Don't Miss These Facts About Mondelez International

Mondelez International logged a -0.1% change during today's afternoon session, and is now trading at a price of $70.61 per share.

Mondelez International returned gains of 6.9% last year, 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 -15.6%. As of April 2023, the company's 50-day average price was $68.0. 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
Revenue Growth n/a -0.27% 2.76% 8.05% 9.67% 12.39%
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
EPS Growth n/a 20.63% -8.18% 23.08% -35.53% 70.92%
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
Current Ratio 0.45 0.5 0.66 0.74 0.6 0.61
Total Debt (MM) $18,372 $18,458 $20,120 $17,967 $21,485 $20,081
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, decent operating margins with a stable trend, and positive EPS growth. However, the firm suffers from irregular cash flows and a highly leveraged balance sheet.

Mondelez International's Valuation Is in Line With Its Sector Averages:

Mondelez International has a trailing twelve month P/E ratio of 20.4, compared to an average of 21.21 for the Consumer Staples sector. Based on its EPS guidance of $3.49, the company has a forward P/E ratio of 19.5. The 6.6% compound average growth rate of Mondelez International's historical and projected earnings per share yields a PEG ratio of 3.08. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Mondelez International in terms of its equity because its P/B ratio is 3.37 while the sector average is 4.12. The company's shares are currently trading 75.8% above their Graham number.

Mondelez International Has an Average Rating of Buy:

The 23 analysts following Mondelez International have set target prices ranging from $69.0 to $89.0 per share, for an average of $80.57 with a buy rating. As of April 2023, the company is trading -15.6% 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 81.9% 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 $8,739,385,229.

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.