Mondelez International, Inc. (MDLZ) stock analysis

P/E below its 5-year median

Mondelez International's P/E of 21.0 is below its own 5-year median of 22.4.

P/E above the industry

Mondelez International's P/E of 21.0 is above the Food and Kindred Products median of 21.0.

EV/EBITDA below its 5-year median

Mondelez International's EV/EBITDA of 15.3 is below its 5-year median of 18.4.

P/B above the industry

Mondelez International's price-to-book of 3.17 is above the Food and Kindred Products median of 1.73.

Trading above fair value

The share price of $66.70 is above our fair value estimate of $63.06.

Margin of safety under 20%

The price is 5.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -1.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 15.5% over the last twelve months, against a 5-year average of -7.2% a year.

Growing faster than the industry

Revenue grew 6.0% over the last twelve months; the Food and Kindred Products median is 1.4%.

Guidance issued

The latest outlook (2026 Organic Net Revenue growth, Oct 29, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 34.3% over the last twelve months, against 31.1% a year earlier.

Return on equity under 15%

Return on equity was 15.5% over the last twelve months and averaged 13.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.0%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Mondelez International's return on equity of 15.5% is above the Food and Kindred Products median of -15.0%.

Earnings shrank over 5 years

Net income shrank 7.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 10.2% over the last twelve months, against a 5-year average of 11.3%.

Net margin above the industry

Mondelez International's net margin of 10.2% is above the Food and Kindred Products median of -4.1%.

High debt

Debt is 81.7% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 72.7% five years ago to 81.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 23.0% of total debt.

Interest well covered

Operating income covers interest expense 9.2 times.

Short-term assets don't cover short-term debts

Current assets are 0.62 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.52; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Mondelez International paid dividends worth 3.0% of the share price over the last twelve months.

Yield below Treasuries

The 3.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Mondelez International yields 3.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 6 fiscal years.

Covered by earnings

Dividends take 63.1% of net income.

Covered by free cash flow

Dividends take 70.3% of free cash flow.