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Diageo Plc

  • Market Cap: Large Cap
  • Industry: Beverages
  • ISIN: GB0002374006
GBP
15.30
0.01 (0.07%)

Jun 19

LON

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Shepherd Neame Ltd.
Chapel Down Group Plc
C&C Group Plc
Naked Wines Plc
Diageo Plc
Adnams Plc
Gusbourne Plc
Distil Plc

Why 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
Flat results in Dec 25
  • OPERATING CASH FLOW(Y) Lowest at GBP 6,432.41 MM
  • ROCE(HY) Lowest at 21.54%
  • INVENTORY TURNOVER RATIO(HY) Lowest at 0.78 times
4
With ROE of 28.75%, it has a expensive valuation with a 4.31 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 -19.26%, its profits have fallen by -18.1%
5
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -19.26% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Diageo Plc
-19.26%
-1.98
31.66%
FTSE 100
17.87%
1.52
11.77%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
5.62%
EBIT Growth (5y)
5.61%
EBIT to Interest (avg)
7.14
Debt to EBITDA (avg)
2.80
Net Debt to Equity (avg)
1.86
Sales to Capital Employed (avg)
0.64
Tax Ratio
25.74%
Dividend Payout Ratio
97.67%
Pledged Shares
0
Institutional Holding
0.29%
ROCE (avg)
20.73%
ROE (avg)
42.81%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
4.31
EV to EBIT
12.33
EV to EBITDA
10.83
EV to Capital Employed
2.21
EV to Sales
3.47
PEG Ratio
NA
Dividend Yield
508.55%
ROCE (Latest)
17.93%
ROE (Latest)
28.75%
stock-recommendationTechnicals

Technical 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
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company
RAW MATERIAL COST(Y)

Fallen by 0.45% (YoY

CASH AND EQV(HY)

Highest at GBP 2,002.16 MM

DEBT-EQUITY RATIO (HY)

Lowest at 179.46 %

-8What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at GBP 6,432.41 MM

ROCE(HY)

Lowest at 21.54%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.78 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 22.29%

DIVIDEND PER SHARE(HY)

Lowest at GBP 4.18

Here's what is working for Diageo Plc

Cash and Eqv
Highest at GBP 2,002.16 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio
Lowest at 179.46 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost
Fallen by 0.45% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Diageo Plc

Inventory Turnover Ratio
Lowest at 0.78 times and Fallen
In each half year in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow
Lowest at GBP 6,432.41 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Dividend per share
Lowest at GBP 4.18
in the last five years
MOJO Watch
Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio
Lowest at 22.29%
in the last five years
MOJO Watch
Company is distributing lower proportion of profits generated as dividend

DPR (%)

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