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Mondelez (MDLZ): unwarranted selloff?

2:33 pm ET, 02 May 2018

While Mondelez (NASDAQ: MDLZ) was able to demonstrate margin gains over the past several quarters, the biggest news this quarter was sales growth, up mid-single digits. 

It's important to understand that this result was inflated by favorable foreign currency conversion ratios and the Easter calendar shift.  If you exclude those two factors, organic revenues went up a modest 2%.  

The organic sales increase is driven by higher prices, favorable mix, and increased volumes.  The markets that showed most strength are Europe (up 4.7%) and emerging markets (up 5.5%).  Those two together contributed to 80% of total sales. 

However,  North America remained an underperformer (down 1.8%), which is attributed to inventory destocking.  One category that's particularly weak for Mondelez is gum.   

While raw material and transportation costs are going up, these pressures were offset by cost efficiency and productivity efforts. 

We believe that Mondelez will weather inflationary pressure and currency headwinds because it has a portfolio of leading products, entrenched relationships with retailers, and unbeatable global reach.

Over the last year, MDLZ returned -13.37%.  This return is higher than Confectioners sector (-18.38%), but lower than Consumer Goods industry (1.95%) and S&P 500 (11.16%) returns.

For the latest news on Mondelez, stock price, valuation, and financials, please visit Finstead  (and type "MDLZ news" or "MDLZ stock price").  

Mondelez International, Inc. (MDLZ) Stock Guide

Updated at: 8:38 pm ET, 13 Nov 2020

Before we start: if you're looking for MDLZ stock price, you can quickly find it out by visiting Finny and typing "MDLZ quote". If you're looking for a quick scoop on MDLZ stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MDLZ". You'll get all this info in one place. Or you can just type "MDLZ news" to get the latest stock news.

Looking to buy or sell Mondelez International, Inc. (MDLZ)? Interested in getting the full scoop on MDLZ, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MDLZ stock guide, we'll address key questions about MDLZ, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MDLZ earnings?
2. When is MDLZ earnings date?
3. What is MDLZ dividend?
4. What is MDLZ dividend yield?
5. What is MDLZ stock forecast (i.e., prediction)?
6. MDLZ buy or sell? What is MDLZ Finny Score?
7. What are the reasons to buy MDLZ? Why should I buy MDLZ stock?
8. What are the reasons to sell MDLZ? Why should I sell MDLZ stock?
9. What are MDLZ key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MDLZ earnings?

MDLZ trailing 12-month earnings per share (EPS) is $2.33.

2. When is MDLZ earnings date?

MDLZ earnings date is January 27, 2021.

3. What is MDLZ dividend?

MDLZ forward dividend is $1.26.

4. What is MDLZ dividend yield?

MDLZ forward dividend yield is 2.37%.

Analyst Predictions

5. What is MDLZ stock forecast (i.e., prediction)?

Based on MDLZ analyst price targets, MDLZ stock forecast is $63.62 (for a year from now). That means the average analyst price target for MDLZ stock is $63.62. The prediction is based on 21 analyst estimates.

The low price target for MDLZ is $60.00, while the high price target is $70.00.

MDLZ analyst rating is Buy.

Analysis

6. MDLZ buy or sell? What is MDLZ Finny Score?

#{finnyScore:63}Our quantitative analysis shows 5 reasons to buy and 3 reasons to sell MDLZ, resulting in Finny Score of 63.

7. What are the reasons to buy MDLZ? Why should I buy MDLZ stock?

Here are the reasons to buy MDLZ stock:

  • We’re encouraged Mondelez isn’t looking to boost its top line at any cost and view strategic actions to forgo unprofitable sales as a plus.
  • We suspect opportunities to tailor products extend beyond new flavor profiles to include adjusting its pack sizes to more effectively gain distribution in alternative outlets, where it lags peers.
  • Because its manufacturing network is plagued by aged lines (particularly on its home turf), Mondelez is upgrading its facilities, which should aid in achieving management's target of 500 basis points of margin gains in North America.
  • MDLZ profitability is improving. The YoY profit margin change was 4.88 percentage points. See MDLZ profitability chart.
  • MDLZ forward dividend yield is 2.37%, higher than the industry (0.70%) and sector (0.53%) forward dividend yields. See MDLZ forward dividend chart.
  • MDLZ Price/Book ratio is 2.92, which is low compared to its industry peers’ P/B ratios. See MDLZ forward Price/Book ratio chart.
  • MDLZ PEG ratio (P/E adjusted for growth) is 2.86, which is low compared to its industry peers’ PEG ratios. See MDLZ PEG chart.
  • MDLZ average analyst rating is Buy. See MDLZ analyst rating chart.

8. What are the reasons to sell MDLZ? Why should I sell MDLZ stock?

Let's look at the reasons to sell MDLZ stock (i.e., the bear case):

  • Compounding the challenges facing gum, Hershey has been working with retailers to shrink gum's shelf space in favor of expanding the mix of candy, which could further delay a turnaround in the category.
  • Heightened competition across snacking (including yogurt, snack bars, and salty snacks) may prompt a reduction in impulse purchases of chocolate, as consumers opt for healthier fare.
  • Mondelez’s North America segment (one fourth of its total sales base) faces an onslaught of competitive headwinds, particularly its biscuit business, which accounts for more than 20% of consolidated sales.
  • MDLZ stock price ($58.06) is close to the 52-week high ($59.61). Perhaps now is a good time to sell? See MDLZ price chart.
  • MDLZ quarterly revenue growth was -2.50%, lower than the industry and sector average revenue growth (0.81% and 0.70%, respectively). See MDLZ revenue growth chart.
  • MDLZ cash to debt ratio is 0.08, lower than the average industry (0.12) and sector (0.11) cash to debt ratio. See MDLZ cash to debt chart.

Key Stats

9. What are MDLZ key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MDLZ:

Metrics MDLZ
Price $57.48
Average Price Target / Upside $63.62 / 10.68%
Average Analyst Rating Buy
Forward Dividend Yield 2.17%
Industry Confectioners
Sector Consumer Defensive
Number of Employees 80,000
Market Cap $83.04B
Forward P/E Ratio 20.66
Price/Book Ratio 3.17
Revenue (TTM) $26.2B
YoY Quarterly Revenue Growth 4.90%
Profit Margin 11.73%

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