Mondelez International, Inc. (MDLZ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

McCormick & Co., Inc.

Ingredion, Inc.

The J. M. Smucker Co.

Kellanova

Mondelez International, Inc.

Conagra Brands, Inc.

Post Holdings, Inc.

Darling Ingredients, Inc.

The Hershey Co.

International Flavors & Fragrances, Inc.

Lamb Weston Holdings, Inc.

Why is Mondelez International, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.38

Poor long term growth as Operating profit has grown by an annual rate 3.14% of over the last 5 years

Negative results in Jun 25

ROCE(HY) Lowest at 13.51%
INTEREST COVERAGE RATIO(Q) Lowest at 1,015.23
RAW MATERIAL COST(Y) Grown by 10.58% (YoY)

With ROCE of 10.76%, it has a expensive valuation with a 3.28 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.95%, its profits have fallen by -14.3%

High Institutional Holdings at 87.86%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 5.46% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.95% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mondelez International, Inc. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mondelez International, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mondelez International, Inc.

-13.9%

-0.72

22.31%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.47%

EBIT Growth (5y)

3.14%

EBIT to Interest (avg)

10.38

Debt to EBITDA (avg)

3.11

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

0.75

Tax Ratio

22.26%

Dividend Payout Ratio

52.29%

Pledged Shares

Institutional Holding

87.86%

ROCE (avg)

10.31%

ROE (avg)

13.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.87

EV to EBIT

30.48

EV to EBITDA

23.85

EV to Capital Employed

3.28

EV to Sales

3.93

PEG Ratio

Dividend Yield

ROCE (Latest)

10.76%

ROE (Latest)

12.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 8.59

-9What is not working for the Company

ROCE(HY)

Lowest at 13.51%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,015.23

RAW MATERIAL COST(Y)

Grown by 10.58% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 76.04 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.7 times

INTEREST(Q)

Highest at USD 151 MM

NET PROFIT(Q)

Lowest at USD 696.56 MM

Here's what is working for Mondelez International, Inc.

Dividend per share

Highest at USD 8.59 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 339 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Mondelez International, Inc.

Interest Coverage Ratio

Lowest at 1,015.23

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 151 MM

in the last five periods and Increased by 10.22% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Lowest at USD 696.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 76.04 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 5.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 10.58% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales