The A2 Milk Company is now under Algo Engine buy conditions and has recently been added to our ASX 100 model portfolio.
A2M reported 2HFY20 earnings showing strong EPS growth underpinned by higher infant formula volumes.
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The result fell slightly short of high expectations, although revenue growth remained strong, increasing by 30% on the same time last year and FY20 EBIT jumped from $410mn to $550mn.
FY21 consensus for EPS growth is 15%.
At 30x forward earnings and no dividend yield, A2M is expensive but the growth metrics remain attractive.
