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$6.25 the a2 milk company limited

Investment Fundamentals, page-4

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wild-1

1,255 Posts.

12

08/09/18

19:30

Post #: 35479125
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Originally posted by prosperity ↑

Interesting facts:
- A2M owns 17.394% of SM1 (31,174k shares) – $372m.
- Around $0.2b cash on hand post purchase of additional SM1 shares
- Current Market Cap = $7.7b ($7.1b excluding cash and investments in SM1)
- massive upside in Australia, NZ, China, USA and UK

Sales
- FY15 $155.1m
- FY16 $352.8m
- FY17 $549.5m
- FY18 $922.7m

EBITDA
- FY15 $4.8m
- FY16 $54.6m
- FY17 $141.2m
- FY18 $283.0m

NPAT
- FY17 $90.6m
- FY18 $195.7m

SP movements (and true value)
- FY15 (29/6 SP $0.66)
- FY16 (27/6 SP $1.76)
- FY17 (26/6 SP $3.76, MC of $2.7b) – NPAT of $90.6m
- FY18 (25/6 SP $10.52, MC of $7.7b) – NPAT of $195.6m – when squared it represents a factor of 4.67. SP should technically be equivalent to market cap of $12.6b ($2.7m x 4.67) or SP >$17, hence extremely undervalued considering the following:
- China footprint and growth
- UK and US footprint and growth
- Strategic investment in SM1 (growing steadily and SP rising)

I will happily ride out this trough and watch the inevitable upswing. Just look at the last 4 years. After all, it hit a high of $13.78 (22 Feb 2018) and currently is trading at $10.58. A screaming buy!

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where does the 4.67 come from???

A2M Price at posting: $10.58 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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(20min delay)
Last $6.25		Change 0.510(8.89%)		Mkt cap ! $4.525B

Open	High	Low	Value	Volume
$6.24	$6.77	$6.05	$29.65M	4.654M

Buyers (Bids)

No.	Vol.	Price($)
2	231	$6.51

Sellers (Offers)

Price($)	Vol.	No.
$6.00	370	1

View Market Depth

No.	Vol.	Price($)
2	231	6.510
20	782	6.380
1	78	6.370
2	639	6.320
1	620	6.300

Price($)	Vol.	No.
6.000	370	1
6.020	190	20
6.030	8340	4
6.060	4826	14
6.080	227	2

Last trade - 11.20am 27/09/2024 (20 minute delay)

A2M (ASX) Chart