct 18 Sell UBS Asset Management Company 05. Jun 18 02. Oct 18 -69,936,359 NZ$12.55 NZ$-805,352,733
04. Oct 18 Buy UBS Asset Management Company 05. Jun 18 02. Oct 18 66,287,033 NZ$12.86 NZ$772,223,402
15. Oct 18 Sell UBS Asset Management Company 11. Oct 18 11. Oct 18 -3,263,525 NZ$9.27 NZ$-30,225,717
15. Oct 18 Buy UBS Asset Management Company 11. Oct 18 11. Oct 18 2,541,943 NZ$9.44 NZ$23,990,232
14. Oct 18 Sell UBS Asset Management Company 04. Oct 18 10. Oct 18 -5,190,451 NZ$10.51 NZ$-54,526,179
14. Oct 18 Buy UBS Asset Management Company 04. Oct 18 10. Oct 18 6,981,901 NZ$10.86 NZ$73,634,082
18. Oct 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 15. Oct 18 15. Oct 18 -149,760 NZ$10.06 NZ$0
18. Oct 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 15. Oct 18 15. Oct 18 43,956 NZ$10.57 NZ$0
05. Oct 18 Sell UBS Asset Management Company 03. Oct 18 03. Oct 18 -254,134 NZ$11.08 NZ$-2,796,239
05. Oct 18 Buy UBS Asset Management Company 03. Oct 18 03. Oct 18 693,510 NZ$11.41 NZ$7,641,497
03. Oct 18 Sell Peter Hinton Individual 26. Sep 18 26. Sep 18 -25,000 NZ$11.91 NZ$-297,856
24. Sep 18 Sell BlackRock, Inc. Company 14. Jun 18 21. Sep 18 -2,930,715 NZ$14.09 NZ$-150,120
24. Sep 18 Buy BlackRock, Inc. Company 14. Jun 18 21. Sep 18 4,484,441 NZ$14.09 NZ$106,896
21. Sep 18 Sell Jayne Hrdlicka Individual 18. Sep 18 20. Sep 18 -357,232 NZ$12.31 NZ$-4,336,501
27. Aug 18 Sell Goldman Sachs Group, Investment Banking and Securities Investments Company 17. Aug 18 21. Aug 18 -24,792,945 NZ$11.12 NZ$-275,717,594
27. Aug 18 Buy Goldman Sachs Group, Investment Banking and Securities Investments Company 17. Aug 18 21. Aug 18 10,874,984 NZ$11.08 NZ$120,482,918
27. Aug 18 Sell Goldman Sachs Asset Management, L.P. Company 17. Aug 18 20. Aug 18 -6,034 NZ$10.97 NZ$-66,213
23. Aug 18 Sell Goldman Sachs Group, Investment Banking and Securities Investments Company 09. Aug 18 16. Aug 18 -1,276,478 NZ$10.50 NZ$-13,403,844
23. Aug 18 Buy Goldman Sachs Group, Investment Banking and Securities Investments Company 09. Aug 18 16. Aug 18 6,985,513 NZ$10.66 NZ$74,320,322
23. Aug 18 Sell Goldman Sachs Asset Management, L.P. Company 10. Aug 18 16. Aug 18 -5,722 NZ$10.92 NZ$-62,500
15. Aug 18 Buy Goldman Sachs Asset Management, L.P. Company 06. Aug 18 06. Aug 18 2,924 NZ$10.45 NZ$30,545
15. Aug 18 Sell Goldman Sachs Group, Investment Banking and Securities Investments Company 06. Aug 18 07. Aug 18 -157,443 NZ$10.59 NZ$-1,666,293
15. Aug 18 Buy Goldman Sachs Group, Investment Banking and Securities Investments Company 03. Aug 18 08. Aug 18 7,169,061 NZ$10.49 NZ$75,183,625
15. Aug 18 Sell Goldman Sachs Asset Management, L.P. Company 03. Aug 18 07. Aug 18 -7,207 NZ$10.50 NZ$-75,642
13. Aug 18 Sell Goldman Sachs Group, Investment Banking and Securities Investments Company 03. Apr 18 30. Jul 18 -1,431,472 NZ$11.92 NZ$-17,012,034
13. Aug 18 Buy Goldman Sachs Group, Investment Banking and Securities Investments Company 02. May 18 02. Aug 18 9,117,937 NZ$11.06 NZ$100,837,806
13. Aug 18 Sell Goldman Sachs Asset Management, L.P. Company 04. Apr 18 02. Aug 18 -337,586 NZ$11.31 NZ$-3,819,359
13. Aug 18 Buy Goldman Sachs Asset Management, L.P. Company 20. Apr 18 01. Aug 18 454,952 NZ$11.19 NZ$5,041,192
14. Jun 18 Sell BlackRock, Inc. Company 11. Jun 18 13. Jun 18 -219,775 NZ$11.85 NZ$-74,401
14. Jun 18 Buy BlackRock, Inc. Company 08. Jun 18 12. Jun 18 310,508 NZ$11.86 NZ$1,027,118
11. Jun 18 Sell BlackRock, Inc. Company 06. Jun 18 07. Jun 18 -211,018 NZ$11.21 NZ$-126,610
11. Jun 18 Buy BlackRock, Inc. Company 06. Jun 18 07. Jun 18 336,843 NZ$11.38 NZ$3,282,669
06. Jun 18 Sell BlackRock, Inc. Company 01. Jun 18 05. Jun 18 -182,922 NZ$10.81 NZ$-359,205
06. Jun 18 Buy BlackRock, Inc. Company 05. Jun 18 05. Jun 18 4,246 NZ$11.00 NZ$46,706
05. Jun 18 Sell BlackRock, Inc. Company 05. Feb 18 31. May 18 -8,977,523 NZ$15.16 NZ$-924,939
05. Jun 18 Buy BlackRock, Inc. Company 02. Feb 18 31. May 18 26,772,307 NZ$15.23 NZ$154,098
31. May 18 Sell ASB Group Investments Ltd. Company 06. Mar 17 22. May 18 -2,138,507 NZ$6.34 NZ$-13,548,865
31. May 18 Buy ASB Group Investments Ltd. Company 28. Mar 17 23. May 18 3,646,206 NZ$6.16 NZ$22,473,894
31. May 18 Sell Colonial First State Asset Management (Australia) Limited Company 09. Feb 17 29. May 18 -22,749,354 NZ$11.81 NZ$-224,831,852
31. May 18 Buy Colonial First State Asset Management (Australia) Limited Company 07. Feb 17 29. May 18 30,527,173 NZ$11.51 NZ$275,194,339
X
Management checks
We assess a2 Milk's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. a2 Milk has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ATM News

