The a2 Milk Co (ASX:A2M) ROCE %: 21.72% (As of Dec. 2025)


ASX:A2M The a2 Milk Co Ltd ASX:A2M
83 GF Score
Price A$6.85
GF Value A$6.68
Valuation Fairly Valued
! 3 Warning Signs
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What is The a2 Milk Co ROCE %?

The a2 Milk Co ASX:A2M +1.03% 83 ROCE % is 21.72% as of Dec. 2025. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. The a2 Milk Co's annualized ROCE % for the quarter that ended in Dec. 2025 was 21.72%.

The a2 Milk Co  (ASX:A2M) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

The a2 Milk Co ROCE % Related Terms

The a2 Milk Co ROCE % Historical Data

* Premium members only.

The historical data trend for The a2 Milk Co's ROCE % 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.

The a2 Milk Co ROCE % Chart

The a2 Milk Co Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.60 15.26 18.23 19.01 20.79

The a2 Milk Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.08 18.23 18.69 22.55 21.72
ASX:A2M
83GF Score
The a2 Milk Co Ltd ASX:A2M
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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The a2 Milk Co ROCE % Calculation

The a2 Milk Co's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=270.424/( ( (1603.881 - 385.305) + (1800.291 - 417.214) )/ 2 )
=270.424/( (1218.576+1383.077)/ 2 )
=270.424/1300.8265
=20.79 %

The a2 Milk Co's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=283.836/( ( (1800.291 - 417.214) + (1607.086 - 376.538) )/ 2 )
=283.836/( ( 1383.077 + 1230.548 )/ 2 )
=283.836/1306.8125
=21.72 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 21.72% mean?
The a2 Milk Co (ASX:A2M) has a ROCE % of 21.72% as of Dec. 2025.
Is The a2 Milk Co's ROCE % too high?
The a2 Milk Co's current ROCE % is 21.72%. The Consumer Packaged Goods industry median ROCE % is 8.78. The a2 Milk Co's value of 21.72% is 147.5% above this industry median. 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 ROCE % compare to KHC and GIS?
The a2 Milk Co's ROCE % of 21.72% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROCE % is 8.78. The a2 Milk Co's value of 21.72% is 147.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Consumer Packaged Goods company?
The median ROCE % among Consumer Packaged Goods companies is 8.78, based on 1,938 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current ROCE % of 21.72% is 147.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Consumer Packaged Goods industry, the median ROCE % is 8.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current ROCE % is 21.72%. 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 ROCE % is 21.72% and 147.5% above the Consumer Packaged Goods industry median of 8.78. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current ROCE % is 21.72% 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:

  • ROCE %: 21.72%
  • GF Value™: A$6.68 vs. price of A$6.85 (2.5% above fair value)
  • GF Score™: 83/100 with 3 warning signs
  • Industry Position: 147.5% above the Consumer Packaged Goods median

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.
83GF Score

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

A$6.85
Price
A$6.68
GF Value