MONDELEZ INTERNATIONAL INC-A (MDLZ) Stock Fundamental Analysis
NASDAQ:MDLZ - Nasdaq - US6092071058 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MDLZ. MDLZ was compared to 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 does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years MDLZ has been profitable.
In the past 5 years MDLZ always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.73%, MDLZ is doing good in the industry, outperforming 74.12% of the companies in the same industry.
MDLZ's Return On Equity of 17.12% is amongst the best of the industry. MDLZ outperforms 85.88% of its industry peers.
MDLZ's Return On Invested Capital of 10.27% is amongst the best of the industry. MDLZ outperforms 82.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDLZ is in line with the industry average of 9.02%.
The last Return On Invested Capital (10.27%) for MDLZ is above the 3 year average (7.83%), which is a sign of increasing profitability.
| 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 90.59% of its industry peers.
In the last couple of years the Profit Margin of MDLZ has declined.
MDLZ's Operating Margin of 18.37% is amongst the best of the industry. MDLZ outperforms 91.76% of its industry peers.
In the last couple of years the Operating Margin of MDLZ has grown nicely.
The Gross Margin of MDLZ (39.12%) is better than 91.76% 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
MDLZ 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, MDLZ has less shares outstanding
The number of shares outstanding for MDLZ has been reduced compared to 5 years ago.
Compared to 1 year ago, MDLZ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.65 indicates that MDLZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
MDLZ has a Altman-Z score (2.65) which is comparable to the rest of the industry.
The Debt to FCF ratio of MDLZ is 5.04, which is a neutral value as it means it would take MDLZ, 5.04 years of fcf income to pay off all of its debts.
MDLZ's Debt to FCF ratio of 5.04 is fine compared to the rest of the industry. MDLZ outperforms 67.06% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that MDLZ is somewhat dependend on debt financing.
The Debt to Equity ratio of MDLZ (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 5.04 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.31
WACC7.82%
2.3 Liquidity
A Current Ratio of 0.68 indicates that MDLZ may have some problems paying its short term obligations.
With a Current ratio value of 0.68, MDLZ is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
MDLZ has a Quick 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.
With a Quick ratio value of 0.48, MDLZ is not doing good in the industry: 81.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
MDLZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.23%.
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 1.18%.
MDLZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.09% yearly.
EPS 1Y (TTM)4.23%
EPS 3Y6.58%
EPS 5Y6.91%
EPS Q2Q%-22.62%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%3.11%
3.2 Future
The Earnings Per Share is expected to grow by 6.57% on average over the next years.
The Revenue is expected to grow by 4.52% on average over the next years.
EPS Next Y-14.23%
EPS Next 2Y-2.63%
EPS Next 3Y1.85%
EPS Next 5Y6.57%
Revenue Next Year2.93%
Revenue Next 2Y3.6%
Revenue Next 3Y3.84%
Revenue Next 5Y4.52%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 18.74, the valuation of MDLZ can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MDLZ is on the same level as its industry peers.
MDLZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 21.85 indicates a rather expensive valuation of MDLZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDLZ indicates a somewhat cheap valuation: MDLZ is cheaper than 63.53% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MDLZ to the average of the S&P500 Index (22.68), we can say MDLZ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 21.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MDLZ.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDLZ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.74 | ||
| EV/EBITDA | 12.1 |
4.3 Compensation for Growth
MDLZ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.71
EPS Next 2Y-2.63%
EPS Next 3Y1.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.07%, MDLZ has a reasonable but not impressive dividend return.
MDLZ's Dividend Yield is a higher than the industry average which is at 3.94.
Compared to an average S&P500 Dividend Yield of 2.29, MDLZ pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of MDLZ is nicely growing with an annual growth rate of 10.52%!
MDLZ has been paying a dividend for at least 10 years, so it has a reliable track record.
MDLZ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.52%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
50.94% of the earnings are spent on dividend by MDLZ. This is a bit on the high side, but may be sustainable.
MDLZ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.94%
EPS Next 2Y-2.63%
EPS Next 3Y1.85%
64.67
+2.5 (+4.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.81%
Inst Owner Change-2.02%
Ins Owners0.14%
Ins Owner Change3.19%
Market Cap83.65B
Analysts78.79
Price Target74.42 (15.08%)
Short Float %1.58%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)-6.75%
PT rev (3m)-9.35%
EPS NQ rev (1m)-20.47%
EPS NQ rev (3m)-32.69%
EPS NY rev (1m)-14.81%
EPS NY rev (3m)-15.41%
Revenue NQ rev (1m)-3.04%
Revenue NQ rev (3m)-3.92%
Revenue NY rev (1m)-1.25%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 21.85 | ||
| P/S | 2.3 | ||
| P/FCF | 23.74 | ||
| P/OCF | 17.04 | ||
| P/B | 3.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.1 |
EPS(TTM)3.45
EY5.33%
EPS(NY)2.96
Fwd EY4.58%
FCF(TTM)2.72
FCFY4.21%
OCF(TTM)3.8
OCFY5.87%
SpS28.17
BVpS20.82
TBVpS-11.54
PEG (NY)N/A
PEG (5Y)2.71
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 | 2.65 |
F-Score8
WACC7.82%
ROIC/WACC1.31
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)4.23%
EPS 3Y6.58%
EPS 5Y6.91%
EPS Q2Q%-22.62%
EPS Next Y-14.23%
EPS Next 2Y-2.63%
EPS Next 3Y1.85%
EPS Next 5Y6.57%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y8.26%
Revenue growth 5Y7.09%
Sales Q2Q%3.11%
Revenue Next Year2.93%
Revenue Next 2Y3.6%
Revenue Next 3Y3.84%
Revenue Next 5Y4.52%
EBIT growth 1Y17.29%
EBIT growth 3Y11.2%
EBIT growth 5Y9.29%
EBIT Next Year16.84%
EBIT Next 3Y10.85%
EBIT Next 5Y9%
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%