DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
FRA:GUI - Deutsche Boerse Ag - GB0002374006 - Common Stock - Currency: EUR
Taking everything into account, GUI scores 5 out of 10 in our fundamental rating. GUI was compared to 25 industry peers in the Beverages industry. While GUI has a great profitability rating, there are quite some concerns on its financial health. GUI is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years GUI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.66%, GUI belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
With an excellent Return On Equity value of 34.96%, GUI belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.39%, GUI belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
GUI had an Average Return On Invested Capital over the past 3 years of 13.30%. This is significantly above the industry average of 7.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 34.96% | ||
| ROIC | 12.39% |
ROA(3y)9.1%
ROA(5y)7.97%
ROE(3y)41.78%
ROE(5y)36.94%
ROIC(3y)13.3%
ROIC(5y)12.38%
1.3 Margins
With an excellent Profit Margin value of 17.79%, GUI belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
GUI's Profit Margin has declined in the last couple of years.
GUI has a better Operating Margin (28.74%) than 92.31% of its industry peers.
GUI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 60.45%, GUI belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
GUI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.74% | ||
| PM (TTM) | 17.79% | ||
| GM | 60.45% |
OM growth 3Y-0.1%
OM growth 5Y-1.72%
PM growth 3Y-2.95%
PM growth 5Y-4.91%
GM growth 3Y-0.14%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
GUI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GUI has less shares outstanding
GUI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GUI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that GUI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GUI (1.69) is worse than 65.38% of its industry peers.
The Debt to FCF ratio of GUI is 8.05, which is on the high side as it means it would take GUI, 8.05 years of fcf income to pay off all of its debts.
GUI's Debt to FCF ratio of 8.05 is in line compared to the rest of the industry. GUI outperforms 57.69% of its industry peers.
GUI has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
GUI's Debt to Equity ratio of 1.87 is on the low side compared to the rest of the industry. GUI is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.95
WACC6.34%
2.3 Liquidity
A Current Ratio of 1.60 indicates that GUI should not have too much problems paying its short term obligations.
GUI has a Current ratio of 1.60. This is in the better half of the industry: GUI outperforms 69.23% of its industry peers.
GUI has a Quick Ratio of 1.60. This is a bad value and indicates that GUI is not financially healthy enough and could expect problems in meeting its short term obligations.
GUI has a better Quick ratio (0.67) than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for GUI have decreased strongly by -10.02% in the last year.
Measured over the past 5 years, GUI shows a small growth in Earnings Per Share. The EPS has been growing by 6.58% on average per year.
Looking at the last year, GUI shows a decrease in Revenue. The Revenue has decreased by -0.93% in the last year.
The Revenue has been growing by 9.51% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.02%
EPS 3Y9.77%
EPS 5Y6.58%
EPS Q2Q%-9.65%
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y7.38%
Revenue growth 5Y9.51%
Sales Q2Q%-0.56%
3.2 Future
Based on estimates for the next years, GUI will show a small growth in Earnings Per Share. The EPS will grow by 4.91% on average per year.
The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y-5.28%
EPS Next 2Y0.12%
EPS Next 3Y1.96%
EPS Next 5Y4.91%
Revenue Next Year0.06%
Revenue Next 2Y1.47%
Revenue Next 3Y2.52%
Revenue Next 5Y3.78%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
GUI is valuated correctly with a Price/Earnings ratio of 16.78.
GUI's Price/Earnings ratio is a bit cheaper when compared to the industry. GUI is cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, GUI is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.72 indicates a correct valuation of GUI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GUI indicates a somewhat cheap valuation: GUI is cheaper than 61.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, GUI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
92.31% of the companies in the same industry are more expensive than GUI, based on the Enterprise Value to EBITDA ratio.
GUI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GUI is cheaper than 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.81 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
The excellent profitability rating of GUI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.55
EPS Next 2Y0.12%
EPS Next 3Y1.96%
5. Dividend
5.1 Amount
GUI has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
GUI's Dividend Yield is rather good when compared to the industry average which is at 2.64. GUI pays more dividend than 80.77% of the companies in the same industry.
