Market Cap
UK£73.2b
Last Updated
2019/10/19 20:39 UTC
Data Sources
Company Financials +
Executive Summary
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide.
Snowflake
Fundamentals
Established dividend payer with proven track record.
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
Market Performance
7 Day Return
-2.9%
DGE
-2.9%
GB Beverage
-0.3%
GB Market
1 Year Return
15.4%
DGE
12.1%
GB Beverage
3.0%
GB Market
Return vs Industry: DGE exceeded the UK Beverage industry which returned 12.1% over the past year.
Return vs Market: DGE exceeded the UK Market which returned 3% over the past year.
Shareholder returns
| DGE | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.9% | -2.9% | -0.3% |
| 30 Day | -4.5% | -5.0% | -0.9% |
| 90 Day | -8.0% | -7.5% | -2.0% |
| 1 Year | 17.9%15.4% | 15.2%12.1% | 8.0%3.0% |
| 3 Year | 53.7%43.1% | 54.6%43.4% | 18.0%3.6% |
| 5 Year | 100.7%75.9% | 98.3%73.3% | 35.8%6.4% |
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 day ago | Simply Wall St
Was Diageo plc's (LON:DGE) Earnings Growth Better Than The Industry's?1 week ago | Simply Wall St
Here's Why Diageo (LON:DGE) Can Manage Its Debt Responsibly2 weeks ago | Simply Wall St
Does Diageo (LON:DGE) Deserve A Spot On Your Watchlist?Valuation
Is Diageo undervalued compared to its fair value and its price relative to the market?
23.85x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Undervalued: DGE (£31.17) is trading above our estimate of fair value (£27.16)
Significantly Undervalued: DGE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: DGE is poor value based on its PE Ratio (23.8x) compared to the Beverage industry average (23.7x).
PE vs Market: DGE is poor value based on its PE Ratio (23.8x) compared to the UK market (16.7x).
Price to Earnings Growth Ratio
Low PEG Ratio: DGE is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: DGE is overvalued based on its PB Ratio (8.8x) compared to the GB Beverage industry average (3.6x).
Next Steps
Future Growth
How is Diageo forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
5.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGE's forecast earnings growth (5.7% per year) is above the savings rate (1.2%).
Earnings vs Market: DGE's earnings (5.7% per year) are forecast to grow slower than the UK market (12.6% per year).
High Growth Earnings: DGE's earnings are forecast to grow, but not significantly.
Revenue vs Market: DGE's revenue (5.3% per year) is forecast to grow faster than the UK market (3.9% per year).
High Growth Revenue: DGE's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: DGE's Return on Equity is forecast to be very high in 3 years time (46.5%).
Next Steps
Past Performance
How has Diageo performed over the past 5 years?
8.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: DGE's earnings have grown by 8.6% per year over the past 5 years.
Accelerating Growth: DGE's earnings growth over the past year (4.6%) is below its 5-year average (8.6% per year).
Earnings vs Industry: DGE earnings growth over the past year (4.6%) exceeded the Beverage industry 3.2%.
Return on Equity
High ROE: Whilst DGE's Return on Equity (32.86%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: DGE has a higher Return on Assets than the Beverage industry average last year.
Return on Capital Employed
ROCE Improving: DGE has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Diageo's financial position?
Financial Position Analysis
Short Term Liabilities: DGE's short term assets (£9.4B) exceeds its short term liabilities (£7.0B)
Long Term Liabilities: DGE's short term assets (9.4B) do not cover its long term liabilities (14.1B)
Debt to Equity History and Analysis
Debt Level: DGE's debt to equity ratio (123.7%) is considered high
Reducing Debt: DGE's debt to equity ratio has increased from 121.5% to 123.7% over the past 5 years.
Debt Coverage: DGE's debt is well covered by operating cash flow (25.8%).
Interest Coverage: DGE's interest payments on its debt are well covered by EBIT (17.8x 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 0.7x debt).
Next Steps
Dividend
What is Diageo's current dividend yield, its reliability and sustainability?
2.20%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: DGE's dividend (2.2%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).
High Dividend: DGE's dividend (2.2%) is low compared to the top 25% of dividend payers in the UK market (5.36%).
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 (52.5%), 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 well covered by earnings (49.7% payout ratio).
