Steady Revenue Growth Has Helped Mondelez Stock Match Market Returns

Mondelez International Inc. (NASDAQ: MDLZ) stock price jumped more than 50% from $40 at the end of 2018, 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 2018we break down the factors behind this move.

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 Revenue Comparison

Revenue per share 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.

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’s stock returns and comparison to peers, see Mondelez 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.

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