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Also traded in: Austria, Brazil, Chile, Germany, Mexico, Switzerland, UK

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash-to-Debt 0.07
MDLZ's Cash-to-Debt is ranked lower than
86% of the 1520 Companies
in the Global Confectioners industry.

( Industry Median: 0.50 vs. MDLZ: 0.07 )
Ranked among companies with meaningful Cash-to-Debt only.
MDLZ' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.01  Med: 0.06 Max: 0.23
Current: 0.07
0.01
0.23
Equity-to-Asset 0.40
MDLZ's Equity-to-Asset is ranked lower than
69% of the 1509 Companies
in the Global Confectioners industry.

( Industry Median: 0.54 vs. MDLZ: 0.40 )
Ranked among companies with meaningful Equity-to-Asset only.
MDLZ' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.28  Med: 0.43 Max: 0.52
Current: 0.4
0.28
0.52
Debt-to-Equity 0.79
MDLZ's Debt-to-Equity is ranked lower than
68% of the 1241 Companies
in the Global Confectioners industry.

( Industry Median: 0.47 vs. MDLZ: 0.79 )
Ranked among companies with meaningful Debt-to-Equity only.
MDLZ' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.36  Med: 0.63 Max: 1.84
Current: 0.79
0.36
1.84
Debt-to-EBITDA 4.94
MDLZ's Debt-to-EBITDA is ranked lower than
70% of the 1181 Companies
in the Global Confectioners industry.

( Industry Median: 2.55 vs. MDLZ: 4.94 )
Ranked among companies with meaningful Debt-to-EBITDA only.
MDLZ' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.64  Med: 4.24 Max: 7.75
Current: 4.94
1.64
7.75
Interest Coverage 8.59
MDLZ's Interest Coverage is ranked lower than
57% of the 1333 Companies
in the Global Confectioners industry.

( Industry Median: 14.17 vs. MDLZ: 8.59 )
Ranked among companies with meaningful Interest Coverage only.
MDLZ' s Interest Coverage Range Over the Past 10 Years
Min: 1.64  Med: 4.11 Max: 10.04
Current: 8.59
1.64
10.04
Piotroski F-Score: 8
Altman Z-Score: 1.98
Beneish M-Score: -2.60
WACC vs ROIC
4.37%
6.06%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating Margin % 14.30
MDLZ's Operating Margin % is ranked higher than
82% of the 1532 Companies
in the Global Confectioners industry.

( Industry Median: 5.70 vs. MDLZ: 14.30 )
Ranked among companies with meaningful Operating Margin % only.
MDLZ' s Operating Margin % Range Over the Past 10 Years
Min: 8.01  Med: 11.77 Max: 15.35
Current: 14.3
8.01
15.35
Net Margin % 12.41
MDLZ's Net Margin % is ranked higher than
83% of the 1531 Companies
in the Global Confectioners industry.

( Industry Median: 3.90 vs. MDLZ: 12.41 )
Ranked among companies with meaningful Net Margin % only.
MDLZ' s Net Margin % Range Over the Past 10 Years
Min: 6.38  Med: 9.34 Max: 24.52
Current: 12.41
6.38
24.52
ROE % 12.55
MDLZ's ROE % is ranked higher than
63% of the 1497 Companies
in the Global Confectioners industry.

( Industry Median: 8.05 vs. MDLZ: 12.55 )
Ranked among companies with meaningful ROE % only.
MDLZ' s ROE % Range Over the Past 10 Years
Min: 6.24  Med: 11.53 Max: 26.06
Current: 12.55
6.24
26.06
ROA % 5.10
MDLZ's ROA % is ranked higher than
57% of the 1556 Companies
in the Global Confectioners industry.

( Industry Median: 3.72 vs. MDLZ: 5.10 )
Ranked among companies with meaningful ROA % only.
MDLZ' s ROA % Range Over the Past 10 Years
Min: 2.67  Med: 4.53 Max: 11.21
Current: 5.1
2.67
11.21
ROC (Joel Greenblatt) % 37.79
MDLZ's ROC (Joel Greenblatt) % is ranked higher than
84% of the 1540 Companies
in the Global Confectioners industry.

( Industry Median: 13.41 vs. MDLZ: 37.79 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
MDLZ' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 18.51  Med: 32.55 Max: 93.39
Current: 37.79
18.51
93.39
3-Year Revenue Growth Rate -5.50
MDLZ's 3-Year Revenue Growth Rate is ranked lower than
77% of the 1401 Companies
in the Global Confectioners industry.

( Industry Median: 2.70 vs. MDLZ: -5.50 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
MDLZ' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -17.9  Med: 1 Max: 10
Current: -5.5
-17.9
10
3-Year EBITDA Growth Rate 3.30
MDLZ's 3-Year EBITDA Growth Rate is ranked lower than
60% of the 1248 Companies
in the Global Confectioners industry.

( Industry Median: 6.70 vs. MDLZ: 3.30 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
MDLZ' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -18.1  Med: -2.9 Max: 33.7
Current: 3.3
-18.1
33.7
3-Year EPS without NRI Growth Rate 14.30
MDLZ's 3-Year EPS without NRI Growth Rate is ranked higher than
59% of the 1133 Companies
in the Global Confectioners industry.

