DIAGEO PLC-SPONSORED ADR (DEO) Stock Fundamental Analysis

NYSE:DEO • US25243Q2057

99.88 USD
-0.49 (-0.49%)
At close: Feb 23, 2026
100.8 USD
+0.92 (+0.92%)
Pre-Market: 2/24/2026, 9:22:38 AM
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. There are concerns on the financial health of DEO while its profitability can be described as average. DEO has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year DEO was profitable.
  • DEO had a positive operating cash flow in the past year.
  • DEO had positive earnings in each of the past 5 years.
  • DEO had a positive operating cash flow in each of the past 5 years.
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's Return On Assets of 4.77% is in line compared to the rest of the industry. DEO outperforms 51.52% of its industry peers.
  • DEO's Return On Equity of 21.23% is fine compared to the rest of the industry. DEO outperforms 72.73% of its industry peers.
  • DEO's Return On Invested Capital of 8.31% is in line compared to the rest of the industry. DEO outperforms 54.55% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DEO 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

  • The Profit Margin of DEO (11.63%) is better than 72.73% of its industry peers.
  • In the last couple of years the Profit Margin of DEO has remained more or less at the same level.
  • With a decent Operating Margin value of 21.41%, DEO is doing good in the industry, outperforming 75.76% of the companies in the same industry.
  • DEO's Operating Margin has declined in the last couple of years.
  • The Gross Margin of DEO (60.13%) is better than 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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3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DEO is 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
  • 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

  • DEO has an Altman-Z score of 2.14. 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 has a Altman-Z score (2.14) which 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.
  • Looking at the Debt to FCF ratio, with a value of 8.78, DEO is in line with its industry, 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 2.14
ROIC/WACC1.11
WACC7.49%
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.
  • DEO has a Quick Ratio of 1.63. This is a bad value and indicates that DEO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • DEO's Quick ratio of 0.64 is on the low side compared to the rest of the industry. DEO is outperformed by 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.
  • 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%.
  • 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

  • DEO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.22% yearly.
  • 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.
  • 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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5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.23 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.
  • When comparing the Price/Earnings ratio of DEO to the average of the S&P500 Index (26.64), we can say DEO is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 14.91 indicates a correct valuation of DEO.
  • 69.70% of the companies in the same industry are more expensive than DEO, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of DEO to the average of the S&P500 Index (27.75), we can say DEO is valued slightly cheaper.
Industry RankSector Rank
PE 15.23
Fwd PE 14.91
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

  • Based on the Enterprise Value to EBITDA ratio, DEO is valued a bit cheaper than 63.64% 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 72.73% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.52
EV/EBITDA 12.56
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)7.27
PEG (5Y)4.25
EPS Next 2Y3.39%
EPS Next 3Y4.58%

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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.
  • Compared to an average industry Dividend Yield of 1.74, DEO pays a better dividend. On top of this DEO pays more dividend than 96.97% 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 4.46%

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.
  • 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.
  • The dividend of DEO is growing, but the earnings are growing slower. 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 (2/23/2026, 8:04:00 PM)

Premarket: 100.8 +0.92 (+0.92%)

99.88

-0.49 (-0.49%)

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 Cap55.52B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.77
Price Target118.7 (18.84%)
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 15.23
Fwd PE 14.91
P/S 2.74
P/FCF 20.52
P/OCF 12.86
P/B 5.01
P/tB N/A
EV/EBITDA 12.56
EPS(TTM)6.56
EY6.57%
EPS(NY)6.7
Fwd EY6.71%
FCF(TTM)4.87
FCFY4.87%
OCF(TTM)7.77
OCFY7.78%
SpS36.42
BVpS19.95
TBVpS-6.63
PEG (NY)7.27
PEG (5Y)4.25
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 2.14
F-Score4
WACC7.49%
ROIC/WACC1.11
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%.