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a2 Milk

NZSE:ATM
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ATM
NZSE
NZ$13B
Market Cap
  1. Home
  2. NZ
  3. Food, Beverage & Tobacco
Company description

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 last earnings update was 39 days ago. More info.


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ATM Share Price and Events
7 Day Returns
2.7%
NZSE:ATM
3.8%
NZ Food
3.5%
NZ Market
1 Year Returns
19%
NZSE:ATM
-0.5%
NZ Food
-5.1%
NZ Market
ATM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
a2 Milk (ATM) 2.7% 1% 18.4% 19% 453.5% 3060%
NZ Food 3.8% -0.1% 3.4% -0.5% 46.6% 93.8%
NZ Market 3.5% -13.8% -17.4% -5.1% 14% 27%
1 Year Return vs Industry and Market
  • ATM outperformed the Food industry which returned -0.5% over the past year.
  • ATM outperformed the Market in New Zealand which returned -5.1% 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 5.7%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 1.3%

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 1.3%
Equity Risk Premium S&P Global 5.4%
Food Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.569 (1 + (1- 28%) (0.06%))
0.711
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)
= 1.32% + (0.8 * 5.44%)
5.67%

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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NZSE:ATM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 5.67%)
2020 330.33 Analyst x4 312.59
2021 393.83 Analyst x4 352.68
2022 518.23 Analyst x3 439.18
2023 608.00 Analyst x1 487.60
2024 657.00 Analyst x1 498.62
2025 692.31 Est @ 5.37% 497.21
2026 721.10 Est @ 4.16% 490.09
2027 744.94 Est @ 3.31% 479.12
2028 765.13 Est @ 2.71% 465.69
2029 782.68 Est @ 2.29% 450.80
Present value of next 10 years cash flows NZ$4,473.00
NZSE:ATM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NZ$782.68 × (1 + 1.32%) ÷ (5.67% – 1.32%)
NZ$18,221.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$18,221.82 ÷ (1 + 5.67%)10
NZ$10,495.24
NZSE:ATM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$4,473.00 + NZ$10,495.24
NZ$14,968.24
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$14,968.24 / 736.73
NZ$20.32
NZSE:ATM Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$20.32
Current discount Discount to share price of NZ$17.38
= -1 x (NZ$17.38 - NZ$20.32) / NZ$20.32
14.5%

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
14%
Share price is NZ$17.38 vs Future cash flow value of NZ$20.32
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 (2019-12-31) in NZD NZ$0.44
NZSE:ATM Share Price ** NZSE (2020-04-06) in NZD NZ$17.38
New Zealand Food Industry PE Ratio Median Figure of 10 Publicly-Listed Food Companies 15.62x
New Zealand Market PE Ratio Median Figure of 84 Publicly-Listed Companies 15.64x

* 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)

= 17.38 ÷ 0.44

39.78x

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 39.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
17%per year
New Zealand Food Industry PEG Ratio Median Figure of 7 Publicly-Listed Food Companies 1.01x
New Zealand Market PEG Ratio Median Figure of 59 Publicly-Listed Companies 0.85x

*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

= 39.78x ÷ 17%

2.34x

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 (2019-12-31) in NZD NZ$1.32
NZSE:ATM Share Price * NZSE (2020-04-06) in NZD NZ$17.38
New Zealand Food Industry PB Ratio Median Figure of 13 Publicly-Listed Food Companies 1.04x
New Zealand Market PB Ratio Median Figure of 118 Publicly-Listed Companies 1.26x
NZSE:ATM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 17.38 ÷ 1.32

