Insights on Mondelez International – What Our Analysts Know

Mondelez International logged a -0.6% change during today's afternoon session, and is now trading at a price of $71.94 per share.

Mondelez International returned gains of 21.0% last year, with its stock price reaching a high of $78.59 and a low of $54.72. Over the same period, the stock outperformed the S&P 500 index by 5.0%. More recently, the company's 50-day average price was $72.3. Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. Based in Chicago, IL, the large-cap Consumer Staples company has 91,000 full time employees. Mondelez International has offered a 2.1% dividend yield over the last 12 months.

EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:

2018-02-09 2019-02-08 2020-02-07 2021-02-05 2022-02-04 2023-02-03
Revenue (MM) $25,896 $25,938 $25,868 $26,581 $28,720 $31,496
Gross Margins 39.0% 40.0% 40.0% 39.0% 39.0% 36.0%
Operating Margins 13% 13% 16% 16% 17% 12%
Net Margins 11.0% 13.0% 15.0% 13.0% 15.0% 9.0%
Net Income (MM) $2,828 $3,317 $3,929 $3,555 $4,300 $2,717
Net Interest Expense (MM) n/a n/a -$456 -$608 -$447 -$423
Depreciation & Amort. (MM) -$816 -$811 -$1,047 -$1,116 -$1,113 -$1,107
Earnings Per Share $1.85 $2.23 $2.69 $2.47 $3.06 $1.92
EPS Growth n/a 20.54% 20.63% -8.18% 23.89% -37.25%
Diluted Shares (MM) 1,531 1,486 1,458 1,441 1,405 1,413
Free Cash Flow (MM) $3,538 $4,645 $4,808 $4,827 $5,106 $4,814
Capital Expenditures (MM) -$905 -$697 -$843 -$863 -$965 -$906
Net Current Assets (MM) -$29,363 -$29,412 -$29,568 -$30,177 -$28,427 -$34,150
Long Term Debt (MM) $12,972 $12,532 $14,207 $17,276 $17,550 $20,251
Net Debt / EBITDA 3.95 4.19 3.38 3.12 2.67 4.29

A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:

Mondelez International has a trailing twelve month P/E ratio of 24.0, compared to an average of 24.36 for the Consumer Staples sector. Based on its EPS guidance of $3.53, the company has a forward P/E ratio of 20.5. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 8.5%. On this basis, the company's PEG ratio is 2.84, which suggests that it is overpriced. In contrast, the market is likely undervaluing Mondelez International in terms of its equity because its P/B ratio is 3.42 while the sector average is 4.29. The company's shares are currently trading 150.7% above their Graham number.

There's an Analyst Consensus of Some Upside Potential for Mondelez International:

The 20 analysts following Mondelez International have set target prices ranging from $75.0 to $89.0 per share, for an average of $83.3 with a buy rating. As of April 2023, the company is trading -13.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Mondelez International has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 81.7% of the company's shares, and the insider ownership rate stands at 0.17%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $8,898,090,418.

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.