DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
FRA:GUI - GB0002374006 - Common Stock
22.3 EUR
-0.4 (-1.76%)
We assign a fundamental rating of 5 out of 10 to GUI. GUI was compared to 24 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GUI was profitable.
In the past year GUI had a positive cash flow from operations.
Each year in the past 5 years GUI has been profitable.
In the past 5 years GUI always reported a positive cash flow from operatings.
1.2 Ratios
GUI's Return On Assets of 4.77% is fine compared to the rest of the industry. GUI outperforms 70.83% of its industry peers.
GUI has a better Return On Equity (21.23%) than 83.33% of its industry peers.
With a decent Return On Invested Capital value of 8.31%, GUI is doing good in the industry, outperforming 79.17% of the companies in the same industry.
GUI had an Average Return On Invested Capital over the past 3 years of 11.21%. This is above the industry average of 7.87%.
| 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's Profit Margin of 11.63% is fine compared to the rest of the industry. GUI outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of GUI has remained more or less at the same level.
With a decent Operating Margin value of 21.41%, GUI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
GUI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 60.13%, GUI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GUI is creating value.
Compared to 1 year ago, GUI has about the same amount of shares outstanding.
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 1.51, we must say that GUI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.51, GUI is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
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.
With a Debt to FCF ratio value of 8.78, GUI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.88 is on the high side and indicates that GUI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.88, GUI is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.52
WACC5.46%
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.
With a decent Current ratio value of 1.63, GUI is doing good in the industry, outperforming 62.50% 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%.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.09% on average per year.
The Revenue is expected to grow by 3.64% on average over the next years.
EPS Next Y7.18%
EPS Next 2Y6.38%
EPS Next 3Y6.59%
EPS Next 5Y8.09%
Revenue Next Year0.83%
Revenue Next 2Y2.29%
Revenue Next 3Y1.79%
Revenue Next 5Y3.64%
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.
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 16.04.
Compared to the rest of the industry, the Price/Earnings ratio of GUI indicates a somewhat cheap valuation: GUI is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, GUI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.93, the valuation of GUI can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as GUI.
GUI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GUI is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
91.67% 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 | 5.38 | ||
| EV/EBITDA | 5.83 |
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)2.23
PEG (5Y)1.89
EPS Next 2Y6.38%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
GUI has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
GUI's Dividend Yield is a higher than the industry average which is at 2.88.
GUI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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
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 2Y6.38%
EPS Next 3Y6.59%
FRA:GUI (9/10/2025, 7:00:00 PM)
22.3
-0.4 (-1.76%)
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 Cap12.39B
Analysts76.25
Price Target27.21 (22.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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)-2.73%
PT rev (3m)-11.55%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 14.93 | ||
| P/S | 0.72 | ||
| P/FCF | 5.38 | ||
| P/OCF | 3.37 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.83 |
EPS(TTM)1.39
EY6.23%
EPS(NY)1.49
Fwd EY6.7%
FCF(TTM)4.15
FCFY18.6%
OCF(TTM)6.62
OCFY29.68%
SpS31.03
BVpS17
TBVpS-5.65
PEG (NY)2.23
PEG (5Y)1.89
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 | 1.51 |
F-Score4
WACC5.46%
ROIC/WACC1.52
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 Y7.18%
EPS Next 2Y6.38%
EPS Next 3Y6.59%
EPS Next 5Y8.09%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year0.83%
Revenue Next 2Y2.29%
Revenue Next 3Y1.79%
Revenue Next 5Y3.64%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year17.81%
EBIT Next 3Y7.73%
EBIT Next 5Y6.65%
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%