Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
The a2 Milk Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
The a2 Milk Co Ltd shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
The a2 Milk Co's Interest Coverage for the quarter that ended in Dec. 2025 was 309.13.
The a2 Milk Co's debt to revenue ratio for the quarter that ended in Dec. 2025 was 0.01.
As of today, The a2 Milk Co's Altman Z-Score is 9.54.
The a2 Milk Co (OTCPK:ACOPF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
The a2 Milk Co has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.
The a2 Milk Co Financial Strength Related Terms
ACOPF vs KHC, GIS: Financial Strength Comparison
For the Packaged Foods subindustry, The a2 Milk Co's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. The a2 Milk Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
The a2 Milk Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2025 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
The a2 Milk Co has a Z-score of 9.54, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 9.54 is strong.
* 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 (ACOPF) has a Financial Strength of 10 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on The a2 Milk Co and its competitors. This is near median its historical median of 10.00. Over the past decade, The a2 Milk Co's Financial Strength has ranged from 9.00 to 10.00.
Is The a2 Milk Co's Financial Strength too high?
The a2 Milk Co's current Financial Strength of 10 is near median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 9.00 to a high of 10.00. 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 Financial Strength compare to KHC and GIS?
The a2 Milk Co's Financial Strength of 10 can be compared against companies in the Consumer Packaged Goods industry. Historically, The a2 Milk Co's own Financial Strength has ranged from 9.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Consumer Packaged Goods company?
A good Financial Strength depends on the Consumer Packaged Goods industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on The a2 Milk Co and its competitors. The a2 Milk Co's current Financial Strength is 10, which is near median its own 10-year median of 10.00. 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 (ACOPF) is currently considered Fairly Valued. The stock's GF Value™ is $4.89, compared to a current price of $4.55 — trading 7% below its estimated fair value. The current Financial Strength is 10, which is near median its 10-year median of 10.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For The a2 Milk Co (ACOPF), the current Financial Strength is 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 (ACOPF) Overvalued in 2026?
Based on GuruFocus' analysis, The a2 Milk Co stock appears to be undervalued.
The current stock price of $4.55 is trading 7% below its estimated GF Value™ of $4.89.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for ACOPF:
Financial Strength: 10 (near median its 10-year median of 10.00)
GF Value™: $4.89 vs. price of $4.55 (7% below fair value)
No single metric tells the full story. See the ACOPF 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.
82GF Score
Get the complete analysis for ACOPF
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ACOPF has been successfully added to your 
