DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
FRA:GUI - Deutsche Boerse Ag - GB0002374006 - Common Stock - Currency: EUR
GUI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 27 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.
GUI had positive earnings in each of the past 5 years.
In the past 5 years GUI always reported a positive cash flow from operatings.
1.2 Ratios
GUI's Return On Assets of 7.66% is amongst the best of the industry. GUI outperforms 81.48% of its industry peers.
Looking at the Return On Equity, with a value of 34.96%, GUI belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
GUI's Return On Invested Capital of 12.39% is amongst the best of the industry. GUI outperforms 85.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GUI is above the industry average of 8.68%.
| 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
The Profit Margin of GUI (17.79%) is better than 85.19% of its industry peers.
GUI's Profit Margin has declined in the last couple of years.
The Operating Margin of GUI (28.74%) is better than 92.59% of its industry peers.
GUI's Operating Margin has declined in the last couple of years.
GUI has a better Gross Margin (60.45%) than 85.19% 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 | 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.
Compared to 1 year ago, GUI has less shares outstanding
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 1.68. This is a bad value and indicates that GUI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.68, GUI is doing worse than 77.78% of the companies in the same industry.
The Debt to FCF ratio of GUI is 8.05, which is on the high side as it means it would take GUI, 8.05 years of fcf income to pay off all of its debts.
GUI has a Debt to FCF ratio of 8.05. This is comparable to the rest of the industry: GUI outperforms 51.85% of its industry peers.
A Debt/Equity ratio of 1.87 is on the high side and indicates that GUI has dependencies on debt financing.
GUI's Debt to Equity ratio of 1.87 is on the low side compared to the rest of the industry. GUI is outperformed by 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | 1.68 |
ROIC/WACC2.09
WACC5.93%
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's Current ratio of 1.60 is fine compared to the rest of the industry. GUI outperforms 62.96% of its industry peers.
GUI has a Quick Ratio of 1.60. 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 has a Quick ratio of 0.67. This is comparable to the rest of the industry: GUI outperforms 59.26% 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.
The Earnings Per Share has been growing slightly by 6.58% on average over the past years.
GUI shows a decrease in Revenue. In the last year, the revenue decreased by -0.93%.
GUI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.51% yearly.
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 4.67% on average per year.
Based on estimates for the next years, GUI will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y-7.36%
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
EPS Next 5Y4.67%
Revenue Next Year0.13%
Revenue Next 2Y1.5%
Revenue Next 3Y2.5%
Revenue Next 5Y3.85%
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 decreasing.
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 16.13, which indicates a correct valuation of GUI.
Based on the Price/Earnings ratio, GUI is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
GUI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.20.
With a Price/Forward Earnings ratio of 15.53, GUI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GUI is on the same level as its industry peers.
GUI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 15.53 |
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 88.89% of the companies listed in the same industry.
96.30% of the companies in the same industry are more expensive than GUI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.62 | ||
| EV/EBITDA | 5.5 |
4.3 Compensation for Growth
The excellent profitability rating of GUI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.45
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, GUI has a reasonable but not impressive dividend return.
GUI's Dividend Yield is a higher than the industry average which is at 2.78.
Compared to an average S&P500 Dividend Yield of 2.40, GUI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
5.2 History
On average, the dividend of GUI grows each year by 8.40%, which is quite nice.
Dividend Growth(5Y)8.4%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
63.78% 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.
DP63.78%
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
FRA:GUI (5/28/2025, 7:00:00 PM)
24.2
-0.1 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners63.08%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap13.44B
Analysts75.15
Price Target30.76 (27.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend0.89
Dividend Growth(5Y)8.4%
DP63.78%
Div Incr Years5
Div Non Decr Years5
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)-3.77%
PT rev (3m)-4.06%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.2%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 15.53 | ||
| P/S | 0.75 | ||
| P/FCF | 5.62 | ||
| P/OCF | 3.56 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.5 |
EPS(TTM)1.5
EY6.2%
EPS(NY)1.56
Fwd EY6.44%
FCF(TTM)4.3
FCFY17.79%
OCF(TTM)6.79
OCFY28.07%
SpS32.24
BVpS16.41
TBVpS-7.15
PEG (NY)N/A
PEG (5Y)2.45
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)14.05%
ROICexc(5y)13.36%
ROICexgc(3y)24.97%
ROICexgc(5y)24.38%
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 | 1.68 |
F-Score7
WACC5.93%
ROIC/WACC2.09
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 5Y4.67%
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 5Y3.85%
EBIT growth 1Y-3.52%
EBIT growth 3Y7.27%
EBIT growth 5Y7.63%
EBIT Next Year10.13%
EBIT Next 3Y6.69%
EBIT Next 5Y3.58%
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%