The a2 Milk CoASX:A2M +1.03%83 FCF Margin % is 8.22% as of Dec. 2025, which is 41% below its 10-year median of 13.91. GuruFocus rates ASX:A2M with a GF Score™ of 83/100 and a GF Value™ of A$6.68 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,955 Consumer Packaged Goods companies, The a2 Milk Co ranks better than 80.56% on this metric.
The historical rank and industry rank for The a2 Milk Co's FCF Margin % or its related term are showing as below:
ASX:A2M'
s FCF Margin % Range Over the Past 10 Years
Min: 5.51 Med: 13.91 Max: 24.53
Current: 10.23
During the past 13 years, the highest FCF Margin % of The a2 Milk Co was 24.53%. The lowest was 5.51%. And the median was 13.91%.
ASX:A2M's FCF Margin % is ranked better than 80.56% of 1955
companies
in the Consumer Packaged Goods industry
Industry Median: 2.15
vs ASX:A2M: 10.23
The a2 Milk Co FCF Margin % Related Terms
The a2 Milk Co FCF Margin % Historical Data
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The historical data trend for The a2 Milk Co's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Packaged Foods subindustry, The a2 Milk Co's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The a2 Milk Co FCF Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's FCF Margin % distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The a2 Milk Co (ASX:A2M) has a FCF Margin % of 8.22% as of Dec. 2025. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on The a2 Milk Co and its competitors. This is 41% below median its historical median of 13.91. Over the past decade, The a2 Milk Co's FCF Margin % has ranged from 5.51 to 24.53. According to the industry distribution chart, The a2 Milk Co ranks #380 out of 1955 companies in the Consumer Packaged Goods industry, placing it in the top 19.4%.
Is The a2 Milk Co's FCF Margin % too high?
The a2 Milk Co's current FCF Margin % of 8.22% is 41% below median its 10-year median of 13.91. Over the past 10 years, this metric has ranged from a low of 5.51 to a high of 24.53. The Consumer Packaged Goods industry median FCF Margin % is 2.15. The a2 Milk Co's value of 8.22% is 282.3% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #380 out of 1955 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, The a2 Milk Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's FCF Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #380 out of 1955 companies for FCF Margin %. This places The a2 Milk Co in the top 19% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.15. The a2 Milk Co's value of 8.22% is 282.3% above this benchmark. Historically, The a2 Milk Co's own FCF Margin % has ranged from 5.51 to 24.53 over the past decade. While the company's 10-year median is 13.91 vs. the industry median of 2.15, The a2 Milk Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Consumer Packaged Goods company?
The median FCF Margin % among Consumer Packaged Goods companies is 2.15, based on 1,955 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current FCF Margin % of 8.22% is 282.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median FCF Margin % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current FCF Margin % is 8.22%, which is 41% below median its own 10-year median of 13.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The a2 Milk Co stock overvalued right now?
Based on GuruFocus' analysis, The a2 Milk Co (ASX:A2M) is currently considered Fairly Valued. The stock's GF Value™ is A$6.68, compared to a current price of A$6.85 — trading 2.5% above its estimated fair value. The current FCF Margin % is 8.22%, which is 41% below median its 10-year median of 13.91 and 282.3% above the Consumer Packaged Goods industry median of 2.15. The a2 Milk Co's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current FCF Margin % is 8.22% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The a2 Milk Co (ASX:A2M) Overvalued in 2026?
Based on GuruFocus' analysis, The a2 Milk Co stock appears to be overvalued.
The current stock price of A$6.85 is trading 2.5% above its estimated GF Value™ of A$6.68.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for ASX:A2M:
FCF Margin %: 8.22% (41% below median its 10-year median of 13.91)
GF Value™: A$6.68 vs. price of A$6.85 (2.5% above fair value)
Industry Position: 282.3% above the Consumer Packaged Goods median (#380 of 1955)
No single metric tells the full story. See the ASX:A2M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
83GF Score
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