DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
Europe - FRA:GUI - GB0002374006 - Common Stock
19.7 EUR
+0.55 (+2.87%)
GUI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Beverages industry. GUI has an excellent profitability rating, but there are concerns on its financial health. GUI has a decent growth rate and is not valued too expensively.
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.
GUI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GUI has a Return On Assets of 4.77%. This is in the better half of the industry: GUI outperforms 72.00% of its industry peers.
Looking at the Return On Equity, with a value of 21.23%, GUI belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
GUI's Return On Invested Capital of 8.31% is fine compared to the rest of the industry. GUI outperforms 76.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GUI is above the industry average of 8.01%.
| 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 64.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GUI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 21.41%, GUI is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GUI has declined.
GUI's Gross Margin of 60.13% is amongst the best of the industry. GUI outperforms 88.00% 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.
The number of shares outstanding for GUI remains at a similar level compared to 1 year ago.
The number of shares outstanding for GUI has been reduced compared to 5 years ago.
GUI has a worse debt/assets ratio than last year.
2.2 Solvency
GUI has an Altman-Z score of 1.47. 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 (1.47) than 80.00% of its industry peers.
The Debt to FCF ratio of GUI is 8.78, which is on the high side as it means it would take GUI, 8.78 years of fcf income to pay off 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 64.00% of its industry peers.
GUI 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 GUI (1.88) is worse than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.59
WACC5.22%
2.3 Liquidity
A Current Ratio of 1.63 indicates that GUI should not have too much problems paying its short term obligations.
GUI's Current ratio of 1.63 is fine compared to the rest of the industry. GUI outperforms 64.00% of its industry peers.
A Quick Ratio of 0.64 indicates that GUI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, GUI is in line with its industry, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for GUI have decreased by -8.65% in the last year.
The Earnings Per Share has been growing by 8.47% on average over the past years. This is quite good.
The Revenue has decreased by -0.12% in the past year.
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
Based on estimates for the next years, GUI will show a small growth in Earnings Per Share. The EPS will grow by 7.61% on average per year.
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y6.78%
EPS Next 2Y5.4%
EPS Next 3Y6.2%
EPS Next 5Y7.61%
Revenue Next Year0.6%
Revenue Next 2Y2.18%
Revenue Next 3Y1.48%
Revenue Next 5Y3.29%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
GUI is valuated correctly with a Price/Earnings ratio of 13.87.
76.00% of the companies in the same industry are more expensive than GUI, based on the Price/Earnings ratio.
GUI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.06.
Based on the Price/Forward Earnings ratio of 13.03, the valuation of GUI can be described as correct.
64.00% of the companies in the same industry are more expensive than GUI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GUI to the average of the S&P500 Index (32.73), we can say GUI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 13.03 |
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 88.00% 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 96.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.68 | ||
| EV/EBITDA | 5.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of GUI may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)1.64
EPS Next 2Y5.4%
EPS Next 3Y6.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.70%, GUI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.20, GUI pays a better dividend. On top of this GUI pays more dividend than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GUI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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
97.62% of the earnings are spent on dividend by GUI. 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 2Y5.4%
EPS Next 3Y6.2%
FRA:GUI (11/7/2025, 7:00:00 PM)
19.7
+0.55 (+2.87%)
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 Cap10.95B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.25
Price Target26.41 (34.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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)-2.15%
PT rev (3m)-5.6%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 13.03 | ||
| P/S | 0.63 | ||
| P/FCF | 4.68 | ||
| P/OCF | 2.93 | ||
| P/B | 1.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.47 |
EPS(TTM)1.42
EY7.21%
EPS(NY)1.51
Fwd EY7.68%
FCF(TTM)4.21
FCFY21.38%
OCF(TTM)6.72
OCFY34.11%
SpS31.5
BVpS17.26
TBVpS-5.74
PEG (NY)2.05
PEG (5Y)1.64
Graham Number23.48
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
WACC5.22%
ROIC/WACC1.59
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 Y6.78%
EPS Next 2Y5.4%
EPS Next 3Y6.2%
EPS Next 5Y7.61%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year0.6%
Revenue Next 2Y2.18%
Revenue Next 3Y1.48%
Revenue Next 5Y3.29%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year19.08%
EBIT Next 3Y7.49%
EBIT Next 5Y5.62%
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 6.78% in the next year.