DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GUI - GB0002374006 - Common Stock
18.7 EUR
+0.1 (+0.54%)
We assign a fundamental rating of 5 out of 10 to GUI. 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 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.
- Each year in the past 5 years GUI had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.77%, GUI is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
- GUI has a better Return On Equity (21.23%) than 82.76% of its industry peers.
- GUI has a better Return On Invested Capital (8.31%) 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 7.93%.
| 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 72.41% 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 72.41% 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 89.66% of its industry peers.
- GUI's Gross Margin has been stable in the last couple of years.
| 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
- GUI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- GUI has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GUI has less shares outstanding
- 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's Altman-Z score of 1.47 is on the low side compared to the rest of the industry. GUI is outperformed by 75.86% 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 worse Debt to FCF ratio (8.78) than 62.07% 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.
- The Debt to Equity ratio of GUI (1.88) is worse than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.61
WACC5.15%
2.3 Liquidity
- A Current Ratio of 1.63 indicates that GUI should not have too much problems paying its short term obligations.
- GUI has a better Current ratio (1.63) than 65.52% of its industry peers.
- 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 in line with 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 slightly by 3.59% on average over the past years.
- Looking at the last year, GUI shows a decrease in Revenue. The Revenue has decreased by -0.12% in the last 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 5Y3.59%
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 6.84% on average per year.
- Based on estimates for the next years, GUI will show a small growth in Revenue. The Revenue will grow by 2.42% on average per year.
EPS Next Y2.09%
EPS Next 2Y3.39%
EPS Next 3Y4.58%
EPS Next 5Y6.84%
Revenue Next Year-3.03%
Revenue Next 2Y0.1%
Revenue Next 3Y1.32%
Revenue Next 5Y2.42%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- With a Price/Earnings ratio of 13.65, GUI is valued correctly.
- Based on the Price/Earnings ratio, GUI is valued a bit cheaper than 75.86% of the companies in the same industry.
- GUI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- GUI is valuated correctly with a Price/Forward Earnings ratio of 13.35.
- Based on the Price/Forward Earnings ratio, GUI is valued a bit cheaper than 62.07% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, GUI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GUI is valued cheaper than 89.66% of the companies in the same industry.
- GUI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GUI is cheaper than 96.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.58 | ||
| EV/EBITDA | 5.42 |
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.
- GUI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.52
PEG (5Y)3.81
EPS Next 2Y3.39%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.68%, GUI is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.70, GUI pays a better dividend. On top of this GUI pays more dividend than 89.66% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GUI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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 2Y3.39%
EPS Next 3Y4.58%
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.
Can you provide the valuation status for DIAGEO PLC?
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.
Can you provide the PE and PB ratios for GUI stock?
The Price/Earnings (PE) ratio for DIAGEO PLC (GUI.DE) is 13.65 and the Price/Book (PB) ratio is 1.12.
How sustainable is the dividend of DIAGEO PLC (GUI.DE) stock?
The dividend rating of DIAGEO PLC (GUI.DE) is 6 / 10 and the dividend payout ratio is 97.62%.