ScoreWhy is Diageo Plc ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate 4.95% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Poor long term growth as Operating profit has grown by an annual rate 4.95% of over the last 5 years
3
Negative results in Jun 25
- ROCE(HY) Lowest at 22.74%
- INVENTORY TURNOVER RATIO(HY) Lowest at 0.81%
- NET SALES(Q) Lowest at GBP 7,206.02 MM
4
With ROE of 31.50%, it has a expensive valuation with a 4.92 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 -28.43%, its profits have fallen by -22.2%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -28.43% 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Diageo Plc
-28.43%
-2.26
26.08%
FTSE 100
15.94%
1.23
12.99%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.90%
EBIT Growth (5y)
4.95%
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%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
4.92
EV to EBIT
12.53
EV to EBITDA
11.08
EV to Capital Employed
2.35
EV to Sales
3.53
PEG Ratio
NA
Dividend Yield
278.15%
ROCE (Latest)
18.76%
ROE (Latest)
31.50%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 319.46%
RAW MATERIAL COST(Y)
Fallen by -1.31% (YoY
-11What is not working for the Company
ROCE(HY)
Lowest at 22.74%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.81%
NET SALES(Q)
Lowest at GBP 7,206.02 MM
OPERATING PROFIT(Q)
Lowest at GBP 2,075.28 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 28.8 %
PRE-TAX PROFIT(Q)
Lowest at GBP 1,354.21 MM
NET PROFIT(Q)
Lowest at GBP 787.35 MM
EPS(Q)
Lowest at GBP 0.14
Here's what is working for Diageo Plc
Dividend Payout Ratio
Highest at 319.46%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -1.31% (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 0.81% 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 7,206.02 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Operating Profit
Lowest at GBP 2,075.28 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (GBP MM)
Operating Profit Margin
Lowest at 28.8 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at GBP 1,354.21 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (GBP MM)
Net Profit
Lowest at GBP 787.35 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (GBP MM)
Net Profit
Fallen at -32.62%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (GBP MM)
EPS
Lowest at GBP 0.14
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (GBP)
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