Simply Wall St News

Why We Like The a2 Milk Company Limited’s (NZSE:ATM) 56% Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Is The a2 Milk Company Limited (NZSE:ATM) Undervalued After Accounting For Its Future Growth?

The a2 Milk Company Limited (NZSE:ATM) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of NZ$14.31 is based on unrealistic expectations. … What are the future expectations. … a2 Milk's extremely high growth potential in the near future is attracting investors

Simply Wall St -

The a2 Milk Company Limited (NZSE:ATM): Secrets For Long Term Investors

Longstanding stocks such as The a2 Milk Company Limited has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … See our latest analysis for a2 Milk. … The a2 Milk Company Limited, together with its subsidiaries, commercializes A1 protein free branded milk and related products in Australia, New Zealand, China, other Asian countries, the United Kingdom, and the United States

Simply Wall St -

The a2 Milk Company Limited (NZSE:ATM) Delivered A Better ROE Than Its Industry

To keep the lesson grounded in practicality, we'll use ROE to better understand The a2 Milk Company Limited (NZSE:ATM). … Another way to think of that is that for every NZ$1 worth of equity in the company, it was able to earn NZ$0.35. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should You Know About The a2 Milk Company Limited's (NZSE:ATM) Growth?

After The a2 Milk Company Limited's (NZSE:ATM) earnings announcement in June 2018, … it seems that analyst forecasts are fairly optimistic, … as a 37% increase in profits is expected in the upcoming year,

Simply Wall St -

Why The a2 Milk Company Limited's (NZSE:ATM) High P/E Ratio Isn't Necessarily A Bad Thing

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … a2 Milk has a price to earnings ratio of 46.85, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

The a2 Milk Company Limited (NZSE:ATM): Are Analysts Bullish?

The a2 Milk Company Limited's (NZSE:ATM) latest earnings announcement in June 2018a … indicated

Simply Wall St -

Have Insiders Been Selling The a2 Milk Company Limited (NZSE:ATM) Shares?

So we'll take a look at whether insiders have been buying or selling shares in The a2 Milk Company Limited (NZSE:ATM). … That means that an insider was selling shares at around the current price of NZ$10.75. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.

Simply Wall St -

Calculating The Fair Value Of The a2 Milk Company Limited (NZSE:ATM)

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

The a2 Milk Company Limited (NZSE:ATM): What Are Investors Earning On Their Capital?

You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand a2 Milk’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit

Simply Wall St -

ATM Company Info

Description

The a2 Milk Company Limited, together with its subsidiaries, commercializes A1 protein free 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 whole milk powder and skim milk powder; 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.

Details
Name: The a2 Milk Company Limited
ATM
Exchange: NZSE
Founded: 2000
NZ$10,009,301,185
734,897,297
Website: http://www.thea2milkcompany.com
Address: The a2 Milk Company Limited
51 Shortland Street,
Level 10,
Auckland,
1010,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE ATM Ordinary Shares New Zealand Stock Exchange NZ NZD 21. Apr 2004
OTCPK ACOP.F Ordinary Shares Pink Sheets LLC US USD 21. Apr 2004
DB 14L Ordinary Shares Deutsche Boerse AG DE EUR 21. Apr 2004
ASX A2M Ordinary Shares Australian Securities Exchange AU AUD 21. Apr 2004
CHIA A2M Ordinary Shares Chi-X Australia AU AUD 21. Apr 2004
Number of employees
Current staff
Staff numbers
180
a2 Milk employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 10:32
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2019/03/12
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.