Mondelez International (MDLZ) AI Stock Analysis

• Market Cap: $69.67B
• Dividend Yield: 3.53%
• Average Volume (3M): 10.39M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.09
• Revenue Growth: 4.13%
• EPS Growth: -5.19%
• Country: US
• Employees: 90,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.72
• Shares Outstanding: 1,290,358,500
• 10 Day Avg. Volume: 7,589,753
• 30 Day Avg. Volume: 10,388,991
• PEG Ratio: -3.16
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 22.74
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 8.68
• Enterprise Value/Ebitda: 18.12
• 1Y Price Target: $66.82
• Price Target Upside: 23.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $61.00 ▲(12.98% Upside)

Mondelez International's overall stock score reflects a combination of steady revenue growth and strategic initiatives in emerging markets, offset by challenges in margin pressure and leverage. Technical indicators suggest a bearish trend, and valuation metrics do not indicate a strong buying opportunity. The mixed sentiment from the earnings call further contributes to a cautious outlook.

Positive Factors

Emerging Markets Growth

Mondelez's strong growth in emerging markets like Brazil and India indicates successful market penetration and potential for sustained revenue expansion.

U.S. Biscuit Market Innovation

Innovation in the U.S. biscuit market, particularly in premium and health-focused segments, positions Mondelez for long-term competitive advantage and market share gains.

Supply Chain Program

The supply chain program is expected to enhance efficiency and reduce costs, supporting profitability and operational resilience over the long term.

Negative Factors

European Chocolate Market Decline

The decline in the European chocolate market due to high cocoa prices and price elasticity challenges could impact Mondelez's revenue and market position in the region.

U.S. Biscuit Market Challenges

Economic concerns and pricing issues in the U.S. biscuit market may hinder growth, necessitating strategic adjustments to maintain market share.

Declining Margins

Declining margins indicate pressure on operational efficiency, which could affect profitability and require cost management strategies to sustain long-term growth.

Mondelez International Business Overview & Revenue Model

Company Description

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits, including cookies, crackers, and salted snacks; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's snack brand portfolio includes Cadbury, Milka, and Toblerone chocolates; Oreo, belVita, and LU biscuits; Halls candies; Trident gums; and Tang powdered beverages. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, third party distributors, and other facilities, as well as through independent sales offices and agents, and e-commerce channels. The company was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. Mondelez International, Inc. was incorporated in 2000 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Mondelez International generates revenue primarily through the sales of its diverse range of snack products across various categories. The company employs a multi-channel revenue model that includes retail partnerships, e-commerce platforms, and direct sales to distributors. Key revenue streams come from the sale of packaged foods and snacks to grocery chains, convenience stores, and food service operators. Additionally, Mondelez benefits from significant global brand recognition, which enables it to command premium pricing for its products. Strategic partnerships with retailers and distributors enhance its market presence, while ongoing innovation in product offerings and targeted marketing campaigns drive consumer demand. Seasonal promotions and limited-edition product launches also contribute to revenue spikes during specific periods. Overall, Mondelez's ability to adapt to changing consumer trends and preferences plays a crucial role in its financial performance.

Mondelez International Financial Statement Overview

Summary

Mondelez International demonstrates steady revenue growth, but declining margins and increased leverage pose challenges. While the balance sheet remains relatively stable, cash flow management needs attention to support future growth and reduce financial risk.

Income Statement

Mondelez International shows a consistent revenue growth trajectory, with a TTM revenue growth rate of 1.46%. However, margins have declined compared to previous years, with the TTM gross profit margin at 30.99% and net profit margin at 9.38%. The EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.84 in the TTM, reflecting higher leverage. Return on equity has decreased to 13.44%, suggesting reduced profitability from equity. The equity ratio remains stable, indicating a balanced asset structure.

Cash Flow

Free cash flow has declined by 19.96% in the TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.17, indicating moderate cash conversion efficiency. The free cash flow to net income ratio of 0.64 suggests a need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.65B	36.44B	36.02B	31.50B	28.72B	26.58B
Gross Profit	11.69B	14.26B	13.76B	11.31B	11.25B	10.45B
EBITDA	5.60B	8.07B	7.64B	4.76B	5.85B	4.92B
Net Income	3.53B	4.61B	4.96B	2.72B	4.30B	3.56B
Balance Sheet
Total Assets	71.36B	68.50B	71.39B	71.16B	67.09B	67.81B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.35B	1.81B	1.92B	3.55B	3.62B
Total Debt	21.93B	18.37B	19.95B	23.54B	19.97B	20.52B
Total Liabilities	45.13B	41.54B	43.02B	44.24B	38.77B	40.16B
Stockholders Equity	26.18B	26.93B	28.33B	26.88B	28.27B	27.58B
Cash Flow
Free Cash Flow	2.29B	3.52B	3.60B	3.00B	3.18B	3.10B
Operating Cash Flow	3.58B	4.91B	4.71B	3.91B	4.14B	3.96B
Investing Cash Flow	766.00M	526.00M	2.81B	-4.89B	-26.00M	500.00M
Financing Cash Flow	-4.57B	-5.78B	-7.56B	-456.00M	-4.07B	-2.21B

Mondelez International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 53.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDLZ, the sentiment is Neutral. The current price of 53.99 is below the 20-day moving average (MA) of 54.00, below the 50-day MA of 55.51, and below the 200-day MA of 62.24, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 23.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MDLZ.

Mondelez International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	76 Outperform	$38.34B	28.28	31.01%	3.00%	4.71%	-23.03%
KDP	71 Outperform	$37.51B	23.95	6.29%	3.12%	6.77%	-29.84%
GIS	66 Neutral	$23.43B	9.63	27.29%	5.19%	-5.65%	0.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MDLZ	62 Neutral	$69.67B	20.58	13.07%	3.53%	4.13%	-5.19%
KHC	48 Neutral	$27.73B	-6.30	-9.73%	6.75%	-3.70%	-431.05%