13.12x

* 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
17%
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 1.3%.
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 17%
NZSE:ATM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 14.8%
New Zealand Food Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
New Zealand Food Industry Revenue Growth Rate Market Cap Weighted Average 13.5%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 9.6%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*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 (3 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
2024-06-30 2,800 658 1
2023-06-30 2,702 612 2
2022-06-30 2,332 503 510 12
2021-06-30 1,986 408 421 13
2020-06-30 1,677 335 350 13
2020-04-06
NZSE:ATM Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,499 337 321
2019-09-30 1,402 313 304
2019-06-30 1,304 289 288
2019-03-31 1,201 258 271
2018-12-31 1,099 227 252
2018-09-30 1,011 229 224
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • a2 Milk's earnings are expected to grow by 17% yearly, however this is not considered high growth (20% yearly).
  • a2 Milk's revenue is expected to grow by 14.8% 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 (3 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 3 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
2024-06-30
2023-06-30
2022-06-30 0.70 0.72 0.62 7.00
2021-06-30 0.57 0.64 0.38 8.00
2020-06-30 0.48 0.52 0.40 8.00
2020-04-06
NZSE:ATM Past Financials Data
Date (Data in NZD Millions) EPS *
2019-12-31 0.44
2019-09-30 0.41
2019-06-30 0.39
2019-03-31 0.37
2018-12-31 0.35
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

*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 (27.3% vs 57.7%)
  • a2 Milk's earnings growth has exceeded the NZ Food industry average in the past year (27.3% vs 2.2%).
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 3 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
2019-12-31 1,498.95 320.95 293.90
2019-09-30 1,401.72 304.35 267.16
2019-06-30 1,304.50 287.74 240.42
2019-03-31 1,200.53 271.11 210.60
2018-12-31 1,098.81 252.20 183.42
2018-09-30 1,010.74 223.94 167.11
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

*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's use of capital deteriorated 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 4/6, 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.
  • Debt is covered by short term assets, assets are 9.7306912758789E+17x debt.
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 3 months ago.

NZSE:ATM Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 974.59 0.00 618.42
2019-09-30 974.59 0.00 618.42
2019-06-30 787.85 0.00 464.81
2019-03-31 787.85 0.00 464.81
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
  • a2 Milk's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if a2 Milk's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (3.7979531197559E+19%, greater than 20% of total debt).
  • a2 Milk earns more interest than it pays, 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 5/6, 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 0.38% 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 4.7%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 62 Stocks 3.8%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.4%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.4%
New Zealand Top 25% Dividend Yield 75th Percentile 7.7%

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
2024-06-30
2023-06-30
2022-06-30 0.15 7.00
2021-06-30 0.05 7.00
2020-06-30 0.00 7.00
2020-04-06

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 2.4%) - 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
Geoff Babidge
COMPENSATION NZ$1,457,573
AGE 66
TENURE AS CEO 0.3 years
CEO Bio

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 December 9, 2019 until 2020. He served as Managing Director and Chief Executive Officer of The a2 Milk Company Limited from July 22, 2010 to July 16, 2018 and served as its Director from July 22, 2010 to July 16, 2018. Mr. Babidge served as the Chief Executive Officer and Managing Director of Freedom Nutritional Products Limited (formerly, So Natural Foods Australia Ltd). He served as Chief Executive Officer of the major milling and baking group, Bunge Defiance. Mr. Babidge has senior management experience working in the Australian FMCG industry. He served as Managing Director of the dairy interests of National Foods Limited. He served as Non Executive Director of Freedom Foods Group Limited since September 2010 to June 28, 2013 and served as its Executive Director since January 2002. Mr. Babidge was a Practicing Chartered Accountant and Partner at Price Waterhouse. He holds a Bachelor of Economics.

CEO Compensation
  • Geoff's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Geoff 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:

1.4
Average Tenure
  • The average tenure for the a2 Milk management team is less than 2 years, this suggests a new team.
Management Team

