MONDELEZ INTERNATIONAL INC-A (1MDLZ.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MDLZ - US6092071058 - Common Stock
45.64 EUR
-0.23 (-0.51%)
We assign a fundamental rating of 4 out of 10 to 1MDLZ. 1MDLZ was compared to 62 industry peers in the Food Products industry. While 1MDLZ is still in line with the averages on profitability rating, there are concerns on its financial health. 1MDLZ does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- 1MDLZ had positive earnings in the past year.
- 1MDLZ had a positive operating cash flow in the past year.
- Each year in the past 5 years 1MDLZ has been profitable.
- 1MDLZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1MDLZ has a better Return On Assets (4.95%) than 71.88% of its industry peers.
- 1MDLZ has a Return On Equity of 13.49%. This is in the better half of the industry: 1MDLZ outperforms 76.56% of its industry peers.
- With a decent Return On Invested Capital value of 6.25%, 1MDLZ is doing good in the industry, outperforming 60.94% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1MDLZ is in line with the industry average of 7.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 13.49% | ||
| ROIC | 6.25% |
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
- With an excellent Profit Margin value of 9.38%, 1MDLZ belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1MDLZ has declined.
- 1MDLZ's Operating Margin of 11.59% is fine compared to the rest of the industry. 1MDLZ outperforms 75.00% of its industry peers.
- In the last couple of years the Operating Margin of 1MDLZ has grown nicely.
- 1MDLZ has a Gross Margin of 31.05%. This is in the lower half of the industry: 1MDLZ underperforms 64.06% of its industry peers.
- In the last couple of years the Gross Margin of 1MDLZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.59% | ||
| PM (TTM) | 9.38% | ||
| GM | 31.05% |
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
- 1MDLZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, 1MDLZ has less shares outstanding
- Compared to 5 years ago, 1MDLZ has less shares outstanding
- 1MDLZ has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.21 indicates that 1MDLZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1MDLZ has a Altman-Z score (2.21) which is in line with its industry peers.
- 1MDLZ has a debt to FCF ratio of 9.31. This is a negative value and a sign of low solvency as 1MDLZ would need 9.31 years to pay back of all of its debts.
- 1MDLZ has a Debt to FCF ratio (9.31) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.76 indicates that 1MDLZ is somewhat dependend on debt financing.
- 1MDLZ has a worse Debt to Equity ratio (0.76) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.31 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.86
WACC7.29%
2.3 Liquidity
- A Current Ratio of 0.61 indicates that 1MDLZ may have some problems paying its short term obligations.
- 1MDLZ's Current ratio of 0.61 is on the low side compared to the rest of the industry. 1MDLZ is outperformed by 90.63% of its industry peers.
- 1MDLZ has a Quick Ratio of 0.61. This is a bad value and indicates that 1MDLZ is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.37, 1MDLZ is doing worse than 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
- The earnings per share for 1MDLZ have decreased strongly by -21.70% in the last year.
- Measured over the past 5 years, 1MDLZ 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 4.13% in the past year.
- 1MDLZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.09% yearly.
EPS 1Y (TTM)-21.7%
EPS 3Y6.45%
EPS 5Y6.91%
EPS Q2Q%-26.26%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%5.87%
3.2 Future
- The Earnings Per Share is expected to grow by 3.92% on average over the next years.
- The Revenue is expected to grow by 3.83% on average over the next years.
EPS Next Y-14.35%
EPS Next 2Y-3.62%
EPS Next 3Y0.47%
EPS Next 5Y3.92%
Revenue Next Year4.85%
Revenue Next 2Y4.33%
Revenue Next 3Y4.1%
Revenue Next 5Y3.83%
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
- The Price/Earnings ratio is 18.63, which indicates a rather expensive current valuation of 1MDLZ.
- 1MDLZ's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. 1MDLZ is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 16.54, the valuation of 1MDLZ can be described as correct.
- 1MDLZ's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1MDLZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MDLZ indicates a slightly more expensive valuation: 1MDLZ is more expensive than 62.50% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1MDLZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.88 | ||
| EV/EBITDA | 15.04 |
4.3 Compensation for Growth
- 1MDLZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.7
EPS Next 2Y-3.62%
EPS Next 3Y0.47%
5. Dividend
5.1 Amount
- 1MDLZ has a Yearly Dividend Yield of 3.49%. Purely for dividend investing, there may be better candidates out there.
- 1MDLZ's Dividend Yield is a higher than the industry average which is at 2.38.
- Compared to an average S&P500 Dividend Yield of 1.81, 1MDLZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
- The dividend of 1MDLZ is nicely growing with an annual growth rate of 10.52%!
Dividend Growth(5Y)10.52%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1MDLZ pays out 69.92% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 1MDLZ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.92%
EPS Next 2Y-3.62%
EPS Next 3Y0.47%
MONDELEZ INTERNATIONAL INC-A / 1MDLZ.MI FAQ
What is the ChartMill fundamental rating of MONDELEZ INTERNATIONAL INC-A (1MDLZ.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1MDLZ.MI.
Can you provide the valuation status for MONDELEZ INTERNATIONAL INC-A?
ChartMill assigns a valuation rating of 3 / 10 to MONDELEZ INTERNATIONAL INC-A (1MDLZ.MI). This can be considered as Overvalued.
How profitable is MONDELEZ INTERNATIONAL INC-A (1MDLZ.MI) stock?
MONDELEZ INTERNATIONAL INC-A (1MDLZ.MI) has a profitability rating of 6 / 10.
How financially healthy is MONDELEZ INTERNATIONAL INC-A?
The financial health rating of MONDELEZ INTERNATIONAL INC-A (1MDLZ.MI) is 3 / 10.
Can you provide the expected EPS growth for 1MDLZ stock?
The Earnings per Share (EPS) of MONDELEZ INTERNATIONAL INC-A (1MDLZ.MI) is expected to decline by -14.35% in the next year.