The a2 Milk Co Ltd ATM

Morningstar Rating
NZD 6.90 +0.03 (0.44%)
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Company Report

Price vs Fair Value

ATM is trading at a 199% premium.
Price
NZD 6.90
Fair Value
NZD 2.00
Uncertainty
High
1-Star Price
NZD 95.30
5-Star Price
NZD 3.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

China remains a major long-term growth opportunity for a2 and should help to drive continued margin improvement.

Bears

A2 relies heavily on only two major suppliers, which risks price hikes, supply challenges, or future competition.

Trading Information

Previous Close Price
NZD 6.87
Day Range
NZD 6.816.97
52-Week Range
NZD 4.008.05
Bid/Ask
NZD 6.80 / NZD 6.95
Market Cap
NZD 5.00 Bil
Volume/Avg
211,686 / 486,304

Key Statistics

Price/Earnings (Normalized)
29.29
Price/Sales
3.00
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield

Company Profile

A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Mid Growth
Total Number of Employees
153

Competitors

Valuation

Metric
ATM
600887
06186
Price/Earnings (Normalized)
29.2918.7810.41
Price/Book Value
3.943.492.09
Price/Sales
3.001.542.66
Price/Cash Flow
19.6110.6011.14
Price/Earnings
ATM
600887
06186

Financial Strength

Metric
ATM
600887
06186
Quick Ratio
2.510.623.01
Current Ratio
3.090.863.34
Interest Coverage
44.975.7196.29
Quick Ratio
ATM
600887
06186

Profitability

Metric
ATM
600887
06186
Return on Assets (Normalized)
9.75%6.47%10.35%
Return on Equity (Normalized)
13.35%18.38%14.83%
Return on Invested Capital (Normalized)
10.78%7.99%12.17%
Return on Assets
ATM
600887
06186

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