Overview
The a2 Milk Company is a branded nutrition business whose fortunes depend on consumer demand for its milk, infant formula and related products across several international markets. At A$6.67, its shares are valued at about A$4.9 billion, while the supplied figures point to 6.50% revenue growth and a 5.76% profit margin. That mix of growth, profitability and valuation offers a useful starting point for understanding A2M, alongside its dividend profile and recent share-price trend.
The a2 Milk Company sells milk based on A2-type protein, infant milk formula and other nutritional products through its a2 Milk and a2 Platinum brands. It operates across Australia, New Zealand, China, other parts of Asia and the United States, with additional rent, royalty and licensing activities. The business sits in the consumer defensive sector and packaged foods industry, though demand for branded nutrition products and its international reach remain important drivers. Its market capitalisation is A$4.9 billion, with revenue of A$2.0 billion and reported revenue growth of 6.50%.
Key facts
- Ticker
- A2M
- Exchange
- AU
- ISIN
- NZATME0002S8
- Sector
- Consumer Defensive
- Industry
- Packaged Foods
- Country
- Australia
- Currency
- AUD
- Price
- A$6.51
- Previous close
- A$6.53
- Day change
- -A$0.03 (-0.38%)
- Market cap
- 4.8B
- 52W low
- A$4.64
- 52W high
- A$9.40
Price and trend
Last price: A$6.51
- Price
- A$6.51
- 52W range
- A$4.64 – A$9.40
- 50-day SMA
- A$6.74
- 200-day SMA
- A$7.55
- Price vs 50D SMA
- -3.47%
- Price vs 200D SMA
- -13.82%
Valuation
- P/E
- 26.12
- PEG
- 1.75
- EPS
- 0.25
- Dividend yield
- 3.27%
- Beta
- 0.30
A2M trades at a price-to-earnings ratio of 29, with a PEG ratio of 1.75. These measures place the share’s valuation in context with its reported 6.50% revenue growth and 5.76% profit margin: continued growth and the ability to sustain or improve profitability matter to the valuation. The 3.20% displayed dividend yield adds another part of the shareholder-return profile, although distributions can change.
Profitability and growth
- Revenue growth
- 6.50%
- Revenue TTM
- 2.0B
- Profit margin
- 5.76%
Analyst view
Comparison uses the last price shown; targets are analyst estimates.
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- Price
- A$6.51
- Target price
- A$7.52
- Target vs last price
- 15.58% from last price
The business combines established branded products and international reach with modest recent revenue growth and a relatively narrow profit margin. Its 3.20% displayed dividend yield may be relevant to investors assessing shareholder distributions, but the company’s prospects remain tied to sales momentum, costs and demand across its markets. The share price is below both supplied moving averages, adding a weaker technical note to the fundamental picture. The supplied target price of A$7.55 is 13.15% above the last price, but that estimate is secondary to the company’s operating performance and is not a forecast.
Risks
The company’s exposure to infant formula and nutritional products leaves it sensitive to consumer demand, competition, regulation and changing conditions in its international markets. Revenue growth of 6.50% is accompanied by a 5.76% profit margin, so weaker sales or higher costs could weigh on earnings. The share price is also below its 50-day and 200-day moving averages, while the 52-week range highlights the potential for meaningful price fluctuations.
FAQ
What does The a2 Milk Company do?
The a2 Milk Company sells A2-protein branded milk, infant formula and other nutritional products under the a2 Milk and a2 Platinum brands. Its markets include Australia, New Zealand, China, other parts of Asia and the United States.
How is a2 Milk performing financially?
The supplied figures show revenue of A$2.0 billion and revenue growth of 6.50%, alongside a profit margin of 5.76%. These figures indicate growth, but profitability remains relatively modest compared with revenue.
Does a2 Milk pay a dividend?
The displayed dividend yield is 3.20%, and the supplied dividend-per-share figure is A$0.21. Dividend yields and payments can change, so these figures should be considered in the context of company results and future distributions.
How does A2M compare with its recent trading range?
At A$6.67, the share price sits within its 52-week range of A$4.64 to A$9.40. It is below both its 50-day moving average of A$6.79 and its 200-day moving average of A$7.60, indicating softer recent price momentum.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
A2 Milk Company Limited (ASX: A2M) Fundamentals
