Diageo (DEO) AI Stock Analysis

• Market Cap: $50.00B
• Dividend Yield: 4.56%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.57
• Revenue Growth: 0.22%
• EPS Growth: -38.76%
• Country: US
• Employees: 30,092
• Sector: N/A
• Sector Strength: N/A
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 2.64
• Shares Outstanding: 556,603,150
• 10 Day Avg. Volume: 1,876,927
• 30 Day Avg. Volume: 1,691,457
• PEG Ratio: -0.61
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 2.77
• P/FCF Ratio: 20.86
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 15.87
• 1Y Price Target: $92.57
• Price Target Upside: -5.51% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $96.00 ▼(-2.01% Downside)

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.

Diageo Business Overview & Revenue Model

Company Description

Diageo plc is a global leader in beverage alcohol, headquartered in London, England. The company operates in the spirits and beer sectors, producing and distributing a wide range of iconic brands, including Johnnie Walker, Guinness, Smirnoff, and Baileys. Diageo's product portfolio encompasses various categories such as whiskey, vodka, rum, gin, and beer, and it serves consumers in over 180 countries worldwide.

How the Company Makes Money

Diageo generates revenue primarily through the sale of its alcoholic beverages, which include spirits and beer. The company's revenue model is built on a combination of direct sales to retailers and distributors, as well as through e-commerce channels. Key revenue streams include premium and super-premium spirits, which command higher price points and profit margins. Additionally, Diageo benefits from a strong brand portfolio, which allows it to leverage brand loyalty and pricing power. The company also engages in strategic partnerships and collaborations, enhancing its distribution capabilities and market reach. Factors contributing to its earnings include global market trends towards premiumization, increasing consumer demand for innovative products, and effective marketing strategies that bolster brand visibility and consumer engagement.

Diageo Financial Statement Overview

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Net Income
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Cash, Cash Equivalents and Short-Term Investments
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Diageo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 97.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DEO, the sentiment is Neutral. The current price of 97.97 is above the 20-day moving average (MA) of 89.61, above the 50-day MA of 92.35, and below the 200-day MA of 100.99, indicating a neutral trend. The MACD of -1.16 indicates Negative momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 60.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DEO.

Diageo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
ABEV	80 Outperform	$40.42B	14.17	15.97%	6.62%	-0.68%	4.29%
BUD	75 Outperform	$127.78B	17.93	8.97%	1.79%	-2.06%	21.03%
BF.B	74 Outperform	$14.02B	17.75	20.67%	2.99%	-4.59%	-19.19%
BF.A	70 Outperform	$14.02B	17.51	20.67%	3.19%	-4.59%	-19.19%
STZ	67 Neutral	$24.82B	20.81	15.91%	2.91%	-5.57%	119.49%
DEO	60 Neutral	$50.00B	21.00	22.33%	4.56%	0.22%	-38.76%

Diageo Corporate Events

Diageo Announces November 2025 Corporate Shareholding Updates

In November 2025, Diageo plc made several announcements regarding its corporate activities. On November 3, the company reported its total voting rights and capital, noting that as of October 31, 2025, it had 2,432,425,480 ordinary shares issued, with 206,023,016 held in treasury. This left 2,226,402,464 voting rights available for shareholders. On November 10, Sir John Manzoni, the Chair, purchased shares under a company arrangement, and on the same day, transactions related to the Diageo 2001 Share Incentive Plan were disclosed, involving Nik Jhangiani, Interim CEO, and Ewan Andrew, a member of the Executive Committee. These transactions reflect ongoing corporate governance and shareholding adjustments within Diageo.

Diageo Appoints John Rishton to Board as Non-Executive Director

On September 16, 2025, Diageo announced the appointment of John Rishton as a Non-Executive Director, effective November 1, 2025. Rishton brings over 40 years of business experience, having held executive roles at major companies such as Rolls Royce Group and British Airways. His appointment is expected to strengthen Diageo’s board with his extensive experience in consumer and retail businesses, contributing to the company’s sustainable growth and shareholder value.