Mondelez International, Inc. (MDLZ) Stock Analysis
Mondelez International, Inc. (MDLZ) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q3 2025.
Overall Grade: F (Concerning)
Mondelez International, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 7.3% | Below expectations |
| FCF Margin | 6.1% | Healthy cash flow |
| Debt/Equity | 0.8x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore Mondelez International, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Mondelez International, Inc. earns 7.3% ROIC, Top 50% in Consumer Staples
Mondelez International, Inc.'s trailing-twelve-month ROIC of 7.3% ranks Top 50% in Consumer Staples companies (sector median: 6.7%), driven by NOPAT margin of 8.9% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-10-28. Gross margin of 31.1% with operating margin at 11.2% reflects a competitive pricing environment.
| Metric | MDLZ | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.3% | Warning | Above sector median of 6.7% |
| Return on Equity (ROE) | 13.4% | Adequate | Moderate equity returns |
| Gross Margin | 31.1% | Good | Competitive pricing environment |
| Operating Margin | 11.2% | Good | Moderate operational efficiency |
Cash Flow: Mondelez International, Inc. generates $2.3B FCF at 6.1% margin, positive NaN/8 quarters
Mondelez International, Inc. generated $2.3B in free cash flow (TTM), a 6.1% FCF margin, a margin that ranks Top 50% in Consumer Staples. Operating cash flow exceeds net income by 1.0x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-28.
| Metric | MDLZ | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 6.1% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $2.3B | Good | Positive cash generation |
| OCF/Net Income | 1.0x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Mondelez International, Inc. at 0.8x leverage
Mondelez International, Inc.'s debt-to-equity ratio of 0.8x reflects elevated leverage. Total debt of $19.8B offset by $1.5B in cash. Source: 10-Q filed 2025-10-28.
| Metric | MDLZ | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.8x | Adequate | Moderate leverage |
| Net Cash Position | $-18.3B | Warning | Net debt position |
Valuation: Mondelez International, Inc. trades at 23.3x earnings
Mondelez International, Inc. trades at a P/E of 23.3x. Free cash flow yield of 2.8% reflects market expectations for growth.
| Metric | MDLZ | Rating | Context |
|---|---|---|---|
| P/E Ratio | 23.3x | Adequate | Premium valuation |
| EV/Sales | 2.6x | Good | Attractive revenue multiple |
| FCF Yield | 2.8% | Adequate | Lower cash yield |
| Dividend Yield | 3.1% | Adequate | Meaningful income |
Capital Allocation: Mondelez International, Inc. returns 6.8% shareholder yield
Mondelez International, Inc.'s total shareholder yield is 6.8% (dividends 3.1% + buybacks 3.7%). Source: 10-Q filed 2025-10-28.
| Metric | MDLZ | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 6.8% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 3.7% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $5.5B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.3% | Top 50% | 1.1x above |
| Free Cash Flow Margin | 6.1% | Top 50% | 1.1x above |
| Gross Margin | 31.1% | Top 50% | 1.0x above |
| Operating Margin | 11.2% | Top 50% | 1.7x above |
| Return on Equity (ROE) | 13.4% | Top 50% | 1.4x above |
| P/E Ratio | 23.3x | N/A | - |
Financial Scorecard
| Metric | MDLZ | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 7.3% | Warning | Top 50% of sector (median: 6.7%) |
| Free Cash Flow Margin | 6.1% | Adequate | Top 50% of sector (median: 5.7%) |
| Gross Margin | 31.1% | Good | Top 50% of sector (median: 30.3%) |
| Debt to Equity Ratio | 75.6% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 23.3x | Adequate | Fair value |
| Free Cash Flow Yield | 2.8% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is Mondelez International, Inc.'s Return on Invested Capital (ROIC)?
Mondelez International, Inc. (MDLZ) has a trailing twelve-month Return on Invested Capital (ROIC) of 7.3%. This compares above the sector median of 6.7%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Mondelez International, Inc.'s Free Cash Flow Margin?
Mondelez International, Inc. (MDLZ) has a free cash flow margin of 6.1%, generating $2.3 billion in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is Mondelez International, Inc. stock overvalued or undervalued?
Mondelez International, Inc. (MDLZ) trades at a P/E ratio of 23.3x, which is above the sector median of N/A. The EV/Sales multiple is 2.6x. Free cash flow yield is 2.8%, reflecting growth expectations priced into the stock.
Q: Does Mondelez International, Inc. pay a dividend?
Mondelez International, Inc. (MDLZ) currently pays a dividend yield of 3.1%. Including share buybacks, the total shareholder yield is 6.8%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: How much debt does Mondelez International, Inc. have?
Mondelez International, Inc. (MDLZ) has a debt-to-equity ratio of 0.8x with total debt of $19.8 billion. Net debt position is $18.3 billion.
Q: Is Mondelez International, Inc. buying back stock?
Mondelez International, Inc. (MDLZ) repurchased $3.0 billion of stock over the trailing twelve months. This represents a buyback yield of 3.7%.
Q: How does Mondelez International, Inc. compare to competitors in Consumer Staples?
Compared to other companies in Consumer Staples, Mondelez International, Inc. (MDLZ) shows: ROIC of 7.3% is above the sector median of 6.7% (Top 49%). FCF margin of 6.1% exceeds the sector median of 5.7% (Top 48% of sector). Gross margin at 31.1% is 0.7 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Staples companies with available SEC filings.
Q: What warning signs should I watch for with Mondelez International, Inc.?
Mondelez International, Inc. (MDLZ) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.