Mondelez International logged a -1.4% change during today's afternoon session, and is now trading at a price of $70.44 per share.
Over the last year, Mondelez International logged a 5.0% change, with its stock price reaching a high of $78.59 and a low of $60.75. Over the same period, the stock underperformed the S&P 500 index by -7.0%. As of April 2023, the company's 50-day average price was $67.64. 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 2.2% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $25,938 | $25,868 | $26,581 | $28,720 | $31,496 | $35,397 |
| Gross Margins | 40% | 40% | 39% | 39% | 36% | 38% |
| Operating Margins | 13% | 15% | 14% | 16% | 11% | 16% |
| Net Margins | 13% | 15% | 13% | 15% | 9% | 13% |
| Net Income (MM) | $3,331 | $3,944 | $3,569 | $4,314 | $2,726 | $4,602 |
| Net Interest Expense (MM) | $462 | $484 | -$608 | -$447 | -$423 | -$344 |
| Depreciation & Amort. (MM) | $811 | $1,047 | $1,116 | $1,113 | $1,107 | $1,190 |
| Earnings Per Share | $2.23 | $2.69 | $2.47 | $3.04 | $1.96 | $3.35 |
| Diluted Shares (MM) | 1,486 | 1,458 | 1,441 | 1,413 | 1,385 | 1,333 |
| Free Cash Flow (MM) | $2,853 | $3,040 | $3,101 | $3,176 | $3,002 | $3,477 |
| Capital Expenditures (MM) | $1,095 | $925 | $863 | $965 | $906 | $1,065 |
| Net Current Assets (MM) | -$29,412 | -$29,568 | -$30,177 | -$28,427 | -$34,150 | -$30,785 |
| Long Term Debt (MM) | $12,532 | $14,207 | $17,276 | $17,550 | $20,251 | $16,411 |
| Net Debt / EBITDA | 4.19 | 3.51 | 3.32 | 2.5 | 4.22 | 2.77 |
Mondelez International has growing revenues and a flat capital expenditure trend and wider gross margins than its peer group. Additionally, the company's financial statements display decent operating margins with a stable trend and positive EPS growth. However, the firm has a highly leveraged balance sheet. Finally, we note that Mondelez International has irregular cash flows.
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 20.3, compared to an average of 24.36 for the Consumer Staples sector. Based on its EPS guidance of $3.19, the company has a forward P/E ratio of 21.2. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 7.0%. On this basis, the company's PEG ratio is 2.89, 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 3.36 while the sector average is 4.29. The company's shares are currently trading 75.3% above their Graham number.
Mondelez International Has an Average Rating of Buy:
The 21 analysts following Mondelez International have set target prices ranging from $62.97 to $81.22 per share, for an average of $73.05 with a buy rating. As of April 2023, the company is trading -7.4% 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 1.1% 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 $8,717,725,138.
