DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
Europe - FRA:GUI - GB0002374006 - Common Stock
20.7 EUR
-0.1 (-0.48%)
GUI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 26 industry peers in the Beverages industry. GUI has an excellent profitability rating, but there are concerns on its financial health. GUI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GUI had positive earnings in the past year.
GUI had a positive operating cash flow in the past year.
GUI had positive earnings in each of the past 5 years.
Each year in the past 5 years GUI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.77%, GUI is doing good in the industry, outperforming 73.08% of the companies in the same industry.
The Return On Equity of GUI (21.23%) is better than 80.77% of its industry peers.
With a decent Return On Invested Capital value of 8.31%, GUI is doing good in the industry, outperforming 73.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GUI is above the industry average of 8.66%.
| 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
GUI has a Profit Margin of 11.63%. This is in the better half of the industry: GUI outperforms 73.08% of its industry peers.
GUI's Profit Margin has been stable in the last couple of years.
GUI has a better Operating Margin (21.41%) than 61.54% of its industry peers.
GUI's Operating Margin has declined in the last couple of years.
GUI has a better Gross Margin (60.13%) than 88.46% of its industry peers.
GUI's Gross Margin has been stable in the last couple of years.
| 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
GUI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GUI has about the same amount of shares outstanding.
GUI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GUI has a worse debt to assets ratio.
2.2 Solvency
GUI has an Altman-Z score of 1.48. This is a bad value and indicates that GUI is not financially healthy and even has some risk of bankruptcy.
GUI has a worse Altman-Z score (1.48) than 80.77% of its industry peers.
GUI has a debt to FCF ratio of 8.78. This is a slightly negative value and a sign of low solvency as GUI would need 8.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.78, GUI is in line with its industry, outperforming 46.15% of the companies in the same industry.
GUI has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.88, GUI is doing worse than 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.58
WACC5.27%
2.3 Liquidity
A Current Ratio of 1.63 indicates that GUI should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.63, GUI is doing good in the industry, outperforming 61.54% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that GUI may have some problems paying its short term obligations.
GUI has a Quick ratio (0.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
GUI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.65%.
Measured over the past years, GUI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.47% on average per year.
GUI shows a decrease in Revenue. In the last year, the revenue decreased by -0.12%.
The Revenue has been growing by 11.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.65%
EPS 3Y-6.76%
EPS 5Y8.47%
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
Based on estimates for the next years, GUI will show a small growth in Earnings Per Share. The EPS will grow by 7.93% on average per year.
The Revenue is expected to grow by 3.47% on average over the next years.
EPS Next Y7.28%
EPS Next 2Y6.4%
EPS Next 3Y6.52%
EPS Next 5Y7.93%
Revenue Next Year0.82%
Revenue Next 2Y2.25%
Revenue Next 3Y1.66%
Revenue Next 5Y3.47%
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 stable.
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
GUI is valuated correctly with a Price/Earnings ratio of 14.68.
Based on the Price/Earnings ratio, GUI is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GUI to the average of the S&P500 Index (27.70), we can say GUI is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.69 indicates a correct valuation of GUI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GUI indicates a somewhat cheap valuation: GUI is cheaper than 61.54% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GUI to the average of the S&P500 Index (23.15), we can say GUI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
GUI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GUI is cheaper than 88.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GUI is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GUI does not grow enough to justify the current Price/Earnings ratio.
GUI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)1.73
EPS Next 2Y6.4%
EPS Next 3Y6.52%
5. Dividend
5.1 Amount
GUI has a Yearly Dividend Yield of 4.30%, which is a nice return.
GUI's Dividend Yield is rather good when compared to the industry average which is at 3.01. GUI pays more dividend than 88.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, GUI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of GUI is nicely growing with an annual growth rate of 8.14%!
Dividend Growth(5Y)8.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GUI pays out 97.62% of its income as dividend. This is not a sustainable payout ratio.
GUI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP97.62%
EPS Next 2Y6.4%
EPS Next 3Y6.52%
FRA:GUI (10/9/2025, 7:00:00 PM)
20.7
-0.1 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners63.72%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap11.50B
Analysts76.25
Price Target26.99 (30.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend0.88
Dividend Growth(5Y)8.14%
DP97.62%
Div Incr Years0
Div Non Decr Years0
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)-0.77%
PT rev (3m)-7.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 13.69 | ||
| P/S | 0.66 | ||
| P/FCF | 4.93 | ||
| P/OCF | 3.09 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.59 |
EPS(TTM)1.41
EY6.81%
EPS(NY)1.51
Fwd EY7.31%
FCF(TTM)4.19
FCFY20.26%
OCF(TTM)6.69
OCFY32.34%
SpS31.38
BVpS17.19
TBVpS-5.71
PEG (NY)2.02
PEG (5Y)1.73
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%
ROICexcg growth 3Y-14.98%
ROICexcg 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 | 1.48 |
F-Score4
WACC5.27%
ROIC/WACC1.58
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 5Y8.47%
EPS Q2Q%-7.14%
EPS Next Y7.28%
EPS Next 2Y6.4%
EPS Next 3Y6.52%
EPS Next 5Y7.93%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year0.82%
Revenue Next 2Y2.25%
Revenue Next 3Y1.66%
Revenue Next 5Y3.47%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year19.08%
EBIT Next 3Y7.75%
EBIT Next 5Y6.12%
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%