The a2 Milk CoASX:A2M +1.03%83 Altman Z-Score is 9.49 as of Jun. 24, 2026, which is 28% below its 10-year median of 13.14. 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 1,933 Consumer Packaged Goods companies, The a2 Milk Co ranks better than 90.43% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 9.43 is strong.
The a2 Milk Co has a Altman Z-Score of 9.49, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for The a2 Milk Co's Altman Z-Score or its related term are showing as below:
ASX:A2M'
s Altman Z-Score Range Over the Past 10 Years
Min: 6.81 Med: 13.14 Max: 35.33
Current: 9.43
During the past 13 years, The a2 Milk Co's highest Altman Z-Score was 35.33. The lowest was 6.81. And the median was 13.14.
The a2 Milk Co (ASX:A2M) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
The a2 Milk Co Altman Z-Score Related Terms
The a2 Milk Co Altman Z-Score Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co's Altman Z-Score 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 Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's Altman Z-Score falls into.
Altman 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 a2 Milk Co's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.5154
+
1.4
*
0.8404
+
3.3
*
0.1502
+
0.6
*
10.3757
+
1.0
*
0.9779
=
9.49
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
The a2 Milk Co (ASX:A2M) has a Altman Z-Score of 9.49 as of Jun. 24, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on The a2 Milk Co and its competitors. This is 28% below median its historical median of 13.14. Over the past decade, The a2 Milk Co's Altman Z-Score has ranged from 6.81 to 35.33. According to the industry distribution chart, The a2 Milk Co ranks #185 out of 1933 companies in the Consumer Packaged Goods industry, placing it in the top 9.6%.
Is The a2 Milk Co's Altman Z-Score too high?
The a2 Milk Co's current Altman Z-Score of 9.49 is 28% below median its 10-year median of 13.14. Over the past 10 years, this metric has ranged from a low of 6.81 to a high of 35.33. The Consumer Packaged Goods industry median Altman Z-Score is 2.83. The a2 Milk Co's value of 9.49 is 235.3% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #185 out of 1933 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 Altman Z-Score compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #185 out of 1933 companies for Altman Z-Score. This places The a2 Milk Co in the top 10% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.83. The a2 Milk Co's value of 9.49 is 235.3% above this benchmark. Historically, The a2 Milk Co's own Altman Z-Score has ranged from 6.81 to 35.33 over the past decade. While the company's 10-year median is 13.14 vs. the industry median of 2.83, 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 Altman Z-Score for a Consumer Packaged Goods company?
The median Altman Z-Score among Consumer Packaged Goods companies is 2.83, based on 1,933 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current Altman Z-Score of 9.49 is 235.3% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median Altman Z-Score is 2.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current Altman Z-Score is 9.49, which is 28% below median its own 10-year median of 13.14. 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 Altman Z-Score is 9.49, which is 28% below median its 10-year median of 13.14 and 235.3% above the Consumer Packaged Goods industry median of 2.83. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current Altman Z-Score is 9.49 as of Jun. 24, 2026. 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:
Altman Z-Score: 9.49 (28% below median its 10-year median of 13.14)
GF Value™: A$6.68 vs. price of A$6.85 (2.5% above fair value)
Industry Position: 235.3% above the Consumer Packaged Goods median (#185 of 1933)
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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