Every day, millions of people indulge in the delightful offerings of Mondelez International, where iconic brands like Oreo and Toblerone transform ordinary moments into extraordinary experiences. As a prominent player in the food confectionery industry, Mondelez not only leads with innovation but also maintains a reputation for quality that resonates globally. With its expansive portfolio and strategic market presence, I find myself questioning whether the company’s current fundamentals still support its market valuation and future growth potential.
Table of contents
Company Description
Mondelez International, Inc. is a leading player in the global snack food industry, recognized for its diverse portfolio of beloved brands. Founded in 2000 and headquartered in Chicago, IL, Mondelez operates across key markets in North America, Latin America, Europe, Asia, the Middle East, and Africa. The company specializes in manufacturing and marketing an array of products, including biscuits, chocolates, gums, and powdered beverages, with iconic brands like Oreo, Cadbury, and Trident. With approximately 90K employees, Mondelez employs multiple distribution channels, including direct retail and e-commerce. Its strategic focus on innovation and sustainability positions Mondelez as a pivotal force in shaping consumer snacking trends worldwide.
Fundamental Analysis
In this section, I will analyze Mondelez International, Inc.’s income statement, financial ratios, and dividend payout policy to provide a clear picture of its financial health.
Income Statement
Below is the income statement for Mondelez International, Inc. (MDLZ) for the last five fiscal years, detailing the company’s key financial metrics.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 26.58B | 28.72B | 31.50B | 36.02B | 36.44B |
| Cost of Revenue | 16.14B | 17.47B | 20.18B | 22.25B | 22.18B |
| Operating Expenses | 6.59B | 6.60B | 7.78B | 8.26B | 7.91B |
| Gross Profit | 10.44B | 11.25B | 11.31B | 13.76B | 14.26B |
| EBITDA | 4.92B | 5.85B | 4.76B | 7.65B | 8.07B |
| EBIT | 3.81B | 4.73B | 3.66B | 6.43B | 6.77B |
| Interest Expense | 0.42B | 0.37B | 0.43B | 0.55B | 0.51B |
| Net Income | 3.56B | 4.30B | 2.72B | 4.96B | 4.61B |
| EPS | 2.48 | 3.06 | 1.97 | 3.64 | 3.44 |
| Filing Date | 2021-02-05 | 2022-02-04 | 2023-02-03 | 2024-02-02 | 2025-02-05 |
Interpretation of Income Statement
Over the past five years, Mondelez has shown a consistent upward trend in Revenue, increasing from 26.58B in 2020 to 36.44B in 2024, while Net Income has remained relatively stable, peaking at 4.96B in 2023 before slightly declining to 4.61B in 2024. The Gross Profit margin has improved, indicating better cost management, despite fluctuations in Operating Expenses. In 2024, while Revenue continued to grow, Net Income saw a small decrease, suggesting that profit margins may be tightening, potentially due to rising costs or strategic investments. As an investor, I recommend closely monitoring these trends to evaluate the company’s ongoing profitability and operational efficiency.
Financial Ratios
Here is a summary of the financial ratios for Mondelez International, Inc. (MDLZ) over the most recent years.
| Financial Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 13.37% | 14.97% | 8.63% | 13.77% | 12.65% |
| ROE | 12.89% | 15.21% | 10.11% | 17.50% | 17.12% |
| ROIC | 5.18% | 6.73% | 4.69% | 7.65% | 9.44% |
| P/E | 23.54 | 21.64 | 33.80 | 19.91 | 17.37 |
| P/B | 3.03 | 3.29 | 3.42 | 3.48 | 2.97 |
| Current Ratio | 0.66 | 0.74 | 0.60 | 0.62 | 0.68 |
| Quick Ratio | 0.48 | 0.54 | 0.40 | 0.43 | 0.48 |
| D/E | 0.74 | 0.71 | 0.88 | 0.70 | 0.68 |
| Debt-to-Assets | 30.25% | 29.77% | 33.08% | 27.94% | 26.82% |
| Interest Coverage | 9.11 | 12.75 | 8.26 | 10.00 | 12.49 |
| Asset Turnover | 0.39 | 0.43 | 0.44 | 0.50 | 0.53 |
| Fixed Asset Turnover | 2.75 | 3.10 | 3.25 | 3.47 | 3.56 |
| Dividend Yield | 2.01% | 1.96% | 2.16% | 2.18% | 2.93% |
Interpretation of Financial Ratios
Mondelez International, Inc. (MDLZ) exhibits a mixed financial profile for the fiscal year ending December 31, 2024. Liquidity ratios, such as the current ratio (0.68) and quick ratio (0.48), indicate potential short-term liquidity concerns, suggesting that the company may struggle to meet its short-term obligations. The solvency ratio stands at 0.14, reflecting a moderate level of debt relative to assets, although the debt-to-equity ratio of 0.68 may raise caution regarding financial leverage. Profitability ratios show strength with a net profit margin of 12.65% and an EBITDA margin of 22.15%, indicating effective cost management. However, the price-to-earnings ratio of 17.37 suggests the stock may be fairly valued, requiring careful consideration for entry points.
