DIAGEO PLC-SPONSORED ADR (DEO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEO - US25243Q2057 - ADR
91.18 USD
+0.3 (+0.33%)
91.18 USD
0 (0%)
Overall DEO gets a fundamental rating of 5 out of 10. We evaluated DEO against 33 industry peers in the Beverages industry. There are concerns on the financial health of DEO while its profitability can be described as average. DEO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- DEO had positive earnings in the past year.
- In the past year DEO had a positive cash flow from operations.
- In the past 5 years DEO has always been profitable.
- Each year in the past 5 years DEO had a positive operating cash flow.
1.2 Ratios
- DEO's Return On Assets of 4.77% is in line compared to the rest of the industry. DEO outperforms 51.52% of its industry peers.
- DEO has a Return On Equity of 21.23%. This is in the better half of the industry: DEO outperforms 72.73% of its industry peers.
- DEO has a Return On Invested Capital (8.31%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for DEO is in line with the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 21.23% | ||
| ROIC | 8.31% |
ROA(3y)7.73%
ROA(5y)8.08%
ROE(3y)34.97%
ROE(5y)37.03%
ROIC(3y)11.21%
ROIC(5y)11.47%
1.3 Margins
- DEO's Profit Margin of 11.63% is fine compared to the rest of the industry. DEO outperforms 72.73% of its industry peers.
- In the last couple of years the Profit Margin of DEO has remained more or less at the same level.
- With a decent Operating Margin value of 21.41%, DEO is doing good in the industry, outperforming 75.76% of the companies in the same industry.
- DEO's Operating Margin has declined in the last couple of years.
- DEO's Gross Margin of 60.13% is amongst the best of the industry. DEO outperforms 87.88% of its industry peers.
- In the last couple of years the Gross Margin of DEO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.41% | ||
| PM (TTM) | 11.63% | ||
| GM | 60.13% |
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%
2. Health
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.
- DEO has about the same amout of shares outstanding than it did 1 year ago.
- DEO has less shares outstanding than it did 5 years ago.
- DEO has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.07 indicates that DEO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DEO has a Altman-Z score (2.07) which is comparable to the rest of the industry.
- DEO has a debt to FCF ratio of 8.78. This is a slightly negative value and a sign of low solvency as DEO would need 8.78 years to pay back of all of its debts.
- DEO's Debt to FCF ratio of 8.78 is in line compared to the rest of the industry. DEO outperforms 42.42% of its industry peers.
- DEO has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of DEO (1.88) is worse than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.13
WACC7.37%
2.3 Liquidity
- A Current Ratio of 1.63 indicates that DEO should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.63, DEO is doing good in the industry, outperforming 60.61% of the companies in the same industry.
- DEO has a Quick Ratio of 1.63. This is a bad value and indicates that DEO is not financially healthy enough and could expect problems in meeting its short term obligations.
- DEO's Quick ratio of 0.64 is on the low side compared to the rest of the industry. DEO is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The earnings per share for DEO have decreased by -8.65% in the last year.
- The Earnings Per Share has been growing slightly by 3.59% on average over the past years.
- DEO shows a decrease in Revenue. In the last year, the revenue decreased by -0.12%.
- DEO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.49% yearly.
EPS 1Y (TTM)-8.65%
EPS 3Y-6.76%
EPS 5Y3.59%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
3.2 Future
- The Earnings Per Share is expected to grow by 6.84% on average over the next years.
- The Revenue is expected to grow by 2.42% on average over the next years.
EPS Next Y2.98%
EPS Next 2Y4.21%
EPS Next 3Y5%
EPS Next 5Y6.84%
Revenue Next Year-3.03%
Revenue Next 2Y0.1%
Revenue Next 3Y1.32%
Revenue Next 5Y2.42%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- DEO is valuated correctly with a Price/Earnings ratio of 13.90.
- Compared to the rest of the industry, the Price/Earnings ratio of DEO indicates a somewhat cheap valuation: DEO is cheaper than 75.76% of the companies listed in the same industry.
- DEO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 13.49, which indicates a correct valuation of DEO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DEO indicates a somewhat cheap valuation: DEO is cheaper than 78.79% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of DEO to the average of the S&P500 Index (24.32), we can say DEO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
- DEO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DEO is cheaper than 63.64% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DEO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.73 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DEO does not grow enough to justify the current Price/Earnings ratio.
- DEO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.67
PEG (5Y)3.88
EPS Next 2Y4.21%
EPS Next 3Y5%
5. Dividend
5.1 Amount
- DEO has a Yearly Dividend Yield of 4.73%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.73, DEO pays a better dividend. On top of this DEO pays more dividend than 96.97% of the companies listed in the same industry.
- DEO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
- On average, the dividend of DEO grows each year by 8.14%, which is quite nice.
- DEO has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of DEO decreased in the last 3 years.
Dividend Growth(5Y)8.14%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- DEO pays out 97.62% 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.
DP97.62%
EPS Next 2Y4.21%
EPS Next 3Y5%
91.18
+0.3 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)11-06 2025-11-06
Earnings (Next)02-25 2026-02-25
Inst Owners64.39%
Inst Owner Change-0.17%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap50.68B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.13
Price Target119.04 (30.55%)
Short Float %0.52%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
Yearly Dividend1.03
Dividend Growth(5Y)8.14%
DP97.62%
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)0.39%
PT rev (3m)-5.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 13.49 | ||
| P/S | 2.5 | ||
| P/FCF | 18.73 | ||
| P/OCF | 11.74 | ||
| P/B | 4.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.73 |
EPS(TTM)6.56
EY7.19%
EPS(NY)6.76
Fwd EY7.41%
FCF(TTM)4.87
FCFY5.34%
OCF(TTM)7.77
OCFY8.52%
SpS36.42
BVpS19.95
TBVpS-6.63
PEG (NY)4.67
PEG (5Y)3.88
Graham Number54.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 21.23% | ||
| ROCE | 11.23% | ||
| ROIC | 8.31% | ||
| ROICexc | 8.94% | ||
| ROICexgc | 15.19% | ||
| OM | 21.41% | ||
| PM (TTM) | 11.63% | ||
| GM | 60.13% | ||
| FCFM | 13.37% |
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-Score4
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 93.83% | ||
| Cap/Sales | 7.96% | ||
| Interest Coverage | 4.42 | ||
| Cash Conversion | 71.34% | ||
| Profit Quality | 114.95% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.07 |
F-Score4
WACC7.37%
ROIC/WACC1.13
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)-8.65%
EPS 3Y-6.76%
EPS 5Y3.59%
EPS Q2Q%-7.14%
EPS Next Y2.98%
EPS Next 2Y4.21%
EPS Next 3Y5%
EPS Next 5Y6.84%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year-3.03%
Revenue Next 2Y0.1%
Revenue Next 3Y1.32%
Revenue Next 5Y2.42%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year12.59%
EBIT Next 3Y7.32%
EBIT Next 5Y4.43%
FCF growth 1Y5.5%
FCF growth 3Y-11.02%
FCF growth 5Y10.81%
OCF growth 1Y5.96%
OCF growth 3Y-6.76%
OCF growth 5Y13.23%
DIAGEO PLC-SPONSORED ADR / DEO 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 5 / 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 97.62%.