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Moody’s Assigned a ‘Baa1’ Rating to Mondelēz International’s Debt

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Jan. 14 2016, Updated 2:44 p.m. ET

Price movement of Mondelēz International

Mondelēz International (MDLZ) has a market cap of $64.5 billion. MDLZ fell by 3.6% to close at $40.59 per share on January 13, 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis is -7.7%, -4.7%, and -9.5%, respectively.

Technically, the stock has broken the support and is trading below all moving day averages. Currently, MDLZ is trading 7.5% below its 20-day moving average, 7.9% below its 50-day moving average, and 3.4% below its 200-day moving average.

The PowerShares Dynamic Food & Beverage Portfolio (PBJ) invests 5.2% of its holdings in MDLZ. The ETF tracks a multifactor, tiered equal-weighted index of US food industry stocks. The YTD price movement of PBJ is -2.3% as of January 12, 2016.

The market caps of MDLZ’s competitors are as follows:

  • PepsiCo (PEP): $140.6 billion
  • General Mills (GIS): $32.8 billion
  • Kellogg Company (K): $25.1 billion
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Moody’s assigned rating to Mondelēz International’s debt

Moody’s has assigned a “Baa1” rating to MDLZ’s 700 million euros of senior unsecured notes due 2023. As per Moody’s, the outlook is stable with a positive projection for fiscal 2016.

Mondelēz International’s 3Q15 performance

MDLZ reported 3Q15 net revenues of $6,849.0 million, a fall of 17.8% when compared to net revenue of $8,337.0 million in 3Q14. It reported the gain on coffee business transactions and divestitures of $7,122.0 million in 3Q15. Its net income and EPS (earnings per share) rose to $7,266.0 million and $4.46, respectively, in 3Q15, as compared to net income and EPS of $899.0 million and $0.53, respectively, in 3Q14.

Meanwhile, cash and cash equivalents rose by 25.9% and inventories fell by 26.5% in 3Q15 as compared to the corresponding period last year. Its debt-to-equity ratio fell to 1.21 in 3Q15 as compared to a debt-to-equity ratio of 1.25 in 3Q14.

MDLZ’s PE (price-to-earnings) and PBV (price-to-book value) ratios were 7.8x and 2.2x, respectively, as of January 13, 2016.

The company has projected the following figures for fiscal 2015:

  • organic net revenue growth to rise by 3%
  • double-digit adjusted EPS growth on a constant currency basis
  • free cash flow excluding items of ~1.0 billion
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