ASX share price in focus
ASX Limited operates Australia’s primary national securities exchange, providing a range of essential services beyond just hosting listed companies. Its offerings include the main registry, settlement, clearing services, and platforms for trading commodities and derivatives.
The company provides access to a wide array of tradeable products including shares, futures, exchange traded funds (ETFs), managed funds, and real estate investment trusts (REITs).
ASX’s dominance in the Australian market gives it a significant edge over smaller competitors. In fact, many Australians may not even be aware of the alternative exchanges on the market!
A2M shares
Founded in New Zealand in 2000, The a2 Milk Company sells dairy products which contain the naturally occurring A2 protein type. Most other dairy products on the market contain the A1 protein, which is claimed to be harder to digest for some people.
The company is responsible mainly for distribution and marketing, with the production outsourced to suppliers who source from over 25 certified dairy farms across Australia. A large part of the a2 business is infant formula, which is produced by its supply partner Synlait Milk in New Zealand.
While the science is a little uncertain on why a2 milk might be easier to digest, randomised studies have repeatedly shown that it is an effective solution for many people who struggle with ‘normal’ dairy products.
ASX & A2M share price valuation
As a growth company, some of the trends we might investigate from ASX include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, ASX has grown revenue at a rate of 15.8% per year to reach $1,581m in FY24. Over the same stretch of time, net profit has fallen from $481m to $474m. ASX last reported a ROE of 12.9%.
Over the last 3 years, A2M has increased revenue at a rate of 11.6% per year to hit $1,673m in FY24. Meanwhile, net profit has increased from $81m to $168m. A2M’s last reported ROE was 12.8%.
Please keep in mind that context is important. These metrics give us some indication of company performance, but it’s just the start of valuing ASX or A2M shares. To learn more about valuation, check out one of our free online investing courses.