Geoff Babidge

TITLE
Chief Executive Officer
COMPENSATION
NZ$1M
AGE
66
TENURE
0.3 yrs

Race Strauss

TITLE
Chief Financial Officer
TENURE
0.3 yrs

Shareef Khan

TITLE
Chief Operating Officer

David Akers

TITLE
Head of Investor Relations

Jaron McVicar

TITLE
General Counsel & Company Secretary
TENURE
3.4 yrs

Lisa Burquest

TITLE
Chief People Officer
TENURE
1.4 yrs

Andrew Clarke

TITLE
Chief Scientific Advisor to the CEO
TENURE
1.7 yrs

Susan Massasso

TITLE
Chief Growth & Brand Officer
TENURE
0.2 yrs

Peter Nathan

TITLE
Chief Executive Officer of Asia Pacific
TENURE
2.8 yrs

Craig Louttit

TITLE
Deputy Chief Financial Officer
Board of Directors Tenure

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

3.7
Average Tenure
63
Average Age
  • The tenure for the a2 Milk board of directors is about average.
Board of Directors

David L. Hearn

TITLE
Chairman of the Board
COMPENSATION
NZ$232K
AGE
63
TENURE
5.1 yrs

Julia Hoare

TITLE
Deputy Chairman & Lead Non Executive Director
COMPENSATION
NZ$233K
TENURE
5.1 yrs

