Market Cap
UK£57.5b
Last Updated
2020/04/01 21:14 UTC
Data Sources
Company Financials +
Executive Summary
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-2.0%
DGE
-2.1%
GB Beverage
-3.3%
GB Market
1 Year Return
-20.6%
DGE
-24.3%
GB Beverage
-25.0%
GB Market
Return vs Industry: DGE exceeded the UK Beverage industry which returned -21.7% over the past year.
Return vs Market: DGE exceeded the UK Market which returned -22.4% over the past year.
Shareholder returns
| DGE | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | -2.1% | -3.3% |
| 30 Day | -12.4% | -15.1% | -19.5% |
| 90 Day | -22.6% | -24.8% | -28.9% |
| 1 Year | -18.8%-20.6% | -22.2%-24.3% | -21.0%-25.0% |
| 3 Year | 15.6%7.7% | 10.6%2.7% | -14.7%-25.8% |
| 5 Year | 47.2%29.2% | 46.1%27.9% | -1.5%-24.1% |
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
1 month ago | Simply Wall St
Do You Know What Diageo plc's (LON:DGE) P/E Ratio Means?1 month ago | Simply Wall St
Diageo plc Just Released Its Half-Yearly Earnings: Here's What Analysts Think2 months ago | Simply Wall St
With EPS Growth And More, Diageo (LON:DGE) Is InterestingValuation
Is Diageo undervalued compared to its fair value and its price relative to the market?
7.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DGE (£24.63) is trading below our estimate of fair value (£26.57)
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 (19.2x) compared to the Beverage industry average (16.7x).
PE vs Market: DGE is poor value based on its PE Ratio (19.2x) compared to the UK market (12.8x).
Price to Earnings Growth Ratio
PEG Ratio: DGE is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: DGE is overvalued based on its PB Ratio (7.7x) compared to the GB Beverage industry average (2.6x).
Next Steps
Future Growth
How is Diageo forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGE's forecast earnings growth (7.9% per year) is above the savings rate (0.5%).
Earnings vs Market: DGE's earnings (7.9% per year) are forecast to grow slower than the UK market (15.5% per year).
High Growth Earnings: DGE's earnings are forecast to grow, but not significantly.
Revenue vs Market: DGE's revenue (5% per year) is forecast to grow faster than the UK market (2.4% per year).
High Growth Revenue: DGE's revenue (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 (46.6%).
Next Steps
Past Performance
How has Diageo performed over the past 5 years?
8.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGE has high quality earnings.
Growing Profit Margin: DGE's current net profit margins (23.2%) are lower than last year (23.4%).
Past Earnings Growth Analysis
Earnings Trend: DGE's earnings have grown by 8.4% per year over the past 5 years.
Accelerating Growth: DGE's earnings growth over the past year (3.7%) is below its 5-year average (8.4% per year).
Earnings vs Industry: DGE earnings growth over the past year (3.7%) underperformed the Beverage industry 4.4%.
Return on Equity
High ROE: Whilst DGE's Return on Equity (34.71%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Diageo's financial position?
Financial Position Analysis
Short Term Liabilities: DGE's short term assets (£10.2B) exceed its short term liabilities (£8.9B).
Long Term Liabilities: DGE's short term assets (£10.2B) do not cover its long term liabilities (£13.7B).
Debt to Equity History and Analysis
Debt Level: DGE's debt to equity ratio (146%) is considered high.
Reducing Debt: DGE's debt to equity ratio has increased from 127.3% to 146% over the past 5 years.
Debt Coverage: DGE's debt is well covered by operating cash flow (21.8%).
Interest Coverage: DGE's interest payments on its debt are well covered by EBIT (16.1x coverage).
Balance Sheet
Inventory Level: DGE has a high level of physical assets or inventory.
Debt Coverage by Assets: DGE's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Diageo's current dividend yield, its reliability and sustainability?
2.78%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DGE's dividend (2.78%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).
High Dividend: DGE's dividend (2.78%) is low compared to the top 25% of dividend payers in the UK market (7.27%).
