Chart Update, page-4904

There's actually not many places to hide when trying to question A2.

It has tech-like margins - EBITDA 33% and NPAT of 25% with scale opportunities (although not quite to the degree of tech), and doesn't have the same underlying risk 'tech' stocks have. So ratio-wise it's not that expensive compared to tech companies. But the market cap is already very high, we're already massive so the next step is harder but if we can get to market cap of 20b then we're a household name forever almost

A lot of these tech companies have more complex capital structures than A2 as well which conceals the normalised numbers. For example most tech companies peak out once their software has been commercialised given this becomes capitalised which overstates profits, A2 doesn't have this issue.

What we're paying for is the reduction in non-operating returns given 300m is just sitting there presumably with stuff all yield and hopefully we see this invested wisely soon. If they can't buy more SM1 or feel a bottling plant might be outside their scope, then a share buyback would on my menu. I'm not a fan of divesting.