A2 Milk has built a brand that we expect to protect economic profits for years to come. China is the key battleground. A2's future growth relies heavily on further successful penetration of the Chinese infant formula market, which we estimate makes up the vast majority of earnings.
China remains a major long-term growth opportunity for a2 and should help to drive continued margin improvement.
A2 relies heavily on only two major suppliers, which risks price hikes, supply challenges, or future competition.
|
Metric
|
ATM
|
RKT
|
NSRGY
|
|---|---|---|---|
Price/Earnings (Normalized) | 27.24 | 9.86 | 19.21 |
Price/Book Value | 3.95 | 3.78 | 6.20 |
Price/Sales | 2.95 | 2.20 | 2.57 |
Price/Cash Flow | 27.05 | 11.87 | 15.72 |
|
Metric
|
ATM
|
RKT
|
NSRGY
|
|---|---|---|---|
Quick Ratio | 2.67 | 0.40 | 0.49 |
Current Ratio | 3.26 | 0.64 | 0.83 |
Interest Coverage | 36.94 | 9.00 | 8.56 |
|
Metric
|
ATM
|
RKT
|
NSRGY
|
|---|---|---|---|
Return on Assets (Normalized) | 10.01% | 8.60% | 10.01% |
Return on Equity (Normalized) | 13.88% | 26.61% | 34.58% |
Return on Invested Capital (Normalized) | 11.36% | 14.24% | 14.97% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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