Diageo (DGE) AI Stock Analysis

• Market Cap: $40.77B
• Dividend Yield: 3.44%
• Average Volume (3M): 4.04M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.66
• Revenue Growth: -3.88%
• EPS Growth: -11.33%
• Country: UK
• Employees: 30,092
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.71
• Shares Outstanding: 2,225,295,400
• 10 Day Avg. Volume: 4,772,130
• 30 Day Avg. Volume: 4,042,296
• PEG Ratio: -5.85
• Price to Book (P/B): 9.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2,479.41
• Price Target Upside: 35.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 67 Neutral
• Price Target: 1,981.00p ▲(7.99%Upside)

Diageo's overall stock score reflects a solid financial foundation and moderate valuation, but is tempered by poor technical indicators and mixed earnings call sentiment. The company's strategic initiatives and strong dividend yield are positives, yet technical analysis and tariff challenges present near-term risks.

Positive Factors

Brand Growth

Diageo has turned Guinness into a 'hot' brand, appealing across genders and age groups, accelerating its growth through strategic marketing and product innovation.

Cost Management

The Accelerate Program aims to deliver at least ~$3B in free cash flow annually from FY26 onwards, which is a significant boost for the company's financial health.

Negative Factors

Guidance Withdrawal

Diageo withdrew its medium-term guidance for +5-7% organic net sales growth due to macro and geopolitical uncertainty.

Market Uncertainty

The timeline for U.S. spirits recovery remains uncertain due to consumer uncertainty and macro factors such as inflation and higher borrowing costs.

Diageo Business Overview & Revenue Model

Company Description

Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, raki, liqueur, wine, tequila, Canadian whisky, American whiskey, cachaca, and brandy, as well as beer, including cider and non-alcoholic products. It provides its products under the Johnnie Walker, Crown Royal, Bulleit and Buchanan's whiskies, Smirnoff, Cîroc and Ketel One vodkas, Casamigos, DeLeon and Don Julio tequilas, Captain Morgan, Baileys, Tanqueray, and Guinness brands. The company operates in North America, Europe, Turkey, Africa, Latin America, the Caribbean, the Asia Pacific, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Diageo makes money primarily through the sale of its alcoholic beverages, which include spirits, beer, and wine. The company's revenue model is centered around its extensive portfolio of premium brands, which it markets and distributes globally. Key revenue streams include sales to wholesalers, retailers, and directly to consumers in various regions, with a significant presence in North America, Europe, and Asia. Diageo leverages its strong brand recognition and marketing strategies to drive consumer demand, while strategic partnerships and acquisitions help expand its market reach and product offerings. The company's earnings are also influenced by factors such as pricing strategies, product innovation, and efficiency in production and distribution processes.

Diageo Financial Statement Overview

Summary

Diageo demonstrates strong profitability with stable growth and effective cash management. The company has a moderate debt-to-equity ratio and robust return on equity, indicating financial stability and growth potential.

Income Statement

Diageo demonstrates strong profitability with a stable gross profit margin and net profit margin. Revenue has shown consistent growth over the years, although there was a slight dip in the most recent TTM period. EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating manageable leverage. The equity ratio is stable, while return on equity is robust, underscoring effective use of equity to generate profit.

Cash Flow

Diageo's cash flow is strong, with healthy operating cash flow relative to net income. The free cash flow growth is positive, although it has slowed recently. The company maintains an efficient conversion of net income to cash.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	20.21B	20.27B	20.55B	15.45B	12.73B	11.75B
Gross Profit	12.21B	12.20B	12.27B	9.48B	7.70B	7.10B
EBITDA	6.41B	7.24B	8.06B	4.93B	4.20B	4.48B
Net Income	3.60B	3.87B	4.45B	3.94B	2.66B	1.73B
Balance Sheet
Total Assets	46.95B	45.47B	44.88B	36.52B	31.95B	33.31B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.13B	1.81B	2.54B	2.87B	3.40B
Total Debt	21.72B	21.50B	20.79B	16.02B	14.73B	16.79B
Total Liabilities	34.54B	33.40B	33.17B	27.00B	23.52B	24.87B
Stockholders Equity	10.28B	10.03B	9.86B	7.80B	6.90B	6.77B
Cash Flow
Free Cash Flow	5.57B	4.55B	4.33B	2.84B	3.03B	1.62B
Operating Cash Flow	7.13B	6.07B	5.74B	3.94B	3.65B	2.32B
Investing Cash Flow	-1.51B	-1.59B	-1.43B	-1.34B	-1.09B	-805.00M
Financing Cash Flow	-2.54B	-3.11B	-3.04B	-3.26B	-2.79B	1.04B

