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

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 is not valued too expensively and it also shows a decent growth rate.


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.
  • 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

  • Looking at the Return On Assets, with a value of 4.77%, DEO is in line with its industry, outperforming 51.52% of the companies in the same industry.
  • With a decent Return On Equity value of 21.23%, DEO is doing good in the industry, outperforming 72.73% of the companies in the same industry.
  • 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

  • DEO has a Profit Margin of 11.63%. This is in the better half of the industry: DEO outperforms 72.73% of its industry peers.
  • DEO's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of DEO (21.41%) is better than 75.76% of its industry peers.
  • DEO's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 60.13%, DEO belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
  • 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.
  • DEO has about the same amout of shares outstanding than it did 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 2.02 indicates that DEO is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of DEO (2.02) is comparable to the rest of the 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.
  • The Debt to FCF ratio of DEO (8.78) is comparable to the rest of the industry.
  • DEO has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external 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.
  • The Current ratio of DEO (1.63) is better than 63.64% of its industry peers.
  • A Quick Ratio of 0.64 indicates that DEO may have some problems paying its short term obligations.
  • DEO has a worse Quick ratio (0.64) 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

  • DEO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.65%.
  • DEO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.59% yearly.
  • DEO shows a decrease in Revenue. In the last year, the revenue decreased by -0.12%.
  • 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)-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-1.33%
Revenue Next 2Y0.62%
Revenue Next 3Y1.71%
Revenue Next 5Y1.82%

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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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.
  • 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.
  • Compared to an average S&P500 Price/Earnings ratio of 27.10, DEO is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 13.36 indicates a correct valuation of DEO.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DEO indicates a somewhat cheap valuation: DEO is cheaper than 78.79% of the companies listed in the same industry.
  • DEO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEO indicates a somewhat cheap valuation: DEO is cheaper than 69.70% of the companies listed 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 an expensive valuation of the company.
  • The decent profitability rating of DEO 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

  • DEO has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.75, DEO pays a better dividend. On top of this DEO pays more dividend than 84.85% of the companies listed 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

  • 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

  • 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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Find the best dividend stocksShow peers with best dividend

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%.