Market Inference Overview — MDLZ Stock

Now trading at a price of $69.04, Mondelez International has moved 2.74% Friday.

Its shares moved 12.13% over the last 52 weeks, with a high of $69.1 and a low of $54.4. During this time, the stock outperformed the S&P 500 index by 25.34%. As of January 2022, the company's 50-day average price is $66.0. Mondelez International, Inc. is an American multinational confectionery, food, holding and beverage and snack food company based in Chicago, Illinois. The large-cap Consumer Staples company is based in Chicago, IL. Mondelez International has returned a 2.27% dividend yield over the last 12 months.

Strong Operating Margins But Increasing Leverage:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $25,868 $26,581 $28,720 $31,496
Revenue Growth n/a 2.76% 8.05% 9.67%
Gross Margins 39.96% 39.3% 39.19% 35.92%
Gross Margins Growth n/a -1.65% -0.28% -8.34%
Operating Margins 14.86% 14.5% 16.2% 11.22%
Operating Margins Growth n/a -2.42% 11.72% -30.74%
Net Margins 15.19% 13.37% 14.97% 8.63%
Net Margins Growth n/a -11.98% 11.97% -42.35%
Earnings Per Share $2.73 $2.49 $3.08 $1.98
EPS Growth n/a -8.79% 23.69% -35.71%
Diluted Shares (MM) 1,441 1,429 1,394 1,369
Free Cash Flow (MM) $3,040 $3,101 $3,176 $3,002
FCF Growth n/a 2.01% 2.42% -5.48%
Capital Expenditures (MM) $925 $863 $965 $906
Net Debt / EBITDA 3.15 2.16 2.04 4.02

Mondelez International Is Overvalued:

Compared to the Consumer Staples sector's average of 24.36, Mondelez International has a trailing twelve month P/E ratio of 35.59 and, according to its EPS guidance of 3.44, an expected P/E ratio of 20.07. Mondelez International's PEG ratio is 2.44 based on its 14.6% annual average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.

However, Mondelez International is likely undervalued in terms of its equity because its P/B ratio is 3.026 compared to its sector average of 4.29. The company's shares are currently trading 107.08% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 2.51 * 19.68) = $33.34

Mondelez International Is the Subject of Mixed Market Indicators:

22 analysts are following Mondelez International and have set target prices ranging from $69.0 to $80.0 per share. On average, they have given the company a rating of buy. At the current price of $69.04, MDLZ is trading -8.06% away from its average analyst target price of $75.09 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 0.68% of the company's shares are tied to short positions. Institutions own 82.25% of Mondelez International's shares, while the insider ownership rate stands at 0.16%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $8,462,218,068.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.