The a2 Milk CoASX:A2M +1.27%83 FCF Yield % is 3.52 as of Jun. 28, 2026, which is 31% above its 10-year median of 2.68. GuruFocus rates ASX:A2M with a GF Score™ of 83/100 and a GF Value™ of A$6.67 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,983 Consumer Packaged Goods companies, The a2 Milk Co ranks better than 55.67% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
The a2 Milk Co FCF Yield % Related Terms
The a2 Milk Co FCF Yield % Historical Data
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The historical data trend for The a2 Milk Co's FCF Yield % 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 Yield %, along with its competitors' market caps and FCF Yield % 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 Yield % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's FCF Yield % distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's FCF Yield % 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 Yield % of 3.52 as of Jun. 28, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on The a2 Milk Co and its competitors. This is 31% above median its historical median of 2.68. Over the past decade, The a2 Milk Co's FCF Yield % has ranged from 0.67 to 9.59. According to the industry distribution chart, The a2 Milk Co ranks #879 out of 1983 companies in the Consumer Packaged Goods industry, placing it in the top 44.3%.
Is The a2 Milk Co's FCF Yield % too high?
The a2 Milk Co's current FCF Yield % of 3.52 is 31% above median its 10-year median of 2.68. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 9.59. The Consumer Packaged Goods industry median FCF Yield % is 2.15. The a2 Milk Co's value of 3.52 is 63.7% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #879 out of 1983 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. 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 Yield % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #879 out of 1983 companies for FCF Yield %. This puts The a2 Milk Co in the upper half of its industry. The industry median FCF Yield % is 2.15. The a2 Milk Co's value of 3.52 is 63.7% above this benchmark. Historically, The a2 Milk Co's own FCF Yield % has ranged from 0.67 to 9.59 over the past decade. While the company's 10-year median is 2.68 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 Yield % for a Consumer Packaged Goods company?
The median FCF Yield % among Consumer Packaged Goods companies is 2.15, based on 1,983 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current FCF Yield % of 3.52 is 63.7% 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 Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median FCF Yield % 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 Yield % is 3.52, which is 31% above median its own 10-year median of 2.68. 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$6.67, compared to a current price of A$7.19 — trading 7.8% above its estimated fair value. The current FCF Yield % is 3.52, which is 31% above median its 10-year median of 2.68 and 63.7% 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 Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current FCF Yield % is 3.52 as of Jun. 28, 2026. 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$7.19 is trading 7.8% above its estimated GF Value™ of A$6.67.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for ASX:A2M:
FCF Yield %: 3.52 (31% above median its 10-year median of 2.68)
GF Value™: A$6.67 vs. price of A$7.19 (7.8% above fair value)
Industry Position: 63.7% above the Consumer Packaged Goods median (#879 of 1983)
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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