DIAGEO PLC-SPONSORED ADR (DEO) Fundamental Analysis & Valuation

NYSE:DEO • US25243Q2057

Current stock price

74.07 USD
+0.33 (+0.45%)
At close:
74.13 USD
+0.06 (+0.08%)
After Hours:

This DEO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DEO Profitability Analysis

1.1 Basic Checks

  • In the past year DEO was profitable.
  • In the past year DEO had a positive cash flow from operations.
  • In the past 5 years DEO has always been profitable.
  • DEO had a positive operating cash flow in each of the past 5 years.
DEO Yearly Net Income VS EBIT VS OCF VS FCFDEO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • DEO has a Return On Assets (4.80%) which is comparable to the rest of the industry.
  • The Return On Equity of DEO (20.81%) is better than 73.53% of its industry peers.
  • The Return On Invested Capital of DEO (8.26%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DEO is in line with the industry average of 11.81%.
Industry RankSector Rank
ROA 4.8%
ROE 20.81%
ROIC 8.26%
ROA(3y)7.73%
ROA(5y)8.08%
ROE(3y)34.97%
ROE(5y)37.03%
ROIC(3y)11.21%
ROIC(5y)11.47%
DEO Yearly ROA, ROE, ROICDEO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • DEO has a better Profit Margin (12.19%) than 76.47% of its industry peers.
  • DEO's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 21.69%, DEO is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
  • In the last couple of years the Operating Margin of DEO has declined.
  • DEO has a Gross Margin of 59.68%. This is amongst the best in the industry. DEO outperforms 85.29% of its industry peers.
  • DEO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.69%
PM (TTM) 12.19%
GM 59.68%
OM growth 3Y-11.65%
OM growth 5Y-6.79%
PM growth 3Y-17.92%
PM growth 5Y-0.61%
GM growth 3Y-0.67%
GM growth 5Y-0.09%
DEO Yearly Profit, Operating, Gross MarginsDEO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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3

2. DEO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DEO is still creating some value.
  • Compared to 1 year ago, DEO has about the same amount of shares outstanding.
  • The number of shares outstanding for DEO has been reduced compared to 5 years ago.
  • Compared to 1 year ago, DEO has a worse debt to assets ratio.
DEO Yearly Shares OutstandingDEO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
DEO Yearly Total Debt VS Total AssetsDEO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • An Altman-Z score of 1.90 indicates that DEO is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 1.90, DEO is in line with its industry, outperforming 52.94% of the companies in the same industry.
  • The Debt to FCF ratio of DEO is 10.39, which is on the high side as it means it would take DEO, 10.39 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 10.39, DEO perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
  • DEO has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
  • DEO has a Debt to Equity ratio of 1.74. This is amonst the worse of the industry: DEO underperforms 82.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF 10.39
Altman-Z 1.9
ROIC/WACC1.16
WACC7.09%
DEO Yearly LT Debt VS Equity VS FCFDEO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • DEO has a Current Ratio of 1.60. This is a normal value and indicates that DEO is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.60, DEO is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
  • A Quick Ratio of 0.71 indicates that DEO may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.71, DEO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.6
Quick Ratio 0.71
DEO Yearly Current Assets VS Current LiabilitesDEO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. DEO Growth Analysis

3.1 Past

  • The earnings per share for DEO have decreased by -4.44% in the last year.
  • DEO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.59% yearly.
  • The Revenue has decreased by -2.00% in the past year.
  • The Revenue has been growing by 11.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.44%
EPS 3Y-6.76%
EPS 5Y3.59%
EPS Q2Q%-2.46%
Revenue 1Y (TTM)-2%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-4.05%

3.2 Future

  • DEO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.14% yearly.
  • DEO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.98% yearly.
EPS Next Y1.31%
EPS Next 2Y1.99%
EPS Next 3Y3.46%
EPS Next 5Y6.14%
Revenue Next Year-2.63%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.58%
Revenue Next 5Y0.98%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DEO Yearly Revenue VS EstimatesDEO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B
DEO Yearly EPS VS EstimatesDEO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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6

4. DEO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.45 indicates a reasonable valuation of DEO.
  • 82.35% of the companies in the same industry are more expensive than DEO, based on the Price/Earnings ratio.
  • DEO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.88.
  • With a Price/Forward Earnings ratio of 10.84, the valuation of DEO can be described as very reasonable.
  • 82.35% of the companies in the same industry are more expensive than DEO, based on the Price/Forward Earnings ratio.
  • DEO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.45
Fwd PE 10.84
DEO Price Earnings VS Forward Price EarningsDEO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DEO is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
  • 70.59% of the companies in the same industry are more expensive than DEO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.2
EV/EBITDA 10.18
DEO Per share dataDEO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • DEO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.76
PEG (5Y)3.19
EPS Next 2Y1.99%
EPS Next 3Y3.46%

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6

5. DEO Dividend Analysis

5.1 Amount

  • DEO has a Yearly Dividend Yield of 4.48%, which is a nice return.
  • DEO's Dividend Yield is rather good when compared to the industry average which is at 1.85. DEO pays more dividend than 91.18% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, DEO pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.48%

