Despite Tepid Sales, Margin Gains Persist for Wide-Moat Mondelez; Shares a Touch Undervalued
While Mondelez continues to feel the heat from a heightened promotional environment and slowing global growth, the firm’s underlying performance (1.3% organic sales growth and 230 basis points of adjusted operating margin expansion to 15.3% in fiscal 2016) generally aligned with our expectations (0.8% and 15.3%, respectively). Longer term, management reaffirmed its 17%-18% operating margin target for fiscal 2018, and suggested it intends to realize gains beyond the $1.5 billion aims laid out. Th...Mondelez International sells food and beverage products. The company makes and sells primarily snacks, including biscuits (cookies, crackers and salted snacks), chocolate, gum and candy, as well as various cheese and grocery and powdered beverage products. The company's portfolio includes snack brands such as Cadbury, Milka and Toblerone chocolate; Oreo, belVita and LU biscuits; Halls candy; Trident gum and Tang powdered beverages. The company's operations and management structure are organized into four operating segments: Latin America; Asia, Middle East and Africa; Europe; and North America. The company sells its products to supermarket chains, wholesalers, supercenters, value stores and other retail food outlets.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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