Mondelez International (MDLZ) AI Stock Analysis

• Market Cap: $84.45B
• Dividend Yield: 2.72%
• Average Volume (3M): 11.32M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.16
• Revenue Growth: 1.18%
• EPS Growth: -5.47%
• Country: US
• Employees: 90,000
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Consumer Products - Foods
• EPS (TTM): 3.42
• Shares Outstanding: 1,293,525,100
• 10 Day Avg. Volume: 10,780,056
• 30 Day Avg. Volume: 11,320,317
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.33
• Price to Cash Flow (P/CF): 14.60
• P/FCF Ratio: 13.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $67.00
• Price Target Upside: 2.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

Mondelez International demonstrates solid financial performance with consistent growth and strong brand positioning in the consumer foods sector. Despite challenges like increasing leverage and cocoa cost inflation, the company has strategic initiatives in place to sustain growth. The technical indicators suggest positive momentum, although some caution is warranted due to potential overbought conditions. The valuation is reasonable, making it an attractive option for income-focused investors.

Positive Factors

Growth Potential

The price target for Mondelez International has been increased from $57 to $71, indicating confidence in the company's potential growth.

Strategic Partnerships

The company is expanding its baked goods category significantly with a strategic partnership with Lotus/Biscoff, opening new growth avenues.

Negative Factors

Cocoa Inflation Impact

Soaring cocoa price inflation finally caught up with MDLZ, as Q4 gross/operating profit missed consensus by significant margins.

Mondelez International Business Overview & Revenue Model

Company Description

Mondelez International, Inc. is a global leader in the snack food industry, specializing in the production, marketing, and distribution of snacks and beverages. Headquartered in Chicago, Illinois, Mondelez operates in over 150 countries and is known for its extensive portfolio of iconic brands, including Oreo, Cadbury, Toblerone, Triscuit, and Ritz. The company's core products span multiple categories such as biscuits, chocolate, gum, candy, cheese, and powdered beverages, catering to a wide range of consumer preferences and tastes.

How the Company Makes Money

Mondelez International generates revenue primarily through the sale of its diverse array of snack products. The company's revenue model is centered around its strong brand portfolio, which includes some of the world's most well-known snack brands. Mondelez's key revenue streams are derived from the sales of biscuits, chocolate, gum, and candy. The company employs a combination of direct sales and distribution partnerships to deliver its products to retail and wholesale customers globally. Mondelez also benefits from strategic acquisitions and partnerships that expand its brand reach and market presence, allowing it to tap into new consumer segments and geographical markets. In addition, Mondelez invests in marketing and innovation to maintain brand loyalty and introduce new products that align with changing consumer trends. The company effectively leverages its global supply chain and operational efficiencies to maximize profitability and shareholder value.

Mondelez International Financial Statement Overview

Summary

Mondelez International exhibits strong financial performance with consistent revenue and profit growth, supported by a solid cash flow position. Notable strengths include robust revenue growth and improved profit margins. However, increasing leverage and capital allocation variability present some risks to long-term stability.

Income Statement

Mondelez International has shown a consistent revenue growth trajectory, with a notable increase from $25.87 billion in 2019 to $36.44 billion in 2024. The gross profit margin has remained robust, indicating strong pricing power and cost management. The net profit margin has improved, reflecting enhanced operational efficiency. However, a slight decrease in net income in 2024 suggests some margin pressure or increased expenses.

Balance Sheet

The company's balance sheet reflects a stable equity base but an increasing debt level, raising the debt-to-equity ratio over time. This could indicate potential leverage risk, although the equity ratio remains healthy. The return on equity has shown improvement, highlighting efficient use of shareholder funds despite the higher leverage.

Cash Flow

Operating cash flow has remained strong, with consistent free cash flow generation. There is a positive free cash flow to net income ratio, indicating healthy cash conversion. However, fluctuations in capital expenditures and investing cash flows suggest variability in investment strategies which could impact future cash flow stability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
29.88B	36.44B	36.02B	31.50B	28.72B	26.58B
	Gross Profit
11.28B	14.26B	13.76B	11.31B	11.25B	10.45B
	EBIT
-477.00M	6.34B	5.50B	3.53B	5.06B	3.85B
	EBITDA
5.95B	7.74B	8.11B	5.84B	6.11B	5.42B
	Net Income Common Stockholders
3.86B	4.61B	4.96B	2.72B	3.18B	2.16B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35B	1.35B	1.81B	1.92B	3.55B	3.62B
	Total Assets
68.50B	68.50B	71.39B	71.16B	67.09B	67.81B
	Total Debt
18.37B	18.37B	19.95B	23.45B	19.97B	20.52B
	Net Debt
17.02B	17.02B	18.14B	21.52B	16.43B	16.90B
	Total Liabilities
41.54B	41.54B	43.02B	44.24B	38.77B	40.16B
	Stockholders Equity
26.93B	26.93B	28.33B	26.88B	28.27B	27.58B
Cash Flow		Free Cash Flow
3.38B	3.52B	3.60B	3.00B	3.18B	3.10B
	Operating Cash Flow
4.32B	4.91B	4.71B	3.91B	4.14B	3.96B
	Investing Cash Flow
-805.00M	526.00M	2.81B	-4.89B	-26.00M	500.00M
	Financing Cash Flow
-3.36B	-5.78B	-7.56B	-456.00M	-4.07B	-2.21B