Warwick Every-Burns

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$193K
AGE
66
TENURE
3.7 yrs

Jesse Wu

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$213K
AGE
62
TENURE
2.9 yrs

Pip Greenwood

TITLE
Independent Non-Executive Director
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • a2 Milk individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
23. Mar 20 Sell First Sentier Investors (Australia) RE Ltd Company 27. Feb 20 17. Mar 20 -5,769 NZ$15.22 NZ$-87,816
23. Mar 20 Buy First Sentier Investors (Australia) RE Ltd Company 27. Feb 20 10. Mar 20 1,380 NZ$14.98 NZ$20,673
23. Mar 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 26. Feb 20 18. Mar 20 -12,060,208 NZ$18.84 NZ$-189,021,767
23. Mar 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 26. Feb 20 18. Mar 20 13,215,561 NZ$15.60 NZ$206,183,435
23. Mar 20 Sell First Sentier Investors (Australia) IM Ltd Company 26. Feb 20 18. Mar 20 -6,045,951 NZ$15.73 NZ$-92,001,482
23. Mar 20 Buy First Sentier Investors (Australia) IM Ltd Company 02. Mar 20 18. Mar 20 331,646 NZ$18.07 NZ$5,228,656
12. Mar 20 Sell Blake Waltrip Individual 09. Mar 20 09. Mar 20 -20,000 NZ$16.47 NZ$-329,400
09. Mar 20 Buy Spectre Investments Vic Pty Limited Company 04. Mar 20 10. Mar 20 10,800 NZ$17.29 NZ$186,732
01. Mar 20 Sell First Sentier Investors (Australia) RE Ltd Company 28. Nov 19 24. Feb 20 -4,098 NZ$15.27 NZ$-62,596
01. Mar 20 Buy First Sentier Investors (Australia) RE Ltd Company 03. Dec 19 24. Feb 20 2,184 NZ$15.42 NZ$33,686
01. Mar 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 25. Feb 20 25. Feb 20 -503,666 NZ$15.61 NZ$-7,845,506
01. Mar 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 25. Feb 20 25. Feb 20 588,696 NZ$16.49 NZ$9,153,214
01. Mar 20 Sell Mitsubishi UFJ Trust and Banking Corporation, Asset Management Arm Company 20. Nov 19 19. Feb 20 -67,551 NZ$15.13 NZ$-1,022,117
01. Mar 20 Buy Mitsubishi UFJ Trust and Banking Corporation, Asset Management Arm Company 25. Nov 19 19. Feb 20 9,693 NZ$15.29 NZ$148,191
01. Mar 20 Buy Mitsubishi UFJ Kokusai Asset Management Co., Ltd. Company 05. Dec 19 24. Jan 20 23,916 NZ$14.96 NZ$357,802
01. Mar 20 Sell First Sentier Investors (Australia) IM Ltd Company 21. Nov 19 25. Feb 20 -4,711,527 NZ$15.52 NZ$-71,866,539
01. Mar 20 Buy First Sentier Investors (Australia) IM Ltd Company 19. Nov 19 24. Feb 20 3,798,397 NZ$15.40 NZ$56,525,686
27. Feb 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 24. Feb 20 24. Feb 20 -930,508 NZ$15.61 NZ$-14,520,791
27. Feb 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 24. Feb 20 24. Feb 20 980,031 NZ$15.63 NZ$15,314,100
26. Feb 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 20. Feb 20 21. Feb 20 338,649 NZ$16.47 NZ$5,576,712
25. Feb 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 14. Feb 20 20. Feb 20 -1,642,953 NZ$16.53 NZ$-26,967,707
25. Feb 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 14. Feb 20 20. Feb 20 4,211,220 NZ$16.30 NZ$68,636,626
18. Feb 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 23. Jan 20 13. Feb 20 6,033,487 NZ$15.95 NZ$92,570,698
18. Feb 20 Buy Morgan Stanley Investment Management Inc. Company 31. Jan 20 31. Jan 20 1,480 NZ$15.54 NZ$22,994
11. Jul 19 Sell UBS Asset Management Company 08. Jul 19 08. Jul 19 -325,272 NZ$15.37 NZ$-4,972,213
11. Jul 19 Buy UBS Asset Management Company 08. Jul 19 08. Jul 19 878,126 NZ$15.31 NZ$13,429,947
26. Nov 19 Sell Craig Louttit Individual 21. Nov 19 21. Nov 19 -250,000 NZ$14.82 NZ$-3,703,897
05. Aug 19 Sell UBS Asset Management Company 31. Jul 19 31. Jul 19 -467,975 NZ$18.02 NZ$-8,374,653
