DIAGEO PLC-SPONSORED ADR (DEO) Stock Fundamental Analysis

NYSE:DEO • US25243Q2057

100.145 USD
+3.66 (+3.8%)
Last: Feb 20, 2026, 10:11 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, DEO scores 5 out of 10 in our fundamental rating. DEO was compared to 33 industry peers in the Beverages industry. While DEO is still in line with the averages on profitability rating, there are concerns on its financial health. DEO has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • DEO had positive earnings in the past year.
  • DEO had a positive operating cash flow in the past year.
  • In the past 5 years DEO has always been profitable.
  • DEO had a positive operating cash flow in each of the past 5 years.
DEO Yearly Net Income VS EBIT VS OCF VS FCFDEO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • The Return On Assets of DEO (4.77%) is comparable to the rest of the industry.
  • The Return On Equity of DEO (21.23%) is better than 69.70% of its industry peers.
  • DEO's Return On Invested Capital of 8.31% is in line compared to the rest of the industry. DEO outperforms 54.55% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DEO is in line with the industry average of 11.46%.
Industry RankSector 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%
DEO Yearly ROA, ROE, ROICDEO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • The Profit Margin of DEO (11.63%) is better than 75.76% of its industry peers.
  • DEO's Profit Margin has been stable in the last couple of years.
  • DEO has a Operating Margin of 21.41%. This is in the better half of the industry: DEO outperforms 75.76% of its industry peers.
  • DEO's Operating Margin has declined in the last couple of years.
  • The Gross Margin of DEO (60.13%) is better than 84.85% of its industry peers.
  • DEO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
DEO Yearly Profit, Operating, Gross MarginsDEO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DEO is still creating some value.
  • The number of shares outstanding for DEO remains at a similar level compared to 1 year ago.
  • DEO has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, DEO has a worse debt to assets ratio.
DEO Yearly Shares OutstandingDEO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
DEO Yearly Total Debt VS Total AssetsDEO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • DEO has an Altman-Z score of 2.11. This is not the best score and indicates that DEO is in the grey zone with still only limited risk for bankruptcy at the moment.
  • DEO has a Altman-Z score of 2.11. This is comparable to the rest of the industry: DEO outperforms 48.48% of its industry peers.
  • DEO has a debt to FCF ratio of 8.78. This is a slightly negative value and a sign of low solvency as DEO would need 8.78 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 8.78, DEO is in line with its industry, outperforming 42.42% of the companies in the same industry.
  • A Debt/Equity ratio of 1.88 is on the high side and indicates that DEO has dependencies on debt financing.
  • DEO's Debt to Equity ratio of 1.88 is on the low side compared to the rest of the industry. DEO is outperformed by 87.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.88
Debt/FCF 8.78
Altman-Z 2.11
ROIC/WACC1.12
WACC7.45%
DEO Yearly LT Debt VS Equity VS FCFDEO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • DEO has a Current Ratio of 1.63. This is a normal value and indicates that DEO is financially healthy and should not expect problems in meeting its short term obligations.
  • DEO has a Current ratio of 1.63. This is in the better half of the industry: DEO outperforms 60.61% of its industry peers.
  • DEO has a Quick Ratio of 1.63. This is a bad value and indicates that DEO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • DEO's Quick ratio of 0.64 is on the low side compared to the rest of the industry. DEO is outperformed by 60.61% of its industry peers.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 0.64
DEO Yearly Current Assets VS Current LiabilitesDEO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • DEO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.65%.
  • Measured over the past 5 years, DEO shows a small growth in Earnings Per Share. The EPS has been growing by 3.59% on average per year.
  • The Revenue has decreased by -0.12% in the past year.
  • DEO 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

  • The Earnings Per Share is expected to grow by 6.22% on average over the next years.
  • Based on estimates for the next years, DEO will show a small growth in Revenue. The Revenue will grow by 1.82% on average per year.
EPS Next Y2.09%
EPS Next 2Y3.39%
EPS Next 3Y4.58%
EPS Next 5Y6.22%
Revenue Next Year-3.03%
Revenue Next 2Y0.1%
Revenue Next 3Y1.32%
Revenue Next 5Y1.82%

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 accelerating.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DEO Yearly Revenue VS EstimatesDEO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B
DEO Yearly EPS VS EstimatesDEO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