Diageo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1834.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DGE, the sentiment is Negative. The current price of 1834.5 is below the 20-day moving average (MA) of 1922.82, below the 50-day MA of 2027.79, and below the 200-day MA of 2252.52, indicating a bearish trend. The MACD of -57.17 indicates Positive momentum. The RSI at 29.42 is Positive, neither overbought nor oversold. The STOCH value of 5.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DGE.

Diageo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCH	80 Outperform	£13.69B	19.75	26.05%	1.71%	2.77%	26.43%
CWK	78 Outperform	£2.90B	21.50	14.14%	0.93%	8.74%	-8.69%
BAG	77 Outperform	£762.05M	19.13	13.01%	2.99%	5.10%	3.23%
TATE	76 Outperform	£2.25B	35.99	3.39%	3.83%	-11.03%	-2.05%
DGE	67 Neutral	$40.77B	14.50	35.82%	3.44%	-3.88%	-11.33%
BATS	66 Neutral	£76.98B	25.73	5.92%	6.83%	-5.19%	―
Sector *	65 Neutral	$26.91B	15.06	-4.01%	3.23%	1.02%	2.12%

Diageo Corporate Events

Diageo Issues Freeshares to Executive Committee Members

Diageo plc announced the issuance of Freeshares under its One World Share Incentive Plan to members of its Executive Committee, including Alvaro Cardenas, Sally Grimes, and John O’Keeffe. These transactions, conducted on June 25, 2025, involve American Depositary Shares and Ordinary Shares, with some shares sold to cover tax liabilities. This move is part of Diageo’s strategy to align managerial interests with company performance, potentially impacting shareholder value and market perception.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Finance Issues EUR 300 Million Fixed Rate Instruments

Diageo Finance plc has announced the issuance of EUR 300 million in fixed rate instruments due in 2031, under its European Debt Issuance Programme. This move consolidates the new issuance with an existing series, potentially strengthening Diageo’s financial position and offering opportunities for investors, while reinforcing its market presence in the beverage alcohol industry.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Executive Purchases Company Shares

Diageo plc announced a transaction involving the purchase of its ordinary shares by Dayalan Nayager, a member of the Executive Committee. This transaction, conducted on the London Stock Exchange, reflects internal confidence in the company’s stock and could influence stakeholder perceptions positively.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Publishes Prospectus for $1.5 Billion Bond Issuance

Diageo has announced the publication of a listing prospectus for its recent $1.5 billion bond issuance, which includes $750 million in 5.125% fixed rate notes due 2030 and $750 million in 5.625% fixed rate notes due 2035. This move, approved by the Financial Conduct Authority, underscores Diageo’s strategic financial management and commitment to maintaining robust capital structures, potentially impacting its market positioning and offering assurance to stakeholders about the company’s financial health.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces Director Share Purchase

Diageo plc announced a transaction involving the purchase of its ordinary shares by Julie Brown, a Non-Executive Director, on June 9, 2025. This transaction, conducted on the London Stock Exchange, reflects internal movements in shareholding, potentially impacting stakeholder perceptions and the company’s governance dynamics.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces Executive Share Transactions Under Incentive Plan

Diageo plc announced transactions related to its 2001 Share Incentive Plan, involving the purchase of partnership shares and the awarding of matching shares to key executives. These transactions, disclosed in compliance with UK Market Abuse Regulation, reflect the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting Diageo’s market positioning and stakeholder relations.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Reports Strong Q3 Sales Growth and Launches Accelerate Programme

Diageo reported a 2.9% increase in net sales for Q3 of fiscal 2025, driven by a 5.9% growth in organic net sales, despite challenges from foreign exchange and disposals. The company is launching the first phase of its Accelerate programme, aiming to enhance operational agility and efficiency, with a focus on cost savings and cash flow improvement. This initiative is expected to deliver significant free cash flow and support Diageo’s long-term growth strategy, while addressing the impact of tariffs and maintaining stakeholder value.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Chair Receives Shares Through Dividend Reinvestment

