MDLZ - Embedded Expectations Analysis - 2021 10 01
Mondelez International, Inc. (MDLZ:USA) currently trades above corporate averages relative to Uniform earnings, with a 24.3x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their growth, brand investments, and inflationary headwinds.Specifically, management may lack confidence in their ability to sustain biscuit, gum & candy sales and emerging markets growth. Additionally, they may lack confidence in their ability to accelerate investments in their brands and capabilities and mitigate inflationary headwinds through price increases. Moreover, management may have concerns about the impact of logistics inflation on conversion benefits and the reduction of inventory from their 25% SKU rationalization. Furthermore, they may be exaggerating the profitability of their acquisitions and factory cost benefits resulting from volume growth. Finally, they may lack confidence in their ability to execute their bolt-on acquisitions strategy.
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.