The a2 Milk CoASX:A2M +1.03%83 Net Margin % is 1.10% as of Dec. 2025, which is 89% below its 10-year median of 10.35. 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 1,952 Consumer Packaged Goods companies, The a2 Milk Co ranks better than 65.93% on this metric.
Net margin is calculated as Net Income divided by its Revenue. The a2 Milk Co's Net Income for the
six
months ended in Dec. 2025 was A$10 Mil. The a2 Milk Co's Revenue for the
six
months ended in Dec. 2025 was A$864 Mil. Therefore, The a2 Milk Co's net margin for the quarter that ended in Dec. 2025 was 1.10%.
The historical rank and industry rank for The a2 Milk Co's Net Margin % or its related term are showing as below:
ASX:A2M'
s Net Margin % Range Over the Past 10 Years
Min: 6.26 Med: 10.35 Max: 22.29
Current: 6.26
ASX:A2M's Net Margin % is ranked better than 65.93% of 1952
companies
in the Consumer Packaged Goods industry
Industry Median: 3.51
vs ASX:A2M: 6.26
The a2 Milk Co (ASX:A2M) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
The a2 Milk Co Net Margin % Related Terms
The a2 Milk Co Net Margin % Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's Net 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 Net Margin % of 1.10% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on The a2 Milk Co and its competitors. This is 89% below median its historical median of 10.35. Over the past decade, The a2 Milk Co's Net Margin % has ranged from 6.26 to 22.29. According to the industry distribution chart, The a2 Milk Co ranks #665 out of 1952 companies in the Consumer Packaged Goods industry, placing it in the top 34.1%.
Is The a2 Milk Co's Net Margin % too high?
The a2 Milk Co's current Net Margin % of 1.10% is 89% below median its 10-year median of 10.35. Over the past 10 years, this metric has ranged from a low of 6.26 to a high of 22.29. The Consumer Packaged Goods industry median Net Margin % is 3.51. The a2 Milk Co's value of 1.10% is 68.7% below this industry median. Based on the distribution chart, The a2 Milk Co ranks #665 out of 1952 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 Net Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #665 out of 1952 companies for Net Margin %. This puts The a2 Milk Co in the upper half of its industry. The industry median Net Margin % is 3.51. The a2 Milk Co's value of 1.10% is 68.7% below this benchmark. Historically, The a2 Milk Co's own Net Margin % has ranged from 6.26 to 22.29 over the past decade. While the company's 10-year median is 10.35 vs. the industry median of 3.51, The a2 Milk Co has consistently been below 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 Net Margin % for a Consumer Packaged Goods company?
The median Net Margin % among Consumer Packaged Goods companies is 3.51, based on 1,952 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current Net Margin % of 1.10% is 68.7% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median Net Margin % is 3.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current Net Margin % is 1.10%, which is 89% below median its own 10-year median of 10.35. 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 Net Margin % is 1.10%, which is 89% below median its 10-year median of 10.35 and 68.7% below the Consumer Packaged Goods industry median of 3.51. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current Net Margin % is 1.10% 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:
Net Margin %: 1.10% (89% below median its 10-year median of 10.35)
GF Value™: A$6.68 vs. price of A$6.85 (2.5% above fair value)
Industry Position: 68.7% below the Consumer Packaged Goods median (#665 of 1952)
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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