MONDELEZ INTERNATIONAL INC-A (MDLZ) Stock Fundamental Analysis
NASDAQ:MDLZ - Nasdaq - US6092071058 - Common Stock - Currency: USD
Overall MDLZ gets a fundamental rating of 5 out of 10. We evaluated MDLZ against 91 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MDLZ was profitable.
In the past year MDLZ had a positive cash flow from operations.
MDLZ had positive earnings in each of the past 5 years.
MDLZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MDLZ has a Return On Assets of 5.22%. This is in the better half of the industry: MDLZ outperforms 69.23% of its industry peers.
MDLZ's Return On Equity of 13.97% is fine compared to the rest of the industry. MDLZ outperforms 79.12% of its industry peers.
MDLZ's Return On Invested Capital of 6.95% is fine compared to the rest of the industry. MDLZ outperforms 69.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDLZ is significantly below the industry average of 28.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 13.97% | ||
| ROIC | 6.95% |
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
MDLZ has a Profit Margin of 9.88%. This is amongst the best in the industry. MDLZ outperforms 84.62% of its industry peers.
MDLZ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.62%, MDLZ belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
MDLZ's Operating Margin has improved in the last couple of years.
MDLZ has a better Gross Margin (32.74%) than 74.73% of its industry peers.
In the last couple of years the Gross Margin of MDLZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.62% | ||
| PM (TTM) | 9.88% | ||
| GM | 32.74% |
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
An Altman-Z score of 2.49 indicates that MDLZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.49, MDLZ perfoms like the industry average, outperforming 59.34% of the companies in the same industry.
MDLZ has a debt to FCF ratio of 5.90. This is a neutral value as MDLZ would need 5.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.90, MDLZ is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
MDLZ has a Debt/Equity ratio of 0.69. This is a neutral value indicating MDLZ is somewhat dependend on debt financing.
MDLZ has a worse Debt to Equity ratio (0.69) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.91
WACC7.65%
2.3 Liquidity
MDLZ has a Current Ratio of 0.61. 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 has a Current ratio of 0.61. This is amonst the worse of the industry: MDLZ underperforms 89.01% of its industry peers.
A Quick Ratio of 0.40 indicates that MDLZ may have some problems paying its short term obligations.
With a Quick ratio value of 0.40, MDLZ is not doing good in the industry: 81.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
MDLZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.37%.
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.
Looking at the last year, MDLZ shows a small growth in Revenue. The Revenue has grown by 1.18% in the last year.
MDLZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.09% yearly.
EPS 1Y (TTM)-10.37%
EPS 3Y6.58%
EPS 5Y6.91%
EPS Q2Q%-15.12%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%7.68%
3.2 Future
The Earnings Per Share is expected to grow by 4.91% on average over the next years.
Based on estimates for the next years, MDLZ will show a small growth in Revenue. The Revenue will grow by 4.10% on average per year.
EPS Next Y-10.86%
EPS Next 2Y-0.98%
EPS Next 3Y2.47%
EPS Next 5Y4.91%
Revenue Next Year5.09%
Revenue Next 2Y4.76%
Revenue Next 3Y4.5%
Revenue Next 5Y4.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.43, the valuation of MDLZ can be described as rather expensive.
Based on the Price/Earnings ratio, MDLZ is valued a bit cheaper than the industry average as 60.44% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.82, MDLZ is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.78, which indicates a rather expensive current valuation of MDLZ.
Based on the Price/Forward Earnings ratio, MDLZ is valued a bit cheaper than 64.84% of the companies in the same industry.
MDLZ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 18.78 |
4.2 Price Multiples
MDLZ's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MDLZ is valued a bit cheaper than 65.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.81 | ||
| EV/EBITDA | 16.71 |
4.3 Compensation for Growth
MDLZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.96
EPS Next 2Y-0.98%
EPS Next 3Y2.47%
5. Dividend
5.1 Amount
MDLZ has a Yearly Dividend Yield of 3.13%.
Compared to an average industry Dividend Yield of 4.74, MDLZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, MDLZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
On average, the dividend of MDLZ grows each year by 10.52%, which is quite nice.
MDLZ has paid a dividend for at least 10 years, which is 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 Years11
Div Non Decr Years11
5.3 Sustainability
66.48% of the earnings are spent on dividend by MDLZ. This is not a sustainable payout ratio.
MDLZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.48%
EPS Next 2Y-0.98%
EPS Next 3Y2.47%
63.53
-0.4 (-0.63%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.9%
Inst Owner Change-0.46%
Ins Owners0.14%
Ins Owner Change3.57%
Market Cap82.20B
Analysts76.57
Price Target73.6 (15.85%)
Short Float %1.85%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.76
Dividend Growth(5Y)10.52%
DP66.48%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.56%
Min EPS beat(2)-3.07%
Max EPS beat(2)10.18%
EPS beat(4)3
Avg EPS beat(4)7.09%
Min EPS beat(4)-3.07%
Max EPS beat(4)14.26%
EPS beat(8)7
Avg EPS beat(8)6.28%
EPS beat(12)11
Avg EPS beat(12)5.79%
EPS beat(16)12
Avg EPS beat(16)4.71%
Revenue beat(2)0
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-2.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)-0.99%
Revenue beat(8)2
Avg Revenue beat(8)-1.17%
Revenue beat(12)6
Avg Revenue beat(12)0.53%
Revenue beat(16)9
Avg Revenue beat(16)0.62%
PT rev (1m)0.42%
PT rev (3m)3.13%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)3.73%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)3.44%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 18.78 | ||
| P/S | 2.25 | ||
| P/FCF | 24.81 | ||
| P/OCF | 17.57 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.71 |
EPS(TTM)3.11
EY4.9%
EPS(NY)3.38
Fwd EY5.32%
FCF(TTM)2.56
FCFY4.03%
OCF(TTM)3.62
OCFY5.69%
SpS28.18
BVpS19.93
TBVpS-12.97
PEG (NY)N/A
PEG (5Y)2.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 13.97% | ||
| ROCE | 9.6% | ||
| ROIC | 6.95% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 60.64% | ||
| OM | 12.62% | ||
| PM (TTM) | 9.88% | ||
| GM | 32.74% | ||
| FCFM | 9.09% |
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-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 104.44% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.15% | ||
| Profit Quality | 92% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 2.49 |
F-Score5
WACC7.65%
ROIC/WACC0.91
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)-10.37%
EPS 3Y6.58%
EPS 5Y6.91%
EPS Q2Q%-15.12%
EPS Next Y-10.86%
EPS Next 2Y-0.98%
EPS Next 3Y2.47%
EPS Next 5Y4.91%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%7.68%
Revenue Next Year5.09%
Revenue Next 2Y4.76%
Revenue Next 3Y4.5%
Revenue Next 5Y4.1%
EBIT growth 1Y-33.55%
EBIT growth 3Y11.2%
EBIT growth 5Y9.29%
EBIT Next Year9.55%
EBIT Next 3Y7.52%
EBIT Next 5Y8.23%
FCF growth 1Y12.76%
FCF growth 3Y3.52%
FCF growth 5Y2.99%
OCF growth 1Y19.95%
OCF growth 3Y5.84%
OCF growth 5Y4.37%