The a2 Milk Company Ltd
ASX: A2M · Consumer Defensive · Packaged Foods Reports in NZD
- Market cap
- A$5.1B
- P/E (trailing)
- 24.8
- EPS (FY25)
- $0.28
- Dividend / share
- $0.08
- 52-week range
- –
- Intrinsic value
- A$3.63
Share price
ASX: A2M · AUD
Valuation
Full valuation analysis →Fair-value estimate per share, updated 26 Jul 2026
A$3.63 The median of our 3 model estimates
91.5% above fair value Against the A$6.95 price.
- Discounted cash flow
- A$2.90
- EPS growth model
- A$3.63
- P/E multiple
- A$8.45
A2M reports its accounts in NZD; estimates are converted to Australian dollars at RBA exchange rates before being compared with the share price. See how each estimate is built →
Revenue
As reported · financial years
Earnings per share
Diluted · as reported
Profit margins
Gross, operating and net margin by financial year
Good Net margin of 10.7% in FY25: solid profitability for most industries.
Shares outstanding
Diluted · falling means buybacks, rising means dilution
Stable +0.2% year-on-year, +1.4% a year over 10 years: share count has been stable over the long run.
Working-capital days
Days of revenue sitting in receivables (DSO) and days of cost sitting in inventory (DIO)
Steady collections DSO of 18 days vs a 20-day norm: collection times are in line with the historical norm.
Financial health
Latest financial year (FY25)
- Return on equity
- 14.0%
- Good
- Current ratio
- 3.22
- Very liquid
- Debt to equity
- 0.07
- Conservative
- Interest coverage
- 51.0×
- Very strong
Verdicts are graded against what's normal for the sector (Consumer Defensive), not a one-size-fits-all bar. Hover a tile for the reasoning.
Dividends per share
Full dividend history →Per financial year, as reported in the accounts
Conservative 29% of FY25 earnings paid out: most profit is retained to fund growth.
Free cash flow
Cash from operations minus capital spending: what the DCF model projects from
Good 97% of FY25 net profit became free cash: most reported profit turns into cash.
Net debt
Borrowings and leases minus cash: the line shows how many years of operating profit (EBIT) would clear it
Net cash $999.4M more cash than debt in FY25: more cash on hand than total borrowings.
Five-year snapshot
Figures as reported in the company's filings
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $1.2B | $1.4B | $1.6B | $1.7B | $1.9B |
| Net profit | $80.7M | $122.6M | $155.6M | $167.6M | $202.9M |
| EPS (diluted) | $0.11 | $0.16 | $0.21 | $0.23 | $0.28 |
| Dividend / share | – | – | – | – | $0.08 |
| Net margin | 6.7% | 8.5% | 9.8% | 10.0% | 10.7% |
What does a2 Milk (A2M) do?
The a2 Milk Company, listed on the ASX under the ticker A2M and classified in the Consumer Defensive sector's Packaged Foods industry, is based in Auckland, New Zealand. Its roots go back to a business established in 2000 under the name A2 Corporation Limited, which took on its current name in April 2014. The company's core activity is sourcing, marketing and selling dairy products formulated to contain only the A2 type of milk protein, sold under its a2 Milk and a2 Platinum brand lines.
These branded dairy products are sold into a spread of markets spanning Australia and New Zealand, mainland China and other parts of Asia, and the United States. The company has traded on the ASX since 2015, is led by chief executive David L. Bortolussi, and reported a headcount of 488 full-time employees.
Common questions about A2M
Is A2M undervalued right now? +–
The median of our 3 model estimates puts The a2 Milk Company Ltd's fair value at A$3.63 per share against a price of A$6.95, 91.5% above the estimate as at 26 Jul 2026. Model estimates are a starting point, not advice. See the full valuation breakdown.
Does A2M pay a dividend? +–
The a2 Milk Company Ltd paid $0.08 per share in its most recent financial year with a recorded dividend. The dividend history chart above shows the full payout record.
How fast is A2M growing? +–
Revenue has compounded at 1.9% a year over the last five financial years, and 28.5% a year over ten.
What is A2M's P/E ratio? +–
The a2 Milk Company Ltd trades on a trailing price-to-earnings ratio of 24.8, based on diluted earnings of $0.28 per share in FY25.
Compare A2M with peers
How has a2 Milk (A2M) performed financially over the years?
Revenue at the a2 Milk Company climbed from $352.8M in FY2016 to $1,899.3M in FY2025, more than fivefold over nine years, though the climb wasn't steady. Growth peaked in FY2020 at $1,730.7M in revenue and $385.8M in net income, before revenue fell back to $1,205.0M in FY2021 and net income dropped to $80.7M. Revenue has risen every year since, reaching $1,899.3M in FY2025 with net income of $202.9M.
Profitability traced a similar arc: the net income ratio rose from 8.6% in FY2016 to a high of 22.3% in FY2020, fell to 6.7% in FY2021, and had recovered to 10.7% by FY2025. Diluted earnings per share moved the same way, from $0.0431 in FY2016 up to $0.52 in FY2020, down to $0.11 in FY2021, and back to $0.28 in FY2025.
As of 2026-07-05, the company's valuation models place estimated fair value well below the $7.62 close recorded on 2026-07-03: the DCF model estimates $2.88 per share, an EPS-growth model estimates $3.63, and a P/E-ratio model estimates $8.44. The current P/E ratio of 33.05 sits below the company's own five-year median P/E of 36.62.
AI-assisted analysis generated from Craytheon's verified financial data · Updated 5 Jul 2026 · How this works
Data is general information only, not financial advice. Figures are as reported in company filings (some ASX companies report in USD); share prices are AUD.