MONDELEZ INTERNATIONAL INC-A (MDLZ) Stock Fundamental Analysis
NASDAQ:MDLZ - Nasdaq - US6092071058 - Common Stock - Currency: USD
Taking everything into account, MDLZ scores 5 out of 10 in our fundamental rating. MDLZ was compared to 89 industry peers in the Food Products industry. While MDLZ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MDLZ has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
MDLZ had positive earnings in the past year.
MDLZ had a positive operating cash flow in the past year.
Each year in the past 5 years MDLZ has been profitable.
Each year in the past 5 years MDLZ had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.73%, MDLZ is doing good in the industry, outperforming 73.03% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.12%, MDLZ belongs to the top of the industry, outperforming 86.52% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.27%, MDLZ belongs to the best of the industry, outperforming 83.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MDLZ is in line with the industry average of 9.00%.
The 3 year average ROIC (7.83%) for MDLZ is below the current ROIC(10.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.73% | ||
| ROE | 17.12% | ||
| ROIC | 10.27% |
ROA(3y)5.83%
ROA(5y)5.83%
ROE(3y)14.91%
ROE(5y)14.57%
ROIC(3y)7.83%
ROIC(5y)7.26%
1.3 Margins
The Profit Margin of MDLZ (12.65%) is better than 92.13% of its industry peers.
In the last couple of years the Profit Margin of MDLZ has declined.
MDLZ has a Operating Margin of 18.37%. This is amongst the best in the industry. MDLZ outperforms 94.38% of its industry peers.
MDLZ's Operating Margin has improved in the last couple of years.
MDLZ has a better Gross Margin (39.12%) than 87.64% of its industry peers.
MDLZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.37% | ||
| PM (TTM) | 12.65% | ||
| GM | 39.12% |
OM growth 3Y2.71%
OM growth 5Y2.05%
PM growth 3Y-5.45%
PM growth 5Y-3.59%
GM growth 3Y-0.05%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MDLZ is still creating some value.
MDLZ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MDLZ has been reduced compared to 5 years ago.
MDLZ has a better debt/assets ratio than last year.
2.2 Solvency
MDLZ has an Altman-Z score of 2.76. This is not the best score and indicates that MDLZ is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.76, MDLZ is doing good in the industry, outperforming 60.67% of the companies in the same industry.
MDLZ has a debt to FCF ratio of 5.04. This is a neutral value as MDLZ would need 5.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.04, MDLZ is in the better half of the industry, outperforming 70.79% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that MDLZ is somewhat dependend on debt financing.
MDLZ has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 5.04 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.34
WACC7.68%
2.3 Liquidity
MDLZ has a Current Ratio of 0.68. This is a bad value and indicates that MDLZ is not financially healthy enough and could expect problems in meeting its short term obligations.
MDLZ's Current ratio of 0.68 is on the low side compared to the rest of the industry. MDLZ is outperformed by 82.02% of its industry peers.
A Quick Ratio of 0.48 indicates that MDLZ may have some problems paying its short term obligations.
MDLZ's Quick ratio of 0.48 is on the low side compared to the rest of the industry. MDLZ is outperformed by 75.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
MDLZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.86%.
Measured over the past 5 years, MDLZ shows a small growth in Earnings Per Share. The EPS has been growing by 6.91% on average per year.
The Revenue has been growing slightly by 1.18% in the past year.
The Revenue has been growing slightly by 7.09% on average over the past years.
EPS 1Y (TTM)-3.86%
EPS 3Y6.58%
EPS 5Y6.91%
EPS Q2Q%-22.11%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%0.25%
3.2 Future
MDLZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.43% yearly.
Based on estimates for the next years, MDLZ will show a small growth in Revenue. The Revenue will grow by 3.62% on average per year.
EPS Next Y-13.83%
EPS Next 2Y-2.33%
EPS Next 3Y1.52%
EPS Next 5Y4.43%
Revenue Next Year2.97%
Revenue Next 2Y3.63%
Revenue Next 3Y3.82%
Revenue Next 5Y3.62%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.95, MDLZ is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MDLZ is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MDLZ to the average of the S&P500 Index (28.88), we can say MDLZ is valued slightly cheaper.
The Price/Forward Earnings ratio is 20.62, which indicates a rather expensive current valuation of MDLZ.
Based on the Price/Forward Earnings ratio, MDLZ is valued a bit cheaper than 65.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.20. MDLZ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 20.62 |
4.2 Price Multiples
MDLZ's Enterprise Value to EBITDA ratio is in line with the industry average.
MDLZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.96 | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
The excellent profitability rating of MDLZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.03
EPS Next 2Y-2.33%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
MDLZ has a Yearly Dividend Yield of 2.86%.
MDLZ's Dividend Yield is a higher than the industry average which is at 4.33.
MDLZ's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
On average, the dividend of MDLZ grows each year by 10.52%, which is quite nice.
MDLZ has been paying a dividend for at least 10 years, so it has a reliable track record.
MDLZ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.52%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
MDLZ pays out 50.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MDLZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.94%
EPS Next 2Y-2.33%
EPS Next 3Y1.52%
67.87
-0.26 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.54%
Inst Owner Change0.48%
Ins Owners0.14%
Ins Owner Change3.27%
Market Cap87.93B
Analysts76
Price Target71.37 (5.16%)
Short Float %1.73%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.76
Dividend Growth(5Y)10.52%
DP50.94%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.6%
Min EPS beat(2)-3.07%
Max EPS beat(2)14.26%
EPS beat(4)3
Avg EPS beat(4)5.8%
Min EPS beat(4)-3.07%
Max EPS beat(4)14.26%
EPS beat(8)7
Avg EPS beat(8)6.14%
EPS beat(12)11
Avg EPS beat(12)5.85%
EPS beat(16)12
Avg EPS beat(16)4.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-0.99%
Revenue beat(4)0
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)-0.6%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)7
Avg Revenue beat(12)0.95%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)5.4%
PT rev (3m)-10.58%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-21.99%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-14.41%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 20.62 | ||
| P/S | 2.41 | ||
| P/FCF | 24.96 | ||
| P/OCF | 17.91 | ||
| P/B | 3.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.08 |
EPS(TTM)3.24
EY4.77%
EPS(NY)3.29
Fwd EY4.85%
FCF(TTM)2.72
FCFY4.01%
OCF(TTM)3.79
OCFY5.58%
SpS28.13
BVpS20.79
TBVpS-11.53
PEG (NY)N/A
PEG (5Y)3.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.73% | ||
| ROE | 17.12% | ||
| ROCE | 13.68% | ||
| ROIC | 10.27% | ||
| ROICexc | 10.56% | ||
| ROICexgc | 86.77% | ||
| OM | 18.37% | ||
| PM (TTM) | 12.65% | ||
| GM | 39.12% | ||
| FCFM | 9.67% |
ROA(3y)5.83%
ROA(5y)5.83%
ROE(3y)14.91%
ROE(5y)14.57%
ROIC(3y)7.83%
ROIC(5y)7.26%
ROICexc(3y)8.08%
ROICexc(5y)7.6%
ROICexgc(3y)56.9%
ROICexgc(5y)49.07%
ROCE(3y)10.54%
ROCE(5y)9.74%
ROICexcg growth 3Y30.99%
ROICexcg growth 5Y25.82%
ROICexc growth 3Y12.8%
ROICexc growth 5Y10.57%
OM growth 3Y2.71%
OM growth 5Y2.05%
PM growth 3Y-5.45%
PM growth 5Y-3.59%
GM growth 3Y-0.05%
GM growth 5Y-0.42%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 5.04 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 106.53% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 12.09 | ||
| Cash Conversion | 61.39% | ||
| Profit Quality | 76.4% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 2.76 |
F-Score8
WACC7.68%
ROIC/WACC1.34
Cap/Depr(3y)93.3%
Cap/Depr(5y)88.79%
Cap/Sales(3y)3.26%
Cap/Sales(5y)3.28%
Profit Quality(3y)86.51%
Profit Quality(5y)84.12%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.86%
EPS 3Y6.58%
EPS 5Y6.91%
EPS Q2Q%-22.11%
EPS Next Y-13.83%
EPS Next 2Y-2.33%
EPS Next 3Y1.52%
EPS Next 5Y4.43%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%0.25%
Revenue Next Year2.97%
Revenue Next 2Y3.63%
Revenue Next 3Y3.82%
Revenue Next 5Y3.62%
EBIT growth 1Y17.29%
EBIT growth 3Y11.2%
EBIT growth 5Y9.29%
EBIT Next Year7.92%
EBIT Next 3Y7.96%
EBIT Next 5Y8.23%
FCF growth 1Y-2.19%
FCF growth 3Y3.52%
FCF growth 5Y2.99%
OCF growth 1Y4.16%
OCF growth 3Y5.84%
OCF growth 5Y4.37%