( Industry Median: 9.40 vs. MDLZ: 14.30 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
MDLZ' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -36.4  Med: 0 Max: 71.5
Current: 14.3
-36.4
71.5
GuruFocus has detected 3 Warning Signs with Mondelez International Inc MDLZ.
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» MDLZ's 30-Y Financials

Financials (Next Earnings Date: 2019-02-07 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

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Guru Trades

Q3 2017

MDLZ Guru Trades in Q3 2017

Paul Tudor Jones 13,309 sh (New)
Pioneer Investments 4,044,516 sh (+348.91%)
Ken Fisher 9,735 sh (+29.94%)
George Soros 1,750,031 sh (+29.34%)
Jerome Dodson 765,500 sh (+15.98%)
Signature Select Canadian Fund 98,800 sh (+0.82%)
First Eagle Investment 5,536 sh (unchged)
Jeff Auxier 41,144 sh (unchged)
Dodge & Cox 11,840 sh (unchged)
Jeremy Grantham 410,000 sh (unchged)
Warren Buffett 578,000 sh (unchged)
Caxton Associates 275,000 sh (unchged)
Ray Dalio Sold Out
Murray Stahl 34,977 sh (-0.58%)
Mario Gabelli 3,182,326 sh (-0.63%)
Bill Ackman 13,927,445 sh (-3.92%)
Joel Greenblatt 142,332 sh (-25.57%)
Jeremy Grantham 297,663 sh (-40.92%)
Jim Simons 1,744,398 sh (-49.11%)
Caxton Associates 63,000 sh (-80.13%)
» More
Q4 2017

MDLZ Guru Trades in Q4 2017

HOTCHKIS & WILEY 3,563,500 sh (New)
Ray Dalio 16,028 sh (New)
Julian Robertson 30,000 sh (New)
Steven Cohen 76,380 sh (New)
Caxton Associates 145,926 sh (+131.63%)
Bill Ackman 23,256,402 sh (+66.98%)
Pioneer Investments 6,448,426 sh (+59.44%)
Ken Fisher 11,208 sh (+15.13%)
Jerome Dodson 805,500 sh (+5.23%)
Mario Gabelli 3,193,498 sh (+0.35%)
First Eagle Investment 5,536 sh (unchged)
Jeremy Grantham 350,000 sh (unchged)
Caxton Associates 75,000 sh (unchged)
Dodge & Cox 11,840 sh (unchged)
Warren Buffett 578,000 sh (unchged)
Jim Simons Sold Out
George Soros Sold Out
Paul Tudor Jones Sold Out
Jeff Auxier 40,960 sh (-0.45%)
Murray Stahl 32,374 sh (-7.44%)
Joel Greenblatt 130,886 sh (-8.04%)
Jeremy Grantham 44,482 sh (-85.06%)
» More
Q1 2018

MDLZ Guru Trades in Q1 2018

Jim Simons 1,987,198 sh (New)
Sarah Ketterer 2,740,323 sh (New)
Paul Tudor Jones 231,118 sh (New)
Jeremy Grantham 164,055 sh (+268.81%)
HOTCHKIS & WILEY 5,615,800 sh (+57.59%)
Jerome Dodson 870,500 sh (+8.07%)
Pioneer Investments 6,593,542 sh (+2.25%)
Jeff Auxier 41,652 sh (+1.69%)
Dodge & Cox 11,840 sh (unchged)
Jeremy Grantham 340,000 sh (unchged)
Julian Robertson 30,000 sh (unchged)
Warren Buffett 578,000 sh (unchged)
Ray Dalio Sold Out
Steven Cohen Sold Out
First Eagle Investment Sold Out
Signature Select Canadian Fund 97,400 sh (-1.42%)
Murray Stahl 31,616 sh (-2.34%)
Ken Fisher 10,815 sh (-3.51%)
Mario Gabelli 3,062,138 sh (-4.11%)
Bill Ackman 16,156,591 sh (-30.53%)
Joel Greenblatt 58,310 sh (-55.45%)
Caxton Associates 27,171 sh (-81.38%)
» More
Q2 2018

MDLZ Guru Trades in Q2 2018

Steven Romick 4,290,352 sh (New)
First Pacific Advisors 5,442,594 sh (New)
Wallace Weitz 30,000 sh (New)
Ray Dalio 28,904 sh (New)
Joel Greenblatt 646,766 sh (+1009.19%)
Caxton Associates 210,000 sh (+672.88%)
Sarah Ketterer 4,018,155 sh (+46.63%)
HOTCHKIS & WILEY 7,548,600 sh (+34.42%)
Julian Robertson 40,000 sh (+33.33%)
Mario Gabelli 3,295,185 sh (+7.61%)
Jerome Dodson 935,500 sh (+7.47%)
Ken Fisher 11,114 sh (+2.76%)
Bill Ackman 16,371,713 sh (+1.33%)
Warren Buffett 578,000 sh (unchged)
Dodge & Cox 11,840 sh (unchged)
Caxton Associates 100,000 sh (unchged)
Jeremy Grantham 640,000 sh (unchged)
Jim Simons Sold Out
Jeff Auxier 40,795 sh (-2.06%)
Murray Stahl 29,690 sh (-6.09%)
Pioneer Investments 5,486,457 sh (-16.79%)
Paul Tudor Jones 166,974 sh (-27.75%)
Jeremy Grantham 94,554 sh (-42.36%)
» More
» Details

Insider Trades

Latest Guru Trades with NAS:MDLZ

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Business Description

Industry: Consumer Packaged Goods » Confectioners    NAICS: 311919    SIC: 2053
Compare:NYSE:HSY, XSWX:LISPE, XSWX:BARN, XKRX:004990, ISX:MYOR, XKRX:271560, TSE:2206, XTER:SZU, TSE:2201, CAS:CSR, IST:ULKER, BSP:SMTO3, TSE:2222, SZSE:000576, XKRX:001800, NYSE:TR, TSE:2109, OSTO:CLA B, TSE:2220, JSE:TON » details
Traded in other countries:MDLZ.Austria, MDLZ34.Brazil, MDLZ.Chile, KTF.Germany, MDLZ.Mexico, MDLZ.Switzerland, 0R0G.UK,
Headquarter Location:USA
Mondelez International Inc is associated with the confectionery industry. It manufactures and markets snack food and beverage products like biscuits, chocolate, gum and candy, and beverages.The sale of biscuits generate maximum revenue for the company.

