The a2 Milk Company Limited

ATM.NZ

Packaged Foods · Consumer Defensive

Price

NZ$8.30

+0.05 (+0.61%)

Market Cap

NZ$6.02B

Exchange

New Zealand Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 10, 2026 · filings through Dec 31, 2025

Share count falling — buybacks

−2.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 742.7M (2021) → 728.0M (2025)

The a2 Milk Company sells milk and infant formula made from a special type of cow's milk that contains only the A2 protein, rather than the more common mix of A1 and A2 proteins. The company claims this makes its products easier to digest for some people. Its main products are fresh milk, infant formula, and dairy nutrition products, sold to everyday consumers and parents of young children. It operates in the packaged foods industry and owns the a2 Milk brand, which is built around this patented protein science.

The company earns money by selling its branded products through grocery stores, pharmacies, and online retailers, with no subscription model. It operates primarily in New Zealand, Australia, China, and the United States, with China being its largest and most important market for infant formula. A key risk is its heavy dependence on Chinese infant formula demand, which has been declining due to falling birth rates in China — a trend that could significantly pressure future revenue growth.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+133.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+163.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

0.3%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$1.2B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

The a2 Milk Company Limited grew revenue 133% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

48.9%

Healthy — 48.9% gross margin

Operating Margin

15.5%

Healthy — 15.5% operating margin

ROCE

11.0%

Below par — 11.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

+51.0%

Fast-growing sales (+51.0% YoY)

EPS YoY

+65.9%

Earnings growing fast (+65.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

97%

Turns 97% of profit into real cash

FCF Margin

10.4%

Modest free cash flow (10.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

0.01

Conservative — low debt load (0.01)

Interest Cover

91.79x

Comfortably covers interest (91.8x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

26.8x

Growth-priced — P/E 26.8

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+5.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (26.8 → 20.8)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield

7.60%

Healthy income — 7.60% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

N/A

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial