DGE Stock Overview
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£36.33|
|52 Week High||UK£41.10|
|52 Week Low||UK£32.83|
|1 Month Change||-7.77%|
|3 Month Change||3.06%|
|1 Year Change||6.56%|
|3 Year Change||9.58%|
|5 Year Change||56.12%|
|Change since IPO||959.18%|
Recent News & Updates
Is Diageo (LON:DGE) A Risky Investment?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Diageo (LON:DGE) Has More To Do To Multiply In Value Going Forward
If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...
|DGE||GB Beverage||GB Market|
Return vs Industry: DGE exceeded the UK Beverage industry which returned 1.2% over the past year.
Return vs Market: DGE exceeded the UK Market which returned -2.7% over the past year.
|DGE Average Weekly Movement||4.4%|
|Beverage Industry Average Movement||5.8%|
|Market Average Movement||6.0%|
|10% most volatile stocks in GB Market||11.6%|
|10% least volatile stocks in GB Market||3.1%|
Stable Share Price: DGE is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: DGE's weekly volatility (4%) has been stable over the past year.
About the Company
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 under the Johnnie Walker, Crown Royal, Bulleit and Buchanan's whiskies, Smirnoff, Cîroc and Ketel One vodkas, Casamigos, DeLeon and Don Julio tequilas, Captain Morgan, Baileys, Tanqueray, and Guinness brands.
Diageo Fundamentals Summary
|DGE fundamental statistics|
Is DGE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DGE income statement (TTM)|
|Cost of Revenue||UK£5.33b|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Jul 28, 2022
|Earnings per share (EPS)||1.33|
|Net Profit Margin||22.04%|
How did DGE perform over the long term?See historical performance and comparison
2.0%Current Dividend Yield
Is Diageo undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DGE (£36.29) is trading below our estimate of fair value (£50.46)
Significantly Below Fair Value: DGE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DGE is poor value based on its Price-To-Earnings Ratio (27.3x) compared to the UK Beverage industry average (26.2x).
PE vs Market: DGE is poor value based on its Price-To-Earnings Ratio (27.3x) compared to the UK market (15.4x).
Price to Earnings Growth Ratio
PEG Ratio: DGE is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: DGE is overvalued based on its Price-To-Book Ratio (10.8x) compared to the GB Beverage industry average (2.6x).
How is Diageo forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DGE's forecast earnings growth (8.2% per year) is above the savings rate (0.9%).
Earnings vs Market: DGE's earnings (8.2% per year) are forecast to grow slower than the UK market (11.3% per year).
High Growth Earnings: DGE's earnings are forecast to grow, but not significantly.
Revenue vs Market: DGE's revenue (6% per year) is forecast to grow faster than the UK market (4% per year).
High Growth Revenue: DGE's revenue (6% 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 (54%).
How has Diageo performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DGE has high quality earnings.
Growing Profit Margin: DGE's current net profit margins (22%) are higher than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: DGE's earnings have declined by 5.8% per year over the past 5 years.
Accelerating Growth: DGE's earnings growth over the past year (170.9%) exceeds its 5-year average (-5.8% per year).
Earnings vs Industry: DGE earnings growth over the past year (170.9%) exceeded the Beverage industry 36.5%.
Return on Equity
High ROE: Whilst DGE's Return on Equity (34.57%) is high, this metric is skewed due to their high level of debt.
How is Diageo's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: DGE's short term assets (£11.6B) exceed its short term liabilities (£7.6B).
Long Term Liabilities: DGE's short term assets (£11.6B) do not cover its long term liabilities (£16.2B).
Debt to Equity History and Analysis
Debt Level: DGE's net debt to equity ratio (129.6%) is considered high.
Reducing Debt: DGE's debt to equity ratio has increased from 90.7% to 148.7% over the past 5 years.
Debt Coverage: DGE's debt is well covered by operating cash flow (26%).
Interest Coverage: DGE's interest payments on its debt are well covered by EBIT (13x coverage).
What is Diageo current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DGE's dividend (2.04%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).
High Dividend: DGE's dividend (2.04%) is low compared to the top 25% of dividend payers in the UK market (4.85%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (56.7%), DGE's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (59.5%), DGE's dividend payments are covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ivan Menezes (62 yo)
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 ($USD7.39M) is above average for companies of similar size in the UK market ($USD5.12M).
Compensation vs Earnings: Ivan's compensation has increased by more than 20% in the past year.
Experienced Management: DGE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: DGE's board of directors are considered experienced (3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Diageo plc's employee growth, exchange listings and data sources
- Name: Diageo plc
- Ticker: DGE
- Exchange: LSE
- Founded: 1886
- Industry: Distillers and Vintners
- Sector: Food, Beverage & Tobacco
- Implied Market Cap: UK£82.988b
- Shares outstanding: 2.29b
- Website: https://www.diageo.com
Number of Employees
- Diageo plc
- Lakeside Drive
- Park Royal
- Greater London
- NW10 7HQ
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/25 00:00|
|End of Day Share Price||2022/05/25 00:00|
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.