05. Aug 19 Buy UBS Asset Management Company 31. Jul 19 31. Jul 19 592,933 NZ$18.02 NZ$10,608,221
29. Dec 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 24. Dec 19 24. Dec 19 -43,670 NZ$15.20 NZ$-663,674
29. Dec 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 24. Dec 19 24. Dec 19 54,328 NZ$15.20 NZ$825,734
26. Nov 19 Sell Susan Massasso Individual 21. Nov 19 25. Nov 19 -471,347 NZ$14.87 NZ$-7,005,806
25. Sep 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 20. Sep 19 20. Sep 19 -557,717 NZ$13.60 NZ$-7,587,198
26. Nov 19 Sell Carla Hrdlicka Individual 25. Nov 19 25. Nov 19 -146,684 NZ$14.85 NZ$-2,178,428
17. Dec 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 19. Nov 19 12. Dec 19 -8,644,824 NZ$15.49 NZ$-126,962,868
17. Dec 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 19. Nov 19 12. Dec 19 8,103,129 NZ$15.57 NZ$120,705,969
09. Jul 19 Sell UBS Asset Management Company 03. Jul 19 04. Jul 19 -827,622 NZ$15.01 NZ$-12,424,322
09. Jul 19 Buy UBS Asset Management Company 03. Jul 19 04. Jul 19 1,048,125 NZ$14.98 NZ$15,702,375
19. Nov 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 11. Oct 19 24. Oct 19 16,695 NZ$13.02 NZ$216,323
17. Oct 19 Sell UBS Asset Management Company 14. Oct 19 15. Oct 19 -1,708,039 NZ$13.41 NZ$-22,888,785
17. Oct 19 Buy UBS Asset Management Company 14. Oct 19 15. Oct 19 1,634,848 NZ$13.39 NZ$21,879,207
26. Aug 19 Sell UBS Asset Management Company 12. Aug 19 21. Aug 19 -9,607,631 NZ$16.94 NZ$-158,770,724
26. Aug 19 Buy UBS Asset Management Company 12. Aug 19 21. Aug 19 10,551,310 NZ$16.76 NZ$176,258,001
17. Jun 19 Sell UBS Asset Management Company 11. Jun 19 12. Jun 19 -1,720,206 NZ$14.66 NZ$-25,081,376
17. Jun 19 Buy UBS Asset Management Company 11. Jun 19 12. Jun 19 1,373,872 NZ$14.67 NZ$20,039,513
08. Jan 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 03. Jan 20 03. Jan 20 200 NZ$14.79 NZ$2,957
02. Dec 19 Sell Susan Massasso Individual 26. Nov 19 29. Nov 19 -512,906 NZ$15.49 NZ$-7,779,069
26. Nov 19 Sell Peter Nathan Individual 20. Nov 19 22. Nov 19 -150,000 NZ$14.87 NZ$-2,200,422
01. Oct 19 Sell UBS Asset Management Company 27. Sep 19 27. Sep 19 -1,044,093 NZ$13.15 NZ$-13,729,957
01. Oct 19 Buy UBS Asset Management Company 27. Sep 19 27. Sep 19 819,792 NZ$13.14 NZ$10,772,461
10. Dec 19 Sell Blake Waltrip Individual 05. Dec 19 05. Dec 19 -8,500 NZ$15.00 NZ$-127,461
10. Jul 19 Sell UBS Asset Management Company 05. Jul 19 05. Jul 19 -23,416 NZ$14.98 NZ$-340,377
10. Jul 19 Buy UBS Asset Management Company 05. Jul 19 05. Jul 19 251,260 NZ$15.00 NZ$3,764,123
27. Jan 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 15. Jan 20 22. Jan 20 -1,938,633 NZ$15.90 NZ$-29,789,601
27. Jan 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 15. Jan 20 22. Jan 20 1,900,764 NZ$15.48 NZ$29,237,699
19. Jan 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 13. Jan 20 14. Jan 20 5,486 NZ$14.80 NZ$80,196
12. Jan 20 Sell UBS Asset Management Company 11. Dec 19 08. Jan 20 -20,711,177 NZ$16.07 NZ$-323,959,693
12. Jan 20 Buy UBS Asset Management Company 11. Dec 19 08. Jan 20 9,919,021 NZ$15.94 NZ$153,761,361
06. Jan 20 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 27. Dec 19 31. Dec 19 -742,608 NZ$15.60 NZ$-11,201,716
06. Jan 20 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 27. Dec 19 31. Dec 19 391,635 NZ$15.74 NZ$5,942,758
24. Nov 19 Sell UBS Asset Management Company 16. Oct 19 20. Nov 19 -26,429,060 NZ$15.25 NZ$-365,989,634
24. Nov 19 Buy UBS Asset Management Company 16. Oct 19 20. Nov 19 23,979,279 NZ$14.29 NZ$332,141,157