For more than five years now, Mondelez has operated independently, following the split from the former Kraft Food's North American grocery business in October 2012. The firm is a leading player in the global snack arena, with a portfolio that consists of biscuits (41% of sales), chocolate (30%), gum/candy (15%), beverage (5.5%), and cheese and grocery (8.5%). Mondelez's portfolio includes well-known brands like Oreo, Chips Ahoy, Halls, Trident, and Cadbury. The firm derives around one third of revenue from developing markets, nearly 40% from Europe, and about one fourth from North America.

Guru Investment Theses on Mondelez International Inc

Bill Ackman Comments on Mondelez - Nov 15, 2018

We reduced our position in Mondelez (NASDAQ:MDLZ) in recent quarters in order to allocate capital to other opportunities. We sold the balance of our investment during the third quarter. We initially invested in Mondelez because we believed it to be a high quality, defensive business with a meaningful opportunity to increase efficiency that was also an excellent merger candidate in a sector ripe for consolidation. While the company achieved margin expansion in-line with our original thesis, a combination of lower than expected organic growth and higher interest rates led to a reduced price-earnings multiple for Mondelez and, to an even greater extent, the broader packaged food sector.

From Bill Ackman (Trades, Portfolio)'s third-quarter 2018 Pershing Square shareholder letter.

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Bill Ackman Comments on Mondelez International - Aug 10, 2018

Mondelez International, Inc. (NASDAQ:MDLZ)

Mondelez reported second quarter 2018 results on July 25th, with sales growth, margins, and earnings all ahead of consensus expectations. Underlying organic sales growth was approximately 2% excluding a net benefit from lapping volume declines related to a cyberattack in the prior year quarter and other one-time items. Volume and product mix contributed 50 basis points to underlying growth, with the balance coming from pricing. Global sales growth for the snacks categories in which Mondelez operates has improved from approximately 2% in 2017 to just over 3% in the first half of this year. The company attributed the gap between the 3% growth of its categories and its 2% underlying organic growth to share losses in their Brazil and US gum businesses, as well as an inventory trade reduction in US cookies and crackers that should be transitory. Management sees this gap closing as it implements strategies to address its share losses in Brazil and the US, and as net share gains in all other markets accelerate.

Operating profit margin expanded by 130 basis points to 16.7%, driven by a 60 basis point improvement in gross margin due to productivity savings, volume leverage, and lower input costs, as well as a 70 basis point reduction in overhead costs as a percentage of sales due to continued implementation of zero-based budgeting. EPS grew 17% as reported, or 15% on a constant-currency basis, driven primarily by operating performance as well as share repurchases and higher income from the company’s coffee joint ventures. Management raised full year organic sales growth guidance from an increase of 1% to 2% to the high end of that range, and reiterated guidance for a 17% operating profit margin including an increase in gross margin, and double-digit EPS growth on a constant-currency basis. As we have noted previously, MDLZ is one of the few CPG companies that is still able to deliver relatively strong performance in the current operating environment.

From Bill Ackman (Trades, Portfolio)'s second quarter 2018 Pershing Square shareholder letter.

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Bill Ackman Comments on Mondelez International - May 17, 2018

Mondelez International, Inc. (NASDAQ:MDLZ)

Mondelez reported first quarter 2018 results on May 1st. Organic sales growth for the quarter was 2.4%, with over 70% of this increase driven by volume and product mix, and the balance from pricing. This was the third consecutive quarter with both organic sales growth in the 2% to 3% range, and a positive contribution from volume and product mix. All regions outside of North America posted solid growth, including 5.5% growth in emerging markets, which represent nearly 40% of the company’s sales. North America, which accounts for less than 25% of the company’s sales, declined 1.8% in the quarter driven by ongoing weakness in gum, as well as transitory issues including inventory destocking at retailers, and poor supply chain execution. Encouragingly, consumer demand for Mondelez’s core cookie and cracker brands, which generate over 80% of the company’s sales in North America, appears robust, with retail sales for these brands growing 2.5% in the quarter.

Operating profit margins expanded by 30 basis points to 16.7%, as a continued reduction in overhead costs more than offset a decline in gross margin driven by unfavorable product mix, higher commodity costs, and freight inflation in North America. In contrast to most US-centric consumer packaged goods (“CPG”) companies that expect lower gross margins in the near-to-medium term, Mondelez management still expects gross margins to expand in the full year, reflecting both the company’s limited US presence, as well as the significant opportunity that exists to expand margins beyond current levels. EPS grew 19% as reported, or 10% on a constant-currency basis, driven by good operating performance as well as lower interest expense and share repurchases. We believe that Mondelez, with its advantaged category and geographic footprint, is one of the few CPG companies that should continue to deliver sustained double-digit EPS growth even in the current environment.