  • DEO is valuated correctly with a Price/Earnings ratio of 15.27.
  • Compared to the rest of the industry, the Price/Earnings ratio of DEO indicates a somewhat cheap valuation: DEO is cheaper than 75.76% of the companies listed in the same industry.
  • DEO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.09.
  • DEO is valuated correctly with a Price/Forward Earnings ratio of 14.95.
  • Based on the Price/Forward Earnings ratio, DEO is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of DEO to the average of the S&P500 Index (27.98), we can say DEO is valued slightly cheaper.
Industry RankSector Rank
PE 15.27
Fwd PE 14.95
DEO Price Earnings VS Forward Price EarningsDEO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DEO is valued a bit cheaper than 60.61% of the companies in the same industry.
  • DEO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DEO is cheaper than 75.76% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.57
EV/EBITDA 12.24
DEO Per share dataDEO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DEO does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of DEO may justify a higher PE ratio.
PEG (NY)7.29
PEG (5Y)4.26
EPS Next 2Y3.39%
EPS Next 3Y4.58%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 4.29%, DEO is a good candidate for dividend investing.
  • DEO's Dividend Yield is rather good when compared to the industry average which is at 1.72. DEO pays more dividend than 93.94% of the companies in the same industry.
  • DEO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
Industry RankSector Rank
Dividend Yield 4.29%

5.2 History

  • The dividend of DEO is nicely growing with an annual growth rate of 8.14%!
  • DEO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • The dividend of DEO decreased in the last 3 years.
Dividend Growth(5Y)8.14%
Div Incr Years2
Div Non Decr Years2
DEO Yearly Dividends per shareDEO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

  • DEO pays out 97.62% of its income as dividend. This is not a sustainable payout ratio.
  • DEO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP97.62%
EPS Next 2Y3.39%
EPS Next 3Y4.58%
DEO Yearly Income VS Free CF VS DividendDEO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
DEO Dividend Payout.DEO Dividend Payout, showing the Payout Ratio.DEO Dividend Payout.PayoutRetained Earnings

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DIAGEO PLC-SPONSORED ADR

NYSE:DEO (2/20/2026, 10:11:06 AM)

100.145

+3.66 (+3.8%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)11-06
Earnings (Next)02-25
Inst Owners64.39%
Inst Owner Change1.46%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap55.67B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.77
Price Target118.7 (18.53%)
Short Float %0.45%
Short Ratio1.41
Dividend
Industry RankSector Rank
Dividend Yield 4.29%
Yearly Dividend1.03
Dividend Growth(5Y)8.14%
DP97.62%
Div Incr Years2
Div Non Decr Years2
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)1.51%
PT rev (3m)-2.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-4.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.61%
Valuation
Industry RankSector Rank
PE 15.27
Fwd PE 14.95
P/S 2.75
P/FCF 20.57
P/OCF 12.89
P/B 5.02
P/tB N/A
EV/EBITDA 12.24
EPS(TTM)6.56
EY6.55%
EPS(NY)6.7
Fwd EY6.69%
FCF(TTM)4.87
FCFY4.86%
OCF(TTM)7.77
OCFY7.76%
SpS36.42
BVpS19.95
TBVpS-6.63
PEG (NY)7.29
PEG (5Y)4.26
Graham Number54.27
Profitability
Industry RankSector 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 RankSector 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 2.11
F-Score4
WACC7.45%
ROIC/WACC1.12
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 5Y3.59%
EPS Q2Q%-7.14%
EPS Next Y2.09%
EPS Next 2Y3.39%
EPS Next 3Y4.58%
EPS Next 5Y6.22%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year-3.03%
Revenue Next 2Y0.1%
Revenue Next 3Y1.32%
Revenue Next 5Y1.82%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year12.59%
EBIT Next 3Y7.32%
EBIT Next 5Y4.26%
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-SPONSORED ADR / DEO FAQ

What is the fundamental rating for DEO stock?

ChartMill assigns a fundamental rating of 5 / 10 to DEO.


Can you provide the valuation status for DIAGEO PLC-SPONSORED ADR?

ChartMill assigns a valuation rating of 5 / 10 to DIAGEO PLC-SPONSORED ADR (DEO). This can be considered as Fairly Valued.


Can you provide the profitability details for DIAGEO PLC-SPONSORED ADR?

DIAGEO PLC-SPONSORED ADR (DEO) has a profitability rating of 6 / 10.


How financially healthy is DIAGEO PLC-SPONSORED ADR?

The financial health rating of DIAGEO PLC-SPONSORED ADR (DEO) is 3 / 10.


Is the dividend of DIAGEO PLC-SPONSORED ADR sustainable?

The dividend rating of DIAGEO PLC-SPONSORED ADR (DEO) is 6 / 10 and the dividend payout ratio is 97.62%.