04. Dec 19 Sell UBS Asset Management Company 28. Nov 19 02. Dec 19 -8,719,412 NZ$15.45 NZ$-134,704,014
04. Dec 19 Buy UBS Asset Management Company 28. Nov 19 02. Dec 19 14,424,029 NZ$15.70 NZ$222,747,590
01. Dec 19 Sell UBS Asset Management Company 21. Nov 19 27. Nov 19 -4,322,244 NZ$15.81 NZ$-66,901,155
01. Dec 19 Buy UBS Asset Management Company 21. Nov 19 27. Nov 19 4,864,577 NZ$15.64 NZ$75,831,956
21. Nov 19 Sell First Sentier Investors (Australia) IM Ltd Company 20. Sep 19 05. Nov 19 -75,821 NZ$13.20 NZ$-995,073
21. Nov 19 Buy First Sentier Investors (Australia) IM Ltd Company 20. Sep 19 12. Nov 19 3,636,124 NZ$13.39 NZ$48,305,525
21. Nov 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 25. Oct 19 18. Nov 19 -1,096,838 NZ$13.61 NZ$-14,019,040
21. Nov 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 15. Nov 19 18. Nov 19 316,863 NZ$13.60 NZ$4,049,802
21. Nov 19 Buy Pendal Group Limited Company 25. Sep 18 14. Nov 19 2,671,789 NZ$28.30 NZ$64,183,959
21. Nov 19 Buy J O Hambro Capital Management Limited Company 25. Sep 18 14. Nov 19 4,888,188 NZ$4.69 NZ$22,936,001
15. Oct 19 Sell UBS Asset Management Company 08. Oct 19 11. Oct 19 -2,801,556 NZ$13.13 NZ$-36,731,777
15. Oct 19 Buy UBS Asset Management Company 08. Oct 19 11. Oct 19 2,875,844 NZ$13.15 NZ$37,740,000
09. Oct 19 Sell UBS Asset Management Company 30. Sep 19 07. Oct 19 -4,566,341 NZ$14.06 NZ$-64,117,646
09. Oct 19 Buy UBS Asset Management Company 30. Sep 19 07. Oct 19 4,322,088 NZ$14.17 NZ$60,713,890
30. Sep 19 Sell UBS Asset Management Company 25. Sep 19 26. Sep 19 -2,125,323 NZ$14.24 NZ$-26,806,738
30. Sep 19 Buy UBS Asset Management Company 25. Sep 19 26. Sep 19 1,802,327 NZ$14.32 NZ$25,712,805
25. Sep 19 Sell UBS Asset Management Company 23. Sep 19 23. Sep 19 -1,651,959 NZ$14.65 NZ$-24,118,539
25. Sep 19 Buy UBS Asset Management Company 23. Sep 19 23. Sep 19 994,114 NZ$14.69 NZ$14,599,775
02. Sep 19 Sell UBS Asset Management Company 29. Aug 19 29. Aug 19 -1,739,116 NZ$14.18 NZ$-24,649,524
02. Sep 19 Buy UBS Asset Management Company 29. Aug 19 29. Aug 19 828,997 NZ$14.21 NZ$11,751,548
13. Aug 19 Sell UBS Asset Management Company 09. Aug 19 09. Aug 19 -974,471 NZ$16.12 NZ$-15,646,239
13. Aug 19 Buy UBS Asset Management Company 09. Aug 19 09. Aug 19 108,520 NZ$16.09 NZ$1,736,058
12. Aug 19 Sell UBS Asset Management Company 01. Aug 19 08. Aug 19 -6,104,414 NZ$17.41 NZ$-103,090,089
12. Aug 19 Buy UBS Asset Management Company 01. Aug 19 08. Aug 19 5,153,017 NZ$16.74 NZ$86,059,214
01. Aug 19 Sell UBS Asset Management Company 22. Jul 19 30. Jul 19 -14,167 NZ$17.95 NZ$-254,276
01. Aug 19 Buy UBS Asset Management Company 22. Jul 19 30. Jul 19 3,307,010 NZ$17.98 NZ$59,470,385
22. Jul 19 Sell UBS Asset Management Company 10. Jul 19 18. Jul 19 -3,777,935 NZ$16.57 NZ$-61,861,357
22. Jul 19 Buy UBS Asset Management Company 10. Jul 19 18. Jul 19 4,865,059 NZ$16.45 NZ$79,245,463
23. Jul 19 Sell UBS Asset Management Company 19. Jul 19 19. Jul 19 -295,679 NZ$16.83 NZ$-4,974,566
23. Jul 19 Buy UBS Asset Management Company 19. Jul 19 19. Jul 19 528,257 NZ$16.85 NZ$8,901,714
03. Jul 19 Sell UBS Asset Management Company 13. Jun 19 01. Jul 19 -9,639,821 NZ$14.33 NZ$-138,145,562
03. Jul 19 Buy UBS Asset Management Company 13. Jun 19 01. Jul 19 8,648,471 NZ$14.42 NZ$124,448,178
12. Jun 19 Sell UBS Asset Management Company 11. Feb 19 07. Jun 19 -54,752,197 NZ$15.62 NZ$-810,026,294
12. Jun 19 Buy UBS Asset Management Company 11. Feb 19 10. Jun 19 46,782,675 NZ$15.24 NZ$688,495,414
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