Despite posting results that were in-line with or better than those of its key global and snack-focused peers in the quarter, Mondelez continues to trade at an unwarranted discount to both its peers and intrinsic value. MDLZ is currently trading at approximately 15.5 times forward earnings, which is a trough valuation for the company since the spin-off of Kraft Foods in October 2012, and a 25% discount to its average valuation multiple since then. While some recent share price weakness has been driven by investor rotation out of consumer staples due in part to the rising interest rate environment, we believe that investors are wrongly penalizing MDLZ for the significant challenges facing more US-focused, center-of-plate packaged food companies that continue to experience organic sales declines. We believe that Mondelez’s valuation gap should close as the company continues to report differentiated results over the coming quarters, and as investors gain more comfort with the new CEO who will reveal the results of the company’s strategic review at the end of the summer.

From Bill Ackman (Trades, Portfolio)'s first-quarter 2018 shareholder letter.



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Bill Ackman Comments on Mondelez - Nov 16, 2017

We believe that Mondelez (NASDAQ:MDLZ) is currently substantially undervalued given its high business quality, long-term secular growth potential – especially in emerging markets – and substantial opportunity to improve profit margins. Today, Mondelez trades at 17 times our estimate for 2018 earnings per share, a discount to the S&P 500 market multiple, for a business whose attributes are substantially better than the average company in the S&P 500.

Despite its advantaged snack categories and extensive global footprint, Mondelez is currently trading more in line with US-focused, so-called center-of-plate (non-snacks) packaged food companies that, unlike Mondelez, are facing unprecedented volume losses in a difficult US grocery environment.

Mondelez’s global food peers such as Nestle and PepsiCo, and sweet snacks-focused peers like Hershey currently trade at approximately 21 times 2018 earnings per share, a nearly 25% premium to Mondelez. We expect this valuation gap to close over the coming quarters as investors gain further clarity around three concerns that we believe cause this significant trading discount to intrinsic value: (1) uncertainty regarding the US grocery landscape; (2) concerns about the company’s growth potential; and (3) apprehension regarding the upcoming CEO transition later this month.

Mondelez made good progress in beginning to address these concerns when it reported third quarter 2017 results on October 30, 2017. For the quarter, Mondelez delivered underlying organic sales growth of 2.2%, approximately one-third from volume and product mix, and the remainder from pricing. This was a marked improvement from the first half of the year, and was broadly in-line with the growth rates of the company’s categories and its global and snacks-focused peers in the quarter. This performance reflects two inherent advantages in Mondelez’s portfolio: (1) only 25% of the company’s sales are generated in the US, and roughly 37% of its sales are in the faster-growing developing markets; and (2) 85% of the company’s sales are in snacks which enjoy higher barriers to entry and superior long-term growth prospects versus other packaged food categories.

We expect the company’s growth rate to accelerate further given tailwinds from (1) an improving global macroeconomic environment, particularly in emerging markets, (2) a weakening US dollar which increases the value of Mondelez’s international sales while boosting the purchasing power of consumers overseas, (3) favorable near-term competitive dynamics in US cookies and crackers, (4) the abatement of revenue headwinds from management’s historical actions to eliminate unprofitable, low-growth SKUs, and (5) the significant opportunity to better utilize advertising and promotion (“A&P”), trade, and innovation investment to drive growth. In contrast, we anticipate that US-focused, center-of-plate packaged food companies will fare much more poorly going forward given headwinds to both volume and pricing from an ongoing shift to fresh food, a bigger push into US grocery by Amazon and other discounters, and the proliferation of challenger brands and private label competition.

Operating profit margins expanded in the third quarter to 16.9%, as the company’s zero-based budgeting program continued to deliver cost reductions in overheads. Year-to-date operating profit margins were 16.5%, putting the company well on its way towards management’s goal of a mid-16% margin for 2017. There has been a fair amount of investor concern about a potential earnings “rebase” under the new CEO Dirk Van de Put, which current management addressed directly on the third quarter earnings call by strongly reiterating the company’s commitment to its 2018 operating profit margin target of 17% to 18%.

We were encouraged by management’s comments, but have long been confident that a “rebase” will not occur given: (1) the substantial capital invested over the last several years to upgrade the manufacturing base and reduce product and procurement complexity; (2) a strong current portfolio of products, given the significant SKU rationalization over the last three years; (3) the healthy 9% of sales that the company currently invests in A&P, which is at the high end of its peer group given its scale; and (4) the fact that 2018 margin goals are still materially below optimized levels. We believe that the board will hold Mr. Van de Put accountable for realistic stretch goals for both growth and profitability. We will continue to closely monitor the company’s performance and plan to engage with Mr. Van de Put as soon as practicable.

From Bill Ackman (Trades, Portfolio)'s third quarter 2017 shareholder letter.

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Bill Ackman Comments on Mondelez - May 12, 2017

Mondelez (NASDAQ:MDLZ) reported first quarter 2017 results on May 2nd. Organic sales growth for the quarter was 0.6%, driven by pricing growth of 1.1% and a volume decline of 0.5% that includes the impact of management’s efforts to cull low-margin, non-core products. All regions experienced growth with the exception of North America. Management expects North America to improve in the second half of the year due to the exit of a key competitor in direct store delivery, major innovation launches such as the new well-being cracker brand Véa, and a recent change in regional leadership.

