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Diageo
(NYSE:DEO)
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Select Model
Rating:60Neutral
Price Target:
$85.00
▲(2.31% Upside)
Action:Reiterated
Date:11/07/25
Diageo's overall stock score is primarily influenced by its financial performance and valuation. While the company shows strong revenue growth, challenges in profitability and leverage are significant concerns. The technical analysis indicates bearish momentum, which could impact short-term performance. The valuation is fair, with an attractive dividend yield, providing some support to the stock score.
Positive Factors
Brand portfolio & premiumization
A deep, diversified portfolio of international and local spirits brands and active product innovation underpin durable pricing power and mix improvement. Premiumization and ongoing brand investment support higher-margin sales and long-term resilience versus commodity competitors.
Negative Factors
High leverage
A debt-to-equity ratio of 2.20 materially elevates financial risk and reduces flexibility to invest or weather cyclical shocks. Leverage magnifies FX, excise duty and margin shocks, constraining capacity for M&A, organic investment or accelerated deleveraging over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand portfolio & premiumization
A deep, diversified portfolio of international and local spirits brands and active product innovation underpin durable pricing power and mix improvement. Premiumization and ongoing brand investment support higher-margin sales and long-term resilience versus commodity competitors.
Read all positive factors
Diageo Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Shows sales distribution across various regions, indicating market strength and potential growth areas, essential for understanding Diageo's global market presence.
Shows sales distribution across various regions, indicating market strength and potential growth areas, essential for understanding Diageo's global market presence.
Data provided by:
The Fly
The FlyDiageo (DEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.27B
Dividend Yield3.77%
Average Volume (3M)984.75K
Price to Earnings (P/E)20.2
Beta (1Y)0.64
Revenue Growth-1.84%
EPS Growth-33.01%
CountryUS
Employees29,632
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)4.32
Shares Outstanding556,646,200
10 Day Avg. Volume911,502
30 Day Avg. Volume984,746
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)5.05
Price to Sales (P/S)2.77
P/FCF Ratio20.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$101.00Price Target Upside21.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)6.33
Revenue Forecast (FY)$19.19B
Diageo Business Overview & Revenue Model
Company Description
Diageo plc (DEO) is a global beverage alcohol company that produces, markets, and sells spirits and beer. Its portfolio includes a wide range of international and local brands across categories such as Scotch whisky, tequila, vodka, rum, gin, and ...
How the Company Makes Money
Diageo primarily makes money by selling alcoholic beverage products to distributors, wholesalers, retailers, and on-trade operators, recognizing revenue from the transfer of control of goods under customer contracts. Its core revenue stream is the...
Diageo Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. While the company showed a return to organic net sales growth, market share gains, and strong performance in key segments like Tequila and Guinness, it also faced challenges such as a decline in Scotch sales, operating profit, the impact of new tariffs, and a drop in EPS. The uncertainty around tariffs adds complexity to the business outlook.Positive Updates
Organic Net Sales Growth
The company returned to organic net sales growth of 1% in the first half of fiscal '25, with growth in four out of five regions, including North America.
Negative Updates
Scotch Sales Decline
Scotch organic net sales declined by 5%, largely driven by softer industry performance in North America and Greater China.
Read all updates
Q2-2025 Updates
Positive
Negative
Organic Net Sales Growth
The company returned to organic net sales growth of 1% in the first half of fiscal '25, with growth in four out of five regions, including North America.
Read all positive updates
Company Guidance
In the first half of fiscal year 2025, Diageo reported a 1% growth in organic net sales, with significant contributions from the North American and Latin American regions. Market share was either held or increased in 65% of measured markets, notably in North America and Greater China. Despite a challenging macroeconomic environment and recent tariff announcements, the company maintained a strong performance in various categories, including Tequila, which saw a 21% rise in organic net sales. Guinness continued its momentum with 17% growth, marking its eighth consecutive half of double-digit growth. However, Scotch faced a 5% decline due to softer industry performance. The company's strategic investments in digital and market routes are aimed at enhancing financial resilience and achieving sustainable long-term growth. Diageo's focus remains on driving stronger execution and leveraging its diverse portfolio to respond to emerging consumer trends across regions.Diageo Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.83B | 20.25B | 20.27B | 16.23B | 16.96B | 12.73B |
| Gross Profit | 11.83B | 12.17B | 12.20B | 9.68B | 9.48B | 7.70B |
| EBITDA | 5.26B | 6.36B | 7.24B | 6.36B | 4.93B | 4.28B |
| Net Income | 2.41B | 2.35B | 3.87B | 3.51B | 3.54B | 2.66B |
Balance Sheet | ||||||
| Total Assets | 50.20B | 49.32B | 45.47B | 35.43B | 36.52B | 31.95B |
| Cash, Cash Equivalents and Short-Term Investments | 2.69B | 2.65B | 1.13B | 1.43B | 2.54B | 2.87B |
| Total Debt | 24.17B | 24.40B | 21.50B | 16.41B | 16.02B | 15.18B |
| Total Liabilities | 36.53B | 36.14B | 33.40B | 26.19B | 27.00B | 23.52B |
| Stockholders Equity | 11.58B | 11.09B | 10.03B | 7.78B | 7.80B | 6.90B |
Cash Flow | ||||||
| Free Cash Flow | 2.52B | 2.69B | 4.55B | 3.42B | 2.84B | 3.03B |
| Operating Cash Flow | 4.12B | 4.30B | 6.07B | 4.53B | 3.94B | 3.65B |
| Investing Cash Flow | -1.50B | -1.72B | -1.59B | -1.13B | -1.34B | -1.09B |
| Financing Cash Flow | -1.86B | -1.49B | -3.11B | -2.40B | -3.57B | -2.79B |
Diageo Risk Analysis
Diageo disclosed 21 risk factors in its most recent earnings report. Diageo reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Diageo Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $49.51B | 15.38 | 17.19% | 4.28% | -0.41% | 13.36% | |
69 Neutral | $13.29B | 18.90 | 17.63% | 3.29% | -0.45% | -16.82% | |
69 Neutral | $13.29B | 18.90 | 17.63% | 3.42% | -0.45% | -16.82% | |
65 Neutral | $168.81B | 14.57 | 12.72% | 1.65% | -0.33% | 18.34% | |
64 Neutral | $22.27B | 12.41 | 23.13% | 3.14% | -9.99% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $49.27B | 20.21 | 21.39% | 4.00% | -1.84% | -33.01% |
* Consumer Defensive Sector Average
DEO
Diageo
88.06
-6.73
-7.10%
BUD
Anheuser-Busch Inbev Sa
86.48
29.04
50.57%
BF.A
Brown Forman A
29.22
0.88
3.12%
STZ
Constellation Brands
130.23
-35.22
-21.29%
BF.B
Brown-Forman B
28.73
0.06
0.20%
ABEV
Ambev SA
3.11
1.01
48.24%
Diageo Corporate Events
Diageo Updates Voting Capital and Reports June Insider Share Deals
Jul 1, 2026
In a June 2026 regulatory filing, Diageo reported that as of 31 May 2026 it had issued 2,432,425,480 ordinary shares, of which 205,825,492 were held in treasury without voting rights. This left 2,226,599,988 voting shares in circulation, a key ref...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.