Last Updated: 09 Nov 2024
Executive Summary
Mondelez International Inc. (MDLZ) is a leading multinational confectionery, food, and beverage company with a market capitalization of $88.5 billion. The company's strong financial performance, including a 10.6% revenue growth and a 14.3% EPS growth in the last quarter, has resulted in a positive analyst outlook. The stock price is currently trading at $66.2, below its 52-week high of $75.76, offering an attractive entry point for investors.
Company Overview
Mondelez International was founded in 1923 and is headquartered in Chicago, Illinois. The company operates in over 150 countries and employs approximately 83,000 people. Mondelez's portfolio of brands includes iconic names such as Oreo, Cadbury, Nabisco, and Milka. The company's products are sold through a variety of channels, including supermarkets, convenience stores, and online retailers.
Fundamental Analysis
Revenue: Mondelez's revenue has grown steadily in recent years, reaching $36.15 billion in the last twelve months. The company's revenue is expected to continue growing in the coming years, driven by strong demand for its products in emerging markets and the launch of new products.
Earnings: Mondelez's earnings have also grown in recent years, with diluted EPS reaching $2.84 in the last twelve months. The company's earnings are expected to continue growing in the coming years, driven by cost-cutting initiatives and the launch of higher-margin products.
Profitability: Mondelez's profitability metrics are strong, with a gross profit margin of 31.4% and an operating margin of 11.2%. The company's profitability is expected to remain stable in the coming years, as the company focuses on cost control and efficiency improvements.
Valuation: Mondelez's stock is currently trading at a P/E ratio of 23.31 and a forward P/E ratio of 19.16. These valuations are in line with the company's peers and are considered fair.
Technical Analysis
Chart Pattern: Mondelez's stock price has been trading in a sideways range between $63.77 and $75.76 for the past year. The stock is currently trading near the bottom of this range, offering a potential buying opportunity.
Moving Averages: The stock's 50-day moving average is currently at $72.02, while its 200-day moving average is at $70.33. The stock is currently trading below both of these moving averages, indicating a bearish trend.
Technical Indicators: The stock's relative strength index (RSI) is currently at 35, indicating that the stock is oversold. This suggests that the stock may be due for a bounce.
Short Term Outlook
In the short term, Mondelez's stock price is expected to remain range-bound between $63.77 and $75.76. The stock is currently trading near the bottom of this range, offering a potential buying opportunity. However, investors should be aware that the stock is trading below its moving averages, indicating a bearish trend.
Long Term Outlook
In the long term, Mondelez's stock price is expected to continue growing, driven by the company's strong fundamentals and positive analyst outlook. The company's revenue and earnings are expected to continue growing in the coming years, and its profitability metrics are expected to remain stable.
Analyst Recommendations
Analysts are generally positive on Mondelez International Inc. Six analysts have a strong buy rating on the stock, while 17 have a buy rating. Three analysts have a hold rating, and none have a sell or strong sell rating. The average analyst target price is $80.32, implying a potential upside of 21.3%.
