Steady Revenue Growth Has Helped Mondelez Stock Match Market Returns

MDLZ: Mondelez logo
MDLZ
Mondelez

Mondelez International Inc. (NASDAQ: MDLZ) stock price jumped more than 50% from $40 at 2018 end, to around $62 currently, primarily due to favorable changes in its revenue per share. The company, a multinational confectionery, food, beverage and snack manufacturer, witnessed a steady rise in revenues over this period, and combined with a drop in its outstanding share count, this boosted a rise in revenue per share. Additionally, the company also witnessed a rise in its P/S multiple over this timeframe, and this has helped it perform in line with the S&P, which returned roughly 55% over this same time.

In our interactive dashboard, Why Mondelez Stock Moved: MDLZ Stock Has Gained 56% Since 2018, we break down the factors behind this move.

(A) Mondelez’s Total Revenue rose 32% from $25.9 billion in FY 2018 to over $34 billion currently

  • Mondelez’s total revenue rose steadily from $25.9 billion in FY ’18 to $28.7 billion in FY ’21 and currently stands higher at around $34 billion.
  • As of FY ’21, around 39% of the company’s sales come from Europe, with North America coming in second at 29%.
  • Additionally, Europe also brings in almost 44% of the company’s operating income.
  • Latin America has been the worst performing region for the company, with sales dropping from $3.02 billion in FY ’19 to $2.8 billion in FY ’21 and it brings in just 5.5% of the company’s income as of FY ’21, down from 8.1% in FY ’19.
  • For details about Mondelez revenues and comparison to peers, see Mondelez (MDLZ) Revenue Comparison
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(B) Revenue per share (RPS) increased 41% from $17.59 in FY ’18 to $24.81 currently

  • Mondelez revenue rose from $25.9 billion in FY ’18 to $34.2 billion currently, while the outstanding share count decreased marginally from 1.5 billion in FY ’18 to 1.4 billion currently.
  • Due to this, RPS has increased from $17.59 in FY ’18 to $24.81 currently.

(C) Price-To-Sales (P/S) multiple for Mondelez jumped from 2.1x in 2018-end to 3.2x by 2021 end, but has pulled back to 2.5x currently, still around 18% higher than its 2018 level

  • Due to Mondelez’s stellar performance since 2018-end, its P/S multiple rose strongly from 2.1x in 2018-end to as high as 3.2x by late 2021.
  • However, due to the increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 2.5x, still 18% higher than its 2018 level.
  • For additional details about the company stock returns and comparison to peers, see Mondelez (MDLZ) Stock Return Comparison.

With inflation rising and the Fed raising interest rates, Mondelez has fallen 14% this year. Can it drop more? See how low can MDLZ stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Jul 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 MDLZ Return 1% -6% 41%
 S&P 500 Return 3% -18% 75%
 Trefis Multi-Strategy Portfolio 7% -18% 223%

[1] Month-to-date and year-to-date as of 7/8/2022
[2] Cumulative total returns since the end of 2016

 

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