Evolution of Financial Ratios
Over the past five years, MDLZ has shown a gradual improvement in profitability ratios, with net profit margins increasing from 8.63% in 2020 to 12.65% in 2024. However, liquidity ratios have consistently remained below 0.70, indicating persistent challenges in managing short-term liabilities effectively.
Distribution Policy
Mondelez International, Inc. (MDLZ) maintains a consistent dividend policy, currently offering a dividend per share of $1.75, with a payout ratio of approximately 51%. The annual dividend yield stands at 2.93%, indicating a commitment to returning value to shareholders. Additionally, MDLZ engages in share buybacks, enhancing shareholder value. While the dividend is supported by free cash flow, investors should monitor potential risks of unsustainable distributions if profitability declines. Overall, this distribution strategy appears aligned with long-term value creation.
Sector Analysis
Mondelez International, Inc. operates in the Food Confectioners industry, offering a diverse snack portfolio that includes well-known brands like Oreo and Cadbury, positioning it strongly against competitors.
Strategic Positioning
Mondelez International, Inc. (MDLZ) holds a significant market share in the food confectionery sector, driven by a robust portfolio of iconic brands such as Oreo, Cadbury, and Toblerone. With a market capitalization of approximately $70.9B, it faces competitive pressure from both established players and emerging brands. The industry’s landscape is also influenced by technological disruptions, especially in e-commerce and supply chain efficiencies. However, with a beta of 0.397, Mondelez demonstrates resilience against market volatility, making it a potentially stable addition to an investment portfolio.
Revenue by Segment
The following chart illustrates Mondelez International’s revenue distribution across its various segments for the fiscal year 2024, highlighting key areas of business performance.
In fiscal year 2024, Mondelez’s revenue was predominantly driven by the Biscuits segment, generating $17.8B, while Chocolate followed with $11.2B. Notably, the Beverages segment saw a decline from $1.18B in 2023 to $1.1B, reflecting a slight contraction. The Cheese and Grocery segment also experienced growth, increasing to $2.26B, up from $2.16B in 2023. Overall, the company’s performance indicates solid growth in core areas, although the decrease in Beverages raises potential concerns regarding market saturation and competition within that segment.
Key Products
Mondelez International, Inc. offers a diverse range of snack food and beverage products. Below is a table highlighting some of their key products and descriptions:
| Product | Description |
|---|---|
| Cadbury Chocolate | A popular chocolate brand known for its rich and creamy texture, available in various flavors. |
| Oreo Cookies | Iconic sandwich cookies with a unique cream filling, often enjoyed with milk or as a dessert base. |
| belVita Biscuits | Breakfast biscuits designed to provide sustained energy throughout the morning, available in various flavors. |
| Toblerone | Distinctive triangular chocolate bar with honey and almond nougat, known for its unique shape and taste. |
| Halls Candies | A range of throat lozenges and cough drops available in various flavors to soothe sore throats. |
| Trident Gums | Sugar-free chewing gum available in multiple flavors, promoting oral health while providing a refreshing taste. |
| Tang Powdered Beverage | A powdered drink mix that offers a fruity flavor, popular for its convenience and ease of preparation. |
These products illustrate Mondelez’s commitment to innovation and quality in the snack food industry.
