Fact based stock research
The a2 Milk Company (NZSE:ATM)

NZATME0002S8

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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The a2 Milk Company stock research in summary

thea2milkcompany.com

ANALYSIS: With an Obermatt Combined Rank of 66 (better than 66% compared with investment alternatives), The a2 Milk Company (Packaged Foods & Meats, New Zealand) shares have above-average financial characteristics compared with similar stocks. Shares of The a2 Milk Company are low in value (priced high) with a consolidated Value Rank of 5 (worse than 95% of alternatives). But they show above-average growth (Growth Rank of 97) and are safely financed (Safety Rank of 68, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 66, is a buy recommendation based on The a2 Milk Company's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company The a2 Milk Company exhibits low value (Obermatt Value Rank of 5), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 97). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 68) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	5
Growth Rank	97
Safety Rank	68
Combined Rank	66

Country	New Zealand
Industry	Packaged Foods & Meats
Index	ASX 100, ASX 200, ASX 300, ASX 50, NZSX 50
Size class	Small

This stock has achievements: Top 10 Stock.

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: The a2 Milk Company

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	5	6	7	5
GROWTH
GROWTH	89	67	97	97
SAFETY
SAFETY	85	71	61	68
SENTIMENT
SENTIMENT	39	56	87	^new
360° VIEW
360° VIEW	51	50	81	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better The a2 Milk Company is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	5	6	7	5
GROWTH
GROWTH	89	67	97	97
SAFETY
SAFETY	85	71	61	68
COMBINED
COMBINED	79	42	61	66

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of The a2 Milk Company the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 5 (worse than 95% compared with alternatives), The a2 Milk Company shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for The a2 Milk Company. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 55% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 3 which means that the stock price compared with what market professionals expect for future profits is higher than 97% of comparable companies, indicating a low value concerning The a2 Milk Company's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 5 which means that the stock price compared with what market professionals expect for future profit levels is higher than 95% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 7 is also low. Compared with invested capital, the stock price is higher than for 93% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 5, is a sell recommendation based on The a2 Milk Company's stock price compared with the company's operational size and dividend yields. Should dividend investors pick The a2 Milk Company? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose The a2 Milk Company only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11	15	3	3
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	7	26	3	5
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	9	13	5	7
DIVIDEND YIELD
DIVIDEND YIELD	12	8	52	55
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	5	6	7	5

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of The a2 Milk Company; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 97 (better than 97% compared with alternatives) for 2025, The a2 Milk Company shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for The a2 Milk Company. Sales Growth has a value of 89, which means that, currently, professionals expect the company to grow more than 89% of its competitors. The same is valid for Profit Growth with a value of 64 and for Capital Growth with 98. In addition, Stock Returns had an above-average rank value of 79, which means they have been higher than 79% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 97, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, The a2 Milk Company exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	96	88	89	89
PROFIT GROWTH
PROFIT GROWTH	72	37	73	64
CAPITAL GROWTH
CAPITAL GROWTH	91	100	91	98
STOCK RETURNS
STOCK RETURNS	1	5	93	79
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	89	67	97	97

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of The a2 Milk Company.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 68 (better than 68% compared with alternatives), the company The a2 Milk Company has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of The a2 Milk Company is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for The a2 Milk Company. Leverage is at a rank of 88, meaning the company has a below-average debt-to-equity ratio. It has less debt than 88% of its competitors. Liquidity is also good at a rank of 72, meaning the company generates more profit to service its debt than 72% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 31, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 69% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 68 (better than 68% compared with alternatives), The a2 Milk Company has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for The a2 Milk Company. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with The a2 Milk Company and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	96	82	88	88
REFINANCING
REFINANCING	45	33	27	31
LIQUIDITY
LIQUIDITY	87	67	57	72
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	85	71	61	68

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of The a2 Milk Company and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	54	27	^new
OPINIONS CHANGE
OPINIONS CHANGE	35	50	97	^new
PRO HOLDINGS
PRO HOLDINGS	39	58	92	^new
MARKET PULSE
MARKET PULSE	87	76	66	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	39	56	87	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for The a2 Milk Company.
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