DIAGEO PLC (GUI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GUI - GB0002374006 - Common Stock
18.4 EUR
-0.1 (-0.54%)
GUI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Beverages industry. GUI has an excellent profitability rating, 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.
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
With a decent Return On Assets value of 4.77%, GUI is doing good in the industry, outperforming 72.41% of the companies in the same industry.
GUI's Return On Equity of 21.23% is amongst the best of the industry. GUI outperforms 82.76% 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 75.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GUI is above the industry average of 7.74%.
| 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
GUI's Profit Margin of 11.63% is fine compared to the rest of the industry. GUI outperforms 68.97% of its industry peers.
In the last couple of years the Profit Margin of GUI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 21.41%, GUI is in the better half of the industry, outperforming 68.97% 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 86.21% 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.
The number of shares outstanding for GUI remains at a similar level compared to 1 year ago.
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 1.46, we must say that GUI is in the distress zone and has some risk of bankruptcy.
GUI's Altman-Z score of 1.46 is on the low side compared to the rest of the industry. GUI is outperformed by 79.31% 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's Debt to FCF ratio of 8.78 is on the low side compared to the rest of the industry. GUI is outperformed by 65.52% of its industry peers.
GUI has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
GUI has a Debt to Equity ratio of 1.88. This is amonst the worse of the industry: GUI underperforms 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.46 |
ROIC/WACC1.63
WACC5.1%
2.3 Liquidity
A Current Ratio of 1.63 indicates that GUI should not have too much problems paying its short term obligations.
GUI has a better Current ratio (1.63) than 65.52% of its industry peers.
A Quick Ratio of 0.64 indicates that GUI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, GUI is in line with its industry, outperforming 58.62% 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%.
GUI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.47% yearly.
GUI shows a decrease in Revenue. In the last year, the revenue decreased by -0.12%.
GUI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.49% yearly.
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
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.
The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y3.27%
EPS Next 2Y4.54%
EPS Next 3Y5.27%
EPS Next 5Y7.07%
Revenue Next Year-2.85%
Revenue Next 2Y0.27%
Revenue Next 3Y1.49%
Revenue Next 5Y2.91%
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.
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
The Price/Earnings ratio is 13.05, which indicates a correct valuation of GUI.
GUI's Price/Earnings ratio is a bit cheaper when compared to the industry. GUI is cheaper than 75.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of GUI to the average of the S&P500 Index (26.59), we can say GUI is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.66, GUI is valued correctly.
Based on the Price/Forward Earnings ratio, GUI is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
GUI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 12.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GUI is valued cheaper than 89.66% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GUI is valued cheaper than 96.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.4 | ||
| EV/EBITDA | 5.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GUI does not grow enough to justify the current Price/Earnings ratio.
GUI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.99
PEG (5Y)1.54
EPS Next 2Y4.54%
EPS Next 3Y5.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.72%, GUI is a good candidate for dividend investing.
GUI's Dividend Yield is rather good when compared to the industry average which is at 3.08. GUI pays more dividend than 89.66% of the companies in the same industry.
GUI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
5.2 History
The dividend of GUI is nicely growing with an annual growth rate of 8.14%!
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 2Y4.54%
EPS Next 3Y5.27%
FRA:GUI (12/10/2025, 7:00:00 PM)
18.4
-0.1 (-0.54%)
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 Cap10.23B
Revenue(TTM)20.25B
Net Income(TTM)2.35B
Analysts76.25
Price Target25.64 (39.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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)-2.99%
PT rev (3m)-5.77%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.29%
EPS NY rev (3m)-3.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.43%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 12.66 | ||
| P/S | 0.59 | ||
| P/FCF | 4.4 | ||
| P/OCF | 2.76 | ||
| P/B | 1.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.35 |
EPS(TTM)1.41
EY7.66%
EPS(NY)1.45
Fwd EY7.9%
FCF(TTM)4.18
FCFY22.74%
OCF(TTM)6.68
OCFY36.29%
SpS31.31
BVpS17.15
TBVpS-5.7
PEG (NY)3.99
PEG (5Y)1.54
Graham Number23.33
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
WACC5.1%
ROIC/WACC1.63
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 Y3.27%
EPS Next 2Y4.54%
EPS Next 3Y5.27%
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-2.85%
Revenue Next 2Y0.27%
Revenue Next 3Y1.49%
Revenue Next 5Y2.91%
EBIT growth 1Y-27.08%
EBIT growth 3Y-12.6%
EBIT growth 5Y3.92%
EBIT Next Year12.91%
EBIT Next 3Y7.54%
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 2 / 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 3.27% in the next year.