The a2 Milk Company Limited

ASX:A2M

The a2 Milk Company Limited

ASX:A2M
TradeAdd trade order Follow Unfollow Set Price Alert
$5.92 (-0.3%)
Last close price
#304
Rank
4
Held by
29
Followers
TradeAdd trade order Follow Unfollow Set Price Alert
Reports (6) My Report Forum Investors
Top member reports
Consensus
BenBunger
Company Report
Last edited 3 years ago
PerformanceCommunity EngagementCommunity Endorsement
Performance (42m)
14.0% pa
Followed by
3
Follow Unfollow
Straws
Sort by:
Recent
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
Become a member
#Bull Case
stale
BenBunger
Last edited 3 years ago
View author's company report

Going bottom fishing here around the $5.55 mark. 

Sentiment very weak given the constant flow of bad news. However management has been fairly transparent. 

You now get to buy a decent consumer brand that has a good chance of being able to deliver normalised EBIT of $300m (around the 2019 number) for an Enterprise value of $3bn (Taking out net cash of around $1bn (H1 2021)).

I really like a 10/1 EV/EBIT valuation for a business that has a reasonable chance of returning to growth, either in China or via the US.