DIAGEO PLC-SPONSORED ADR (DEO) Stock Fundamental Analysis

NYSE:DEO • US25243Q2057

89.5 USD
+3.98 (+4.65%)
At close: Feb 27, 2026
89.39 USD
-0.11 (-0.12%)
After Hours: 2/27/2026, 8:04:00 PM
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. There are concerns on the financial health of DEO while its profitability can be described as average. DEO has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year DEO was profitable.
  • In the past year DEO had a positive cash flow from operations.
  • In the past 5 years DEO has always been profitable.
  • In the past 5 years DEO always reported a positive cash flow from operatings.
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.
  • DEO has a better Return On Equity (21.23%) than 72.73% of its industry peers.
  • With a Return On Invested Capital value of 8.31%, DEO perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
  • DEO had an Average Return On Invested Capital over the past 3 years of 11.21%. This is in line with the industry average of 11.72%.
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

  • DEO has a better Profit Margin (11.63%) than 72.73% 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.
  • In the last couple of years the Operating Margin of DEO has declined.
  • DEO's Gross Margin of 60.13% is amongst the best of the industry. DEO outperforms 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.
  • DEO has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for DEO has been reduced compared to 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 2.02. 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's Altman-Z score of 2.02 is in line compared to the rest of the industry. DEO outperforms 51.52% of its industry peers.
  • The Debt to FCF ratio of DEO is 8.78, which is on the high side as it means it would take DEO, 8.78 years of fcf income to pay off 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 45.45% 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 has a worse Debt to Equity ratio (1.88) than 84.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.88
Debt/FCF 8.78
Altman-Z 2.02
ROIC/WACC1.13
WACC7.35%
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

  • A Current Ratio of 1.63 indicates that DEO should not have too much problems paying its short term obligations.
  • DEO has a Current ratio of 1.63. This is in the better half of the industry: DEO outperforms 63.64% of its industry peers.
  • A Quick Ratio of 0.64 indicates that DEO may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.64, DEO is doing worse than 60.61% of the companies in the same industry.
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

  • The earnings per share for DEO have decreased by -8.65% in the last year.
  • The Earnings Per Share has been growing slightly by 3.59% on average over the past years.
  • 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

  • DEO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.22% yearly.
  • 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-1.33%
Revenue Next 2Y0.62%
Revenue Next 3Y1.71%
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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.64, which indicates a correct valuation of DEO.
  • DEO's Price/Earnings ratio is a bit cheaper when compared to the industry. DEO is cheaper than 75.76% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.10, DEO is valued a bit cheaper.
  • DEO is valuated correctly with a Price/Forward Earnings ratio of 13.36.
  • Based on the Price/Forward Earnings ratio, DEO is valued a bit cheaper than 78.79% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of DEO to the average of the S&P500 Index (28.06), we can say DEO is valued rather cheaply.
Industry RankSector Rank
PE 13.64
Fwd PE 13.36
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

  • DEO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DEO is cheaper than 69.70% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DEO is valued a bit cheaper than 78.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.38
EV/EBITDA 11.24
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.
  • DEO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.52
PEG (5Y)3.8
EPS Next 2Y3.39%
EPS Next 3Y4.58%

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

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.75%, DEO has a reasonable but not impressive dividend return.
  • DEO's Dividend Yield is rather good when compared to the industry average which is at 1.75. DEO pays more dividend than 84.85% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, DEO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.75%

5.2 History

  • The dividend of DEO is nicely growing with an annual growth rate of 8.14%!
  • DEO has paid a dividend for at least 10 years, which is a reliable track record.
  • DEO has decreased its dividend 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

  • 97.62% of the earnings are spent on dividend by DEO. 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 (2/27/2026, 8:04:00 PM)

After market: 89.39 -0.11 (-0.12%)

89.5

+3.98 (+4.65%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners64.39%
Inst Owner Change0.72%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap49.75B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.77
Price Target115.94 (29.54%)
Short Float %0.45%
Short Ratio1.41
Dividend
Industry RankSector Rank
Dividend Yield 3.75%
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)-0.29%
PT rev (3m)0.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.76%
Revenue NY rev (3m)-1.92%
Valuation
Industry RankSector Rank
PE 13.64
Fwd PE 13.36
P/S 2.46
P/FCF 18.38
P/OCF 11.52
P/B 4.49
P/tB N/A
EV/EBITDA 11.24
EPS(TTM)6.56
EY7.33%
EPS(NY)6.7
Fwd EY7.48%
FCF(TTM)4.87
FCFY5.44%
OCF(TTM)7.77
OCFY8.68%
SpS36.42
BVpS19.95
TBVpS-6.63
PEG (NY)6.52
PEG (5Y)3.8
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 2.02
F-Score4
WACC7.35%
ROIC/WACC1.13
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-1.33%
Revenue Next 2Y0.62%
Revenue Next 3Y1.71%
Revenue Next 5Y1.82%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year11.72%
EBIT Next 3Y6.85%
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 5 / 10 and the dividend payout ratio is 97.62%.