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 reasonable payout ratio (54.4%), DGE's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DGE's dividends in 3 years are forecast to be covered by earnings (50.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average management tenure
CEO
Ivan Menezes (60yo)
6.75s
Tenure
UK£11,654,000
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 ($USD14.45M) is above average for companies of similar size in the UK market ($USD5.41M).
Compensation vs Earnings: Ivan's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 6.75yrs | UK£11.65m | 0.050% £28.8m | |
| CFO & Executive Director | 4.42yrs | UK£7.03m | 0.0096% £5.5m | |
| Corporate Information Officer | no data | no data | no data | |
| Group Treasurer & Head of Investor Relations | 1.17yrs | no data | no data | |
| General Counsel & Company Secretary | 6.75yrs | no data | 0.0032% £1.8m | |
| Chief Marketing Officer | 6.75yrs | no data | 0.0046% £2.6m | |
| Chief Sales Officer | no data | no data | no data | |
| Chief HR Officer | 4.5yrs | no data | no data | |
| President of Diageo Europe | 8.83yrs | no data | 0.0051% £2.9m | |
| Managing Director of Turkey | no data | no data | no data |
6.8yrs
Average Tenure
56yo
Average Age
Experienced Management: DGE's management team is seasoned and experienced (6.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 6.75yrs | UK£11.65m | 0.050% £28.8m | |
| CFO & Executive Director | 4.42yrs | UK£7.03m | 0.0096% £5.5m | |
| Senior Independent Director | 0.50yr | UK£111.00k | 0.00011% £63.2k | |
| Chairman | 3.25yrs | UK£601.00k | 0.011% £6.1m | |
| Non-Executive Director | 9.58yrs | UK£135.00k | 0.00022% £126.4k | |
| Non-Executive Director | 7.5yrs | UK£94.00k | 0.00019% £109.2k | |
| Non-Executive Director | 5.58yrs | UK£123.00k | 0.00029% £166.6k | |
| Non-Executive Director | 5.58yrs | UK£93.00k | 0.00021% £120.7k |
5.6yrs
Average Tenure
60.5yo
Average Age
Experienced Board: DGE's board of directors are considered experienced (5.6 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£57.463b
- Shares outstanding: 2.33b
- Website: https://www.diageo.com
Number of Employees
Location
- Diageo plc
- Lakeside Drive
- Park Royal
- London
- Greater London
- NW10 7HQ
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DGEA.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1980 |
| DGE | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| DGE | ENXTPA (Euronext Paris) | Yes | Ordinary Shares | FR | EUR | Jan 1980 |
| GUI | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1980 |
| DGEL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| DGEP | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jan 1980 |
| GUI | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Jan 1980 |
| DEO | NYSE (New York Stock Exchange) | ADR EA REPR 4 ORD GBX28.935185 | US | USD | May 1990 | |
| DEO N | BMV (Bolsa Mexicana de Valores) | ADR EA REPR 4 ORD GBX28.935185 | MX | MXN | May 1990 | |
| DGED | LSE (London Stock Exchange) | ADR EA REPR 4 ORD GBX28.935185 | GB | USD | May 1990 | |
| GUIA | DB (Deutsche Boerse AG) | ADR EA REPR 4 ORD GBX28.935185 | DE | EUR | May 1990 |
Biography
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, Irish cream liqueur, raki, liqueur, wine, tequila, Canadian whisky, American whiskey, adult beverages, cachaça, and brandy, as well as beer, including cider and non-alcoholic products. It provides its products primarily under the Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray, and Guinness brands. The company also offers its products under the Crown Royal, Yenì Raki, Shui Jing Fang, Johnnie Walker Blue Label, Bulleit Bourbon, Don Julio, Buchanan’s, J?B, Grand Old Parr, Tanqueray No. TEN, Ron Zacapa Centenario XO, Casamigos, Bundaberg, McDowell’s No. 1, Ypióca, Lagavulin, The Singleton of Glen Ord, Johnnie Walker Gold Label Reserve, Windsor, Black&White, Cîroc, Ketel One vodka, and Talisker brands. It has operations in North America, Europe, Turkey, Africa, Latin America, the Caribbean, the Asia Pacific, and internationally. The company was founded in 1886 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/01 21:14 |
| End of Day Share Price | 2020/04/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.