A2M 0.90% $6.58 the a2 milk company limited

No SM1 would need to raise significant capital to get those kind...

  1. 7,523 Posts.
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    No

    SM1 would need to raise significant capital to get those kind of returns.

    A2 owns no capital and has a cash conversion ratio of 100% of EBITDA. The only reason why it's ROIC is declining is because of the huge accumulation of cash.

    A2 has around $1 of cash and investments on balance sheet and adds 50 cents this year.

    PE Adjusted for cash is sub 20x for 50-60% EPS growth as shown at last update.
 
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