DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GUI - GB0002374006 - Common Stock
19.55 EUR
-0.2 (-1.01%)
Overall GUI gets a fundamental rating of 5 out of 10. We evaluated GUI against 27 industry peers in the Beverages industry. GUI scores excellent on profitability, but there are concerns on its financial health. GUI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GUI had positive earnings in the past year.
In the past year GUI had a positive cash flow from operations.
GUI had positive earnings in each of the past 5 years.
GUI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GUI's Return On Assets of 4.77% is fine compared to the rest of the industry. GUI outperforms 74.07% of its industry peers.
GUI has a Return On Equity of 21.23%. This is amongst the best in the industry. GUI outperforms 85.19% of its industry peers.
The Return On Invested Capital of GUI (8.31%) is better than 77.78% of its industry peers.
GUI had an Average Return On Invested Capital over the past 3 years of 11.21%. This is above the industry average of 7.71%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 11.63%, GUI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
GUI's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 21.41%, GUI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of GUI has declined.
GUI has a Gross Margin of 60.13%. This is amongst the best in the industry. GUI outperforms 88.89% of its industry peers.
In the last couple of years the Gross Margin of GUI has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GUI is creating value.
Compared to 1 year ago, GUI has about the same amount of shares outstanding.
GUI has less shares outstanding than it did 5 years ago.
GUI has a worse debt/assets ratio than last year.
2.2 Solvency
GUI has an Altman-Z score of 1.47. This is a bad value and indicates that GUI is not financially healthy and even has some risk of bankruptcy.
GUI has a worse Altman-Z score (1.47) than 70.37% of its industry peers.
The Debt to FCF ratio of GUI is 8.78, which is on the high side as it means it would take GUI, 8.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GUI (8.78) is comparable to the rest of the industry.
GUI has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.88, GUI is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.62
WACC5.14%
2.3 Liquidity
GUI has a Current Ratio of 1.63. This is a normal value and indicates that GUI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.63, GUI is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that GUI may have some problems paying its short term obligations.
GUI has a better Quick ratio (0.64) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for GUI have decreased by -8.65% in the last year.
GUI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.47% yearly.
Looking at the last year, GUI shows a decrease in Revenue. The Revenue has decreased by -0.12% in the last year.
Measured over the past years, GUI 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 5Y8.47%
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
GUI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.07% yearly.
The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y6.78%
EPS Next 2Y5.4%
EPS Next 3Y5.2%
EPS Next 5Y7.07%
Revenue Next Year0.6%
Revenue Next 2Y2.18%
Revenue Next 3Y0.92%
Revenue Next 5Y2.91%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.87, the valuation of GUI can be described as correct.
Based on the Price/Earnings ratio, GUI is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
GUI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
GUI is valuated correctly with a Price/Forward Earnings ratio of 12.95.
GUI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GUI is cheaper than 62.96% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. GUI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GUI indicates a rather cheap valuation: GUI is cheaper than 88.89% of the companies listed in the same industry.
96.30% of the companies in the same industry are more expensive than GUI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.65 | ||
| EV/EBITDA | 5.46 |
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 GUI may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)1.64
EPS Next 2Y5.4%
EPS Next 3Y5.2%
5. Dividend
5.1 Amount
GUI has a Yearly Dividend Yield of 4.66%, which is a nice return.
GUI's Dividend Yield is rather good when compared to the industry average which is at 3.07. GUI pays more dividend than 88.89% of the companies in the same industry.
GUI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
On average, the dividend of GUI grows each year by 8.14%, which is quite nice.
Dividend Growth(5Y)8.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
97.62% of the earnings are spent on dividend by GUI. This is not a sustainable payout ratio.
The dividend of GUI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP97.62%
EPS Next 2Y5.4%
EPS Next 3Y5.2%
FRA:GUI (11/26/2025, 7:00:00 PM)
19.55
-0.2 (-1.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners63.72%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap10.87B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.25
Price Target25.38 (29.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Yearly Dividend0.9
Dividend Growth(5Y)8.14%
DP97.62%
Div Incr Years0
Div Non Decr Years0
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)-5.95%
PT rev (3m)-7.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.95 | ||
| P/S | 0.62 | ||
| P/FCF | 4.65 | ||
| P/OCF | 2.91 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.46 |
EPS(TTM)1.41
EY7.21%
EPS(NY)1.51
Fwd EY7.72%
FCF(TTM)4.21
FCFY21.51%
OCF(TTM)6.71
OCFY34.32%
SpS31.46
BVpS17.23
TBVpS-5.73
PEG (NY)2.04
PEG (5Y)1.64
Graham Number23.38
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.47 |
F-Score4
WACC5.14%
ROIC/WACC1.62
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 5Y8.47%
EPS Q2Q%-7.14%
EPS Next Y6.78%
EPS Next 2Y5.4%
EPS Next 3Y5.2%
EPS Next 5Y7.07%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year0.6%
Revenue Next 2Y2.18%
Revenue Next 3Y0.92%
Revenue Next 5Y2.91%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year19.08%
EBIT Next 3Y6.67%
EBIT Next 5Y4.75%
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 / GUI.DE FAQ
Can you provide the ChartMill fundamental rating for DIAGEO PLC?
ChartMill assigns a fundamental rating of 5 / 10 to GUI.DE.
What is the valuation status for GUI stock?
ChartMill assigns a valuation rating of 6 / 10 to DIAGEO PLC (GUI.DE). This can be considered as Fairly Valued.
What is the profitability of GUI stock?
DIAGEO PLC (GUI.DE) has a profitability rating of 7 / 10.
What is the financial health of DIAGEO PLC (GUI.DE) stock?
The financial health rating of DIAGEO PLC (GUI.DE) is 3 / 10.
Can you provide the expected EPS growth for GUI stock?
The Earnings per Share (EPS) of DIAGEO PLC (GUI.DE) is expected to grow by 6.78% in the next year.