5.2 History

  • The dividend of DEO is nicely growing with an annual growth rate of 8.14%!
  • DEO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • DEO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.14%
Div Incr Years2
Div Non Decr Years2
DEO Yearly Dividends per shareDEO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

  • DEO pays out 95.28% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of DEO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.28%
EPS Next 2Y1.99%
EPS Next 3Y3.46%
DEO Yearly Income VS Free CF VS DividendDEO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
DEO Dividend Payout.DEO Dividend Payout, showing the Payout Ratio.DEO Dividend Payout.PayoutRetained Earnings

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DEO Fundamentals: All Metrics, Ratios and Statistics

DIAGEO PLC-SPONSORED ADR

NYSE:DEO (3/27/2026, 8:11:41 PM)

After market: 74.13 +0.06 (+0.08%)

74.07

+0.33 (+0.45%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners63.45%
Inst Owner Change0.77%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap41.17B
Revenue(TTM)19.80B
Net Income(TTM)2.41B
Analysts77.42
Price Target115.94 (56.53%)
Short Float %0.55%
Short Ratio1.48
Dividend
Industry RankSector Rank
Dividend Yield 4.48%
Yearly Dividend1.03
Dividend Growth(5Y)8.14%
DP95.28%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE 11.45
Fwd PE 10.84
P/S 2.08
P/FCF 18.2
P/OCF 10.7
P/B 3.55
P/tB N/A
EV/EBITDA 10.18
EPS(TTM)6.47
EY8.73%
EPS(NY)6.83
Fwd EY9.23%
FCF(TTM)4.07
FCFY5.49%
OCF(TTM)6.92
OCFY9.34%
SpS35.63
BVpS20.87
TBVpS-5.56
PEG (NY)8.76
PEG (5Y)3.19
Graham Number55.12
Profitability
Industry RankSector Rank
ROA 4.8%
ROE 20.81%
ROCE 11.16%
ROIC 8.26%
ROICexc 8.88%
ROICexgc 15.05%
OM 21.69%
PM (TTM) 12.19%
GM 59.68%
FCFM 11.42%
ROA(3y)7.73%
ROA(5y)8.08%
ROE(3y)34.97%
ROE(5y)37.03%
ROIC(3y)11.21%
ROIC(5y)11.47%
ROICexc(3y)11.83%
ROICexc(5y)12.24%
ROICexgc(3y)20.56%
ROICexgc(5y)21.89%
ROCE(3y)15.27%
ROCE(5y)15.6%
ROICexgc growth 3Y-14.98%
ROICexgc growth 5Y-6.83%
ROICexc growth 3Y-12.89%
ROICexc growth 5Y-4.5%
OM growth 3Y-11.65%
OM growth 5Y-6.79%
PM growth 3Y-17.92%
PM growth 5Y-0.61%
GM growth 3Y-0.67%
GM growth 5Y-0.09%
F-Score5
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF 10.39
Debt/EBITDA 3.35
Cap/Depr 90.83%
Cap/Sales 8%
Interest Coverage 4.47
Cash Conversion 63.68%
Profit Quality 93.7%
Current Ratio 1.6
Quick Ratio 0.71
Altman-Z 1.9
F-Score5
WACC7.09%
ROIC/WACC1.16
Cap/Depr(3y)169.79%
Cap/Depr(5y)156.38%
Cap/Sales(3y)7.44%
Cap/Sales(5y)6.86%
Profit Quality(3y)77.05%
Profit Quality(5y)86.47%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.44%
EPS 3Y-6.76%
EPS 5Y3.59%
EPS Q2Q%-2.46%
EPS Next Y1.31%
EPS Next 2Y1.99%
EPS Next 3Y3.46%
EPS Next 5Y6.14%
Revenue 1Y (TTM)-2%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-4.05%
Revenue Next Year-2.63%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.58%
Revenue Next 5Y0.98%
EBIT growth 1Y-23.15%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year11.28%
EBIT Next 3Y5.81%
EBIT Next 5Y4.04%
FCF growth 1Y-21.51%
FCF growth 3Y-11.02%
FCF growth 5Y10.81%
OCF growth 1Y-11.91%
OCF growth 3Y-6.76%
OCF growth 5Y13.23%

DIAGEO PLC-SPONSORED ADR / DEO Fundamental Analysis FAQ

What is the fundamental rating for DEO stock?

ChartMill assigns a fundamental rating of 5 / 10 to DEO.


Can you provide the valuation status for DIAGEO PLC-SPONSORED ADR?

ChartMill assigns a valuation rating of 6 / 10 to DIAGEO PLC-SPONSORED ADR (DEO). This can be considered as Fairly Valued.


Can you provide the profitability details for DIAGEO PLC-SPONSORED ADR?

DIAGEO PLC-SPONSORED ADR (DEO) has a profitability rating of 6 / 10.


How financially healthy is DIAGEO PLC-SPONSORED ADR?

The financial health rating of DIAGEO PLC-SPONSORED ADR (DEO) is 3 / 10.


Is the dividend of DIAGEO PLC-SPONSORED ADR sustainable?

The dividend rating of DIAGEO PLC-SPONSORED ADR (DEO) is 6 / 10 and the dividend payout ratio is 95.28%.