DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
FRA:GUI - Deutsche Boerse Ag - GB0002374006 - Common Stock - Currency: EUR
Taking everything into account, GUI scores 5 out of 10 in our fundamental rating. GUI was compared to 25 industry peers in the Beverages industry. While GUI belongs to the best of the industry regarding profitability, there are concerns on its financial health. GUI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GUI had positive earnings in the past year.
In the past year GUI had a positive cash flow from operations.
In the past 5 years GUI has always been profitable.
In the past 5 years GUI always reported a positive cash flow from operatings.
1.2 Ratios
GUI has a Return On Assets of 7.66%. This is in the better half of the industry: GUI outperforms 80.00% of its industry peers.
With an excellent Return On Equity value of 34.96%, GUI belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.39%, GUI belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GUI is significantly above the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 34.96% | ||
| ROIC | 12.39% |
ROA(3y)9.1%
ROA(5y)7.97%
ROE(3y)41.78%
ROE(5y)36.94%
ROIC(3y)13.3%
ROIC(5y)12.38%
1.3 Margins
GUI has a Profit Margin of 17.79%. This is amongst the best in the industry. GUI outperforms 88.00% of its industry peers.
In the last couple of years the Profit Margin of GUI has declined.
Looking at the Operating Margin, with a value of 28.74%, GUI belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GUI has declined.
GUI has a better Gross Margin (60.45%) than 84.00% of its industry peers.
GUI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.74% | ||
| PM (TTM) | 17.79% | ||
| GM | 60.45% |
OM growth 3Y-0.1%
OM growth 5Y-1.72%
PM growth 3Y-2.95%
PM growth 5Y-4.91%
GM growth 3Y-0.14%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GUI is creating value.
The number of shares outstanding for GUI has been reduced compared to 1 year ago.
The number of shares outstanding for GUI has been reduced compared to 5 years ago.
Compared to 1 year ago, GUI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that GUI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.67, GUI is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
GUI has a debt to FCF ratio of 8.05. This is a slightly negative value and a sign of low solvency as GUI would need 8.05 years to pay back of all of its debts.
GUI has a Debt to FCF ratio (8.05) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.87 is on the high side and indicates that GUI has dependencies on debt financing.
GUI has a Debt to Equity ratio of 1.87. This is amonst the worse of the industry: GUI underperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | 1.67 |
ROIC/WACC2.14
WACC5.8%
2.3 Liquidity
GUI has a Current Ratio of 1.60. This is a normal value and indicates that GUI is financially healthy and should not expect problems in meeting its short term obligations.
GUI has a Current ratio (1.60) which is in line with its industry peers.
A Quick Ratio of 0.67 indicates that GUI may have some problems paying its short term obligations.
GUI has a better Quick ratio (0.67) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for GUI have decreased strongly by -10.02% in the last year.
GUI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.58% yearly.
Looking at the last year, GUI shows a decrease in Revenue. The Revenue has decreased by -0.93% in the last year.
The Revenue has been growing by 9.51% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.02%
EPS 3Y9.77%
EPS 5Y6.58%
EPS Q2Q%-9.65%
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y7.38%
Revenue growth 5Y9.51%
Sales Q2Q%-0.56%
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 4.61% on average per year.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y-7.36%
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
EPS Next 5Y4.61%
Revenue Next Year0.13%
Revenue Next 2Y1.5%
Revenue Next 3Y2.5%
Revenue Next 5Y3.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 15.35, which indicates a correct valuation of GUI.
80.00% 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 27.30. GUI is valued slightly cheaper when compared to this.
GUI is valuated correctly with a Price/Forward Earnings ratio of 14.72.
The rest of the industry has a similar Price/Forward Earnings ratio as GUI.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, GUI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 14.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GUI is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
GUI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GUI is cheaper than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.33 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
The excellent profitability rating of GUI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.33
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.12%, GUI is a good candidate for dividend investing.
GUI's Dividend Yield is a higher than the industry average which is at 2.92.
GUI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
The dividend of GUI is nicely growing with an annual growth rate of 8.40%!
Dividend Growth(5Y)8.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
63.78% of the earnings are spent on dividend by GUI. This is not a sustainable payout ratio.
GUI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.78%
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
FRA:GUI (7/11/2025, 7:00:00 PM)
22.1
-0.6 (-2.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners59.21%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap12.28B
Analysts75.76
Price Target29.13 (31.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend0.85
Dividend Growth(5Y)8.4%
DP63.78%
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)-5.31%
PT rev (3m)-8.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 14.72 | ||
| P/S | 0.71 | ||
| P/FCF | 5.33 | ||
| P/OCF | 3.38 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.44 |
EPS(TTM)1.44
EY6.52%
EPS(NY)1.5
Fwd EY6.79%
FCF(TTM)4.15
FCFY18.77%
OCF(TTM)6.55
OCFY29.62%
SpS31.06
BVpS15.81
TBVpS-6.89
PEG (NY)N/A
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 34.96% | ||
| ROCE | 15.92% | ||
| ROIC | 12.39% | ||
| ROICexc | 13.1% | ||
| ROICexgc | 22.91% | ||
| OM | 28.74% | ||
| PM (TTM) | 17.79% | ||
| GM | 60.45% | ||
| FCFM | 13.35% |
ROA(3y)9.1%
ROA(5y)7.97%
ROE(3y)41.78%
ROE(5y)36.94%
ROIC(3y)13.3%
ROIC(5y)12.38%
ROICexc(3y)14.04%
ROICexc(5y)13.35%
ROICexgc(3y)24.95%
ROICexgc(5y)24.37%
ROCE(3y)17.22%
ROCE(5y)16.02%
ROICexcg growth 3Y-1.37%
ROICexcg growth 5Y-3.39%
ROICexc growth 3Y1.39%
ROICexc growth 5Y0.11%
OM growth 3Y-0.1%
OM growth 5Y-1.72%
PM growth 3Y-2.95%
PM growth 5Y-4.91%
GM growth 3Y-0.14%
GM growth 5Y-0.65%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 8.05 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 331.21% | ||
| Cap/Sales | 7.72% | ||
| Interest Coverage | 5.43 | ||
| Cash Conversion | 67.82% | ||
| Profit Quality | 75.05% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.67 |
F-Score7
WACC5.8%
ROIC/WACC2.14
Cap/Depr(3y)182.68%
Cap/Depr(5y)145.23%
Cap/Sales(3y)7.15%
Cap/Sales(5y)6.46%
Profit Quality(3y)67.85%
Profit Quality(5y)86.47%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.02%
EPS 3Y9.77%
EPS 5Y6.58%
EPS Q2Q%-9.65%
EPS Next Y-7.36%
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
EPS Next 5Y4.61%
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y7.38%
Revenue growth 5Y9.51%
Sales Q2Q%-0.56%
Revenue Next Year0.13%
Revenue Next 2Y1.5%
Revenue Next 3Y2.5%
Revenue Next 5Y3.59%
EBIT growth 1Y-3.52%
EBIT growth 3Y7.27%
EBIT growth 5Y7.63%
EBIT Next Year10.13%
EBIT Next 3Y6.69%
EBIT Next 5Y3.77%
FCF growth 1Y24.1%
FCF growth 3Y-12.98%
FCF growth 5Y-0.09%
OCF growth 1Y25.12%
OCF growth 3Y-4.63%
OCF growth 5Y4.64%