Stock Analysis | Mondelez Outlook - Weak Technicals and Strong Fundamentals Create Divergence

Market Snapshot

Headline Takeaway: Mondelez (MDLZ.O) is showing mixed signals with weak technical indicators and strong fundamentals, but the stock is currently in a falling trend (-0.03%). Investors should proceed with caution as technicals suggest the stock is weak.

News Highlights

Recent news items have highlighted key developments across the food industry. On May 31, DoorDash CEO Tony Xu announced the acquisition of Deliveroo and SevenRooms, signaling a move toward consolidation in the food delivery sector. Meanwhile, the Indian Supreme Court is pushing for clearer food labeling regulations, emphasizing the impact of warning labels on consumer choices. Another notable event is BigBasket's foray into 10-minute food delivery in Bengaluru, partnering with Starbucks and Qmin, a move that could intensify competition in the hyper-local delivery market. These developments suggest a dynamic environment for food-related companies, though their direct impact on Mondelez remains to be seen.

Analyst Views & Fundamentals

Mondelez's current average analyst rating score (simple mean) is 3.67, while the weighted rating score (performance-weighted) is 2.56. These scores indicate a relatively neutral outlook from analysts, though there is a notable dispersion in ratings—three institutions have issued "Buy" or "Neutral" ratings, with no consensus. The current price trend (falling) aligns with the weighted expectations, suggesting that the market is already pricing in some of the bearish signals.

On the fundamental side, Mondelez's internal diagnostic score is a strong 9.3 out of 10, indicating robust underlying performance. Here are the key fundamental factors:

• Net assets per share (growth rate compared to beginning of year %): -0.93% (score: 2)
• Net profit attributable to parent company shareholders / Net profit (%): 99.24% (score: 1)
• EV/EBIT: 117.45 (score: 3)
• ROA: 0.91% (score: 3)
• Net income-Revenue: -20.10% (score: 4)
• Rate of return on total assets (%): -9.15% (score: 1)
• Annualized return on total assets (%): -18.29% (score: 1)
• Basic earnings per share (YoY growth rate %): -46.67% (score: 2)
• CFOA: 0.43% (score: 2)
• Diluted earnings per share (YoY growth rate %): -46.31% (score: 2)

These fundamentals show solid metrics in EV/EBIT and Net income-Revenue, but weaker performance in return-related ratios and earnings growth. The divergence between strong fundamentals and weak technicals makes Mondelez an interesting case for further evaluation.

Money-Flow Trends

Mondelez is currently experiencing positive overall fund-flow trends with an overall inflow ratio of 54.99%. The inflow is strongest in the extra-large money flows (57.86%), while block-level flows are also positive at 57.25%. Smaller retail investors are also showing inflow activity, with the small money flows at 50.62%. This suggests that institutional and larger investors are more bullish on Mondelez compared to retail participation.

Key Technical Signals

Mondelez's internal technical diagnostic score is 1.74 out of 10, indicating a weak technical outlook. The key technical signals include:

• WR Oversold: This indicator has an internal diagnostic score of 2.47, suggesting a slight bias toward a price rise but with limited strength.
• WR Overbought: This indicator has a bearish bias with a score of 1.00, indicating a weak overbought condition and higher risk of a pullback.

Over the last 5 days, the following chart patterns have emerged:

• 2025-08-22: WR Overbought
• 2025-09-03: Long Lower Shadow
• 2025-08-28: WR Oversold
• 2025-08-27: WR Oversold
• 2025-08-29: WR Oversold

These signals suggest a mixed but bearish momentum, with repeated oversold and overbought conditions indicating a volatile and indecisive market. The technical indicators are not showing a clear trend, and the overall environment is weak, with bearish signals dominating (2 bearish vs 0 bullish).

Conclusion

Mondelez is in a complex situation: fundamentals remain strong with an internal diagnostic score of 9.3, but technical indicators are weak with a score of 1.74. While analysts are split on the outlook, money flows are showing positive signs from larger investors. The recent chart patterns and mixed technical signals suggest that the stock is in a weak and volatile phase.

Actionable Takeaway: Consider waiting for a clearer pull-back or confirmation of strength before taking a position. Investors should monitor Mondelez's upcoming earnings and any shifts in technical momentum for more clarity on its direction.