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

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A2M - A2 MILK COMPANY LIMITED

FNArena Sector : Dairy
Year End: June
GICS Industry Group : Food, Beverage & Tobacco
Debt/EBITDA: 0.45
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

$6.91

25 Jul
2024

0.040

OPEN

$6.87

0.58%

HIGH

$6.94

1,782,497

LOW

$6.82

TARGET
$6.81 -1.4% downside
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 FY24
Forecast		 FY25
Forecast
EPS (cps) 21.7 xxx
DPS (cps) 0.9 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 31.6 xxx
Dividend Yield 0.1% xxx
Div Pay Ratio(%) 4.3% 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 201820192020202120222023
EPS Basic xxxxxxxxxxxxxxx19.4
DPS All xxxxxxxxxxxxxxx0.0
Sales/Revenue xxxxxxxxxxxxxxx1,455.9 M
Book Value Per Share xxxxxxxxxxxxxxx146.5
Net Operating Cash Flow xxxxxxxxxxxxxxx101.8 M
Net Profit Margin xxxxxxxxxxxxxxx9.78 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201820192020202120222023
Return on Capital Employed xxxxxxxxxxxxxxx13.42 %
Return on Invested Capital xxxxxxxxxxxxxxx12.55 %
Return on Assets xxxxxxxxxxxxxxx9.39 %
Return on Equity xxxxxxxxxxxxxxx13.42 %
Return on Total Capital xxxxxxxxxxxxxxx16.33 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx92.6 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 201820192020202120222023
Short-Term Debt xxxxxxxxxxxxxxx18 M
Long Term Debt xxxxxxxxxxxxxxx76 M
Total Debt xxxxxxxxxxxxxxx93 M
Goodwill - Gross xxxxxxxxxxxxxxx94 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx738 M
Price To Book Value xxxxxxxxxxxxxxx3.36

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201820192020202120222023
Capex xxxxxxxxxxxxxxx9.5 M
Capex % of Sales xxxxxxxxxxxxxxx0.65 %
Cost of Goods Sold xxxxxxxxxxxxxxx780 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx485 M
Research & Development xxxxxxxxxxxxxxx6 M
Investments - Total xxxxxxxxxxxxxxx83 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

6
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Morgans

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Bell Potter

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Macquarie

06/05/2024

3

Neutral

$5.70

-17.51%

A combination of increased 2023 marriages, post-covid catch-up and the Year of the Dragon drives positivity around a lift in the 2024 Chinese birth rate, though market volumes for infant formula are unlikely to grow in 2024, explains Macquarie.

While the above factors provide positive newsflow, the broker expects overall China infant formula total addressable market (TAM) growth remains difficult and a2 Milk Co's valuation is full.

The broker's target price rises to $5.70 from $5.50 on a valuation roll-forward and the Neutral rating is unchanged.

FORECAST
Macquarie forecasts a full year FY24 dividend of 5.54 cents and EPS of 21.98 cents.
Macquarie forecasts a full year FY25 dividend of 13.85 cents and EPS of 25.21 cents.

UBS

xx/xx/xxxx

1

xxx

-

xx.xx%

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Ord Minnett

xx/xx/xxxx

2

xxxxxxxxxx

$xx.xx

xx.xx%

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EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

2

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

xx/xx/xxxx

2

xxxxxxxxxx

-

xx.xx%

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Wilsons

22/02/2024

3

Downgrade to Market Weight from Overweight

$5.85

-15.34%

Wilsons believes a2 Milk Co's management deserves credit for delivering a robust first half result amid a contracting China infant milk formula market, alongside significant channel mix changes.

First half revenue of $812m represented a 4% year-on-year increase, whlie earnings of $113m represented a 5% year-on-year increase, with the result underpinned by stronger China revenue. 

A guidance upgrade has the company expecting low to mid-single digit sales growth over the full year. 

The rating is downgraded to Market Weight from Overweight and the target price increases to $5.85 from $5.47.

FORECAST
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 22.07 cents.
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 22.90 cents.
Access Stockbroker Research History >

A2M STOCK CHART

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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