The a2 Milk Company Limited

ATM.NZ

Packaged Foods · Consumer Defensive

Exchange

New Zealand Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Good

Growth

Exceptional

Cash Flow

Strong

Stability

Exceptional

Valuation

Good

Dividends

Good

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Winston Score History

The full picture

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.

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

Insider Activity

0.3%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

NZ$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.

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Quality

Profit per sale

Gross Margin

48.9%

Healthy — 48.9% gross margin

Profit after running costs

Operating Margin

15.5%

Healthy — 15.5% operating margin

Return on the money invested

ROCE

18.6%

Strong — 18.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+51.0%

Fast-growing sales (+51.0% YoY)

Profit growth

EPS YoY

+65.9%

Earnings growing fast (+65.9% YoY)

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

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

97%

Turns 97% of profit into real cash

Spare cash per sale

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.

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Stability

What it owes vs what it owns

Debt / Equity

0.01

Conservative — low debt load (0.01)

Covers its interest

Interest Cover

91.79x

Comfortably covers interest (91.8x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

26.5x

no trend

Growth-priced — P/E 26.5

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

Cheaper or dearer next year

P/E vs Forward

+5.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (26.5 → 20.8)

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Dividends

Dividend

Dividend Yield

7.60%

no trend

Healthy income — 7.60% yield

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

Dividend record

Dividend Growth

N/A

no trend

Data not available

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