MDLZ
Mondelez International, Inc.
Consumer Defensive · Confectioners · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 43.9/100 reflects a mixed picture: financial health is a relative strength with manageable leverage, but growth, momentum, and profitability scores are all below average due to the sharp earnings decline and inconsistent quarterly trends.
- The absence of any macro theme assignment means Mondelez received no theme-related score contribution, limiting its total score.
- The dividend factor provided partial credit for maintaining an active program, but the payout ratio exceeding 100% prevented a higher score in that category.
Why Not Higher
- The near-50% collapse in net income and diluted EPS in FY2025, combined with volatile and recently declining quarterly operating and net income, significantly weighed down the growth and momentum scores.
- Profitability metrics including a 6.4% net margin and 3.4% return on assets, while positive, fall short of the higher thresholds needed to push the overall score into a stronger range.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $36,441,000,000 to FY2025's $38,537,000,000, a gain of +5.8%. However, net income fell sharply from FY2024's $4,611,000,000 to FY2025's $2,451,000,000 (-46.8%), and diluted EPS declined from FY2024's $3.42 to FY2025's $1.89 (-44.7%).
The model rewarded modest top-line expansion but heavily penalized the steep contraction in bottom-line profitability, resulting in a below-average growth score that reflects the divergence between revenue and earnings trajectories.
In FY2025, Mondelez reported a net margin of 6.4%, an operating margin of 9.2%, and a return on assets of 3.4%.
These figures indicate moderate but not exceptional profitability; the model likely scored this factor at a mid-range level because the margins and asset returns, while positive, fall short of the higher thresholds that would warrant a stronger score.
In FY2025, Mondelez carried a debt-to-equity ratio of 0.67, an interest coverage ratio of 5.9 times, and total assets of $71,487,000,000.
The model rewarded a manageable leverage level and a comfortable interest coverage ratio, both of which suggest the company can service its debt obligations without undue strain, supporting a relatively strong financial health score.
Quarterly revenue rose from $8,984,000,000 in 2025Q2 to a peak of $10,496,000,000 in 2025Q4 before pulling back to $10,080,000,000 in 2026Q1. Operating income was volatile, peaking at $1,172,000,000 in 2025Q2, dropping to $744,000,000 in 2025Q3, partially recovering to $952,000,000 in 2025Q4, then declining again to $808,000,000 in 2026Q1. Net income similarly showed no sustained upward trend, moving from $641,000,000 in 2025Q2 to $743,000,000 in 2025Q3, then declining to $665,000,000 in 2025Q4 and $560,000,000 in 2026Q1.
The model assigned a below-average momentum score because the quarterly data reveals an inconsistent and recently decelerating pattern across revenue, operating income, and net income, with no clear sustained acceleration into the most recent period.
In FY2025, Mondelez's dividend payout ratio (dividends paid divided by net income) stood at 101.5%, meaning dividends paid exceeded net income for the period.
The model likely credited the company for maintaining an active dividend program, but the payout ratio exceeding 100% in FY2025 signals that dividends were not fully covered by earnings, which may have constrained the score from reaching the highest tier.
Mondelez International is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a macro theme assignment means the company did not receive theme-related score contribution under the model's current methodology; this is a neutral classification rather than a reflection of the company's underlying business quality.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Mondelez International posted modest top-line growth of 5.8% in FY2025, with revenue rising to $38,537,000,000, but this was overshadowed by a steep 46.8% decline in net income to $2,451,000,000 and a corresponding drop in diluted EPS from $3.42 to $1.89. Profitability metrics remain moderate, with a net margin of 6.4% and return on assets of 3.4%, while the balance sheet shows manageable leverage with a debt-to-equity ratio of 0.67 and interest coverage of 5.9 times. Quarterly momentum has been inconsistent, with operating income and net income both declining into the most recent period, and the dividend payout ratio exceeding 100% raises questions about earnings coverage of shareholder distributions.
Plain English
Mondelez is selling more products than before, but its profits dropped nearly in half last year, its quarterly earnings have been choppy and recently falling, and it's paying out more in dividends than it actually earned — so while the company isn't in financial danger, it's not firing on all cylinders right now.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 5.8% year-over-year to $38,537,000,000 in FY2025, demonstrating that Mondelez retains meaningful top-line momentum in its core business.
- The balance sheet remains relatively sound, with a debt-to-equity ratio of 0.67 and interest coverage of 5.9 times, suggesting the company can comfortably service its debt obligations.
- Mondelez maintains an active dividend program, reflecting a commitment to returning capital to shareholders even in a challenging earnings environment.
Bear Case
- Net income collapsed 46.8% from $4,611,000,000 in FY2024 to $2,451,000,000 in FY2025, and diluted EPS fell from $3.42 to $1.89, signaling a severe deterioration in bottom-line profitability.
- Quarterly operating income has been highly volatile — peaking at $1,172,000,000 in 2025Q2, dropping to $744,000,000 in 2025Q3, and settling at $808,000,000 in 2026Q1 — with no sustained upward trend.
- The dividend payout ratio reached 101.5% in FY2025, meaning dividends paid exceeded net income, raising concerns about the sustainability of the current dividend level.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in net income and operating margins back toward FY2024 levels would signal that the earnings decline was temporary rather than structural.
- Consistent sequential improvement in quarterly net income and operating income over multiple periods would indicate that momentum is genuinely turning positive.
Bearish Triggers
- Further deterioration in quarterly net income below the $560,000,000 level seen in 2026Q1 would suggest the earnings pressure is deepening rather than stabilizing.
- A dividend cut or reduction driven by the unsustainable payout ratio above 100% could signal management's acknowledgment of a more prolonged earnings challenge.
Risk Profile
Low RiskMondelez's financial health appears manageable given a debt-to-equity ratio of 0.67 and interest coverage of 5.9 times, which together suggest limited near-term solvency risk. However, the inconsistent quarterly momentum — with operating income swinging widely and net income declining to $560,000,000 in 2026Q1 — introduces uncertainty about the company's near-term earnings trajectory.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.