3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
The a2 Milk Co's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was -819.52%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for The a2 Milk Co's 3-Year ROIIC % or its related term are showing as below:
ASX:A2M's 3-Year ROIIC % is ranked worse than 99.18% of 1829
companies
in the Consumer Packaged Goods industry
Industry Median: 2.74
vs ASX:A2M: -819.52
The a2 Milk Co (ASX:A2M) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
The a2 Milk Co 3-Year ROIIC % Related Terms
The a2 Milk Co 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
The a2 Milk Co (ASX:A2M) has a 3-Year ROIIC % of -819.52 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The a2 Milk Co and its competitors. According to the industry distribution chart, The a2 Milk Co ranks #1814 out of 1829 companies in the Consumer Packaged Goods industry, placing it in the top 99.2%.
Is The a2 Milk Co's 3-Year ROIIC % too high?
The a2 Milk Co's current 3-Year ROIIC % is -819.52. Based on the distribution chart, The a2 Milk Co ranks #1814 out of 1829 companies in the Consumer Packaged Goods industry, which is in the bottom quartile 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 3-Year ROIIC % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #1814 out of 1829 companies for 3-Year ROIIC %. This places The a2 Milk Co in the lower half of its industry. The industry median 3-Year ROIIC % is 2.74. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Consumer Packaged Goods company?
The median 3-Year ROIIC % among Consumer Packaged Goods companies is 2.74, based on 1,829 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median 3-Year ROIIC % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current 3-Year ROIIC % is -819.52. 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 3-Year ROIIC % is -819.52. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current 3-Year ROIIC % is -819.52 as of Jun. 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:
3-Year ROIIC %: -819.52
GF Value™: A$6.64 vs. price of A$6.92 (4.2% above fair value)
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
Get the complete analysis for ASX:A2M
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:A2M has been successfully added to your 