Diageo plc announced that Sir John Manzoni, the company’s Chair, received ordinary shares through a Dividend Reinvestment Plan related to the interim dividend paid on April 24, 2025. This transaction, disclosed in compliance with the UK Market Abuse Regulation, highlights the ongoing engagement of key company figures in Diageo’s financial activities, potentially reinforcing shareholder confidence and market stability.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Executives Participate in Share Incentive Plan

Diageo plc announced transactions under its 2001 Share Incentive Plan, involving the purchase of partnership shares and the awarding of matching shares to key executives. This move, disclosed in compliance with UK Market Abuse Regulation, underscores Diageo’s commitment to aligning management interests with shareholder value, potentially impacting executive motivation and company performance.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces Director’s Share Acquisition via Dividend Reinvestment

Diageo plc announced that Valerie Chapolaud-Floquet, a Non-Executive Director, received ordinary shares through a Dividend Reinvestment Plan following the interim dividend paid on April 24, 2025. This transaction, disclosed in compliance with the UK Market Abuse Regulation, highlights Diageo’s ongoing commitment to shareholder engagement and transparency in its financial operations.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Chair Purchases Shares, Indicating Confidence in Market Position

On May 12, 2025, Sir John Manzoni, Chair of Diageo plc, purchased ordinary shares of the company as part of an arrangement with the company. This transaction, conducted on the London Stock Exchange, reflects ongoing managerial investment in Diageo, potentially signaling confidence in the company’s market position and future prospects.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Executive Committee Members Receive Shares via Dividend Reinvestment

Diageo plc announced that members of its Executive Committee, including Hina Nagarajan, Dan Mobley, and Cristina Diezhandino, received ordinary shares through a Dividend Reinvestment Plan following the interim dividend paid on April 24, 2025. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to rewarding its management team and aligning their interests with shareholder value.

Diageo Commits to Quarterly Financial Updates Amid Declining Sales

Diageo has announced its commitment to providing more frequent updates on its financial performance, including quarterly trading statements. The company reported a decline in net sales and volume for the third quarter of fiscal 2024, with net sales down by 2.5% and volume down by 3.6% year-over-year. These updates aim to enhance transparency and provide stakeholders with timely insights into the company’s performance, which is crucial given the current market dynamics.

Diageo Announces Executive Share Transactions Under Incentive Plan

Diageo plc announced transactions under its 2001 Share Incentive Plan, where partnership shares were purchased and matching shares awarded to key executives, including the Chief Financial Officer and members of the Executive Committee. This move, disclosed in compliance with the UK Market Abuse Regulation, highlights Diageo’s ongoing commitment to incentivize its leadership team, potentially impacting its market positioning by aligning executive interests with shareholder value.

Diageo Launches $1.5 Billion Bond Offering

Diageo has announced the launch and pricing of a $1.5 billion bond offering, consisting of two tranches of fixed rate notes due in 2030 and 2035. The proceeds from this issuance will be used for general corporate purposes, and the bond offering is scheduled to settle on April 15, 2025. This strategic financial move is expected to support Diageo’s ongoing operations and strengthen its market position.

Diageo Chair Purchases Shares in Compliance with Market Regulations

Diageo plc announced that Sir John Manzoni, the Chair, has purchased 315 ordinary shares at a price of £20.79 per share under an arrangement with the company. This transaction, conducted on April 10, 2025, on the London Stock Exchange, aligns with the UK Market Abuse Regulation, reflecting the company’s commitment to transparency in managerial dealings.

Diageo Announces Sterling Equivalent of Interim Dividend

Diageo has announced the Sterling equivalent of its interim dividend, set at 31.48 pence per ordinary share, based on a conversion rate of US$1=£0.77728. This announcement follows the earlier declaration of a 40.50 US cents interim dividend per share, with the payment scheduled for 24 April 2025. The exchange rate was determined through forward contracts, reflecting Diageo’s strategic financial management.

Diageo Executive Purchases Company Shares

Diageo plc announced a transaction involving the purchase of its ordinary shares by Daniel Mobley, a member of the Executive Committee. This transaction, conducted on the London Stock Exchange, reflects managerial confidence in the company’s performance and may influence investor perceptions positively.