Despite the modest top-line growth, operating profit margins expanded significantly to 16.8%, driven primarily by a reduction in overhead costs as a percentage of sales reflecting the implementation of zero-based budgeting and the rollout of global shared services. These gains were achieved despite investments in innovation, white space initiatives ahead of revenue that will build more meaningfully over the second half of the year, and headwinds from commodity costs and geographic mix. Management remains committed to its 2018 operating profit margin target of 17% to 18%, and has stated that it has good visibility to expand margins after 2018.

Mondelez is one of the few large-cap packaged food companies that is demonstrating both margin expansion and top-line organic growth. Given Mondelez’s innovation pipeline and market share opportunities, we expect organic sales growth to improve in the second half of the year. Over the long-term, we believe that Mondelez’s categories and geographic footprint give it a significant competitive advantage, especially in the emerging markets where Mondelez’s large market shares and robust routes to market should drive accelerated growth.

From Bill Ackman (Trades, Portfolio)'s first quarter 2017 shareholder letter.


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Mario Gabelli Comments on Mondelez International Inc. - May 10, 2017

Mondelez International Inc. (2.0%) (MDLZ – $43.08 – NASDAQ) (NASDAQ:MDLZ), headquartered in Deerfield, Illinois, is the renamed Kraft Foods Inc. following the tax-free spin-off to shareholders of the North American grocery business on October 1, 2012. Following the contribution of coffee into a new joint venture, nearly 85% of Mondelēz’s $26 billion of revenue is derived from snacking, including leading brands such as Oreo, LU and Ritz biscuits, Trident gum, and Cadbury and Milka chocolates. On July 2, 2015 Mondelēz combined its coffee business with D.E Master Blenders 1753 to form a new coffee company, Jacobs Douwe Egberts. Subsequently, MDLZ exchanged part of its stake in this coffee joint venture for 24% ownership in Keurig Green Mountain, which was acquired by an investor group led by JAB Holding Co. in March 2016. This narrows the company’s product focus, as only 15% of revenue will be outside snacks — mostly Tang beverages and other products including Philadelphia cream cheese, which management may look to divest in the future as it executes on its plan to accelerate growth and improve margins in the faster growing snack business.

From Mario Gabelli (Trades, Portfolio)'s Gabelli Equity Income Fund 2017 first quarter shareholder commentary.

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Mario Gabelli Comments on Mondelez International - May 09, 2017

Mondelez International Inc.(1.0%)(MDLZ – $44.33 –NASDAQ) (NASDAQ:MDLZ), headquartered in Deerfield, Illinois, is the renamed Kraft Foods Inc. following the tax-free spin-off to shareholders of the North American grocery business on October 1, 2012. Following the contribution of coffee into a new joint venture, nearly 85% of Mondelēz’s $27 billion of revenue is derived from snacking, including leading brands such as Oreo, LU and Ritz biscuits, Trident gum, and Cadbury and Milka chocolates. On July 2, 2015 Mondelēz combined its coffee business with D.E Master Blenders 1753 to form a new coffee company, Jacobs Douwe Egberts. Subsequently, MDLZ exchanged part of its stake in this coffee joint venture for 24% ownership in Keurig Green Mountain, which was acquired by an investor group led by JAB Holding Co. in March 2016. This narrows the company’s product focus, as only 15% of revenue will be outside snacks — mostly Tang beverages and other products including Philadelphia cream cheese, which management may look to divest in the future as it executes on its plan to accelerate growth and improve margins in the faster growing snack business. On June 30, Hershey confirmed that it received and rejected a preliminary indication of interest from Mondelēz to acquire Hershey for $107 per share in cash and stock, demonstrating Mondelēz’s continued interest in pursuing acquisitions while remaining an independent company.



From the Gabelli Value 25 Fund first quarter 2017 shareholder letter.



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Bill Ackman Comments on Mondelez - May 08, 2017

Mondelez (NASDAQ:MDLZ) was created out of the breakup of Kraft Foods in 2012, and today is one of the largest global snacks companies with 2016 revenues of $26 billion. Branded biscuits, chocolate, and confectionary businesses are wonderful businesses because of their high category margins, large economic moats, high returns on capital, and attractive long-term global growth potential. Mondelez has the most attractive stable of sweet snack brands of any publicly traded food company with seven brands that each generate over $1 billion in annual sales, many of which have been building brand equity with consumers for over one hundred years. Despite owning some of the best brands in the industry, Mondelez has among the lowest profit margins in large cap packaged food, presenting a meaningful opportunity to increase efficiency that management is currently addressing.

Mondelez made good progress on this productivity opportunity in 2016. Operating profit margins expanded by 220 basis points to 15.3%, driven primarily by a reduction in overhead costs as a percentage of sales reflecting the implementation of zero-based budgeting and the rollout of global shared services, as well as an increase in gross margin reflecting the company’s supply chain transformation. Management remains committed to its 2018 operating profit margin target of 17% to 18%, and has stated that they have good visibility to expand margins even further beyond 2018.

Mondelez’s underlying organic sales growth in 2016 was generally in-line with the company’s categories at 2.2%, tempered by a slowdown in developing markets. We note that Mondelez is one of the few large publicly traded packaged food companies that are demonstrating any underlying volume growth, however modest. While the global growth rate of Mondelez’s snacking categories moderated over the course of the year, primarily due to macroeconomic headwinds, we continue to believe that the long-term outlook for these categories remains robust, especially in the developing markets where Mondelez has large market shares and hard-to-replicate routes to market.

