DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GUI - GB0002374006 - Common Stock
18.9 EUR
+0.05 (+0.27%)
Taking everything into account, GUI scores 5 out of 10 in our fundamental rating. GUI was compared to 29 industry peers in the Beverages industry. While GUI has a great profitability rating, there are quite some concerns on its financial health. GUI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GUI was profitable.
GUI had a positive operating cash flow in the past year.
GUI had positive earnings in each of the past 5 years.
GUI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GUI has a better Return On Assets (4.77%) than 72.41% of its industry peers.
The Return On Equity of GUI (21.23%) is better than 82.76% of its industry peers.
The Return On Invested Capital of GUI (8.31%) is better than 75.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GUI is above the industry average of 7.74%.
| 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
Looking at the Profit Margin, with a value of 11.63%, GUI is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
GUI's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 21.41%, GUI is doing good in the industry, outperforming 68.97% of the companies in the same industry.
In the last couple of years the Operating Margin of GUI has declined.
GUI has a Gross Margin of 60.13%. This is amongst the best in the industry. GUI outperforms 86.21% of its industry peers.
In the last couple of years the Gross Margin of GUI 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GUI is creating value.
GUI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for GUI has been reduced compared to 5 years ago.
The debt/assets ratio for GUI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that GUI is in the distress zone and has some risk of bankruptcy.
GUI has a Altman-Z score of 1.47. This is in the lower half of the industry: GUI underperforms 79.31% 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.
GUI has a Debt to FCF ratio of 8.78. This is in the lower half of the industry: GUI underperforms 65.52% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that GUI has dependencies on debt financing.
GUI has a Debt to Equity ratio of 1.88. This is amonst the worse of the industry: GUI underperforms 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.62
WACC5.12%
2.3 Liquidity
GUI has a Current Ratio of 1.63. This is a normal value and indicates that GUI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of GUI (1.63) is better than 65.52% of its industry peers.
GUI has a Quick Ratio of 1.63. This is a bad value and indicates that GUI is not financially healthy enough and could expect problems in meeting its short term obligations.
GUI's Quick ratio of 0.64 is in line compared to the rest of the industry. GUI outperforms 58.62% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 8.47% on average over the past years. This is quite good.
GUI shows a decrease in Revenue. In the last year, the revenue decreased by -0.12%.
GUI 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 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
GUI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.07% yearly.
Based on estimates for the next years, GUI will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
EPS Next Y3.27%
EPS Next 2Y4.54%
EPS Next 3Y5.27%
EPS Next 5Y7.07%
Revenue Next Year-2.85%
Revenue Next 2Y0.27%
Revenue Next 3Y1.49%
Revenue Next 5Y2.91%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
GUI is valuated correctly with a Price/Earnings ratio of 13.50.
75.86% of the companies in the same industry are more expensive than GUI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.54. GUI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.10, GUI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GUI indicates a somewhat cheap valuation: GUI is cheaper than 68.97% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. GUI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GUI indicates a rather cheap valuation: GUI is cheaper than 89.66% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GUI indicates a rather cheap valuation: GUI is cheaper than 96.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.55 | ||
| EV/EBITDA | 5.41 |
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.
The decent profitability rating of GUI may justify a higher PE ratio.
PEG (NY)4.13
PEG (5Y)1.59
EPS Next 2Y4.54%
EPS Next 3Y5.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.72%, GUI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.08, GUI pays a better dividend. On top of this GUI pays more dividend than 89.66% of the companies listed in the same industry.
GUI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
5.2 History
On average, the dividend of GUI grows each year by 8.14%, which is quite nice.
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.
The dividend of GUI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP97.62%
EPS Next 2Y4.54%
EPS Next 3Y5.27%
FRA:GUI (12/12/2025, 7:00:00 PM)
18.9
+0.05 (+0.27%)
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 Cap10.51B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.25
Price Target25.64 (35.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
Yearly Dividend0.89
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)-2.99%
PT rev (3m)-5.77%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.29%
EPS NY rev (3m)-3.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.43%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 13.1 | ||
| P/S | 0.61 | ||
| P/FCF | 4.55 | ||
| P/OCF | 2.85 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.41 |
EPS(TTM)1.4
EY7.41%
EPS(NY)1.44
Fwd EY7.64%
FCF(TTM)4.16
FCFY21.99%
OCF(TTM)6.63
OCFY35.09%
SpS31.09
BVpS17.03
TBVpS-5.66
PEG (NY)4.13
PEG (5Y)1.59
Graham Number23.16
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 | 1.47 |
F-Score4
WACC5.12%
ROIC/WACC1.62
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 Y3.27%
EPS Next 2Y4.54%
EPS Next 3Y5.27%
EPS Next 5Y7.07%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year-2.85%
Revenue Next 2Y0.27%
Revenue Next 3Y1.49%
Revenue Next 5Y2.91%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year12.91%
EBIT Next 3Y7.54%
EBIT Next 5Y4.75%
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 / GUI.DE FAQ
Can you provide the ChartMill fundamental rating for DIAGEO PLC?
ChartMill assigns a fundamental rating of 5 / 10 to GUI.DE.
What is the valuation status for GUI stock?
ChartMill assigns a valuation rating of 6 / 10 to DIAGEO PLC (GUI.DE). This can be considered as Fairly Valued.
What is the profitability of GUI stock?
DIAGEO PLC (GUI.DE) has a profitability rating of 7 / 10.
What is the financial health of DIAGEO PLC (GUI.DE) stock?
The financial health rating of DIAGEO PLC (GUI.DE) is 2 / 10.
Can you provide the expected EPS growth for GUI stock?
The Earnings per Share (EPS) of DIAGEO PLC (GUI.DE) is expected to grow by 3.27% in the next year.