Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
- ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food Products industry average. The net income increased by 5.4% when compared to the same quarter one year prior, going from $976.00 million to $1,029.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market on the basis of return on equity, MONDELEZ INTERNATIONAL INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- MONDELEZ INTERNATIONAL INC has improved earnings per share by 5.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MONDELEZ INTERNATIONAL INC increased its bottom line by earning $1.99 versus $1.42 in the prior year. For the next year, the market is expecting a contraction of 28.1% in earnings ($1.43 versus $1.99).
- MDLZ has underperformed the S&P 500 Index, declining 24.81% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
Mondelēz International, Inc., together with its subsidiaries, manufactures and markets packaged food products worldwide. The company has a P/E ratio of 13.3, above the average food & beverage industry P/E ratio of 13.1 and below the S&P 500 P/E ratio of 17.7. Mondelez International has a market cap of $47.35 billion and is part of the consumer goods sector and food & beverage industry. Shares are down 28.6% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff
FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge!
Free download now