DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GUI - GB0002374006 - Common Stock
18.9 EUR
+0.35 (+1.89%)
We assign a fundamental rating of 5 out of 10 to GUI. GUI was compared to 31 industry peers in the Beverages industry. While GUI has a great profitability rating, there are quite some concerns on its financial health. GUI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GUI was profitable.
GUI had a positive operating cash flow in the past year.
Each year in the past 5 years GUI has been profitable.
Each year in the past 5 years GUI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GUI (4.77%) is better than 73.33% of its industry peers.
GUI has a better Return On Equity (21.23%) than 86.67% of its industry peers.
With a decent Return On Invested Capital value of 8.31%, GUI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
GUI had an Average Return On Invested Capital over the past 3 years of 11.21%. This is above the industry average of 8.05%.
| 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
The Profit Margin of GUI (11.63%) is better than 66.67% of its industry peers.
GUI's Profit Margin has been stable in the last couple of years.
GUI's Operating Margin of 21.41% is fine compared to the rest of the industry. GUI outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of GUI has declined.
Looking at the Gross Margin, with a value of 60.13%, GUI belongs to the top of the industry, outperforming 90.00% 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 | 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.
GUI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for GUI has been reduced compared to 5 years ago.
GUI has a worse debt/assets ratio than last year.
2.2 Solvency
GUI has an Altman-Z score of 1.46. 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 (1.46) than 80.00% of its industry peers.
GUI has a debt to FCF ratio of 8.78. This is a slightly negative value and a sign of low solvency as GUI would need 8.78 years to pay back of all of its debts.
GUI has a worse Debt to FCF ratio (8.78) than 66.67% of its industry peers.
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: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.46 |
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.
GUI's Current ratio of 1.63 is fine compared to the rest of the industry. GUI outperforms 66.67% of its industry peers.
A Quick Ratio of 0.64 indicates that GUI may have some problems paying its short term obligations.
GUI has a Quick ratio (0.64) which is in line with its industry peers.
| 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%.
GUI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.59% 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 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
Based on estimates for the next years, GUI will show a small growth in Earnings Per Share. The EPS will grow by 7.07% on average per year.
Based on estimates for the next years, GUI will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
EPS Next Y2.98%
EPS Next 2Y4.21%
EPS Next 3Y5%
EPS Next 5Y7.07%
Revenue Next Year-3.03%
Revenue Next 2Y0.1%
Revenue Next 3Y1.32%
Revenue Next 5Y2.91%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.50, 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 73.33% of the companies are valued more expensively.
GUI is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
GUI is valuated correctly with a Price/Forward Earnings ratio of 13.09.
66.67% of the companies in the same industry are more expensive than GUI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, GUI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GUI is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GUI indicates a rather cheap valuation: GUI is cheaper than 96.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.53 | ||
| EV/EBITDA | 5.37 |
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)4.54
PEG (5Y)3.76
EPS Next 2Y4.21%
EPS Next 3Y5%
5. Dividend
5.1 Amount
GUI has a Yearly Dividend Yield of 4.95%, which is a nice return.
Compared to an average industry Dividend Yield of 2.86, GUI pays a better dividend. On top of this GUI pays more dividend than 90.00% 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 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
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.
GUI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP97.62%
EPS Next 2Y4.21%
EPS Next 3Y5%
FRA:GUI (1/9/2026, 7:00:00 PM)
18.9
+0.35 (+1.89%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners64.39%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap10.51B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.25
Price Target25.05 (32.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
Yearly Dividend0.88
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)-1.31%
PT rev (3m)-8.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 13.09 | ||
| P/S | 0.61 | ||
| P/FCF | 4.53 | ||
| P/OCF | 2.84 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.37 |
EPS(TTM)1.4
EY7.41%
EPS(NY)1.44
Fwd EY7.64%
FCF(TTM)4.17
FCFY22.06%
OCF(TTM)6.65
OCFY35.21%
SpS31.2
BVpS17.09
TBVpS-5.68
PEG (NY)4.54
PEG (5Y)3.76
Graham Number23.2
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 | 1.46 |
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 5Y3.59%
EPS Q2Q%-7.14%
EPS Next Y2.98%
EPS Next 2Y4.21%
EPS Next 3Y5%
EPS Next 5Y7.07%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y-1.08%
Revenue growth 5Y11.49%
Sales Q2Q%-3.34%
Revenue Next Year-3.03%
Revenue Next 2Y0.1%
Revenue Next 3Y1.32%
Revenue Next 5Y2.91%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year12.59%
EBIT Next 3Y7.32%
EBIT Next 5Y4.75%
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.
Can you provide the valuation status for DIAGEO PLC?
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.
Can you provide the PE and PB ratios for GUI stock?
The Price/Earnings (PE) ratio for DIAGEO PLC (GUI.DE) is 13.5 and the Price/Book (PB) ratio is 1.11.
How sustainable is the dividend of DIAGEO PLC (GUI.DE) stock?
The dividend rating of DIAGEO PLC (GUI.DE) is 6 / 10 and the dividend payout ratio is 97.62%.