DIAGEO PLC-SPONSORED ADR (DEO) Stock Fundamental Analysis

NYSE:DEO • US25243Q2057

88.3 USD
-13.84 (-13.55%)
Last: Feb 25, 2026, 12:26 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall DEO gets a fundamental rating of 5 out of 10. We evaluated DEO against 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 decent growth rate and is not valued too expensively.


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.
  • 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

  • DEO has a Return On Assets (4.77%) which is comparable to the rest of the industry.
  • DEO has a better Return On Equity (21.23%) than 72.73% of its industry peers.
  • DEO has a Return On Invested Capital (8.31%) which is in line with its industry peers.
  • 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

  • Looking at the Profit Margin, with a value of 11.63%, DEO is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
  • DEO's Profit Margin has been stable in the last couple of years.
  • DEO has a better Operating Margin (21.41%) than 75.76% of its industry peers.
  • In the last couple of years the Operating Margin of DEO has declined.
  • DEO has a Gross Margin of 60.13%. This is amongst the best in the industry. DEO outperforms 84.85% of its industry peers.
  • In the last couple of years the Gross Margin of DEO has remained more or less at the same level.
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

  • DEO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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

  • An Altman-Z score of 2.16 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 2.16, DEO is in line with its industry, outperforming 51.52% of the companies in the same industry.
  • 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.
  • With a Debt to FCF ratio value of 8.78, DEO perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
  • DEO has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of DEO (1.88) is worse than 84.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.88
Debt/FCF 8.78
Altman-Z 2.16
ROIC/WACC1.1
WACC7.52%
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.
  • With a decent Current ratio value of 1.63, DEO is doing good in the industry, outperforming 63.64% of the companies in the same industry.
  • A Quick Ratio of 0.64 indicates that DEO may have some problems paying its short term obligations.
  • The Quick ratio of DEO (0.64) is worse than 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

  • The earnings per share for DEO have decreased by -8.65% in the last year.
  • 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.
  • DEO shows a decrease in Revenue. In the last year, the revenue decreased by -0.12%.
  • The Revenue has been growing by 11.49% on average over the past years. This is quite good.
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, DEO will show a small growth in Earnings Per Share. The EPS will grow by 6.22% on average per year.
  • The Revenue is expected to grow by 1.82% on average over the next years.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

  • With a Price/Earnings ratio of 13.46, DEO is valued correctly.
  • 72.73% of the companies in the same industry are more expensive than DEO, based on the Price/Earnings ratio.
  • DEO is valuated cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
  • DEO is valuated correctly with a Price/Forward Earnings ratio of 13.18.
  • Based on the Price/Forward Earnings ratio, DEO is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
  • DEO is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.46
Fwd PE 13.18
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

  • 63.64% of the companies in the same industry are more expensive than DEO, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, DEO is valued a bit cheaper than 69.70% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.14
EV/EBITDA 12.76
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)6.43
PEG (5Y)3.75
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 4.46%, DEO is a good candidate for dividend investing.
  • DEO's Dividend Yield is rather good when compared to the industry average which is at 1.74. DEO pays more dividend than 96.97% of the companies in the same industry.
  • DEO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 4.46%

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 (2/25/2026, 12:26:59 PM)

88.3

-13.84 (-13.55%)

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 Change0.72%
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap49.08B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.77
Price Target118.7 (34.43%)
Short Float %0.45%
Short Ratio1.41
Dividend
Industry RankSector Rank
Dividend Yield 4.46%
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 13.46
Fwd PE 13.18
P/S 2.42
P/FCF 18.14
P/OCF 11.37
P/B 4.43
P/tB N/A
EV/EBITDA 12.76
EPS(TTM)6.56
EY7.43%
EPS(NY)6.7
Fwd EY7.59%
FCF(TTM)4.87
FCFY5.51%
OCF(TTM)7.77
OCFY8.8%
SpS36.42
BVpS19.95
TBVpS-6.63
PEG (NY)6.43
PEG (5Y)3.75
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 2.16
F-Score4
WACC7.52%
ROIC/WACC1.1
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 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%.