NZSE:ATM

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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


Snowflake Analysis

Flawless balance sheet with proven track record.


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: ATM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.8%

ATM

-1.1%

NZ Food

-2.7%

NZ Market


1 Year Return

13.3%

ATM

5.7%

NZ Food

6.3%

NZ Market

Return vs Industry: ATM exceeded the NZ Food industry which returned 5.7% over the past year.

Return vs Market: ATM exceeded the NZ Market which returned 6.3% over the past year.


Shareholder returns

ATMIndustryMarket
7 Day-4.8%-1.1%-2.7%
30 Day-3.6%2.2%3.3%
90 Day-29.8%-15.0%4.1%
1 Year13.3%13.3%6.6%5.7%10.5%6.3%
3 Year79.6%79.6%10.3%6.0%44.9%25.9%
5 Year1,801.3%1,801.3%126.4%90.2%95.4%47.8%

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

Valuation

Is a2 Milk undervalued compared to its fair value and its price relative to the market?

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATM (NZ$14.64) is trading below our estimate of fair value (NZ$21.88)

Significantly Below Fair Value: ATM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATM is poor value based on its PE Ratio (27.8x) compared to the NZ Food industry average (13.7x).

PE vs Market: ATM is poor value based on its PE Ratio (27.8x) compared to the NZ market (23x).


Price to Earnings Growth Ratio

PEG Ratio: ATM is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ATM is overvalued based on its PB Ratio (9.6x) compared to the NZ Food industry average (1.3x).


Next Steps

Future Growth

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

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATM's forecast earnings growth (13% per year) is above the savings rate (2.6%).

Earnings vs Market: ATM's earnings (13% per year) are forecast to grow faster than the NZ market (11.2% per year).

High Growth Earnings: ATM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATM's revenue (13% per year) is forecast to grow faster than the NZ market (5.5% per year).

High Growth Revenue: ATM's revenue (13% 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 (24.4%)


Next Steps

Past Performance

How has a2 Milk performed over the past 5 years?

50.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATM has high quality earnings.

Growing Profit Margin: ATM's current net profit margins (22.4%) are lower than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: ATM has become profitable over the past 5 years, growing earnings by 50.9% per year.

Accelerating Growth: ATM's earnings growth over the past year (31.7%) is below its 5-year average (50.9% per year).

Earnings vs Industry: ATM earnings growth over the past year (31.7%) exceeded the Food industry 15.8%.


Return on Equity

High ROE: ATM's Return on Equity (34.2%) is considered high.


Next Steps

Financial Health

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$305.4M).

Long Term Liabilities: ATM's short term assets (NZ$1.1B) exceed its long term liabilities (NZ$13.8M).


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.


Balance Sheet


Next Steps

Dividend

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

0.69%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Geoff Babidge (67 yo)

0.83

Tenure

NZ$903,030

Compensation

Mr. Geoffrey H. Babidge, also known as Geoff, (Geo), B.Comm., ACA serves as its Interim Chief Executive Officer at The a2 Milk Company Limited since December 9, 2019. He served as Managing Director and Chi ...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD679.63K) is below average for companies of similar size in the NZ market ($USD1.33M).

Compensation vs Earnings: Geoff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Babidge
Interim Chief Executive Officer0.83yrNZ$903.03kno data
Race Strauss
Chief Financial Officer0.75yrno data0.0010%
NZ$ 110.9k
Shareef Khan
Chief Operating Officerno datano data0.054%
NZ$ 5.9m
David Akers
Head of Investor Relationsno datano datano data
Jaron McVicar
General Counsel & Company Secretary3.83yrsno data0.0020%
NZ$ 219.6k
Lisa Burquest
Chief People1.83yrsno datano data
Andrew Clarke
Chief Scientific Advisor to the CEO2.17yrsno datano data
Susan Massasso
Chief Growth & Brand Officer0.58yrno data0%
NZ$ 0
Peter Nathan
Chief Executive Officer of Asia Pacific3.25yrsno data0.057%
NZ$ 6.1m
Blake Waltrip
Chief Executive of USA Region4.42yrsno data0.0091%
NZ$ 985.0k
Jane Xu
Executive Vice President of Greater China3.17yrsno datano data
Li Xiao
Chief Executive of Greater China1.42yrsno datano data

2.0yrs

Average Tenure

Experienced Management: ATM's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Warwick Every-Burns
Independent Non-Executive Director4.17yrsNZ$216.50k0.013%
NZ$ 1.5m
Jen-Wei Wu
Independent Non-Executive Director3.42yrsNZ$198.00k0.0036%
NZ$ 395.7k
David Lovat Hearn
Non-Executive Chairman of the Board5.58yrsNZ$182.95k0.14%
NZ$ 15.4m
Julia Hoare
Independent Deputy Chairman & Lead Non Executive Director5.58yrsNZ$256.00k0.0067%
NZ$ 731.7k
Philippa Greenwood
Independent Non-Executive Director1.25yrsNZ$203.50kno data

4.2yrs

Average Tenure

64yo

Average Age

Experienced Board: ATM's board of directors are considered experienced (4.2 years average tenure).


Ownership

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

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: ATM
  • Exchange: NZSE
  • Founded: 2000
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: NZ$10.872b
  • Shares outstanding: 742.59m
  • Website: https://www.thea2milkcompany.com

Number of Employees


Location

  • The a2 Milk Company Limited
  • 51 Shortland Street
  • Level 10
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATMNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDApr 2004
ACOP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2004
14LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2004
A2MASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2004
A2MCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2004
ACOP.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 10:35
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.