Mondelez International, Inc. Fundamental Analysis (NASDAQ: MDLZ)
Mondelez International, Inc. Fundamental Analysis (NASDAQ: MDLZ)
Mondelez International, Inc. (NASDAQ: MDLZ) shows moderate financial fundamentals with a PE ratio of 23.70, profit margin of 8.86%, and ROE of 13.47%. The company generates $39.3B in annual revenue with moderate year-over-year growth of 5.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MDLZ's fundamental strength across five key dimensions:
Efficiency Score
WeakMDLZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMDLZ trades at attractive valuation levels.
Growth Score
ModerateMDLZ shows steady but slowing expansion.
Financial Health Score
ModerateMDLZ shows balanced financial health with some risks.
Profitability Score
WeakMDLZ struggles to sustain strong margins.
Key Financial Metrics
Is MDLZ Expensive or Cheap?
P/E Ratio
MDLZ trades at 23.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MDLZ's PEG of -16.35 indicates potential undervaluation.
Price to Book
The market values Mondelez International, Inc. at 3.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.02 times EBITDA. This signals the market has high growth expectations.
How Well Does MDLZ Make Money?
Net Profit Margin
For every $100 in sales, Mondelez International, Inc. keeps $8.86 as profit after all expenses.
Operating Margin
Core operations generate 11.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.47 in profit for every $100 of shareholder equity.
ROA
Mondelez International, Inc. generates $4.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mondelez International, Inc. produces operating cash flow of $4.39B, showing steady but balanced cash generation.
Free Cash Flow
Mondelez International, Inc. produces free cash flow of $3.05B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.39 in free cash annually.
FCF Yield
MDLZ converts 3.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-16.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How MDLZ Stacks Against Its Sector Peers
| Metric | MDLZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.70 | 21.73 | Neutral |
| ROE | 13.47% | 661.00% | Weak |
| Net Margin | 8.86% | -2311.00% (disorted) | Weak |
| Debt/Equity | 0.83 | 0.81 | Neutral |
| Current Ratio | 0.60 | 2.28 | Weak Liquidity |
| ROA | 4.93% | 316.00% | Weak |
MDLZ outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mondelez International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.33%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-23.76%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
25.93%
Industry Style: Defensive, Dividend, Low Volatility
High Growth