Fundamentals snapshot
MDLZ · NMS · Consumer Defensive · Confectioners
Current price
$61.60
52-week range
$51.20 - $71.15
Market cap
$79.07B
One-glance verdict
Wall Street consensus: $67.21 (70.0% higher than our fair-value estimate)
Buy below $31.63 for a 20% safety cushion
Now $61.60 — 56% above our estimate, beyond the bull case
Balance sheet
Net debt $20.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Mondelez International is the company behind many famous snacks you'd find in a pantry, like Oreo cookies, Ritz crackers, and Cadbury chocolate. It makes money by selling these treats in huge volumes to grocery stores and other retailers all around the world. Because people tend to buy these affordable snacks regularly, even when money is tight, the company's business can be more stable and predictable than companies that sell expensive or optional items.
Mondelez International was formed in 2012 when Kraft Foods split into two separate companies. The original Kraft Foods kept its North American grocery business, including products like Kraft cheese and Oscar Mayer meats, while Mondelez took on the global snack and candy brands. This move was designed to allow the faster-growing snack business to focus on expanding internationally with iconic brands like Oreo and Cadbury. The name "Mondelez" was created from the words for "world" and "delicious" in Latin-based languages, reflecting its global focus.
You've likely seen Mondelez's products in almost any grocery or convenience store you've visited. The company makes and sells a wide variety of well-known snacks and beverages around the world. Its biggest and most recognizable brands include Oreo and Chips Ahoy! cookies, Ritz and Triscuit crackers, Cadbury and Toblerone chocolates, and Sour Patch Kids candies. They sell these products to large retailers like supermarkets and club stores, as well as smaller convenience stores and online.
This is Mondelez's largest business area, making up nearly half of its sales. It includes a wide range of cookies, crackers, and other baked goods that are popular worldwide. You would recognize famous brands like Oreo, Ritz, LU, Triscuit, and Wheat Thins in this category. Recently, the company has also been expanding into snack bars by acquiring brands like CLIF Bar.
Making up about a third of the company's business, this segment includes some of the world's most famous chocolate brands. This part of the company grew significantly after the acquisition of the British confectioner Cadbury. Key chocolate brands that people buy include Cadbury Dairy Milk, Milka, and the distinctively shaped Toblerone.
This is a smaller but still significant part of Mondelez's business. It includes well-known candy brands that you might find at the checkout counter. While the company recently sold some of its gum brands like Trident and Dentyne in North America and Europe, it still operates a gum and candy business in other parts of the world.
The company's leadership is focused on growing its core snack brands, particularly in chocolate and biscuits, which they aim to make up 90% of their revenue (the money a company earns from selling its products). They are also expanding into new, related areas like cakes and pastries, seeing it as a large and growing market. A key part of their strategy involves acquiring other snack companies to enter new markets or add popular brands to their portfolio, as seen with their purchase of Clif Bar. Additionally, they are investing in making their products healthier and sourcing their ingredients, like cocoa, more sustainably.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $67.21 (70.0% higher than our fair-value estimate).
Buy below $31.63 for a 20% safety cushion. That means buying at least 20% below our fair value, as a buffer in case our estimate turns out too rosy.
Our most-likely fair value is $39.54 a share — about 35.8% below today's price of $61.60, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Net debt $20.1B. Interest coverage 6.0x.
Mondelez International, Inc.'s profit covers its interest bill about 6.0 times over.
Total debt $21.62B Interest coverage 6.04x This is the baseline the peer rows are being compared against.
Total debt $5.68B Interest coverage 6.50x +8% vs MDLZ Has roughly the same debt cushion as MDLZ.
Total debt $52.73B Interest coverage 12.03x +99% vs MDLZ Carries about 2.0x more debt cushion than MDLZ.
Total debt $72.63B Interest coverage 7.67x +27% vs MDLZ Carries about 1.3x more debt cushion than MDLZ.
Total debt $0.00 Interest coverage 5.99x -1% vs MDLZ Has roughly the same debt cushion as MDLZ.
What you should know
The numbers
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Valuation
Profitability
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What you should know