Market Cap
UK£81.4b
Last Updated
2021/06/21 22:03 UTC
Data Sources
Company Financials +
Executive Summary
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages. More Details
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer with moderate growth potential.
Similar Companies
Share Price & News
How has Diageo's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DGE is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: DGE's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
1.5%
DGE
0.4%
GB Beverage
-1.7%
GB Market
1 Year Return
24.6%
DGE
19.3%
GB Beverage
16.0%
GB Market
Return vs Industry: DGE matched the UK Beverage industry which returned 19.3% over the past year.
Return vs Market: DGE exceeded the UK Market which returned 16% over the past year.
Shareholder returns
| DGE | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 0.4% | -1.7% |
| 30 Day | 3.2% | 1.8% | -0.04% |
| 90 Day | 16.0% | 14.8% | 5.4% |
| 1 Year | 27.9%24.6% | 22.5%19.3% | 21.6%16.0% |
| 3 Year | 39.6%30.0% | 29.1%19.8% | 11.6%-1.3% |
| 5 Year | 106.1%82.2% | 109.1%84.3% | 51.8%23.3% |
Long-Term Price Volatility Vs. Market
How volatile is Diageo's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Diageo (LON:DGE) Has A Somewhat Strained Balance Sheet2 weeks ago | Simply Wall St
Is Diageo plc's (LON:DGE) ROE Of 14% Impressive?4 weeks ago | Simply Wall St
Diageo (LON:DGE) Has More To Do To Multiply In Value Going ForwardValuation
Is Diageo undervalued compared to its fair value and its price relative to the market?
8.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DGE (£34.6) is trading below our estimate of fair value (£37.87)
Significantly Below Fair Value: DGE is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: DGE is poor value based on its PE Ratio (71.9x) compared to the UK Beverage industry average (29.3x).
PE vs Market: DGE is poor value based on its PE Ratio (71.9x) compared to the UK market (24.5x).
Price to Earnings Growth Ratio
PEG Ratio: DGE is poor value based on its PEG Ratio (6.4x)
Price to Book Ratio
PB vs Industry: DGE is overvalued based on its PB Ratio (11.9x) compared to the GB Beverage industry average (4.1x).
Future Growth
How is Diageo forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
11.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGE's forecast earnings growth (11.3% per year) is above the savings rate (0.9%).
Earnings vs Market: DGE's earnings (11.3% per year) are forecast to grow slower than the UK market (17.7% per year).
High Growth Earnings: DGE's earnings are forecast to grow, but not significantly.
Revenue vs Market: DGE's revenue (5.5% per year) is forecast to grow faster than the UK market (5.3% per year).
High Growth Revenue: DGE's revenue (5.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DGE's Return on Equity is forecast to be very high in 3 years time (45.2%).
Past Performance
How has Diageo performed over the past 5 years?
-4.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGE has a large one-off loss of £1.3B impacting its December 31 2020 financial results.
Growing Profit Margin: DGE's current net profit margins (9.8%) are lower than last year (23.1%).
Past Earnings Growth Analysis
Earnings Trend: DGE's earnings have declined by 4.6% per year over the past 5 years.
Accelerating Growth: DGE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DGE had negative earnings growth (-63%) over the past year, making it difficult to compare to the Beverage industry average (-21.7%).
Return on Equity
High ROE: DGE's Return on Equity (14.1%) is considered low.
Financial Health
How is Diageo's financial position?
Financial Position Analysis
Short Term Liabilities: DGE's short term assets (£11.8B) exceed its short term liabilities (£6.7B).
Long Term Liabilities: DGE's short term assets (£11.8B) do not cover its long term liabilities (£17.7B).
Debt to Equity History and Analysis
Debt Level: DGE's debt to equity ratio (182.3%) is considered high.
Reducing Debt: DGE's debt to equity ratio has increased from 99.4% to 182.3% over the past 5 years.
Debt Coverage: DGE's debt is not well covered by operating cash flow (19.8%).
Interest Coverage: DGE's interest payments on its debt are well covered by EBIT (8.7x coverage).
Balance Sheet
Dividend
What is Diageo current dividend yield, its reliability and sustainability?
2.00%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DGE's dividend (2.02%) is higher than the bottom 25% of dividend payers in the UK market (1.29%).
High Dividend: DGE's dividend (2.02%) is low compared to the top 25% of dividend payers in the UK market (4.07%).
Stability and Growth of Payments
Stable Dividend: DGE's dividends per share have been stable in the past 10 years.
Growing Dividend: DGE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (146.4%), DGE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DGE's dividends in 3 years are forecast to be covered by earnings (53.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Ivan Menezes (61 yo)
7.92yrs
Tenure
UK£2,139,000
Compensation
Mr. Ivan M. Menezes has been the Chief Executive Officer at Diageo PLC since July 1, 2013. Mr. Menezes served as the Chief Operating Officer of Diageo PLC from March 1, 2012 to July 1, 2013. He served as C...
CEO Compensation Analysis
Compensation vs Market: Ivan's total compensation ($USD2.95M) is about average for companies of similar size in the UK market ($USD3.55M).
Compensation vs Earnings: Ivan's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: DGE's management team is seasoned and experienced (5.7 years average tenure).
Board Members
Experienced Board: DGE's board of directors are considered experienced (3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DGE insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Diageo plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Diageo plc
- Ticker: DGE
- Exchange: LSE
- Founded: 1886
- Industry: Distillers and Vintners
- Sector: Food, Beverage & Tobacco
- Market Cap: UK£81.436b
- Shares outstanding: 2.34b
- Website: https://www.diageo.com
Number of Employees
Location
- Diageo plc
- Lakeside Drive
- Park Royal
- London
- Greater London
- NW10 7HQ
- United Kingdom
Listings
Biography
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, Irish cream liqueur, raki, liqueur...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/21 22:03 |
| End of Day Share Price | 2021/06/21 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.