Mondelez International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDLZ, the sentiment is Positive. The current price of 65.29 is above the 20-day moving average (MA) of 61.77, above the 50-day MA of 59.59, and below the 200-day MA of 65.72, indicating a neutral trend. The MACD of 1.73 indicates Negative momentum. The RSI at 65.88 is Neutral, neither overbought nor oversold. The STOCH value of 74.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDLZ.

Mondelez International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSY	81 Outperform	$35.70B	16.16	47.11%	3.07%	0.33%	20.17%
MDLZ	78 Outperform	$84.45B	19.07	17.12%	2.72%	1.18%	-5.47%
K	73 Outperform	$28.43B	21.22	35.58%	2.73%	-16.16%	41.01%
GIS	72 Outperform	$33.70B	13.30	28.29%	3.85%	-1.48%	11.45%
CPB	70 Outperform	$12.02B	21.96	14.94%	3.63%	6.34%	-30.58%
KHC	68 Neutral	$37.43B	13.87	5.58%	5.11%	-2.98%	-2.22%
Sector *	63 Neutral	$20.85B	13.27	-10.88%	7.48%	1.13%	11.50%

Mondelez International Corporate Events

Mondelez Secures New $6 Billion Credit Facilities

On February 19, 2025, Mondelez International entered into two new revolving credit agreements: a $1.5 billion 364-day facility and a $4.5 billion five-year facility, both with JPMorgan Chase Bank, N.A. as the administrative agent. These agreements replace previous credit agreements of the same amounts, which were terminated. The new agreements allow Mondelez and its subsidiaries to borrow up to the unused commitments and have provisions for potential increases in the borrowing amounts. The 364-day facility will terminate on February 18, 2026, with an option to extend, while the five-year facility will terminate on February 19, 2030, with possible one-year extensions. Both agreements require Mondelez to maintain a minimum shareholders’ equity of $25 billion and are intended for general corporate purposes, including working capital and support for commercial paper programs.

Mondelez International Highlights Sustainable Growth Strategy

On February 18, 2025, Mondelēz International showcased its continued progress on sustainable growth at the Consumer Analyst Group of New York conference, highlighting its strategic focus on doubling down on core categories like chocolate, biscuits, and baked snacks. The company is looking to capitalize on opportunities in the large, fast-growing cakes and pastries market, where it currently holds a #3 global share. Despite challenges like record cocoa input cost inflation, Mondelēz International has maintained consumer loyalty and delivered a 4.3% organic net revenue growth and 5.1% adjusted gross profit dollar growth in 2024. The company aims to continue reshaping its portfolio and executing a proven playbook to sustain its market leadership and unlock value through disciplined capital allocation and expanded free cash flow.

Mondelez Appoints Brian Stevens as New Finance Leader

Mondelez International has announced the appointment of Brian Stevens as Senior Vice President, Corporate Controller & Chief Accounting Officer, effective February 10, 2025. Stevens, with a rich background in accounting and finance leadership roles at Baxter International and Groupon, will succeed Michael Call, who will transition to Senior Vice President, Finance for North America. Stevens’ extensive experience and leadership roles at major companies are expected to strengthen Mondelez’s accounting and finance operations and reinforce its position in the industry.

Mondelez Sells JDE Peet’s Shares for €2.2 Billion

In the fourth quarter of 2024, Mondelēz International completed the sale of its remaining 85.9 million shares in JDE Peet’s to JAB Holdings Company for approximately €2.2 billion. This transaction, finalized on November 29, 2024, led to a recast of the company’s historical non-GAAP financial results, excluding JDEP’s equity method investment net earnings from adjusted EPS for all historical periods. This adjustment aims to enhance transparency and trend identification in Mondelēz’s operating results, while their U.S. GAAP results remain unchanged.