Main Competitors
The competitive landscape in the food confectioners industry is quite dynamic, with several key players vying for market share. Below is a table of the main competitors, including Mondelez International, Inc., sorted by descending market capitalization:
| Company | Market Cap |
|---|---|
| Altria Group, Inc. | 97.36B |
| Monster Beverage Corporation | 72.05B |
| Mondelez International, Inc. | 70.87B |
| Colgate-Palmolive Company | 62.93B |
| Diageo plc | 49.15B |
| Coca-Cola Europacific Partners PLC | 41.65B |
| The Kroger Co. | 41.56B |
| Keurig Dr Pepper Inc. | 38.98B |
| The Hershey Company | 36.97B |
| Sysco Corporation | 35.44B |
| Kellanova | 28.93B |
In summary, the main competitors in the global food confectioners market include Altria Group and Monster Beverage, alongside Mondelez International. Each of these companies has a strong presence and diverse product portfolios, contributing to a competitive environment across North America and beyond.
Competitive Advantages
Mondelez International, Inc. (MDLZ) boasts a robust portfolio with iconic brands like Oreo and Cadbury, providing significant brand loyalty and recognition. Their global reach across diverse markets allows them to capitalize on emerging trends in snack consumption and health-conscious eating. Looking ahead, Mondelez is focused on expanding its product line with innovative offerings in healthier snacks and sustainability-focused packaging. Additionally, their strong e-commerce strategy positions them well to tap into growing online sales channels, ensuring they remain competitive in an evolving market landscape.
SWOT Analysis
This analysis aims to provide a strategic overview of Mondelez International, Inc. by identifying its strengths, weaknesses, opportunities, and threats.
Strengths
- Strong brand portfolio
- Global market presence
- Robust distribution network
Weaknesses
- Dependence on specific markets
- Vulnerability to commodity price fluctuations
- Limited diversification
Opportunities
- Expansion into emerging markets
- Growth in health-conscious snacks
- E-commerce growth
Threats
- Intense competition
- Regulatory changes
- Economic downturns
The overall SWOT assessment indicates that Mondelez has a solid foundation with its brand and global reach, but it must navigate market dependencies and fierce competition. Focusing on emerging opportunities could enhance its strategic positioning while mitigating potential threats.
Stock Analysis
Over the past year, Mondelez International, Inc. (MDLZ) has experienced notable price movements that reflect a broader bearish trend in its stock performance, with significant fluctuations influencing investor sentiment.
Trend Analysis
Analyzing the stock’s performance over the past year reveals a percentage change of -24.91%. This indicates a bearish trend, as the stock has demonstrated a consistent decline. Notably, the stock reached a high of 76.87 and a low of 54.91, with the trend showing a deceleration in its downward movement. The standard deviation of 5.03 suggests moderate volatility, indicating that while the stock has experienced significant fluctuations, the trend has not accelerated.
Volume Analysis
In the last three months, total trading volume reached approximately 4.42B shares. The volume trend is increasing, yet the analysis indicates a seller-driven market, with seller volume at 2.28B compared to buyer volume of 2.12B, resulting in a buyer percentage of 47.94%. This suggests that investor sentiment may lean towards caution, as sellers currently dominate trading activity.
Analyst Opinions
Recent analyst recommendations for Mondelez International, Inc. (MDLZ) have been generally positive, with a consensus rating of “Buy.” Analysts highlight the company’s strong discounted cash flow and solid return on equity, which stand at scores of 5 and 4, respectively. Despite a lower debt-to-equity score of 1, experts like those at Morningstar emphasize Mondelez’s robust market position and potential for growth. Overall, the sentiment remains bullish as analysts anticipate continued strong performance in 2025.
Stock Grades
Recent stock ratings for Mondelez International, Inc. (MDLZ) indicate a stable outlook among several reputable grading companies. Below is a summary of the latest grades provided:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2025-11-21 |
| DA Davidson | Maintain | Neutral | 2025-11-10 |
| Barclays | Maintain | Overweight | 2025-10-30 |
| Bernstein | Maintain | Outperform | 2025-10-29 |
| Stifel | Maintain | Buy | 2025-10-29 |
| Mizuho | Maintain | Outperform | 2025-10-29 |
| RBC Capital | Maintain | Outperform | 2025-10-29 |
| Piper Sandler | Maintain | Neutral | 2025-10-29 |
| Wells Fargo | Maintain | Overweight | 2025-10-29 |
| B of A Securities | Maintain | Buy | 2025-10-29 |
Overall, the trend in grades for MDLZ shows a mix of “Neutral,” “Buy,” and “Outperform” ratings, with several analysts maintaining their positions. This suggests a generally stable sentiment in the market, indicating that investors may find a balanced opportunity in these ratings.
