DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
Europe - FRA:GUI - GB0002374006 - Common Stock
20.4 EUR
-0.3 (-1.45%)
Overall GUI gets a fundamental rating of 5 out of 10. We evaluated GUI against 25 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
In the past year GUI was profitable.
In the past year GUI had a positive cash flow from operations.
In the past 5 years GUI has always been profitable.
In the past 5 years GUI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.77%, GUI is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
The Return On Equity of GUI (21.23%) is better than 84.00% of its industry peers.
GUI has a Return On Invested Capital of 8.31%. This is in the better half of the industry: GUI outperforms 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GUI is above the industry average of 7.67%.
| 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 68.00% 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 64.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GUI has declined.
With an excellent Gross Margin value of 60.13%, GUI belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
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.
Compared to 5 years ago, GUI has less shares outstanding
GUI has a worse debt/assets ratio than last year.
2.2 Solvency
GUI has an Altman-Z score of 1.48. This is a bad value and indicates that GUI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.48, GUI is doing worse than 76.00% of the companies in the same industry.
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.
GUI has a Debt to FCF ratio (8.78) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.88 is on the high side and indicates that GUI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.88, GUI is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.57
WACC5.29%
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.
The Current ratio of GUI (1.63) is better than 64.00% of its industry peers.
GUI has a Quick Ratio of 1.63. This is a bad value and indicates that GUI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.64, GUI perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
GUI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.65%.
The Earnings Per Share has been growing by 8.47% on average over the past years. This is quite good.
Looking at the last year, GUI shows a decrease in Revenue. The Revenue has decreased by -0.12% in the last year.
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 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
The Earnings Per Share is expected to grow by 7.93% on average over the next years.
Based on estimates for the next years, GUI will show a small growth in Revenue. The Revenue will grow by 3.47% on average per year.
EPS Next Y7.28%
EPS Next 2Y6.4%
EPS Next 3Y6.52%
EPS Next 5Y7.93%
Revenue Next Year0.82%
Revenue Next 2Y2.25%
Revenue Next 3Y1.66%
Revenue Next 5Y3.47%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.47 indicates a correct valuation of GUI.
GUI's Price/Earnings ratio is a bit cheaper when compared to the industry. GUI is cheaper than 72.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.83, GUI is valued a bit cheaper.
GUI is valuated correctly with a Price/Forward Earnings ratio of 13.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GUI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.88. GUI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GUI is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
GUI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GUI is cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.88 | ||
| EV/EBITDA | 5.56 |
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)1.99
PEG (5Y)1.71
EPS Next 2Y6.4%
EPS Next 3Y6.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, GUI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.94, GUI pays a better dividend. On top of this GUI pays more dividend than 88.00% of the companies listed in the same industry.
GUI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
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
GUI pays out 97.62% of its income as dividend. 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 2Y6.4%
EPS Next 3Y6.52%
FRA:GUI (10/27/2025, 7:00:00 PM)
20.4
-0.3 (-1.45%)
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 Cap11.34B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.25
Price Target26.99 (32.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Yearly Dividend0.89
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)-1.29%
PT rev (3m)-3.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 13.52 | ||
| P/S | 0.65 | ||
| P/FCF | 4.88 | ||
| P/OCF | 3.06 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.56 |
EPS(TTM)1.41
EY6.91%
EPS(NY)1.51
Fwd EY7.4%
FCF(TTM)4.18
FCFY20.5%
OCF(TTM)6.67
OCFY32.71%
SpS31.29
BVpS17.14
TBVpS-5.7
PEG (NY)1.99
PEG (5Y)1.71
Graham Number23.32
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 | 1.48 |
F-Score4
WACC5.29%
ROIC/WACC1.57
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 Y7.28%
EPS Next 2Y6.4%
EPS Next 3Y6.52%
EPS Next 5Y7.93%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year0.82%
Revenue Next 2Y2.25%
Revenue Next 3Y1.66%
Revenue Next 5Y3.47%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year19.08%
EBIT Next 3Y7.75%
EBIT Next 5Y6.12%
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 5 / 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 7.28% in the next year.