Fact based stock research
Mondi PLC (LSE:MNDI)

GB00B1CRLC47

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Mondi PLC stock research in summary

mondigroup.com

ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), Mondi PLC (Paper Products, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Mondi PLC are a good value (attractively priced) with a consolidated Value Rank of 58 (better than 58% of alternatives), are safely financed (Safety Rank of 66, which means low debt burdens), but show below-average growth (Growth Rank of 42). ...read more

RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on Mondi PLC's financial characteristics. As the company Mondi PLC's key financial metrics exhibit good value (Obermatt Value Rank of 58) but low growth (Obermatt Growth Rank of 42) while being safely financed (Obermatt Safety Rank of 66), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 58% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	58
Growth Rank	42
Safety Rank	66
Combined Rank	70

Country	United Kingdom
Industry	Paper Products
Index	FTSE All Shares, FTSE 100, FTSE 350, Low Emissions, Energy Efficient, Diversity Europe, Human Rights, Renewables Users
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Mondi PLC

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	54	45	13	58
GROWTH
GROWTH	48	67	53	42
SAFETY
SAFETY	48	51	57	66
SENTIMENT
SENTIMENT	n/a	84	94	^new
360° VIEW
360° VIEW	n/a	81	66	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Mondi PLC is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	54	45	13	58
GROWTH
GROWTH	48	67	53	42
SAFETY
SAFETY	48	51	57	66
COMBINED
COMBINED	23	63	27	70

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Mondi PLC the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 58 (better than 58% compared with alternatives), Mondi PLC shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Mondi PLC. Price-to-Profit (also referred to as price-earnings, P/E) is 52 which means that the stock price compared with what market professionals expect for future profits is lower than for 52% of comparable companies, indicating a good value concerning Mondi PLC's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 45, which means that the stock price is lower as regards to invested capital than for 45% of comparable investments. On the other hand, Price-to-Sales is less favorable than 52% of alternatives (only 48% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 30% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 58, is a buy recommendation based on Mondi PLC's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	43	36	33	48
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	41	55	29	52
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	39	34	31	45
DIVIDEND YIELD
DIVIDEND YIELD	68	67	42	70
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	54	45	13	58

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Mondi PLC; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 42 (better than 42% compared with alternatives), Mondi PLC shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Mondi PLC. Sales Growth has a rank of 89 which means that currently, professionals expect the company to grow more than 89% of its competitors. Capital Growth is also above 15% of competitors with a rank of 51. But Profit Growth only has a rank of 15, which means that currently professionals expect the company to grow its profits less than 85% of its competitors. And Stock Returns have also been below average with a rank of only 30. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 42, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	47	62	33	89
PROFIT GROWTH
PROFIT GROWTH	52	21	31	15
CAPITAL GROWTH
CAPITAL GROWTH	n/a	89	59	51
STOCK RETURNS
STOCK RETURNS	44	33	73	30
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	48	67	53	42

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Mondi PLC.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 66 (better than 66% compared with alternatives), the company Mondi PLC has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Mondi PLC is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Mondi PLC. Leverage is at 61, meaning the company has a below-average debt-to-equity ratio. It has less debt than 61% of its competitors. Refinancing is at a rank of 60, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 60% of its competitors. Finally, Liquidity is also good at a rank of 58, which means that the company generates more profit to service its debt than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 66 (better than 66% compared with alternatives), Mondi PLC has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Mondi PLC but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	45	56	64	61
REFINANCING
REFINANCING	55	27	59	60
LIQUIDITY
LIQUIDITY	40	55	32	58
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	48	51	57	66

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Mondi PLC and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	46	50	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	42	75	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	96	94	^new
MARKET PULSE
MARKET PULSE	n/a	58	83	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	84	94	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Mondi PLC.
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