While consolidation in packaged foods could represent an opportunity for Mondelez, we believe the business is an attractive investment assuming no contribution from mergers or acquisitions. Sustained operating improvements should continue to drive attractive shareholder returns.

Mondelez’s total shareholder return, including dividends, was 0.5% in 2016.

From 2016 annual letter to shareholders of Pershing Square by Bill Ackman (Trades, Portfolio).

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Bill Ackman Comments on Mondelez - Mar 30, 2017

Mondelez (NASDAQ:MDLZ) was created out of the breakup of Kraft Foods in 2012, and today is one of the largest global snacks companies with 2016 revenues of $26 billion. Branded biscuits, chocolate, and confectionary businesses are wonderful businesses because of their high category margins, large economic moats, high returns on capital, and attractive long-term global growth potential. Mondelez has the most attractive stable of sweet snack brands of any publicly traded food company with seven brands that each generate over $1 billion in annual sales, many of which have been building brand equity with consumers for over one hundred years. Despite owning some of the best brands in the industry, Mondelez has among the lowest profit margins in large cap packaged food, presenting a meaningful opportunity to increase efficiency that management is currently addressing.

Mondelez made good progress on this productivity opportunity in 2016. Operating profit margins expanded by 220 basis points to 15.3%, driven primarily by a reduction in overhead costs as a percentage of sales reflecting the implementation of zero-based budgeting and the rollout of global shared services, as well as an increase in gross margin reflecting the company’s supply chain transformation. Management remains committed to its 2018 operating profit margin target of 17% to 18%, and has stated that they have good visibility to expand margins even further beyond 2018.

Mondelez’s underlying organic sales growth in 2016 was generally in-line with the company’s categories at 2.2%, tempered by a slowdown in developing markets. We note that Mondelez is one of the few large publicly traded packaged food companies that are demonstrating any underlying volume growth, however modest. While the global growth rate of Mondelez’s snacking categories moderated over the course of the year, primarily due to macroeconomic headwinds, we continue to believe that the long-term outlook for these categories remains robust, especially in the developing markets where Mondelez has large market shares and hard-to-replicate routes to market.

While consolidation in packaged foods could represent an opportunity for Mondelez, we believe the business is an attractive investment assuming no contribution from mergers or acquisitions. Sustained operating improvements should continue to drive attractive shareholder returns.

Mondelez’s total shareholder return, including dividends, was 0.5% in 2016.



From Bill Ackman (Trades, Portfolio)'s Pershing Square 2016 annual report.


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Bill Ackman Comments on Mondelez - Dec 09, 2016

On October 26, Mondelez (NASDAQ:MDLZ) reported third quarter 2016 results. Underlying organic growth was generally in-line with the company’s categories at nearly 2%, including volume growth of 1.3%. This was the third straight quarter of positive underlying volume growth and a sequential acceleration from the second quarter. We note that Mondelez is one of the few large cap packaged food companies that is demonstrating any underlying volume growth, however modest. While the global growth rate of Mondelez’s snacking categories has moderated over the course of the year primarily due to macroeconomic headwinds, we continue to believe that the long-term outlook for these categories remains robust, especially in the emerging markets where Mondelez has large market shares and robust routes to market.

Operating profit margins expanded by 220 basis points to 15.8% in the quarter, driven primarily by a reduction in overhead costs as a percentage of sales reflecting the implementation of zero-based budgeting and the rollout of global shared services, as well as an increase in gross margin reflecting the company’s supply chain transformation. Year-to-date, the company continues to show progress with its significant cost savings opportunity and productivity initiatives, and remains on track to reach its 2018 margin target of 17% to 18% with further upside beyond 2018.

From Bill Ackman (Trades, Portfolio)'s Pershing Square third-quarter shareholder letter.

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Top Ranked Articles about Mondelez International Inc

Bill Ackman Comments on Mondelez Guru stock highlight
We reduced our position in Mondelez (NASDAQ:MDLZ) in recent quarters in order to allocate capital to other opportunities. We sold the balance of our investment during the third quarter. We initially invested in Mondelez because we believed it to be a high quality, defensive business with a meaningful opportunity to increase efficiency that was also an excellent merger candidate in a sector ripe for consolidation. While the company achieved margin expansion in-line with our original thesis, a combination of lower than expected organic growth and higher interest rates led to a reduced price-earnings multiple for Mondelez and, to an even greater extent, the broader packaged food sector. Read more...
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Ratios

vs
industry
vs
history
PE Ratio 20.47
MDLZ's PE Ratio is ranked lower than
52% of the 1218 Companies
in the Global Confectioners industry.

( Industry Median: 19.86 vs. MDLZ: 20.47 )
Ranked among companies with meaningful PE Ratio only.
MDLZ' s PE Ratio Range Over the Past 10 Years
Min: 6.72  Med: 13.31 Max: 79.3
Current: 20.47
6.72
79.3
Forward PE Ratio 17.57
MDLZ's Forward PE Ratio is ranked higher than
57% of the 197 Companies
in the Global Confectioners industry.

( Industry Median: 18.32 vs. MDLZ: 17.57 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 20.47
MDLZ's PE Ratio without NRI is ranked lower than
52% of the 1213 Companies
in the Global Confectioners industry.

( Industry Median: 19.93 vs. MDLZ: 20.47 )
Ranked among companies with meaningful PE Ratio without NRI only.
MDLZ' s PE Ratio without NRI Range Over the Past 10 Years
Min: 8.19  Med: 25.69 Max: 1390.5
Current: 20.47
8.19
1390.5
Price-to-Owner-Earnings 23.09
MDLZ's Price-to-Owner-Earnings is ranked lower than
63% of the 671 Companies
in the Global Confectioners industry.

