DIAGEO PLC-SPONSORED ADR (DEO) Fundamental Analysis & Valuation

NYSE:DEO • US25243Q2057

Current stock price

77.3 USD
+0.4 (+0.52%)
Last:

This DEO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DEO Profitability Analysis

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.
  • Each year in the past 5 years DEO had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 4.80%, DEO is in line with its industry, outperforming 52.94% of the companies in the same industry.
  • With a decent Return On Equity value of 20.81%, DEO is doing good in the industry, outperforming 73.53% of the companies in the same industry.
  • The Return On Invested Capital of DEO (8.26%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for DEO is in line with the industry average of 11.65%.
Industry RankSector Rank
ROA 4.8%
ROE 20.81%
ROIC 8.26%
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 Profit Margin of 12.19%. This is in the better half of the industry: DEO outperforms 76.47% of its industry peers.
  • In the last couple of years the Profit Margin of DEO has remained more or less at the same level.
  • DEO's Operating Margin of 21.69% is fine compared to the rest of the industry. DEO outperforms 76.47% of its industry peers.
  • In the last couple of years the Operating Margin of DEO has declined.
  • DEO has a Gross Margin of 59.68%. This is amongst the best in the industry. DEO outperforms 85.29% of its industry peers.
  • DEO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.69%
PM (TTM) 12.19%
GM 59.68%
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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3

2. DEO Health Analysis

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.
  • Compared to 1 year ago, DEO has about the same amount of shares outstanding.
  • Compared to 5 years ago, DEO has less shares outstanding
  • 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 1.93. 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.
  • The Altman-Z score of DEO (1.93) is comparable to the rest of the industry.
  • The Debt to FCF ratio of DEO is 10.39, which is on the high side as it means it would take DEO, 10.39 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 10.39, DEO is in line with its industry, outperforming 41.18% of the companies in the same industry.
  • A Debt/Equity ratio of 1.74 is on the high side and indicates that DEO has dependencies on debt financing.
  • DEO's Debt to Equity ratio of 1.74 is on the low side compared to the rest of the industry. DEO is outperformed by 82.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF 10.39
Altman-Z 1.93
ROIC/WACC1.16
WACC7.14%
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 1.60 indicates that DEO should not have too much problems paying its short term obligations.
  • DEO has a Current ratio of 1.60. This is in the better half of the industry: DEO outperforms 64.71% of its industry peers.
  • DEO has a Quick Ratio of 1.60. This is a bad value and indicates that DEO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of DEO (0.71) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.6
Quick Ratio 0.71
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. DEO Growth Analysis

3.1 Past

  • DEO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.44%.
  • DEO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.59% yearly.
  • The Revenue has decreased by -2.00% in the past year.
  • Measured over the past years, DEO shows a quite strong growth in Revenue. The Revenue has been growing by 11.49% on average per year.
EPS 1Y (TTM)-4.44%
EPS 3Y-6.76%
EPS 5Y3.59%
EPS Q2Q%-2.46%
Revenue 1Y (TTM)-2%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-4.05%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.14% on average over the next years.
  • DEO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.98% yearly.
EPS Next Y1.31%
EPS Next 2Y1.99%
EPS Next 3Y3.46%
EPS Next 5Y6.14%
Revenue Next Year-2.63%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.58%
Revenue Next 5Y0.98%

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.
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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6

4. DEO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.95, the valuation of DEO can be described as reasonable.
  • Based on the Price/Earnings ratio, DEO is valued cheaper than 82.35% of the companies in the same industry.
  • DEO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
  • With a Price/Forward Earnings ratio of 11.31, the valuation of DEO can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, DEO is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, DEO is valued rather cheaply.
Industry RankSector Rank
PE 11.95
Fwd PE 11.31
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 64.71% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEO indicates a somewhat cheap valuation: DEO is cheaper than 73.53% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19
EV/EBITDA 10.44
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)9.14
PEG (5Y)3.33
EPS Next 2Y1.99%
EPS Next 3Y3.46%

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

6

5. DEO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.32%, DEO is a good candidate for dividend investing.
  • DEO's Dividend Yield is rather good when compared to the industry average which is at 1.81. DEO pays more dividend than 94.12% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, DEO pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.32%

5.2 History

  • On average, the dividend of DEO grows each year by 8.14%, which is quite nice.
  • DEO has paid a dividend for at least 10 years, which is 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

  • 95.28% 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.
DP95.28%
EPS Next 2Y1.99%
EPS Next 3Y3.46%
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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DEO Fundamentals: All Metrics, Ratios and Statistics

DIAGEO PLC-SPONSORED ADR

NYSE:DEO (3/17/2026, 10:41:34 AM)

77.3

+0.4 (+0.52%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners63.45%
Inst Owner Change0.77%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap42.97B
Revenue(TTM)19.80B
Net Income(TTM)2.41B
Analysts77.42
Price Target115.94 (49.99%)
Short Float %0.55%
Short Ratio1.48
Dividend
Industry RankSector Rank
Dividend Yield 4.32%
Yearly Dividend1.03
Dividend Growth(5Y)8.14%
DP95.28%
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)-2.32%
PT rev (3m)-2.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.23%
Valuation
Industry RankSector Rank
PE 11.95
Fwd PE 11.31
P/S 2.17
P/FCF 19
P/OCF 11.17
P/B 3.7
P/tB N/A
EV/EBITDA 10.44
EPS(TTM)6.47
EY8.37%
EPS(NY)6.84
Fwd EY8.84%
FCF(TTM)4.07
FCFY5.26%
OCF(TTM)6.92
OCFY8.95%
SpS35.63
BVpS20.87
TBVpS-5.56
PEG (NY)9.14
PEG (5Y)3.33
Graham Number55.12
Profitability
Industry RankSector Rank
ROA 4.8%
ROE 20.81%
ROCE 11.16%
ROIC 8.26%
ROICexc 8.88%
ROICexgc 15.05%
OM 21.69%
PM (TTM) 12.19%
GM 59.68%
FCFM 11.42%
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-Score5
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF 10.39
Debt/EBITDA 3.35
Cap/Depr 90.83%
Cap/Sales 8%
Interest Coverage 4.47
Cash Conversion 63.68%
Profit Quality 93.7%
Current Ratio 1.6
Quick Ratio 0.71
Altman-Z 1.93
F-Score5
WACC7.14%
ROIC/WACC1.16
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)-4.44%
EPS 3Y-6.76%
EPS 5Y3.59%
EPS Q2Q%-2.46%
EPS Next Y1.31%
EPS Next 2Y1.99%
EPS Next 3Y3.46%
EPS Next 5Y6.14%
Revenue 1Y (TTM)-2%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-4.05%
Revenue Next Year-2.63%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.58%
Revenue Next 5Y0.98%
EBIT growth 1Y-23.15%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year11.28%
EBIT Next 3Y5.81%
EBIT Next 5Y4.04%
FCF growth 1Y-21.51%
FCF growth 3Y-11.02%
FCF growth 5Y10.81%
OCF growth 1Y-11.91%
OCF growth 3Y-6.76%
OCF growth 5Y13.23%

DIAGEO PLC-SPONSORED ADR / DEO Fundamental Analysis 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 6 / 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 95.28%.