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 has a great profitability rating, there are some minor concerns on its financial health. MDLZ is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MDLZ had positive earnings in the past year.
In the past year MDLZ had a positive cash flow from operations.
In the past 5 years MDLZ has always been profitable.
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 has a better Return On Equity (13.97%) than 80.22% of its industry peers.
MDLZ has a Return On Invested Capital of 6.95%. This is in the better half of the industry: MDLZ outperforms 70.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDLZ is significantly below the industry average of 28.40%.
| 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 83.52% of its industry peers.
In the last couple of years the Profit Margin of MDLZ has declined.
With an excellent Operating Margin value of 12.62%, MDLZ belongs to the best 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 Gross Margin of 32.74%. This is in the better half of the industry: MDLZ outperforms 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
MDLZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MDLZ has less shares outstanding than it did 1 year ago.
MDLZ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MDLZ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.58 indicates that MDLZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.58, MDLZ is doing good in the industry, outperforming 61.54% 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.
MDLZ has a Debt to FCF ratio of 5.90. This is in the better half of the industry: MDLZ outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that MDLZ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, MDLZ is not doing good in the industry: 62.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.89
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.61 indicates that MDLZ may have some problems paying its short term obligations.
MDLZ has a worse Current ratio (0.61) than 87.91% of its industry peers.
A Quick Ratio of 0.40 indicates that MDLZ may have some problems paying its short term obligations.
MDLZ has a worse Quick ratio (0.40) than 81.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for MDLZ have decreased by -3.86% in the last year.
MDLZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.91% yearly.
MDLZ shows a small growth in Revenue. In the last year, the Revenue has grown by 0.90%.
Measured over the past years, MDLZ shows a small growth in Revenue. The Revenue has been growing by 7.09% on average per year.
EPS 1Y (TTM)-3.86%
EPS 3Y6.58%
EPS 5Y6.91%
EPS Q2Q%-22.11%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%0.25%
3.2 Future
The Earnings Per Share is expected to grow by 4.91% on average over the next years.
The Revenue is expected to grow by 4.10% on average over the next years.
EPS Next Y-10.73%
EPS Next 2Y-0.92%
EPS Next 3Y2.39%
EPS Next 5Y4.91%
Revenue Next Year4.78%
Revenue Next 2Y4.51%
Revenue Next 3Y4.27%
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.
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
MDLZ is valuated rather expensively with a Price/Earnings ratio of 21.29.
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 (27.45), we can say MDLZ is valued slightly cheaper.
The Price/Forward Earnings ratio is 20.37, which indicates a rather expensive current valuation of MDLZ.
64.84% of the companies in the same industry are more expensive than MDLZ, based on the Price/Forward Earnings ratio.
MDLZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDLZ is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MDLZ is valued a bit cheaper than the industry average as 63.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.96 | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
The decent profitability rating of MDLZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.08
EPS Next 2Y-0.92%
EPS Next 3Y2.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, MDLZ has a reasonable but not impressive dividend return.
MDLZ's Dividend Yield is a higher than the industry average which is at 4.75.
MDLZ's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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-0.92%
EPS Next 3Y2.39%
68.99
-0.57 (-0.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.9%
Inst Owner Change2.47%
Ins Owners0.14%
Ins Owner Change3.59%
Market Cap89.33B
Analysts75.56
Price Target73.29 (6.23%)
Short Float %1.57%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)0.31%
PT rev (3m)8.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)0.02%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 20.37 | ||
| P/S | 2.45 | ||
| P/FCF | 26.96 | ||
| P/OCF | 19.1 | ||
| P/B | 3.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.83 |
EPS(TTM)3.24
EY4.7%
EPS(NY)3.39
Fwd EY4.91%
FCF(TTM)2.56
FCFY3.71%
OCF(TTM)3.61
OCFY5.24%
SpS28.16
BVpS19.91
TBVpS-12.96
PEG (NY)N/A
PEG (5Y)3.08
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 | 2.58 |
F-Score5
WACC7.83%
ROIC/WACC0.89
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-10.73%
EPS Next 2Y-0.92%
EPS Next 3Y2.39%
EPS Next 5Y4.91%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%0.25%
Revenue Next Year4.78%
Revenue Next 2Y4.51%
Revenue Next 3Y4.27%
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%