Mondelez International, Inc. (NASDAQ: MDLZ)

Sector: Consumer Defensive Industry: Confectioners CIK: 0001103982
Market Cap 77.63 Bn
P/B 3.00
P/E 31.67
P/S 2.01
ROIC (Qtr) 5.32
Div Yield % 3.24
Rev 1y % (Qtr) 9.29
Total Debt (Qtr) 21.80 Bn
Debt/Equity (Qtr) 0.84
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About

Investment thesis

Bull case

  • Operating cash flow of 4.51B provides exceptional 300.93x coverage of minority interest expenses 15M, showing strong core operations.
  • Operating cash flow of 4.51B provides strong 39.60x coverage of stock compensation 114M, indicating sustainable incentive practices.
  • Operating cash flow of 4.51B provides exceptional 16.01x coverage of interest expenses 282M, showing strong debt service capability.
  • Robust free cash flow of 3.24B exceeds capital expenditure of 1.27B by 2.55x, indicating strong organic growth funding capability.
  • Retained earnings of 36.41B provide full 2.04x coverage of long-term debt 17.82B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 4.51B barely covers its investment activities of (1.20B), with a coverage ratio of -3.77, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 4.51B provides thin coverage of dividend payments of (2.49B) with a -1.82 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 3.52B show weak coverage of depreciation charges of 1.36B, with a 2.59 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of 36.41B provide limited buffer against comprehensive income items of (11.36B), which is -3.20x, indicating elevated exposure to market risks.
  • Cash position of 2.12B provides weak coverage of payables of 10.14B, which is 0.21x, indicating potential working capital stress and supplier relationship risks.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Confectioners
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MDLZ Mondelez International, Inc. 77.63 Bn 31.67 2.01 21.80 Bn
2 HSY Hershey Co 43.45 Bn 49.19 3.72 5.40 Bn
3 TR Tootsie Roll Industries Inc 3.42 Bn 50.54 6.56 0.01 Bn
4 RMCF Rocky Mountain Chocolate Factory, Inc. 0.02 Bn -4.81 0.66 0.01 Bn
5 SOWG Sow Good Inc. 0.00 Bn -0.23 0.68 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.37 1.95
EV to Cash from Ops. EV/CFO 21.75 -14.42
EV to Debt EV to Debt 4.50 50.96
EV to EBIT EV/EBIT 27.94 17.24
EV to EBITDA EV/EBITDA 20.02 12.10
EV to Free Cash Flow [EV/FCF] EV/FCF 30.27 16.09
EV to Market Cap EV to Market Cap 1.26 1.87
EV to Revenue EV/Rev 2.55 3.41
Price to Book Value [P/B] P/B 3.00 4.14
Price to Earnings [P/E] P/E 31.67 25.27
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.99 1.08
Dividend Payout Ratio % Div Payout % (Qtr) 102.60 50.60
Dividend per Basic Share Div per Share (Qtr) 1.94 1.28
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 77.17 29.78
Interest Coverage Int. cover (Qtr) 12.46 -3.81
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 7.37 21.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 57.29 -13.09
Dividend Growth (1y) % Div 1y % (Qtr) 8.38 -2.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -43.87 -160.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -35.84 -90.21
EBIT Growth (1y) % EBIT 1y % (Qtr) -43.85 -143.34
EBT Growth (1y) % EBT 1y % (Qtr) -46.83 -253.26
EPS Growth (1y) % EPS 1y % (Qtr) -45.06 -132.50
FCF Growth (1y) % FCF 1y % (Qtr) -8.34 20.09
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -23.30 -36.86
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.54 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.43 0.20
Cash Ratio Cash Ratio (Qtr) 0.10 0.28
Current Ratio Curr Ratio (Qtr) 0.59 2.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.84 0.75
Interest Cover Ratio Int Coverage (Qtr) 12.46 -3.81
Times Interest Earned Times Interest Earned (Qtr) 12.46 -3.81
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.60 -41.04
EBIT Margin % EBIT Margin % (Qtr) 9.12 -52.72
EBT Margin % EBT Margin % (Qtr) 8.39 -55.42
Gross Margin % Gross Margin % (Qtr) 28.40 -0.86
Net Profit Margin % Net Margin % (Qtr) 6.40 -57.48