How Do Analysts See The a2 Milk Company Limited (NZSE:ATM) Performing Over The Next Few Years?

Below is a brief commentary on my key takeaways on how market analysts view a2 Milk's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … NZSE:ATM Past and Future Earnings, August 30th 2019 Even though it is informative knowing the growth each year relative to today’s level, it may be more beneficial determining the rate at which the company is moving on average every year. … Future Earnings: How does ATM's growth rate compare to its peers and the wider market?

Simply Wall St -

Can The a2 Milk Company Limited's (NZSE:ATM) ROE Continue To Surpass The Industry Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for a2 Milk: 39% = NZ$250m ÷ NZ$644m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does a2 Milk Have A Good Return On Equity?

Simply Wall St -

How Many The a2 Milk Company Limited (NZSE:ATM) Shares Have Insiders Sold, In The Last Year?

So we'll take a look at whether insiders have been buying or selling shares in The a2 Milk Company Limited (NZSE:ATM). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for a2 Milk The Last 12 Months Of Insider Transactions At a2 Milk In the last twelve months, the biggest single sale by an insider was when the insider, Peter Hinton, sold NZ$4.5m worth of shares at a price of NZ$14.00 per share. … NZSE:ATM Recent Insider Trading, August 6th 2019 Insider Ownership Many investors like to check how much of a company is owned by insiders.

Simply Wall St -

Despite Its High P/E Ratio, Is The a2 Milk Company Limited (NZSE:ATM) Still Undervalued?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for a2 Milk: P/E of 50.35 = NZ$17.24 ÷ NZ$0.34 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does a2 Milk's P/E Ratio Compare To Its Peers? … The Bottom Line On a2 Milk's P/E Ratio a2 Milk's P/E is 50.4 which is above average (17.6) in its market.

Simply Wall St -

I Ran A Stock Scan For Earnings Growth And a2 Milk (NZSE:ATM) Passed With Ease

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … View our latest analysis for a2 Milk a2 Milk's Improving Profits Over the last three years, a2 Milk has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. … For growth investors like me, a2 Milk's raw rate of earnings growth is a beacon in the night.

Simply Wall St -

An Examination Of The a2 Milk Company Limited (NZSE:ATM)

ATM is a financially-healthy company with an impressive track record and a buoyant growth outlook. … Flawless balance sheet with high growth potential One reason why investors are attracted to ATM is its notable earnings growth potential in the near future of 21%. … NZSE:ATM Historical Debt, July 8th 2019 Next Steps: For a2 Milk, I've put together three relevant aspects you should look at: Valuation: What is ATM worth today?

Simply Wall St -

The a2 Milk (NZSE:ATM) Share Price Is Up 1977% And Shareholders Are Euphoric

For example, the The a2 Milk Company Limited (NZSE:ATM) share price is up a whopping 1977% in the last half decade, a handsome return for long term holders. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … NZSE:ATM Past and Future Earnings, June 29th 2019 We know that a2 Milk has improved its bottom line over the last three years, but what does the future have in store?

Simply Wall St -

What Can We Make Of The a2 Milk Company Limited’s (NZSE:ATM) High Return On Capital?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for a2 Milk: 0.56 = NZ$360m ÷ (NZ$795m - NZ$151m) (Based on the trailing twelve months to December 2018.) So, a2 Milk has an ROCE of 56%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … What We Can Learn From a2 Milk's ROCE With low current liabilities and a high ROCE, a2 Milk could be worthy of further investigation.

Simply Wall St -

Why You Should Buy The a2 Milk Company Limited (NZSE:ATM) In This Bear Market

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. … View 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. … So, large-cap stocks are a safe bet to buy more of when the stock market is selling off.

Simply Wall St -

Estimating The Intrinsic Value Of The a2 Milk Company Limited (NZSE:ATM)

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (NZ$, Millions) NZ$251.18 NZ$324.90 NZ$392.83 NZ$485.42 NZ$560.57 NZ$625.30 NZ$680.29 NZ$727.01 NZ$767.12 NZ$802.21 Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Analyst x1 Est @ 15.48% Est @ 11.55% Est @ 8.79% Est @ 6.87% Est @ 5.52% Est @ 4.57% Present Value (NZ$, Millions) Discounted @ 7.14% NZ$234.44 NZ$283.05 NZ$319.43 NZ$368.42 NZ$397.11 NZ$413.46 NZ$419.85 NZ$418.78 NZ$412.45 NZ$402.58 Present Value of 10-year Cash Flow (PVCF)= NZ$3.67b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.

Simply Wall St -

ATM Company Info

Description

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.

Details
Name: The a2 Milk Company Limited
ATM
Exchange: NZSE
Founded: 2000
NZ$12,664,364,599
736,728,598
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
OTCPK ACOP.Y UNSPONSRED ADS Pink Sheets LLC US USD 21. May 2019
Number of employees
Current staff
Staff numbers
228
a2 Milk employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 10:37
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/18
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


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.