Target Prices
The consensus target price for Mondelez International, Inc. (MDLZ) reflects a balanced outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 84 | 62 | 69.73 |
Overall, analysts expect Mondelez’s stock to trade around the consensus of 69.73, with a potential range between 62 and 84.
Consumer Opinions
Consumer sentiment about Mondelez International, Inc. (MDLZ) reflects a mix of appreciation for its product variety and some concerns regarding pricing and health aspects.
| Positive Reviews | Negative Reviews |
|---|---|
| “Great variety of snacks that cater to all tastes!” | “Prices seem to be rising too quickly.” |
| “I love the quality of the chocolate products.” | “Some products have too much sugar for my liking.” |
| “Convenient packaging makes it easy to enjoy on-the-go.” | “Customer service experience was disappointing.” |
Overall, consumer feedback highlights Mondelez’s strengths in product variety and quality, while recurring weaknesses involve concerns about pricing and healthiness of some items.
Risk Analysis
In this section, I present a table summarizing the potential risks associated with investing in Mondelez International, Inc. (MDLZ).
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in consumer demand affecting sales. | High | High |
| Supply Chain | Disruptions in supply chains due to geopolitical issues. | Medium | High |
| Regulatory | Changes in food safety regulations impacting production. | Medium | Medium |
| Currency Risk | Fluctuations in foreign exchange rates affecting revenues. | High | Medium |
| Competition | Increasing competition from emerging snack brands. | High | Medium |
The most significant risks for MDLZ include market volatility and supply chain disruptions, especially in light of recent geopolitical tensions that could affect operations and profitability.
Should You Buy Mondelez International, Inc.?
Mondelez International, Inc. (MDLZ) exhibits strong profitability with a net profit margin of 12.65% for 2024. The company is creating value as its return on invested capital (ROIC) of 9.44% exceeds its weighted average cost of capital (WACC) of 5.04%, indicating effective capital utilization. With total debt of 18.37B and a debt-to-equity ratio of 0.25, it maintains a moderate leverage level. The overall rating for Mondelez is B+, reflecting solid fundamentals and growth potential, yet investors may consider monitoring its debt levels and market conditions moving forward.
Favorable signals
In my analysis of Mondelez International, Inc. (MDLZ), I found several favorable signals. The gross margin stands at 39.12%, indicating a strong ability to convert revenue into profit. Additionally, the ebit margin is favorable at 18.58%, alongside a favorable net margin of 12.65%. The company’s return on equity is also strong at 17.12%. Furthermore, I noted a favorable interest coverage ratio of 13.32 and a favorable dividend yield of 2.93%.
Unfavorable signals
However, there are some unfavorable elements to consider. The revenue growth is low at 1.18%, while both net margin growth at -8.1% and EPS growth at -5.52% indicate declining performance in these areas. Additionally, the current ratio of 0.68 and quick ratio of 0.48 suggest potential liquidity concerns.
Conclusion
Taking into account both the favorable and unfavorable signals, the overall income statement opinion is favorable, and the ratios evaluation is also favorable. However, the long-term price trend is bearish, which might suggest waiting for buyers to return before making any decisions regarding investments in this stock.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Mondelez International, Inc. $MDLZ Shares Sold by CW Advisors LLC – MarketBeat (Dec 05, 2025)
- Mondelez International, Inc. (MDLZ): A Bull Case Theory – Yahoo Finance UK (Dec 04, 2025)
- 1832 Asset Management L.P. Sells 31,055 Shares of Mondelez International, Inc. $MDLZ – MarketBeat (Dec 04, 2025)
- Mondelez International, Inc. (MDLZ): A Bull Case Theory – Insider Monkey (Dec 04, 2025)
- Invesco Ltd. Buys 1,345,078 Shares of Mondelez International, Inc. $MDLZ – MarketBeat (Dec 04, 2025)
For more information about Mondelez International, Inc., please visit the official website: mondelezinternational.com
