The a2 Milk Co (ASX:A2M) Moat Score: 6/10 (As of Jul. 01, 2026)


ASX:A2M The a2 Milk Co Ltd ASX:A2M
82 GF Score
Price A$7.34
GF Value A$6.66
Valuation Fairly Valued
! 3 Warning Signs
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What is The a2 Milk Co Moat Score?

The a2 Milk Co ASX:A2M -1.87% 82 Moat Score is 6 as of Jul. 01, 2026. GuruFocus rates ASX:A2M with a GF Score™ of 82/100 and a GF Value™ of A$6.66 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,054 Consumer Packaged Goods companies, The a2 Milk Co ranks better than 98.54% on this metric.

The a2 Milk Co has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

The a2 Milk Co has Narrow Moat: The a2 Milk Co Ltd has a strong narrow moat due to its strong brand and customer loyalty in the dairy industry. It benefits from some pricing power and a robust distribution network, but lacks significant regulatory barriers or exclusive licenses.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes The a2 Milk Co might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

The a2 Milk Co  (ASX:A2M) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

The a2 Milk Co Moat Score Related Terms

ASX:A2M vs KHC, GIS: Moat Score Comparison

For the Packaged Foods subindustry, The a2 Milk Co's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's Moat Score distribution charts can be found below:

* The bar in red indicates where The a2 Milk Co's Moat Score falls into.


ASX:A2M
82GF Score
The a2 Milk Co Ltd ASX:A2M
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
The a2 Milk Co (ASX:A2M) has a Moat Score of 6 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, The a2 Milk Co ranks #30 out of 2054 companies in the Consumer Packaged Goods industry, placing it in the top 1.5%.
Is The a2 Milk Co's Moat Score too high?
The a2 Milk Co's current Moat Score is 6. Based on the distribution chart, The a2 Milk Co ranks #30 out of 2054 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 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's Moat Score compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #30 out of 2054 companies for Moat Score. This places The a2 Milk Co in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Consumer Packaged Goods company?
A good Moat Score depends on the Consumer Packaged Goods industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. The a2 Milk Co's current Moat Score is 6. 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$6.66, compared to a current price of A$7.34 — trading 10.2% above its estimated fair value. The current Moat Score is 6. The a2 Milk Co's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current Moat Score is 6 as of Jul. 01, 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$7.34 is trading 10.2% above its estimated GF Value™ of A$6.66. GuruFocus considers The a2 Milk Co to be Fairly Valued.

Key valuation signals for ASX:A2M:

  • Moat Score: 6
  • GF Value™: A$6.66 vs. price of A$7.34 (10.2% above fair value)
  • GF Score™: 82/100 with 3 warning signs

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.

The a2 Milk Co Business Description

Address 51 Shortland Street, Level 10, Auckland, NTL, NZL, 1010
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.
82GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$7.34
Price
A$6.66
GF Value