GUI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of GUI is nicely growing with an annual growth rate of 8.40%!
Dividend Growth(5Y)8.4%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
63.78% of the earnings are spent on dividend by GUI. This is not a sustainable payout ratio.
GUI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.78%
EPS Next 2Y0.12%
EPS Next 3Y1.96%
FRA:GUI (3/7/2025, 7:00:00 PM)
26.01
-0.38 (-1.46%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners63.08%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap14.45B
Analysts74.38
Price Target32.38 (24.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend0.93
Dividend Growth(5Y)8.4%
DP63.78%
Div Incr Years5
Div Non Decr Years5
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)-0.48%
PT rev (3m)-0.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.2%
EPS NY rev (3m)-7.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 15.72 | ||
| P/S | 0.78 | ||
| P/FCF | 5.81 | ||
| P/OCF | 3.68 | ||
| P/B | 1.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.58 |
EPS(TTM)1.55
EY5.96%
EPS(NY)1.65
Fwd EY6.36%
FCF(TTM)4.47
FCFY17.2%
OCF(TTM)7.06
OCFY27.14%
SpS33.5
BVpS17.05
TBVpS-7.43
PEG (NY)N/A
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.66% | ||
| ROE | 34.96% | ||
| ROCE | 15.92% | ||
| ROIC | 12.39% | ||
| ROICexc | 13.1% | ||
| ROICexgc | 22.91% | ||
| OM | 28.74% | ||
| PM (TTM) | 17.79% | ||
| GM | 60.45% | ||
| FCFM | 13.35% |
ROA(3y)9.1%
ROA(5y)7.97%
ROE(3y)41.78%
ROE(5y)36.94%
ROIC(3y)13.3%
ROIC(5y)12.38%
ROICexc(3y)14.07%
ROICexc(5y)13.37%
ROICexgc(3y)25.04%
ROICexgc(5y)24.42%
ROCE(3y)17.22%
ROCE(5y)16.02%
ROICexcg growth 3Y-1.37%
ROICexcg growth 5Y-3.39%
ROICexc growth 3Y1.39%
ROICexc growth 5Y0.11%
OM growth 3Y-0.1%
OM growth 5Y-1.72%
PM growth 3Y-2.95%
PM growth 5Y-4.91%
GM growth 3Y-0.14%
GM growth 5Y-0.65%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 8.05 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 331.21% | ||
| Cap/Sales | 7.72% | ||
| Interest Coverage | 5.43 | ||
| Cash Conversion | 67.82% | ||
| Profit Quality | 75.05% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.69 |
F-Score7
WACC6.34%
ROIC/WACC1.95
Cap/Depr(3y)182.68%
Cap/Depr(5y)145.23%
Cap/Sales(3y)7.15%
Cap/Sales(5y)6.46%
Profit Quality(3y)67.85%
Profit Quality(5y)86.47%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.02%
EPS 3Y9.77%
EPS 5Y6.58%
EPS Q2Q%-9.65%
EPS Next Y-5.28%
EPS Next 2Y0.12%
EPS Next 3Y1.96%
EPS Next 5Y4.91%
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y7.38%
Revenue growth 5Y9.51%
Sales Q2Q%-0.56%
Revenue Next Year0.06%
Revenue Next 2Y1.47%
Revenue Next 3Y2.52%
Revenue Next 5Y3.78%
EBIT growth 1Y-3.52%
EBIT growth 3Y7.27%
EBIT growth 5Y7.63%
EBIT Next Year10.42%
EBIT Next 3Y5.23%
EBIT Next 5Y3.41%
FCF growth 1Y24.1%
FCF growth 3Y-12.98%
FCF growth 5Y-0.09%
OCF growth 1Y25.12%
OCF growth 3Y-4.63%
OCF growth 5Y4.64%