Mondelez vs Illinois Tool Works
Mondelez vs Illinois Tool Works: this page compares business models, financial performance, and market context for the two companies. The content is presented in a neutral, accessible manner to support understanding of each organisation's position, without implying guidance or recommendations. Educational content, not financial advice.
Mondelez vs Illinois Tool Works: this page compares business models, financial performance, and market context for the two companies. The content is presented in a neutral, accessible manner to suppor...
Why It's Moving
Cocoa Price Plunge Sparks Relief Rally for Mondelez as Snack Giant Battles Input Cost Squeeze
- Cocoa futures tumbled over 5% this week to 1.75-year lows, offering hope for Mondelez's battered gross margins that plunged 1,010 basis points in Q3 2025 amid extreme cost inflation.
- Q3 results showed organic net revenue up 3.4% despite volume headwinds, with updated 2025 guidance holding organic growth at 4%+ and free cash flow over $3B.
- Year-to-date, Mondelez generated $2.1B in operating cash flow and returned $3.7B to shareholders, underscoring financial strength as input costs finally ease.
ITW Boosts Dividend 7% in 62nd Straight Yearly Hike, Signaling Board Confidence Amid Steady Operations.
- Dividend raised by $0.11 per share, reflecting strong Q3 free cash flow of $904M (up 15%) and 110% conversion to net income[1][6].
- Q3 revenue hit $4.1B with record 27.4% operating margin, driven by enterprise initiatives adding 140 bps to profitability[1].
- Full-year EPS guidance narrowed to $10.40–$10.50 with $1.5B share repurchases planned, highlighting disciplined capital allocation[1].
Cocoa Price Plunge Sparks Relief Rally for Mondelez as Snack Giant Battles Input Cost Squeeze
- Cocoa futures tumbled over 5% this week to 1.75-year lows, offering hope for Mondelez's battered gross margins that plunged 1,010 basis points in Q3 2025 amid extreme cost inflation.
- Q3 results showed organic net revenue up 3.4% despite volume headwinds, with updated 2025 guidance holding organic growth at 4%+ and free cash flow over $3B.
- Year-to-date, Mondelez generated $2.1B in operating cash flow and returned $3.7B to shareholders, underscoring financial strength as input costs finally ease.
ITW Boosts Dividend 7% in 62nd Straight Yearly Hike, Signaling Board Confidence Amid Steady Operations.
- Dividend raised by $0.11 per share, reflecting strong Q3 free cash flow of $904M (up 15%) and 110% conversion to net income[1][6].
- Q3 revenue hit $4.1B with record 27.4% operating margin, driven by enterprise initiatives adding 140 bps to profitability[1].
- Full-year EPS guidance narrowed to $10.40–$10.50 with $1.5B share repurchases planned, highlighting disciplined capital allocation[1].
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Published: August 1, 2025
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Explore BasketInvestment Analysis
Mondelez
MDLZ
Pros
- Mondelez has a strong global footprint with a diverse portfolio including popular brands like Oreo and Ritz, ensuring steady market demand.
- The company reported solid quarterly revenue of $7.30 billion and aims for long-term sales growth of 3%-5%, reflecting growth potential.
- Analysts have a consensus 'Buy' rating with an average price target implying over 20% upside, indicating positive market sentiment.
Considerations
- Current stock sentiment is somewhat bearish with price volatility and a modest decrease forecasted in the near term.
- Profit margins are under pressure with a net margin around 9.84%, which could constrain future earnings growth.
- Moderate debt levels with a debt-to-equity ratio around 0.69 could pose financial risks if economic conditions worsen or interest rates rise.
Pros
- Illinois Tool Works has demonstrated consistent earnings performance with strong operational efficiency in industrial manufacturing.
- The company maintains a robust balance sheet and liquidity position, supporting steady dividend payments and capital allocation.
- ITW benefits from diverse end markets, limiting exposure to any single cyclical downturn and providing multiple growth avenues.
Considerations
- Exposure to global industrial and manufacturing cycles introduces risks from economic slowdown or trade disruptions.
- Commodity price fluctuations and raw material costs may pressure margins given the nature of ITW’s manufacturing inputs.
- Execution risks exist related to ongoing integration of acquisitions and maintaining innovation in a competitive industrial sector.
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