How Mondelēz’s Valuation Compares to Its Peers
On April 21, 2017, Mondelēz International (MDLZ) was trading at a 12-month forward price-to-earnings ratio of 21.4x.
Analysts expect Mondelēz’s (MDLZ) top line to decrease 1.2% year-over-year to $6.4 billion in 1Q17.
Mondelēz International has delivered savings of $0.5 billion in indirect costs over the past three years.
Of the 20 analysts covering Mondelēz (MDLZ) stock, 70% rated the stock as a “buy” on April 21. MDLZ stock was rated as a “hold” by 30% of the analysts.
Mondelēz International (MDLZ) is slated to report its 1Q17 results on May 2. Analysts expect MDLZ to report average adjusted earnings per share of $0.50 in 1Q17, representing year-over-year growth of 4.2% when compared with 1Q16.
The slow growth environment, increased competition, and deflation in the food category are likely to create problems for Hershey (HSY) in the near term.
On April 17, 2017, Hershey was trading at $108.70 per share, which is about 3.0% below analysts’ 12-month price target of $112.1.
As of April 17, 2017, Hershey (HSY) was trading at a 12-month forward PE (price-to-earnings) ratio of 22.7x.
Despite being one of the largest players in the snacks and confection market, Hershey’s (HSY) sales could witness muted growth in 1Q17 as softness in North America and a slowdown in China might negatively impact sales growth.
Hershey is slated to announce its 1Q17 results on April 26, 2017. In this series, we’ll discuss the expectations for the company’s sales, earnings, and margins.
As of April 6, 2017, McCormick (MKC) was trading at a 12-month forward PE (price-to-earnings) ratio of 24.1x.
McCormick’s (MKC) strategic acquisitions have been one of the key components of the company’s sales and margin growth.
McCormick (MKC) stock is covered by 14 analysts, who have rated the company a 2.8 on a scale of 1.0 (“strong buy”) to 5.0 (“strong sell”).
McCormick expects sales to rise 5.0%–7.0% for fiscal 2017 on a currency neutral basis. That’s in line or slightly above its long-term projection.
In fiscal 3Q17, General Mills posted revenue of $3.79 billion—a fall of 5.2% from $4 billion in fiscal 3Q16.
General Mills (GIS) reported its fiscal 3Q17 earnings on March 21, 2017. The results are for a three-month period ending on February 26, 2017.
General Mills (GIS) plans to announce its fiscal 3Q17 results on March 21, 2017. The company’s management lowered its EPS growth guidance to 5%–7% from its earlier guidance of 6%–8%.
As of December 22, 2016, General Mills (GIS) was trading at $62.5. The current price may have already factored in the estimates we’ve discussed in previous parts of this series.
There are various multiples available to assess a stock’s valuation. For this analysis, we chose the PE (price-to-earnings) ratio due to General Mills’ (GIS) high earnings visibility.
In fiscal 2Q17, General Mills (GIS) posted adjusted EPS of $0.85, which represents growth of 3.7% from $0.82 in fiscal 2Q16.