The a2 Milk Company Limited earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is expensive. The owner-earnings multiple stands at 39.7×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 15% a year, against analyst forecasts of 15%. The price, in other words, assumes less than the experts do.
Growth is moderate; the safety picture is sturdy. The company scores 14/20 on our value-creation score: strong value creator.
Flags to be aware of: Some accounting patterns deserve a closer look. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202351
76
2023202420252026
All-time high
87
Mar 2023
All-time low
40
Jun 2024
Average rank
66
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
10
3
15
11
Price/Earnings
23
3
26
7
Price/Book
14
5
13
9
Dividend Yield
89
55
8
8
Value (overall)
17
5
1
8
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.