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

NYSE:DEO • US25243Q2057

Current stock price

73.45 USD
-0.62 (-0.84%)
At close:
73.15 USD
-0.3 (-0.41%)
After Hours:

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

  • DEO had positive earnings in the past year.
  • In the past year DEO had a positive cash flow from operations.
  • Each year in the past 5 years DEO has 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

  • DEO has a Return On Assets of 4.80%. This is comparable to the rest of the industry: DEO outperforms 52.94% of its industry peers.
  • DEO's Return On Equity of 20.81% is fine compared to the rest of the industry. DEO outperforms 73.53% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.26%, DEO is in line with its industry, outperforming 52.94% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DEO is in line with the industry average of 11.81%.
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's Profit Margin of 12.19% is fine compared to the rest of the industry. DEO outperforms 76.47% of its industry peers.
  • DEO's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of DEO (21.69%) is better than 76.47% of its industry peers.
  • In the last couple of years the Operating Margin of DEO has declined.
  • Looking at the Gross Margin, with a value of 59.68%, DEO belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. DEO Health Analysis

2.1 Basic Checks

  • DEO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
  • The debt/assets ratio for DEO is higher compared to a year ago.
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

  • An Altman-Z score of 1.90 indicates that DEO is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 1.90, DEO is in line with its industry, outperforming 52.94% of the companies in the same 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.
  • With a Debt to Equity ratio value of 1.74, DEO is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF 10.39
Altman-Z 1.9
ROIC/WACC1.17
WACC7.07%
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's Current ratio of 1.60 is fine compared to the rest 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.
  • Looking at the Quick ratio, with a value of 0.71, DEO is in line with its industry, outperforming 50.00% of the companies in the same 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

More info and screens

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.
  • Looking at the last year, DEO shows a decrease in Revenue. The Revenue has decreased by -2.00% in the last 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)-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

  • Based on estimates for the next years, DEO will show a small growth in Earnings Per Share. The EPS will grow by 6.14% on average per year.
  • Based on estimates for the next years, DEO will show a small growth in Revenue. The Revenue will grow by 0.98% on average per year.
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

More info and screens

Find the best growth stocksShow best growing peers

6

4. DEO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.35, the valuation of DEO can be described as very reasonable.
  • DEO's Price/Earnings ratio is rather cheap when compared to the industry. DEO is cheaper than 82.35% of the companies in the same industry.
  • DEO is valuated cheaply when we compare the Price/Earnings ratio to 24.75, which is the current average of the S&P500 Index.
  • DEO is valuated reasonably with a Price/Forward Earnings ratio of 10.75.
  • Based on the Price/Forward Earnings ratio, DEO is valued cheaper than 82.35% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DEO is valued rather cheaply.
Industry RankSector Rank
PE 11.35
Fwd PE 10.75
DEO Price Earnings VS Forward Price EarningsDEO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEO indicates a somewhat cheap valuation: DEO is cheaper than 70.59% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, DEO is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.05
EV/EBITDA 10.18
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)8.69
PEG (5Y)3.17
EPS Next 2Y1.99%
EPS Next 3Y3.46%

More info and screens

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

6

5. DEO Dividend Analysis

5.1 Amount

  • DEO has a Yearly Dividend Yield of 4.48%, which is a nice return.
  • Compared to an average industry Dividend Yield of 1.87, DEO pays a better dividend. On top of this DEO pays more dividend than 91.18% of the companies listed in the same industry.
  • DEO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.48%

5.2 History

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

  • 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

More info and screens

Find the best dividend stocksShow peers with best dividend

DEO Fundamentals: All Metrics, Ratios and Statistics

DIAGEO PLC-SPONSORED ADR

NYSE:DEO (3/30/2026, 8:04:00 PM)

After market: 73.15 -0.3 (-0.41%)

73.45

-0.62 (-0.84%)

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 Cap40.83B
Revenue(TTM)19.80B
Net Income(TTM)2.41B
Analysts77.42
Price Target115.94 (57.85%)
Short Float %0.55%
Short Ratio1.48
Dividend
Industry RankSector Rank
Dividend Yield 4.48%
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)0%
PT rev (3m)-0.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE 11.35
Fwd PE 10.75
P/S 2.06
P/FCF 18.05
P/OCF 10.61
P/B 3.52
P/tB N/A
EV/EBITDA 10.18
EPS(TTM)6.47
EY8.81%
EPS(NY)6.83
Fwd EY9.31%
FCF(TTM)4.07
FCFY5.54%
OCF(TTM)6.92
OCFY9.42%
SpS35.63
BVpS20.87
TBVpS-5.56
PEG (NY)8.69
PEG (5Y)3.17
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 1.9
F-Score5
WACC7.07%
ROIC/WACC1.17
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%.