Mondelez (MDLZ) Valuation Check After Targeted CHIPS AHOY! Recall Raises Product Safety Questions

Mondelez International (MDLZ) is back in focus after a voluntary recall of certain CHIPS AHOY! Baked Bites Brookie packs, following the discovery of corn starch clumps that could create a choking risk. See our latest analysis for Mondelez International. The recall lands after a busy stretch for Mondelez, with the Board recently affirming its regular dividend and the stock logging a 90 day share price return of minus 12.69 percent. The five year total shareholder return of 5.82 percent signals slow but positive compounding rather than strong momentum. If this safety hiccup has you reassessing your snacking playbook, it might be a good moment to compare Mondelez with other resilient food and healthcare stocks for diversified defensive exposure. With shares down this year but still delivering steady earnings and dividends, investors now face a key question: is Mondelez trading at a genuine discount, or is the market already pricing in its growth potential? Most Popular Narrative Narrative: 20.7% Undervalued With Mondelez last closing at $54.62 against a narrative fair value near the high $60s, the story points to a sizable valuation gap that hinges on earnings power and margin recovery. The analysts have a consensus price target of $74.417 for Mondelez International based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $88.0, and the most bearish reporting a price target of just $67.0. Read the complete narrative. Curious why steady revenue growth, rising margins and a richer future earnings multiple could justify a higher price? The narrative spells out the full playbook. Result: Fair Value of $68.85 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, elevated cocoa costs and softer consumer demand, especially in North America and Europe, could squeeze margins and delay the market’s re-rating. Find out about the key risks to this Mondelez International narrative. Build Your Own Mondelez International Narrative If you see the numbers differently or want to test your own thesis against the data, you can build a personalized narrative in under three minutes: Do it your way. A great starting point for your Mondelez International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Ready for more investing angles? Before the market moves on without you, use the Simply Wall Street Screener to uncover fresh, data backed ideas that complement or challenge your Mondelez view. Target income focused opportunities by scanning these 10 dividend stocks with yields > 3% that can potentially strengthen your portfolio’s cash flow. Capitalize on mispriced potential with these 904 undervalued stocks based on cash flows that may offer a margin of safety plus upside. Ride powerful innovation themes by reviewing these 24 AI penny stocks poised to benefit from accelerating demand for intelligent automation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech