About the company Mondelez Internetional is one of the hugest chocolate, biscuits, lollipops and chewing gum producer all over the world. While the company’s history started in 1767, in Russian it appeared only in 1994 as a “Kraft Foods” (later in 2014 it was renamed). There are a large number of well-known and preferable brands, namely Milka, Oreo, Toblerone, Cadbury, Dirol, Nabisco and Tang, that are manufactured by this company to create “delicious moments of joy”. The company includes nine brands with profitability of more than 1 billion $ and it operates in 80 countries. Since 1994 Mondeles has invested actively in Russian economy (approximately 1 billion $ for the whole time) carrying out significant social and charitable events at the same time. Sustainability and comparative analysis According to fundamental analysis Mondelez is the company with the highest capitalization among those of the same segment with relatively comparable indicators. In addition ROE is significantly higher than average level and than other companies points (as net Mondelez net income moved up in comparison with 2014 for roughly 34%). EBITDA margin is above average and is growing up in dynamic. Table 1. Comparative analysis USD Name Mkt Cap (USD) P/E ROE Dvd 12M Yld EBITDA Margin (%) WACC Debt/EV Average 16987,69 25,61 18,56 2,20 12,21 6,80 0,20 MONDELEZ INTERNATIONAL 69232,08 25,02 27,99 1,42 12,56 7,45 0,22 HERSHEY CO/THE 18440,44 20,64 41,28 2,63 21,57 6,65 0,09 SNYDERS-LANCE INC 2582,28 36,92 6,55 1,75 10,49 6,86 0,18 KELLOGG CO 24425,09 18,87 11,97 2,87 10,47 5,86 0,24 TOOTSIE ROLL INDS 2004,62 30,85 9,31 1,06 19,26 8,60 0,00 J & J SNACK FOODS CORP 2165,52 29,88 12,08 1,24 15,28 7,61 0,00 ROCKY MOUNTAIN CHOC FACT INC 63,82 17,11 20,76 4,39 17,84 5,63 0,07 Made by TradeIntime according to Bloomberg At the same time P/E is just about average (25,02 in contrast with 25,61) while companies with 30 times lower capitalization level have 20% better P/E. The low P/E level can be interpreted as underestimation of the shares but as capitalization of the company continues growing up it can be explained by earnings decline. Nevertheless, forecasts predict revenue and gross profit growth as well as net income (for more than 20%) by the end of 2016. Picture 1. According to Bloomberg In addition, higher than average WACC valuation means it is more costly for the company to loan money. The explanation can be found in Debt/EV ratio, that also increases average point (0,22). The more liabilities company has the harder it is to take a loan. Nowadays the reputation, a kind of goodwill, of a company becomes more and more influencing on the company’s performance. Among other factors, connected with honesty in business, being environmentally friendly together with good financial activity aid the enterprise to create useful image for investors. Picture 2. Environmentally friendly goals achievement According to the company's report As is observed, Mondeles reveals the targeted points it managed to achieve during the previous year. They support the idea of socially oriented business that can be significant for long-term growth and company’s valuation. Technical estimation Since 2010 shares price has been rising steadily. The graph below reflects the YTD situation when price have surged from merely 34 to approximately 46 by the beginning of December. Moreover, Stochastic indicator has crossed the lowest line at the end of November and is moving up making it possible to buy shares now. Picture 3. YTD graph According to Bloomberg However, monthly graph together with MACD indicator isn’t so clear. There is an accumulation phase that allows speculators to win on daily operations. The best price for the last month was 46 (on 5 of November) and now it is 43,6 making the spread of 2,4. Perhaps it is better to wait several days or so for the stronger signal and better volumes, because we are going not to speculate but to form long-term investment portfolio. Picture 4. Last month graph According to Bloomberg Why it is worth buying and our expectations 1.As the short-term graphs show out, shares price fell down in the middle of November. For long-term as for the short-term perspective it is better to buy them now after slight increase. 2.Since the 2010 the steady slightly fluctuated shares price increase is observed (from 22,5 at the beginning of 2010 to approximately 45 for December 2015). Continuous growth together with brand popularity and reputation, connected with comfortable work conditions and producing more environmentally-friendly goods make us suppose it is a suitable share for acquiring. Picture 5. 5 years graph According to the www.finanz.ru 3. For short-term buying it is worth saying that the chocolate, coffee and other candies are especially popular at the celebrations time. As is known, the New Year and Christmas are going to be soon. It means that the company’s performance will become even better as there are a great number of famous and preferable brands people of all ages like buying (Oreo, Toblerone, Alpen Gold and so on). 4. According to the analysts’ forecasts, there might be revenue, EBITDA and net income climbing up in the next several years that makes Mondelez attractive for long-term purchasing.