The a2 Milk CoASX:A2M -1.56%83 ROC (Joel Greenblatt) % is 145.94% as of Dec. 2025, which is 39% below its 10-year median of 240.45. GuruFocus rates ASX:A2M with a GF Score™ of 83/100 and a GF Value™ of A$6.64 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,969 Consumer Packaged Goods companies, The a2 Milk Co ranks better than 97.31% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. The a2 Milk Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 145.94%.
The historical rank and industry rank for The a2 Milk Co's ROC (Joel Greenblatt) % or its related term are showing as below:
ASX:A2M'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 88.05 Med: 240.45 Max: 4212.11
Current: 142.96
During the past 13 years, The a2 Milk Co's highest ROC (Joel Greenblatt) % was 4212.11%. The lowest was 88.05%. And the median was 240.45%.
ASX:A2M's ROC (Joel Greenblatt) % is ranked better than 97.31% of 1969
companies
in the Consumer Packaged Goods industry
Industry Median: 11.99
vs ASX:A2M: 142.96
The a2 Milk Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -43.90% per year.
The a2 Milk Co (ASX:A2M) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The a2 Milk Co ROC (Joel Greenblatt) % Related Terms
The a2 Milk Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co's ROC (Joel Greenblatt) % 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.
ASX:A2M vs KHC, GIS: ROC (Joel Greenblatt) % Comparison
For the Packaged Foods subindustry, The a2 Milk Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's ROC (Joel Greenblatt) % falls into.
The a2 Milk Co ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 145.94% mean?
The a2 Milk Co (ASX:A2M) has a ROC (Joel Greenblatt) % of 145.94% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The a2 Milk Co and its competitors. This is 39% below median its historical median of 240.45. Over the past decade, The a2 Milk Co's ROC (Joel Greenblatt) % has ranged from 88.05 to 4,212.11. According to the industry distribution chart, The a2 Milk Co ranks #53 out of 1969 companies in the Consumer Packaged Goods industry, placing it in the top 2.7%.
Is The a2 Milk Co's ROC (Joel Greenblatt) % too high?
The a2 Milk Co's current ROC (Joel Greenblatt) % of 145.94% is 39% below median its 10-year median of 240.45. Over the past 10 years, this metric has ranged from a low of 88.05 to a high of 4,212.11. The Consumer Packaged Goods industry median ROC (Joel Greenblatt) % is 11.99. The a2 Milk Co's value of 145.94% is 1117.2% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #53 out of 1969 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 ROC (Joel Greenblatt) % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #53 out of 1969 companies for ROC (Joel Greenblatt) %. This places The a2 Milk Co in the top 3% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.99. The a2 Milk Co's value of 145.94% is 1117.2% above this benchmark. Historically, The a2 Milk Co's own ROC (Joel Greenblatt) % has ranged from 88.05 to 4,212.11 over the past decade. While the company's 10-year median is 240.45 vs. the industry median of 11.99, 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 ROC (Joel Greenblatt) % for a Consumer Packaged Goods company?
The median ROC (Joel Greenblatt) % among Consumer Packaged Goods companies is 11.99, based on 1,969 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current ROC (Joel Greenblatt) % of 145.94% is 1117.2% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median ROC (Joel Greenblatt) % is 11.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current ROC (Joel Greenblatt) % is 145.94%, which is 39% below median its own 10-year median of 240.45. 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$6.64, compared to a current price of A$6.92 — trading 4.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 145.94%, which is 39% below median its 10-year median of 240.45 and 1117.2% above the Consumer Packaged Goods industry median of 11.99. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current ROC (Joel Greenblatt) % is 145.94% 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$6.92 is trading 4.2% above its estimated GF Value™ of A$6.64.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for ASX:A2M:
ROC (Joel Greenblatt) %: 145.94% (39% below median its 10-year median of 240.45)
GF Value™: A$6.64 vs. price of A$6.92 (4.2% above fair value)
Industry Position: 1117.2% above the Consumer Packaged Goods median (#53 of 1969)
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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