ATM Stock Overview
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.
a2 Milk Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||NZ$4.93|
|52 Week High||NZ$7.88|
|52 Week Low||NZ$4.20|
|1 Month Change||-5.19%|
|3 Month Change||-12.28%|
|1 Year Change||-25.64%|
|3 Year Change||-67.02%|
|5 Year Change||25.77%|
|Change since IPO||516.25%|
Recent News & Updates
We Think a2 Milk (NZSE:ATM) Can Stay On Top Of Its Debt
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Capital Allocation Trends At a2 Milk (NZSE:ATM) Aren't Ideal
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...
Does a2 Milk (NZSE:ATM) Have A Healthy Balance Sheet?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
|ATM||NZ Food||NZ Market|
Return vs Industry: ATM underperformed the NZ Food industry which returned -23.7% over the past year.
Return vs Market: ATM underperformed the NZ Market which returned -17.1% over the past year.
|ATM Average Weekly Movement||6.2%|
|Food Industry Average Movement||4.2%|
|Market Average Movement||4.5%|
|10% most volatile stocks in NZ Market||8.7%|
|10% least volatile stocks in NZ Market||3.0%|
Stable Share Price: ATM is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ATM's weekly volatility (6%) has been stable over the past year.
About the Company
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 company offers fresh milk under the a2 Milk brand; and infant formula under the a2 Platinum brand. The company was formerly known as A2 Corporation Limited and changed its name to The a2 Milk Company Limited in April 2014.
a2 Milk Fundamentals Summary
|ATM fundamental statistics|
Is ATM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ATM income statement (TTM)|
|Cost of Revenue||NZ$713.56m|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 30, 2022
|Earnings per share (EPS)||0.027|
|Net Profit Margin||1.70%|
How did ATM perform over the long term?See historical performance and comparison
Is ATM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ATM?
Other financial metrics that can be useful for relative valuation.
|What is ATM's n/a Ratio?|
Price to Sales Ratio vs Peers
How does ATM's PS Ratio compare to its peers?
|ATM PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
FCG Fonterra Co-operative Group
SML Synlait Milk
BUB Bubs Australia
ATM a2 Milk
Price-To-Sales vs Peers: ATM is expensive based on its Price-To-Sales Ratio (3.1x) compared to the peer average (2.2x).
Price to Earnings Ratio vs Industry
How does ATM's PE Ratio compare vs other companies in the Oceanian Food Industry?
Price-To-Sales vs Industry: ATM is expensive based on its Price-To-Sales Ratio (3.1x) compared to the NZ Food industry average (0.7x)
Price to Sales Ratio vs Fair Ratio
What is ATM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||3.1x|
|Fair PS Ratio||3.2x|
Price-To-Sales vs Fair Ratio: ATM is good value based on its Price-To-Sales Ratio (3.1x) compared to the estimated Fair Price-To-Sales Ratio (3.2x).
Share Price vs Fair Value
What is the Fair Price of ATM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ATM (NZ$4.93) is trading below our estimate of fair value (NZ$9.7)
Significantly Below Fair Value: ATM is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: ATM is poor value based on its PEG Ratio (7.9x)
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How is a2 Milk forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ATM's forecast earnings growth (23% per year) is above the savings rate (2.1%).
Earnings vs Market: ATM's earnings (23% per year) are forecast to grow faster than the NZ market (6.9% per year).
High Growth Earnings: ATM's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ATM's revenue (11% per year) is forecast to grow faster than the NZ market (6.6% per year).
High Growth Revenue: ATM's revenue (11% 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 (13.8%).
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How has a2 Milk performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ATM has a large one-off loss of NZ$10.4M impacting its December 31 2021 financial results.
Growing Profit Margin: ATM's current net profit margins (1.7%) are lower than last year (20%).
Past Earnings Growth Analysis
Earnings Trend: ATM's earnings have grown by 8% 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 (-93.7%) over the past year, making it difficult to compare to the Food industry average (4.8%).
Return on Equity
High ROE: ATM's Return on Equity (1.5%) is considered low.
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How is a2 Milk's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ATM's short term assets (NZ$1.0B) exceed its short term liabilities (NZ$387.4M).
Long Term Liabilities: ATM's short term assets (NZ$1.0B) exceed its long term liabilities (NZ$78.4M).
Debt to Equity History and Analysis
Debt Level: ATM has more cash than its total debt.
Reducing Debt: Insufficient data to determine if ATM's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ATM's debt is well covered by operating cash flow (246.2%).
Interest Coverage: ATM earns more interest than it pays, so coverage of interest payments is not a concern.
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What is a2 Milk current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ATM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ATM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ATM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ATM's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as ATM has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Bortolussi (52 yo)
Mr. David L. Bortolussi, BComm, FFin, FCA serves as Advisory Board Member at Whiteoak Pty Ltd. He served as Group President of Innerwear International at Hanesbrands Inc. since April 2019 until February 6,...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD1.37M) is about average for companies of similar size in the NZ market ($USD1.45M).
Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.
Experienced Management: ATM's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Experienced Board: ATM's board of directors are considered experienced (4.4 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 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
- Implied Market Cap: NZ$3.675b
- Shares outstanding: 743.83m
- Website: https://www.thea2milkcompany.com
Number of Employees
- The a2 Milk Company Limited
- 51 Shortland Street
- Level 10
- New Zealand
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/30 00:00|
|End of Day Share Price||2022/06/30 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.