NasdaqGS:MDLZ

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 16.8% below its fair value

Earnings grew by 21.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1% per year for the next 3 years

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

2.5%

MDLZ

1.4%

US Food

0.3%

US Market


1 Year Return

22.9%

MDLZ

10.5%

US Food

18.5%

US Market

Return vs Industry: MDLZ exceeded the US Food industry which returned 10.5% over the past year.

Return vs Market: MDLZ exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

MDLZIndustryMarket
7 Day2.5%1.4%0.3%
30 Day4.1%3.1%1.5%
90 Day-4.7%0.6%5.7%
1 Year25.6%22.9%13.7%10.5%21.1%18.5%
3 Year36.5%28.3%2.4%-5.8%45.9%36.4%
5 Year58.9%44.6%42.4%25.1%71.4%52.5%

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?

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDLZ ($53.84) is trading below our estimate of fair value ($64.68)

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 (19.7x) compared to the Food industry average (24.8x).

PE vs Market: MDLZ is poor value based on its PE Ratio (19.7x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MDLZ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MDLZ is overvalued based on its PB Ratio (2.9x) compared to the US Food industry average (2.3x).


Next Steps

Future Growth

How is Mondelez International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDLZ's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: MDLZ's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: MDLZ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MDLZ's revenue (3.1% per year) is forecast to grow slower than the US market (7.4% 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 (14.4%).


Next Steps

Past Performance

How has Mondelez International performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDLZ has high quality earnings.

Growing Profit Margin: MDLZ's current net profit margins (15.4%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: MDLZ's earnings have declined by -4.4% per year over the past 5 years.

Accelerating Growth: MDLZ's earnings growth over the past year (21.9%) exceeds its 5-year average (-4.4% per year).

Earnings vs Industry: MDLZ earnings growth over the past year (21.9%) exceeded the Food industry -17.5%.


Return on Equity

High ROE: MDLZ's Return on Equity (14.8%) 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 ($8.6B) do not cover its short term liabilities ($17.1B).

Long Term Liabilities: MDLZ's short term assets ($8.6B) do not cover its long term liabilities ($19.9B).


Debt to Equity History and Analysis

Debt Level: MDLZ's debt to equity ratio (73.2%) is considered high.

Reducing Debt: MDLZ's debt to equity ratio has increased from 57.9% to 73.2% over the past 5 years.

Debt Coverage: MDLZ's debt is well covered by operating cash flow (20.1%).

Interest Coverage: MDLZ's interest payments on its debt are well covered by EBIT (6.6x 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?

2.12%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: MDLZ's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: MDLZ's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (38.9%), 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 (43% payout ratio).


Next Steps

Management

What is the CEO of Mondelez International's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Dirk Van de Put (58yo)

2.1yrs

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 ($USD14.97M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

2.1yrs

Average Tenure

50.5yo

Average Age

Experienced Management: MDLZ's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MDLZ's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$2,288,56809 Sep 19
Vinzenz Gruber
EntityIndividual
Shares40,377
Max PriceUS$56.68
SellUS$4,125,20006 May 19
Gerhard Pleuhs
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate & Legal Affairs and General Counsel
Shares80,000
Max PriceUS$51.57
SellUS$1,236,72806 Mar 19
Alejandro Lorenzo
EntityIndividual
Shares26,347
Max PriceUS$46.94
SellUS$259,74926 Feb 19
Maurizio Brusadelli
EntityIndividual
Shares5,495
Max PriceUS$47.27
SellUS$501,93805 Feb 19
Vinzenz Gruber
EntityIndividual
Shares10,945
Max PriceUS$45.86

Ownership Breakdown

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


Management Team

  • Lance Friedmann (63yo)

    Senior Vice President of Health & Wellness and Sustainability

    • Tenure: 0yrs
  • Dirk Van de Put (58yo)

    Chairman & CEO

    • Tenure: 2.1yrs
    • Compensation: US$14.97m
  • Glen Walter (50yo)

    Executive VP & President of North America

    • Tenure: 2.1yrs
    • Compensation: US$4.16m
  • Shep Dunlap

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Luca Zaramella (49yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$3.44m
  • Gerd Pleuhs (62yo)

    Executive VP of Corporate & Legal Affairs and General Counsel

    • Tenure: 7.7yrs
    • Compensation: US$3.30m
  • Paulette Alviti (48yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.5yrs
    • Compensation: US$4.42m
  • Mohit Bhalla (49yo)

    Vice President of Corporate Development

    • Tenure: 4.5yrs
  • Nelson Urdaneta

    Senior VP

    • Tenure: 0yrs
  • Martin Renaud (51yo)

    Executive VP & Global Chief Marketing Officer

    • Tenure: 1.8yrs

Board Members

  • Patrick Thomas Siewert (63yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$300.03k
  • Joe Neubauer (78yo)

    Lead Director

    • Tenure: 1.6yrs
    • Compensation: US$338.83k
  • Mark Ketchum (69yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$311.24k
  • Lois Juliber (70yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$325.03k
  • Fred Reynolds (68yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$310.03k
  • Lewis W. Booth (70yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$300.03k
  • Jean-François M. Van Boxmeer (58yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$285.03k
  • Jorge Mesquita (57yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$285.03k
  • Dirk Van de Put (58yo)

    Chairman & CEO

    • Tenure: 2.1yrs
    • Compensation: US$14.97m
  • Christiana Shi (59yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$300.03k

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$76.498b
  • Shares outstanding: 1.44b
  • Website: https://www.mondelezinternational.com

Number of Employees


Location

  • Mondelez International, Inc.
  • 100 Deforest Avenue
  • East Hanover
  • New Jersey
  • 7936
  • 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 and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers, and salted snacks; chocolates;  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:39
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.