| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 3/6 |
| Dividends | 5/6 |
DGE Stock Overview
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide.
Diageo Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£37.58 |
| 52 Week High | UK£41.10 |
| 52 Week Low | UK£28.08 |
| Beta | 0.40 |
| 1 Month Change | -7.04% |
| 3 Month Change | 3.24% |
| 1 Year Change | 29.19% |
| 3 Year Change | 38.35% |
| 5 Year Change | 67.45% |
| Change since IPO | 995.48% |
Recent News & Updates
Diageo (LON:DGE) Has More To Do To Multiply In Value Going Forward
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...
These 4 Measures Indicate That Diageo (LON:DGE) Is Using Debt Reasonably Well
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
Shareholder Returns
| DGE | GB Beverage | GB Market | |
|---|---|---|---|
| 7D | 1.1% | -0.6% | -0.5% |
| 1Y | 29.2% | 25.9% | 8.7% |
Return vs Industry: DGE exceeded the UK Beverage industry which returned 25.9% over the past year.
Return vs Market: DGE exceeded the UK Market which returned 8.7% over the past year.
Price Volatility
| DGE volatility | |
|---|---|
| DGE Average Weekly Movement | 2.4% |
| Beverage Industry Average Movement | 3.7% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.7% |
| 10% least volatile stocks in GB Market | 2.5% |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1886 | 27,783 | Ivan Menezes | https://www.diageo.com |
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, cachaca, and brandy, as well as beer, including cider and non-alcoholic products. It provides its products primarily under the Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness brands.
Diageo Fundamentals Summary
| DGE fundamental statistics | |
|---|---|
| Market Cap | UK£87.30b |
| Earnings (TTM) | UK£2.66b |
| Revenue (TTM) | UK£12.73b |
32.8x
P/E Ratio6.9x
P/S RatioIs DGE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DGE income statement (TTM) | |
|---|---|
| Revenue | UK£12.73b |
| Cost of Revenue | UK£5.04b |
| Gross Profit | UK£7.70b |
| Expenses | UK£5.04b |
| Earnings | UK£2.66b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Jan 27, 2022
| Earnings per share (EPS) | 1.14 |
| Gross Margin | 60.43% |
| Net Profit Margin | 20.89% |
| Debt/Equity Ratio | 175.8% |
How did DGE perform over the long term?
See historical performance and comparisonDividends
1.9%
Current Dividend Yield64%
Payout RatioValuation
Is Diageo undervalued compared to its fair value and its price relative to the market?
8.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DGE (£37.58) is trading below our estimate of fair value (£41.18)
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 (32.8x) compared to the UK Beverage industry average (32.7x).
PE vs Market: DGE is poor value based on its PE Ratio (32.8x) compared to the UK market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: DGE is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: DGE is overvalued based on its PB Ratio (12.7x) compared to the GB Beverage industry average (3.3x).
Future Growth
How is Diageo forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
9.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGE's forecast earnings growth (9.2% per year) is above the savings rate (0.9%).
Earnings vs Market: DGE's earnings (9.2% per year) are forecast to grow slower than the UK market (12.1% per year).
High Growth Earnings: DGE's earnings are forecast to grow, but not significantly.
Revenue vs Market: DGE's revenue (6.3% per year) is forecast to grow faster than the UK market (4.9% per year).
High Growth Revenue: DGE's revenue (6.3% 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 (48.6%).
Past Performance
How has Diageo performed over the past 5 years?
-6.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGE has high quality earnings.
Growing Profit Margin: DGE's current net profit margins (20.9%) are higher than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: DGE's earnings have declined by 6.3% per year over the past 5 years.
Accelerating Growth: DGE's earnings growth over the past year (88.8%) exceeds its 5-year average (-6.3% per year).
Earnings vs Industry: DGE earnings growth over the past year (88.8%) exceeded the Beverage industry 9.1%.
Return on Equity
High ROE: Whilst DGE's Return on Equity (33.2%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Diageo's financial position?
Financial Position Analysis
Short Term Liabilities: DGE's short term assets (£11.4B) exceed its short term liabilities (£7.1B).
Long Term Liabilities: DGE's short term assets (£11.4B) do not cover its long term liabilities (£16.4B).
Debt to Equity History and Analysis
Debt Level: DGE's net debt to equity ratio (142.6%) is considered high.
Reducing Debt: DGE's debt to equity ratio has increased from 99.4% to 175.8% over the past 5 years.
Debt Coverage: DGE's debt is well covered by operating cash flow (24.7%).
Interest Coverage: DGE's interest payments on its debt are well covered by EBIT (10.9x coverage).
Balance Sheet
Dividend
What is Diageo current dividend yield, its reliability and sustainability?
1.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DGE's dividend (1.93%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: DGE's dividend (1.93%) is low compared to the top 25% of dividend payers in the UK market (4.04%).
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 (63.7%), 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 (51.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Ivan Menezes (62 yo)
8.5yrs
Tenure
UK£5,902,000
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 ($USD8.00M) is above average for companies of similar size in the UK market ($USD3.96M).
Compensation vs Earnings: Ivan's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: DGE's management team is seasoned and experienced (5 years average tenure).
Board Members
Experienced Board: DGE's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
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 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
- Implied Market Cap: UK£87.297b
- Shares outstanding: 2.32b
- Website: https://www.diageo.com
Number of Employees
Location
- Diageo plc
- Lakeside Drive
- Park Royal
- London
- Greater London
- NW10 7HQ
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 21:15 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.