( Industry Median: 22.02 vs. MDLZ: 23.09 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
MDLZ' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 6.03  Med: 16.16 Max: 124.86
Current: 23.09
6.03
124.86
PB Ratio 2.56
MDLZ's PB Ratio is ranked lower than
68% of the 1484 Companies
in the Global Confectioners industry.

( Industry Median: 1.60 vs. MDLZ: 2.56 )
Ranked among companies with meaningful PB Ratio only.
MDLZ' s PB Ratio Range Over the Past 10 Years
Min: 0.93  Med: 1.7 Max: 3.04
Current: 2.56
0.93
3.04
PS Ratio 2.55
MDLZ's PS Ratio is ranked lower than
75% of the 1479 Companies
in the Global Confectioners industry.

( Industry Median: 1.02 vs. MDLZ: 2.55 )
Ranked among companies with meaningful PS Ratio only.
MDLZ' s PS Ratio Range Over the Past 10 Years
Min: 0.54  Med: 1.68 Max: 2.87
Current: 2.55
0.54
2.87
Price-to-Free-Cash-Flow 25.89
MDLZ's Price-to-Free-Cash-Flow is ranked lower than
59% of the 627 Companies
in the Global Confectioners industry.

( Industry Median: 21.80 vs. MDLZ: 25.89 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
MDLZ' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 6.87  Med: 19.63 Max: 47.39
Current: 25.89
6.87
47.39
Price-to-Operating-Cash-Flow 18.11
MDLZ's Price-to-Operating-Cash-Flow is ranked lower than
63% of the 882 Companies
in the Global Confectioners industry.

( Industry Median: 14.07 vs. MDLZ: 18.11 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
MDLZ' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 4.88  Med: 11.02 Max: 26.63
Current: 18.11
4.88
26.63
EV-to-EBIT 25.70
MDLZ's EV-to-EBIT is ranked lower than
68% of the 1273 Companies
in the Global Confectioners industry.

( Industry Median: 15.86 vs. MDLZ: 25.70 )
Ranked among companies with meaningful EV-to-EBIT only.
MDLZ' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.2  Med: 22.4 Max: 95.5
Current: 25.7
8.2
95.5
EV-to-EBITDA 20.48
MDLZ's EV-to-EBITDA is ranked lower than
68% of the 1322 Companies
in the Global Confectioners industry.

( Industry Median: 12.54 vs. MDLZ: 20.48 )
Ranked among companies with meaningful EV-to-EBITDA only.
MDLZ' s EV-to-EBITDA Range Over the Past 10 Years
Min: 7  Med: 16.4 Max: 38.2
Current: 20.48
7
38.2
EV-to-Revenue 3.18
MDLZ's EV-to-Revenue is ranked lower than
77% of the 1515 Companies
in the Global Confectioners industry.

( Industry Median: 1.24 vs. MDLZ: 3.18 )
Ranked among companies with meaningful EV-to-Revenue only.
MDLZ' s EV-to-Revenue Range Over the Past 10 Years
Min: 1  Med: 2.2 Max: 3.5
Current: 3.18
1
3.5
PEG Ratio 12.06
MDLZ's PEG Ratio is ranked lower than
90% of the 636 Companies
in the Global Confectioners industry.

( Industry Median: 2.03 vs. MDLZ: 12.06 )
Ranked among companies with meaningful PEG Ratio only.
MDLZ' s PEG Ratio Range Over the Past 10 Years
Min: 0.44  Med: 4.57 Max: 409.4
Current: 12.06
0.44
409.4
Shiller PE Ratio 19.60
MDLZ's Shiller PE Ratio is ranked higher than
60% of the 448 Companies
in the Global Confectioners industry.

( Industry Median: 21.87 vs. MDLZ: 19.60 )
Ranked among companies with meaningful Shiller PE Ratio only.
MDLZ' s Shiller PE Ratio Range Over the Past 10 Years
Min: 8.17  Med: 17.38 Max: 23.36
Current: 19.6
8.17
23.36
Current Ratio 0.56
MDLZ's Current Ratio is ranked lower than
94% of the 1519 Companies
in the Global Confectioners industry.

( Industry Median: 1.62 vs. MDLZ: 0.56 )
Ranked among companies with meaningful Current Ratio only.
MDLZ' s Current Ratio Range Over the Past 10 Years
Min: 0.48  Med: 0.92 Max: 1.24
Current: 0.56
0.48
1.24
Quick Ratio 0.38
MDLZ's Quick Ratio is ranked lower than
90% of the 1518 Companies
in the Global Confectioners industry.

( Industry Median: 1.08 vs. MDLZ: 0.38 )
Ranked among companies with meaningful Quick Ratio only.
MDLZ' s Quick Ratio Range Over the Past 10 Years
Min: 0.31  Med: 0.56 Max: 0.85
Current: 0.38
0.31
0.85
Days Inventory 62.92
MDLZ's Days Inventory is ranked higher than
52% of the 1455 Companies
in the Global Confectioners industry.

( Industry Median: 63.84 vs. MDLZ: 62.92 )
Ranked among companies with meaningful Days Inventory only.
MDLZ' s Days Inventory Range Over the Past 10 Years
Min: 52.57  Med: 61.11 Max: 88.53
Current: 62.92
52.57
88.53
Days Sales Outstanding 38.16
MDLZ's Days Sales Outstanding is ranked higher than
62% of the 1463 Companies
in the Global Confectioners industry.

