| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 38.90 | -33 |
| Intrinsic value (DCF) | 31.02 | -47 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 24.30 | -58 |
Mondelez International, Inc. (LSE: 0R0G.L) is a global leader in the snack food and beverage industry, offering a diverse portfolio of iconic brands such as Cadbury, Milka, Toblerone, Oreo, and Trident. Headquartered in Chicago, Illinois, the company operates across Latin America, North America, Asia, the Middle East, Africa, and Europe, serving a wide range of retail outlets through multiple distribution channels, including e-commerce. Mondelez specializes in biscuits, chocolates, gums, candies, and powdered beverages, catering to consumer demand for convenience and indulgence. With a market capitalization of over $85 billion, the company is a key player in the Consumer Defensive sector, known for its strong brand equity and global reach. Mondelez's strategic focus on innovation, sustainability, and digital transformation positions it well in the competitive confectionery and snack market.
Mondelez International presents a compelling investment case due to its strong brand portfolio, global diversification, and consistent financial performance. With a beta of 0.51, the stock exhibits lower volatility compared to the broader market, appealing to risk-averse investors. The company generated $36.4 billion in revenue and $4.6 billion in net income, with a diluted EPS of $3.42, reflecting robust profitability. Operating cash flow stands at $4.9 billion, supporting dividend payments ($1.835 per share) and strategic investments. However, high total debt ($18.4 billion) and capital expenditures ($1.4 billion) could pose risks in a rising interest rate environment. The company's focus on premiumization and emerging markets offers growth potential, but competition and input cost inflation remain challenges.
Mondelez International holds a dominant position in the global snack and confectionery market, leveraging its strong brand recognition and extensive distribution network. The company's competitive advantage lies in its diversified product portfolio, which includes premium and mass-market brands catering to different consumer segments. Mondelez's focus on innovation, such as healthier snack options and sustainable packaging, enhances its market positioning. However, the company faces intense competition from both global giants and regional players. Its scale allows for cost efficiencies, but pricing pressures and fluctuating commodity costs can impact margins. Mondelez's strategic acquisitions (e.g., Hu Master Holdings) and partnerships strengthen its market presence, but rivals with larger scale or niche offerings could erode its share. The company's ability to adapt to changing consumer preferences (e.g., sugar reduction trends) will be critical for long-term competitiveness.