DIAGEO PLC-SPONSORED ADR (DEO) Stock Fundamental Analysis

NYSE:DEO • US25243Q2057

89.5 USD
+3.98 (+4.65%)
At close: Feb 27, 2026
89.39 USD
-0.11 (-0.12%)
After Hours: 2/27/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall DEO gets a fundamental rating of 5 out of 10. We evaluated DEO against 33 industry peers in the Beverages industry. DEO has a medium profitability rating, but doesn't score so well on its financial health evaluation. DEO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year DEO was profitable.
  • DEO had a positive operating cash flow in the past year.
  • Each year in the past 5 years DEO has been profitable.
  • In the past 5 years DEO always reported a positive cash flow from operatings.
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.
  • DEO has a better Return On Equity (20.81%) than 72.73% of its industry peers.
  • DEO has a Return On Invested Capital (8.26%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DEO is in line with the industry average of 11.71%.
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

  • Looking at the Profit Margin, with a value of 12.19%, DEO is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
  • In the last couple of years the Profit Margin of DEO has remained more or less at the same level.
  • DEO has a Operating Margin of 21.69%. This is in the better half of the industry: DEO outperforms 75.76% of its industry peers.
  • In the last couple of years the Operating Margin of DEO has declined.
  • With an excellent Gross Margin value of 59.68%, DEO belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
  • In the last couple of years the Gross Margin of DEO has remained more or less at the same level.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DEO is 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.
  • The debt/assets ratio for DEO is higher compared to a year ago.
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 2.04 indicates that DEO is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of DEO (2.04) is comparable to the rest of the 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 is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
  • DEO has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
  • DEO has a worse Debt to Equity ratio (1.74) than 84.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF 10.39
Altman-Z 2.04
ROIC/WACC1.12
WACC7.35%
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 63.64% of the companies in the same industry.
  • DEO has a Quick Ratio of 1.60. This is a bad value and indicates that DEO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.71, DEO perfoms like the industry average, outperforming 48.48% 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. 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.
  • Looking at the last year, DEO shows a decrease in Revenue. The Revenue has decreased by -2.00% in the last year.
  • 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%2.96%
Revenue 1Y (TTM)-2%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-4.05%

3.2 Future

  • Based on estimates for the next years, DEO will show a small growth in Earnings Per Share. The EPS will grow by 6.22% on average per year.
  • Based on estimates for the next years, DEO will show a small growth in Revenue. The Revenue will grow by 1.82% on average per year.
EPS Next Y2.09%
EPS Next 2Y3.39%
EPS Next 3Y4.58%
EPS Next 5Y6.22%
Revenue Next Year-1.33%
Revenue Next 2Y0.62%
Revenue Next 3Y1.71%
Revenue Next 5Y1.82%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.62, DEO is valued correctly.
  • Based on the Price/Earnings ratio, DEO is valued a bit cheaper than 75.76% of the companies in the same industry.
  • DEO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 12.74 indicates a correct valuation of DEO.
  • DEO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DEO is cheaper than 78.79% of the companies in the same industry.
  • DEO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
Industry RankSector Rank
PE 13.62
Fwd PE 12.74
DEO Price Earnings VS Forward Price EarningsDEO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DEO is valued a bit cheaper than 69.70% of the companies in the same industry.
  • 63.64% 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 21.99
EV/EBITDA 11.6
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 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)6.51
PEG (5Y)3.8
EPS Next 2Y3.39%
EPS Next 3Y4.58%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.87%, DEO has a reasonable but not impressive dividend return.
  • DEO's Dividend Yield is rather good when compared to the industry average which is at 1.72. DEO pays more dividend than 87.88% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, DEO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.87%

5.2 History

  • On average, the dividend of DEO grows each year by 8.14%, which is quite nice.
  • DEO has paid a dividend for at least 10 years, which is 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
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

  • 95.28% of the earnings are spent on dividend by DEO. This is not a sustainable payout ratio.
  • DEO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP95.28%
EPS Next 2Y3.39%
EPS Next 3Y4.58%
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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DIAGEO PLC-SPONSORED ADR

NYSE:DEO (2/27/2026, 8:04:00 PM)

After market: 89.39 -0.11 (-0.12%)

89.5

+3.98 (+4.65%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners64.39%
Inst Owner Change0.76%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap49.75B
Revenue(TTM)19.80B
Net Income(TTM)2.41B
Analysts76.77
Price Target115.94 (29.54%)
Short Float %0.45%
Short Ratio1.41
Dividend
Industry RankSector Rank
Dividend Yield 3.87%
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)-2.61%
PT rev (3m)-1.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.13%
EPS NY rev (3m)-4.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.76%
Revenue NY rev (3m)-1.92%
Valuation
Industry RankSector Rank
PE 13.62
Fwd PE 12.74
P/S 2.51
P/FCF 21.99
P/OCF 12.93
P/B 4.29
P/tB N/A
EV/EBITDA 11.6
EPS(TTM)6.57
EY7.34%
EPS(NY)7.02
Fwd EY7.85%
FCF(TTM)4.07
FCFY4.55%
OCF(TTM)6.92
OCFY7.73%
SpS35.63
BVpS20.87
TBVpS-5.56
PEG (NY)6.51
PEG (5Y)3.8
Graham Number55.54
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 2.04
F-Score5
WACC7.35%
ROIC/WACC1.12
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%2.96%
EPS Next Y2.09%
EPS Next 2Y3.39%
EPS Next 3Y4.58%
EPS Next 5Y6.22%
Revenue 1Y (TTM)-2%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-4.05%
Revenue Next Year-1.33%
Revenue Next 2Y0.62%
Revenue Next 3Y1.71%
Revenue Next 5Y1.82%
EBIT growth 1Y-23.15%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year11.72%
EBIT Next 3Y6.85%
EBIT Next 5Y4.26%
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 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 5 / 10 and the dividend payout ratio is 95.28%.