Next Steps
Management
What is the CEO of Diageo's salary, the management and board of directors tenure and is there insider trading?
6.3yrs
Average management tenure
CEO
Ivan Menezes (60yo)
6.3yrs
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 ($USD15.00M) is about average for companies of similar size in the UK market ($USD4.92M).
Compensation vs Earnings: Ivan's compensation has increased by more than 20% in the past year.
Management Age and Tenure
6.3yrs
Average Tenure
56yo
Average Age
Experienced Management: DGE's management team is seasoned and experienced (6.3 years average tenure).
Board Age and Tenure
5.1yrs
Average Tenure
60yo
Average Age
Experienced Board: DGE's board of directors are considered experienced (5.1 years average tenure).
Insider Trading
Insider Buying: DGE insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 249 |
| Max Price | UK£33.21 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 245 |
| Max Price | UK£33.70 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 243 |
| Max Price | UK£34.07 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 30,000 |
| Max Price | UK£32.85 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 243 |
| Max Price | UK£34.10 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 243 |
| Max Price | UK£34.04 |
| Entity | Individual |
| Shares | 14,421 |
| Max Price | UK£33.45 |
| Entity | Individual |
| Shares | 4,000 |
| Max Price | UK£32.00 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 270 |
| Max Price | UK£30.61 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 275 |
| Max Price | UK£30.09 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 296 |
| Max Price | UK£27.93 |
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 302 |
| Max Price | UK£27.44 |
Ownership Breakdown
Management Team
Ivan Menezes (60yo)
CEO & Executive Director
- Tenure: 6.3yrs
- Compensation: UK£11.65m
Kathryn Mikells (53yo)
CFO & Executive Director
- Tenure: 3.9yrs
- Compensation: UK£7.03m
Syl Saller (62yo)
Chief Marketing Officer
- Tenure: 6.3yrs
Galip Yorgancýoðlu
Managing Director of Turkey
- Tenure: 0yrs
Yvonne Harrison
Corporate Information Officer
- Tenure: 0yrs
John Kennedy (54yo)
President of Europe
- Tenure: 8.3yrs
Siobhan Moriarty (57yo)
General Counsel & Company Secretary
- Tenure: 6.3yrs
Vinod Rao (56yo)
Group Treasurer & Head of Investor Relations
- Tenure: 0.7yrs
Tom Day
Chief Sales Officer
- Tenure: 0yrs
Mairéad Nayager (44yo)
Chief HR Officer
- Tenure: 4yrs
Board Members
Ivan Menezes (60yo)
CEO & Executive Director
- Tenure: 6.3yrs
- Compensation: UK£11.65m
Susan Kilsby (61yo)
Non-Executive Director
- Tenure: 1.5yrs
- Compensation: UK£111.00k
Javier Ferrán (62yo)
Chairman
- Tenure: 2.8yrs
- Compensation: UK£601.00k
Mark Davies (67yo)
Senior Non-Executive Director
- Tenure: 8yrs
- Compensation: UK£135.00k
Kathryn Mikells (53yo)
CFO & Executive Director
- Tenure: 3.9yrs
- Compensation: UK£7.03m
KwonPing Ho (66yo)
Non-Executive Director
- Tenure: 7yrs
- Compensation: UK£94.00k
Alan James Stewart (59yo)
Non-Executive Director
- Tenure: 5.1yrs
- Compensation: UK£123.00k
Nicola Mendelsohn (47yo)
Non-Executive Director
- Tenure: 5.1yrs
- Compensation: UK£93.00k
Debra Crew (48yo)
Non-Executive Director
- Tenure: 0.5yrs
- Compensation: UK£19.00k
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£73.217b
- Shares outstanding: 2.35b
- 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 |
|---|---|---|---|---|---|---|
| GUI | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | 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 |
| DGEA.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | 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 |
| DEO N | BMV (Bolsa Mexicana de Valores) | SPON ADR NEW | MX | MXN | May 1990 | |
| DEO | NYSE (New York Stock Exchange) | SPON ADR NEW | US | USD | May 1990 | |
| GUIA | DB (Deutsche Boerse AG) | SPON ADR NEW | DE | EUR | May 1990 | |
| DGED | LSE (London Stock Exchange) | SPON ADR NEW | GB | USD | 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, rak ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/19 20:39 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| 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.