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 23 industry peers in the Beverages industry. GUI has an excellent profitability rating, but 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
GUI had positive earnings in the past year.
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's Return On Assets of 7.66% is fine compared to the rest of the industry. GUI outperforms 78.26% of its industry peers.
GUI has a Return On Equity of 34.96%. This is amongst the best in the industry. GUI outperforms 82.61% of its industry peers.
GUI's Return On Invested Capital of 12.39% is amongst the best of the industry. GUI outperforms 91.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GUI is significantly above the industry average of 7.90%.
| 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
GUI's Profit Margin of 17.79% is amongst the best of the industry. GUI outperforms 86.96% of its industry peers.
GUI's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 28.74%, GUI belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
GUI's Operating Margin has declined in the last couple of years.
GUI's Gross Margin of 60.45% is amongst the best of the industry. GUI outperforms 82.61% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GUI is creating value.
GUI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GUI has been reduced compared to 5 years ago.
Compared to 1 year ago, GUI has a worse debt to assets ratio.
2.2 Solvency
GUI has an Altman-Z score of 1.67. This is a bad value and indicates that GUI is not financially healthy and even has some risk of bankruptcy.
GUI's Altman-Z score of 1.67 is on the low side compared to the rest of the industry. GUI is outperformed by 73.91% 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 52.17% 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 has a worse Debt to Equity ratio (1.87) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | 1.67 |
ROIC/WACC2.14
WACC5.79%
2.3 Liquidity
A Current Ratio of 1.60 indicates that GUI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.60, GUI perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that GUI may have some problems paying its short term obligations.
GUI has a Quick ratio of 0.67. This is in the better half of the industry: GUI outperforms 69.57% 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.
The Earnings Per Share has been growing slightly by 6.58% on average over the past years.
Looking at the last year, GUI shows a decrease in Revenue. The Revenue has decreased by -0.93% 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)-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
GUI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.61% yearly.
GUI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y-7.36%
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
EPS Next 5Y4.61%
Revenue Next Year0.13%
Revenue Next 2Y1.5%
Revenue Next 3Y2.5%
Revenue Next 5Y3.59%
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.
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
The Price/Earnings ratio is 15.73, which indicates a correct valuation of GUI.
86.96% of the companies in the same industry are more expensive than GUI, based on the Price/Earnings ratio.
GUI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
GUI is valuated correctly with a Price/Forward Earnings ratio of 15.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GUI indicates a somewhat cheap valuation: GUI is cheaper than 65.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, GUI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
GUI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GUI is cheaper than 86.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GUI is valued cheaper than 95.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.46 | ||
| EV/EBITDA | 5.41 |
4.3 Compensation for Growth
GUI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.39
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
5. Dividend
5.1 Amount
GUI has a Yearly Dividend Yield of 4.30%, which is a nice return.
Compared to an average industry Dividend Yield of 2.93, GUI pays a bit more dividend than its industry peers.
GUI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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 Years0
Div Non Decr Years0
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 2Y-0.97%
EPS Next 3Y1.85%
FRA:GUI (7/4/2025, 7:00:00 PM)
22.5
+0.2 (+0.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners59.21%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap12.50B
Analysts75.15
Price Target29.13 (29.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend0.86
Dividend Growth(5Y)8.4%
DP63.78%
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)-5.31%
PT rev (3m)-10.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.2%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 15.08 | ||
| P/S | 0.73 | ||
| P/FCF | 5.46 | ||
| P/OCF | 3.46 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.41 |
EPS(TTM)1.43
EY6.36%
EPS(NY)1.49
Fwd EY6.63%
FCF(TTM)4.12
FCFY18.32%
OCF(TTM)6.5
OCFY28.91%
SpS30.87
BVpS15.71
TBVpS-6.84
PEG (NY)N/A
PEG (5Y)2.39
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)14.04%
ROICexc(5y)13.35%
ROICexgc(3y)24.95%
ROICexgc(5y)24.37%
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 | 1.67 |
F-Score7
WACC5.79%
ROIC/WACC2.14
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-7.36%
EPS Next 2Y-0.97%
EPS Next 3Y1.85%
EPS Next 5Y4.61%
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y7.38%
Revenue growth 5Y9.51%
Sales Q2Q%-0.56%
Revenue Next Year0.13%
Revenue Next 2Y1.5%
Revenue Next 3Y2.5%
Revenue Next 5Y3.59%
EBIT growth 1Y-3.52%
EBIT growth 3Y7.27%
EBIT growth 5Y7.63%
EBIT Next Year10.13%
EBIT Next 3Y6.69%
EBIT Next 5Y3.77%
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%