DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
FRA:GUI - Deutsche Boerse Ag - GB0002374006 - Common Stock - Currency: EUR
GUI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Beverages industry. While GUI belongs to the best of the industry regarding profitability, there are concerns on its financial health. GUI is valued correctly, but it does not seem to be growing.
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.
In the past 5 years GUI always reported a positive cash flow from operatings.
1.2 Ratios
GUI has a better Return On Assets (8.51%) than 80.95% of its industry peers.
GUI's Return On Equity of 38.58% is amongst the best of the industry. GUI outperforms 80.95% of its industry peers.
With an excellent Return On Invested Capital value of 12.82%, GUI belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GUI is above the industry average of 8.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 38.58% | ||
| ROIC | 12.82% |
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
GUI has a Profit Margin of 19.09%. This is amongst the best in the industry. GUI outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of GUI has declined.
With an excellent Operating Margin value of 29.33%, GUI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of GUI has declined.
GUI has a better Gross Margin (60.18%) than 80.95% 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 | 29.33% | ||
| PM (TTM) | 19.09% | ||
| GM | 60.18% |
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.
GUI has less shares outstanding than it did 1 year ago.
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 1.72. This is a bad value and indicates that GUI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.72, GUI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
GUI has a debt to FCF ratio of 8.38. This is a slightly negative value and a sign of low solvency as GUI would need 8.38 years to pay back of all of its debts.
GUI has a Debt to FCF ratio (8.38) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.91 is on the high side and indicates that GUI has dependencies on debt financing.
The Debt to Equity ratio of GUI (1.91) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 8.38 | ||
| Altman-Z | 1.72 |
ROIC/WACC2.15
WACC5.95%
2.3 Liquidity
GUI has a Current Ratio of 1.53. 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 (1.53) is better than 61.90% of its industry peers.
A Quick Ratio of 0.55 indicates that GUI may have some problems paying its short term obligations.
GUI's Quick ratio of 0.55 is in line compared to the rest of the industry. GUI outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for GUI have decreased by -8.21% 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 -1.39% in the last year.
Measured over the past years, GUI shows a quite strong growth in Revenue. The Revenue has been growing by 9.51% on average per year.
EPS 1Y (TTM)-8.21%
EPS 3Y9.77%
EPS 5Y6.58%
EPS Q2Q%-10.52%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y7.38%
Revenue growth 5Y9.51%
Sales Q2Q%1.89%
3.2 Future
The Earnings Per Share is expected to grow by 4.91% 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 3.78% on average per year.
EPS Next Y-3.15%
EPS Next 2Y1.18%
EPS Next 3Y2.56%
EPS Next 5Y4.91%
Revenue Next Year-0.04%
Revenue Next 2Y1.67%
Revenue Next 3Y2.81%
Revenue Next 5Y3.78%
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 decreasing.
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
Based on the Price/Earnings ratio of 16.26, 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 61.90% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GUI to the average of the S&P500 Index (28.47), we can say GUI is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.75, which indicates a correct valuation of GUI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GUI indicates a slightly more expensive valuation: GUI is more expensive than 61.90% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. GUI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 16.75 |
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 85.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GUI is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 5.49 |
4.3 Compensation for Growth
GUI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.47
EPS Next 2Y1.18%
EPS Next 3Y2.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.27%, GUI has a reasonable but not impressive dividend return.
GUI's Dividend Yield is a higher than the industry average which is at 2.86.
Compared to an average S&P500 Dividend Yield of 2.28, GUI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
On average, the dividend of GUI grows each year by 8.40%, which is quite nice.
Dividend Growth(5Y)8.4%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
GUI pays out 57.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GUI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP57.93%
EPS Next 2Y1.18%
EPS Next 3Y2.56%
DIAGEO PLC
FRA:GUI (2/4/2025, 7:00:00 PM)
28.135
-0.5 (-1.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners71.89%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap15.63B
Analysts74.38
Price Target32.53 (15.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend1.01
Dividend Growth(5Y)8.4%
DP57.93%
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)-1.07%
PT rev (3m)-0.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.98%
EPS NY rev (3m)-6.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 16.75 | ||
| P/S | 0.8 | ||
| P/FCF | 6.3 | ||
| P/OCF | 3.96 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.49 |
EPS(TTM)1.73
EY6.15%
EPS(NY)1.68
Fwd EY5.97%
FCF(TTM)4.47
FCFY15.88%
OCF(TTM)7.1
OCFY25.23%
SpS35.3
BVpS17.47
TBVpS-8.33
PEG (NY)N/A
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 38.58% | ||
| ROCE | 16.7% | ||
| ROIC | 12.82% | ||
| ROICexc | 13.37% | ||
| ROICexgc | 23.36% | ||
| OM | 29.33% | ||
| PM (TTM) | 19.09% | ||
| GM | 60.18% | ||
| FCFM | 12.65% |
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)14.05%
ROICexc(5y)13.36%
ROICexgc(3y)24.98%
ROICexgc(5y)24.39%
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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 8.38 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 306.29% | ||
| Cap/Sales | 7.45% | ||
| Interest Coverage | 5.85 | ||
| Cash Conversion | 63.3% | ||
| Profit Quality | 66.28% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.72 |
F-Score6
WACC5.95%
ROIC/WACC2.15
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)-8.21%
EPS 3Y9.77%
EPS 5Y6.58%
EPS Q2Q%-10.52%
EPS Next Y-3.15%
EPS Next 2Y1.18%
EPS Next 3Y2.56%
EPS Next 5Y4.91%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y7.38%
Revenue growth 5Y9.51%
Sales Q2Q%1.89%
Revenue Next Year-0.04%
Revenue Next 2Y1.67%
Revenue Next 3Y2.81%
Revenue Next 5Y3.78%
EBIT growth 1Y-5.83%
EBIT growth 3Y7.27%
EBIT growth 5Y7.63%
EBIT Next Year10.42%
EBIT Next 3Y5.23%
EBIT Next 5Y3.41%
FCF growth 1Y15.59%
FCF growth 3Y-12.98%
FCF growth 5Y-0.09%
OCF growth 1Y12.07%
OCF growth 3Y-4.63%
OCF growth 5Y4.64%