A2 MILK COMPANY LIMITED (A2M)
Share Price Analysis and Chart

Enter the company code or Name for stock analysis:

A2M - A2 MILK COMPANY LIMITED

FNArena Sector : Dairy
Year End: June
GICS Industry Group : Food, Beverage & Tobacco
Debt/EBITDA: 0.27
Index: ASX100 | ASX200 | ASX300 | ALL-ORDS

The a2 Milk Company is dual listed on both the NZX and ASX. It produces and sells A1 protein-free milk and related products like infant formula. It was first listed in 2015.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$4.86

20 Nov
2024

-0.050

OPEN

$4.92

-1.02%

HIGH

$4.93

1,386,382

LOW

$4.82

TARGET
$6.282 29.3% upside
Franking for last dividend paid out: 0%
OTHER COMPANIES IN THE SAME SECTOR
BFC . BGA . BUB . FSF . NUC . NUC . SM1 . TFL .
FNARENA'S MARKET CONSENSUS FORECASTS
A2M: 1
Title FY25
Forecast		 FY26
Forecast
EPS (cps) 23.4 xxx
DPS (cps) 2.3 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 20.6 xxx
Dividend Yield 0.5% xxx
Div Pay Ratio(%) 9.8% xxx
This company reports in NZD.
All estimates have been converted into AUD by FNArena at present FX values.

Dividend yield today if purchased 3 years ago: 0.00%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 0.00

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages
HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx21.5
DPS All xxxxxxxxxxxxxxx0.0
Sales/Revenue xxxxxxxxxxxxxxx1,548.0 M
Book Value Per Share xxxxxxxxxxxxxxx160.1
Net Operating Cash Flow xxxxxxxxxxxxxxx236.6 M
Net Profit Margin xxxxxxxxxxxxxxx10.01 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx14.03 %
Return on Invested Capital xxxxxxxxxxxxxxx13.24 %
Return on Assets xxxxxxxxxxxxxxx10.11 %
Return on Equity xxxxxxxxxxxxxxx14.03 %
Return on Total Capital xxxxxxxxxxxxxxx16.33 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx220.8 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx5 M
Long Term Debt xxxxxxxxxxxxxxx55 M
Total Debt xxxxxxxxxxxxxxx60 M
Goodwill - Gross xxxxxxxxxxxxxxx93 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx884 M
Price To Book Value xxxxxxxxxxxxxxx4.05

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx19.0 M
Capex % of Sales xxxxxxxxxxxxxxx1.23 %
Cost of Goods Sold xxxxxxxxxxxxxxx839 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx517 M
Research & Development xxxxxxxxxxxxxxx4 M
Investments - Total xxxxxxxxxxxxxxx40 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.4

No. Of Recommendations

7
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Bell Potter

xx/xx/xxxx

3

xxxxxxx xx xxxx xxxx xxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Macquarie

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Morgan Stanley

12/09/2024

3

Initiation of coverage with Equal-weight

$5.90

21.40%

Morgan Stanley initiates research coverage on a2 Milk Co with an Equal-weight rating and $5.90 target.

Significant risks include the challenging China infant milk formula (IMF) market (low birth rates and market volatility), supply chain stability and a competitive environment, suggest the analysts.

The broker believes achieving significant market share gains in the IMF market, the key source of growth, will be difficult.

More positively, the company has outperformed, becoming the No 5 China IMF player in FY24, with double-digit growth in China Label stage 1 IMF, explains Morgan Stanley. It's also felt the current valuation post a share price de-rating factors in material risks.

FORECAST
Morgan Stanley forecasts a full year FY25 dividend of 0.00 cents and EPS of 22.06 cents.
Morgan Stanley forecasts a full year FY26 dividend of 0.00 cents and EPS of 26.66 cents.

Ord Minnett

xx/xx/xxxx

2

xxxxxxxxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Morgans

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

UBS

xx/xx/xxxx

1

xxx

-

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial
Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

1

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Jarden

22/08/2024

2

Overweight

-

-

a2 Milk Co's headline FY24 result metrics were slightly behind Jarden's estimates. That said, the China revenue performance was in line with expectations and once again delivered against a challenging total China market, down -10.7% in value terms.

Management noted the A2 protein segment continued to grow strongly at 43% year on year and is now 18% of China's value (11% in FY23). The other notable call out was the English label segment returning to growth.

FY25 guidance for mid-single digit growth is a miss (consensus high single digit), the key variance mostly attributable to 1H25 supply issues which are operational in nature with Synlait Milk ((SM1)) and targeted to be resolved by 1H25, the broker notes.

Jarden retains Overweight on valuation support and core infant formula performance. Target falls to NZ$7.25 from NZ$7.55.

FORECAST
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 22.52 cents.
Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 24.27 cents.
Access Extra Coverage Research History >

A2M STOCK CHART

FNArena News on A2M

1
Weekly Ratings, Targets, Forecast Changes – 01-11-24

Nov 04 2024 - Weekly Reports
2
In Case You Missed It – BC Extra Upgrades & Downgrades – 01-11-24

Nov 01 2024 - Weekly Reports
3
Australian Broker Call *Extra* Edition – Oct 31, 2024

Oct 31 2024 - Daily Market Reports
4
Weekly Ratings, Targets, Forecast Changes – 18-10-24

Oct 21 2024 - Weekly Reports
5
Weekly Ratings, Targets, Forecast Changes – 04-10-24

Oct 07 2024 - Weekly Reports

Latest Dairy News

1
Buy Call For a2 Milk

Mar 21 2024 - Technicals
2
A2 Milking It

Feb 21 2024 - Australia
3
Treasure Chest: Bega Cheese

Oct 18 2022 - Treasure Chest
4
a2 Milk Pumps Up Growth Expectations

Oct 29 2021 - Australia
5
Bega Cheese: Melting Up?

Jun 01 2021 - Technicals
6
Synlait Milk Eyes Recovery, But Risks Remain

May 26 2021 - Australia
7
A2 Milk At A Crossroad In China?

Apr 22 2021 - Australia
8
Sales Slowdown Hits a2 Milk Guidance

Dec 21 2020 - Australia
9
Uncertainty Prevails For Synlait Milk

Sep 30 2020 - Small Caps
10
Daigou Drought Sours a2 Milk Outlook

Sep 29 2020 - Australia