NasdaqGS:MDLZ

Stock Analysis Report

Executive Summary

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products worldwide.

Rewards

Trading at 12.7% below its fair value

Earnings grew by 14.5% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Proven track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Mondelez International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MDLZ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

MDLZ

0.1%

US Food

0.9%

US Market


1 Year Return

23.9%

MDLZ

10.1%

US Food

20.0%

US Market

Return vs Industry: MDLZ exceeded the US Food industry which returned 10.2% over the past year.

Return vs Market: MDLZ exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

MDLZIndustryMarket
7 Day1.2%0.1%0.9%
30 Day8.2%-0.7%1.4%
90 Day13.2%2.9%8.8%
1 Year26.5%23.9%13.1%10.1%22.5%20.0%
3 Year49.5%40.4%-0.3%-8.3%49.9%40.3%
5 Year77.5%61.3%42.8%26.2%73.2%54.1%

Price Volatility Vs. Market

How volatile is Mondelez International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mondelez International undervalued compared to its fair value and its price relative to the market?

12.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDLZ ($59.68) is trading below our estimate of fair value ($68.37)

Significantly Below Fair Value: MDLZ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MDLZ is good value based on its PE Ratio (22.3x) compared to the Food industry average (25.5x).

PE vs Market: MDLZ is poor value based on its PE Ratio (22.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MDLZ is poor value based on its PEG Ratio (28.3x)


Price to Book Ratio

PB vs Industry: MDLZ is overvalued based on its PB Ratio (3.1x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is Mondelez International forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDLZ's forecast earnings growth (0.8% per year) is below the savings rate (1.7%).

Earnings vs Market: MDLZ's earnings (0.8% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: MDLZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: MDLZ's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MDLZ's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDLZ's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Mondelez International performed over the past 5 years?

-6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDLZ has high quality earnings.

Growing Profit Margin: MDLZ's current net profit margins (15%) are higher than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: MDLZ's earnings have declined by -6.4% per year over the past 5 years.

Accelerating Growth: MDLZ's earnings growth over the past year (14.5%) exceeds its 5-year average (-6.4% per year).

Earnings vs Industry: MDLZ earnings growth over the past year (14.5%) exceeded the Food industry -6.2%.


Return on Equity

High ROE: MDLZ's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mondelez International's financial position?


Financial Position Analysis

Short Term Liabilities: MDLZ's short term assets ($7.6B) do not cover its short term liabilities ($15.3B).

Long Term Liabilities: MDLZ's short term assets ($7.6B) do not cover its long term liabilities ($21.9B).


Debt to Equity History and Analysis

Debt Level: MDLZ's debt to equity ratio (67.6%) is considered high.

Reducing Debt: MDLZ's debt to equity ratio has increased from 60.3% to 67.6% over the past 5 years.

Debt Coverage: MDLZ's debt is well covered by operating cash flow (21.4%).

Interest Coverage: MDLZ's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: MDLZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: MDLZ's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Mondelez International's current dividend yield, its reliability and sustainability?

1.91%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Mondelez International before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: MDLZ's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MDLZ's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: MDLZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: MDLZ's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.7%), MDLZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MDLZ's dividends in 3 years are forecast to be well covered by earnings (45.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Dirk Van de Put (58yo)

2.3yrs

Tenure

US$14,969,900

Compensation

Mr. Dirk Van de Put has been Chief Executive Officer of Mondelez International, Inc. since November 20, and its Chairman since April 01, 2018. Mr. Van de Put served as the Chief Executive Officer and Presi ...


CEO Compensation Analysis

Compensation vs Market: Dirk's total compensation ($USD14.97M) is above average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Dirk's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dirk Van de Put
Chairman & CEO2.3yrsUS$14.97m0.025% $21.6m
Luca Zaramella
Executive VP & CFO1.5yrsUS$3.44m0.0050% $4.2m
Paulette Alviti
Executive VP & Chief Human Resources Officer1.7yrsUS$4.42m0.00073% $624.3k
Henry Walter
Executive VP & President of North America2.3yrsUS$4.16mno data
Nelson Urdaneta
Senior VP0yrsno data0.0024% $2.1m
Shep Dunlap
Vice President of Investor Relations0yrsno datano data
Gerhard Pleuhs
Executive VP of Corporate & Legal Affairs and General Counsel7.8yrsUS$3.30m0.0093% $8.0m
Mohit Bhalla
Vice President of Corporate Development4.7yrsno datano data
Martin Renaud
Executive VP & Global Chief Marketing Officer1.9yrsno datano data
Lance Friedmann
Senior Vice President of Health & Wellness and Sustainability0yrsno datano data

2.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: MDLZ's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dirk Van de Put
Chairman & CEO2.3yrsUS$14.97m0.025% $21.6m
Patrick Thomas Siewert
Independent Director7.3yrsUS$300.03kno data
Joseph Neubauer
Lead Director1.8yrsUS$338.83k0.0017% $1.5m
Mark Ketchum
Independent Director12.8yrsUS$311.24kno data
Lois Juliber
Independent Director12.3yrsUS$325.03k0.00016% $136.8k
Fredric Reynolds
Independent Director12.2yrsUS$310.03k0.0091% $7.8m
Lewis W. Booth
Independent Director7.3yrsUS$300.03k0.0011% $949.3k
Jean-François M. Van Boxmeer
Independent Director10.1yrsUS$285.03k0.00016% $136.8k
Jorge Mesquita
Independent Director7.8yrsUS$285.03k0.00045% $384.8k
Christiana Shi
Independent Director4.1yrsUS$300.03kno data

7.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MDLZ's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MDLZ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mondelez International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mondelez International, Inc.
  • Ticker: MDLZ
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$85.518b
  • Shares outstanding: 1.43b
  • Website: https://www.mondelezinternational.com

Number of Employees


Location

  • Mondelez International, Inc.
  • Three Parkway North
  • Suite 300
  • Deerfield
  • Illinois
  • 60015
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDLZNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 2001
MDLZSWX (SIX Swiss Exchange)YesClass A Common StockCHCHFJun 2001
MDLZ *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 2001
KTFDB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2001
MDLZSNSE (Santiago Stock Exchange)YesClass A Common StockCLUSDJun 2001
KFT-UETLX (Eurotlx)YesClass A Common StockITEURJun 2001
0R0GLSE (London Stock Exchange)YesClass A Common StockGBUSDJun 2001
MDLZWBAG (Wiener Boerse AG)YesClass A Common StockATEURJun 2001
MDLZ34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/2 COM 'CLASS A'USD0.01BRBRLJul 2015

Biography

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products worldwide. It offers biscuits, including cookies, crackers, and salted snacks; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company’s primary snack brand portfolio includes Cadbury, Milka, and Toblerone chocolates; Oreo, belVita, and LU biscuits; Halls candies; and Trident gums and Tang powdered beverages. It sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, and other facilities, as well as through independent sales offices and agents, and e-commerce platforms. The company was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. Mondelez International, Inc. was incorporated in 2000 and is headquartered in Deerfield, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:39
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.