ScoreWhy is Diageo Plc ?
1
The company is Net-Debt Free
- Poor long term growth as Operating profit has grown by an annual rate 5.61% of over the last 5 years
- The company is Net-Debt Free
2
Poor long term growth as Operating profit has grown by an annual rate 5.61% of over the last 5 years
3
Negative results in Jun 26
- ROCE(HY) Lowest at 15.94%
- INVENTORY TURNOVER RATIO(HY) Lowest at 0.76 times
- DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
4
With ROE of 28.75%, it has a expensive valuation with a 4.38 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -7.95%, its profits have fallen by -18.1%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -7.95% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Diageo Plc for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Diageo Plc
-7.95%
-1.84
32.68%
FTSE 100
16.06%
1.36
11.82%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.62%
EBIT Growth (5y)
5.61%
EBIT to Interest (avg)
6.72
Debt to EBITDA (avg)
2.84
Net Debt to Equity (avg)
1.86
Sales to Capital Employed (avg)
0.64
Tax Ratio
25.83%
Dividend Payout Ratio
64.29%
Pledged Shares
0
Institutional Holding
0.19%
ROCE (avg)
20.69%
ROE (avg)
42.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
4.38
EV to EBIT
12.46
EV to EBITDA
10.94
EV to Capital Employed
2.23
EV to Sales
3.51
PEG Ratio
NA
Dividend Yield
501.17%
ROCE (Latest)
17.93%
ROE (Latest)
28.75%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
NET PROFIT(Q)
At GBP 1,588.66 MM has Grown at 101.77%
-9What is not working for the Company
ROCE(HY)
Lowest at 15.94%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.76 times
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
DIVIDEND PER SHARE(HY)
Lowest at GBP 5.58
NET SALES(Q)
Lowest at GBP 6,826.68 MM
OPERATING PROFIT(Q)
Lowest at GBP 2,048.82 MM
EPS(Q)
Lowest at GBP -0.09
Here's what is working for Diageo Plc
Net Profit
At GBP 1,588.66 MM has Grown at 101.77%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (GBP MM)
Here's what is not working for Diageo Plc
Inventory Turnover Ratio
Lowest at 0.76 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Sales
Lowest at GBP 6,826.68 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Operating Profit
Lowest at GBP 2,048.82 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (GBP MM)
EPS
Lowest at GBP -0.09
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (GBP)
Dividend per share
Lowest at GBP 5.58
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (GBP)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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