( Industry Median: 41.67 vs. MDLZ: 38.16 )
Ranked among companies with meaningful Days Sales Outstanding only.
MDLZ' s Days Sales Outstanding Range Over the Past 10 Years
Min: 32.44  Med: 44.28 Max: 75.8
Current: 38.16
32.44
75.8
Days Payable 125.38
MDLZ's Days Payable is ranked higher than
87% of the 1440 Companies
in the Global Confectioners industry.

( Industry Median: 47.90 vs. MDLZ: 125.38 )
Ranked among companies with meaningful Days Payable only.
MDLZ' s Days Payable Range Over the Past 10 Years
Min: 45.32  Med: 89.08 Max: 131.53
Current: 125.38
45.32
131.53

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 2.08
MDLZ's Dividend Yield % is ranked higher than
52% of the 1796 Companies
in the Global Confectioners industry.

( Industry Median: 2.06 vs. MDLZ: 2.08 )
Ranked among companies with meaningful Dividend Yield % only.
MDLZ' s Dividend Yield % Range Over the Past 10 Years
Min: 1.29  Med: 2.65 Max: 8.06
Current: 2.08
1.29
8.06
Dividend Payout Ratio 0.41
MDLZ's Dividend Payout Ratio is ranked lower than
59% of the 1058 Companies
in the Global Confectioners industry.

( Industry Median: 0.34 vs. MDLZ: 0.41 )
Ranked among companies with meaningful Dividend Payout Ratio only.
MDLZ' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.14  Med: 0.65 Max: 3.05
Current: 0.41
0.14
3.05
3-Year Dividend Growth Rate 12.20
MDLZ's 3-Year Dividend Growth Rate is ranked higher than
63% of the 695 Companies
in the Global Confectioners industry.

( Industry Median: 7.70 vs. MDLZ: 12.20 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
MDLZ' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 0  Med: 3.7 Max: 43.6
Current: 12.2
0
43.6
Forward Dividend Yield % 2.35
MDLZ's Forward Dividend Yield % is ranked higher than
55% of the 1715 Companies
in the Global Confectioners industry.

( Industry Median: 2.31 vs. MDLZ: 2.35 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 2.07
MDLZ's 5-Year Yield-on-Cost % is ranked lower than
56% of the 1779 Companies
in the Global Confectioners industry.

( Industry Median: 2.43 vs. MDLZ: 2.07 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
MDLZ' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.28  Med: 2.64 Max: 8.02
Current: 2.07
1.28
8.02
3-Year Average Share Buyback Ratio 3.60
MDLZ's 3-Year Average Share Buyback Ratio is ranked higher than
97% of the 778 Companies
in the Global Confectioners industry.

( Industry Median: -2.30 vs. MDLZ: 3.60 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
MDLZ' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -6.4  Med: 0.8 Max: 4.2
Current: 3.6
-6.4
4.2

Valuation & Return

vs
industry
vs
history
Price-to-Intrinsic-Value-Projected-FCF 1.51
MDLZ's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
51% of the 816 Companies
in the Global Confectioners industry.

( Industry Median: 1.37 vs. MDLZ: 1.51 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
MDLZ' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.5  Med: 0.84 Max: 1.54
Current: 1.51
0.5
1.54
Price-to-Median-PS-Value 1.52
MDLZ's Price-to-Median-PS-Value is ranked lower than
76% of the 1376 Companies
in the Global Confectioners industry.

( Industry Median: 1.01 vs. MDLZ: 1.52 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
MDLZ' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.33  Med: 0.74 Max: 1.61
Current: 1.52
0.33
1.61
Earnings Yield (Greenblatt) % 3.89
MDLZ's Earnings Yield (Greenblatt) % is ranked lower than
55% of the 1556 Companies
in the Global Confectioners industry.

( Industry Median: 5.16 vs. MDLZ: 3.89 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
MDLZ' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 1  Med: 4.5 Max: 12.2
Current: 3.89
1
12.2
Forward Rate of Return (Yacktman) % 3.53
MDLZ's Forward Rate of Return (Yacktman) % is ranked lower than
59% of the 906 Companies
in the Global Confectioners industry.

( Industry Median: 8.45 vs. MDLZ: 3.53 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
MDLZ' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -8.1  Med: 5.3 Max: 23.9
Current: 3.53
-8.1
23.9

More Statistics

Revenue (TTM) (Mil) $26,131.00
EPS (TTM) $ 2.17
Beta0.32
Volatility12.49%
52-Week Range $37.42 - 46.54
Shares Outstanding (Mil)1,453.84

Analyst Estimate

Dec18 Dec19 Dec20
Revenue (Mil $) 26,237 26,494 27,231
EBIT (Mil $) 4,429 4,396 4,804
EBITDA (Mil $) 5,318 5,410 5,683
EPS ($) 2.40 2.43 2.73
EPS without NRI ($) 2.40 2.43 2.73
EPS Growth Rate
(Future 3Y To 5Y Estimate)
8.70%
Dividends per Share ($) 0.93 1.01 1.14

Piotroski F-Score Details

Piotroski F-Score: 88
Positive ROAY
Positive CFROAY
Higher ROA yoyY
CFROA > ROAY
Lower Leverage yoyN
Higher Current Ratio yoyY
Less Shares Outstanding yoyY
Higher Gross Margin yoyY
Higher Asset Turnover yoyY

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