DEO Diageo PLC
$94.79
▲ 0.9%Updated Oct 16, 2:25 PM ET
Report Card
DEO at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Weak · 36/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▼ Down 22.6% in the year to Jul 6, 2026
Key Metrics
Market Cap
$43.32B
P/E
18.91x
Forward P/E (est.)
27.02x
ROE
21.3%
Revenue Growth
-2.0%
EPS Growth
-32.9%
Profit Margin
12.2%
FCF Yield
2.6%
Debt / Equity
2.2x
ROIC
11.0%
Interest Coverage
3.79x
Current Ratio
1.6x
Dividend Yield
4.1%
Implied Growth (rev. DCF)
—
Rating Score
36/100
Business Overview
Diageo PLC (DEO) is a large-cap NYSE-listed company in the Beverages industry, within the Consumer Staples sector, with a market value around $43.32B.
In its latest reported year it generated about $27.96B in revenue and $2.54B in net profit.
Our model rates DEO Weak (36/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what DEO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. DEO trades near $94.79, above its 50-day average ($81.45) and 200-day average ($87.13). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 48 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. DEO's is $2.10 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, DEO found buyers near $77.79 (support) and sellers near $84.83 (resistance); its 52-week range then was $72.45–$116.41. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
3Y CAGR
-2.0%
Revenue moved from $29.75B in 2022 to $27.96B in 2025, a -2.0% compound annual growth rate. The most recent year declined 2.0% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?
Profitability
Gross Margin
43.5%
Operating Margin
15.5%
Net Margin
9.1%
ROE
21.3%
Diageo PLC keeps about 12.2% of each sales dollar as net profit, with a 43.5% gross margin and 15.5% operating margin. Return on equity is 21.3% and return on invested capital about 11.0%. Margins are moderate — typical of a competitive but profitable business.
Debt Analysis
Total Debt
$20.21B
Net Debt
$18.00B
Net Debt / EBITDA
4.15x
Debt / Equity
2.2x
Leverage: debt-to-equity is 2.2x, and operating profit covers interest about 3.8x, with a current ratio of 1.6x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $20.21B of total debt against $2.21B of cash.
Cash Flow Analysis
Operating CF
$4.30B
Free Cash Flow
$4.30B
FCF Margin
15.4%
In the latest year Diageo PLC produced about $4.30B of operating cash flow and $4.30B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockCoverage is weak, the payout was cut recently, or it's being financed rather than earned — treat the current yield as fragile.
Dividend yield
4.1%
Total paid (latest FY)
$2.30B
History on record
4 years
dividend uses 53% of free cash flow
91% of net income paid out
total dividends increased 2 years in a row
payout was cut at least once in the last 4 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
18.91x
P/S
2.25x
P/B
4.9x
EV / EBITDA
10.13x
DEO trades at 18.9x trailing earnings (about 27.0x on estimated forward earnings), 2.3x sales, and 4.9x book value. That is a fairly typical valuation for a profitable company.
Metrics vs. Sector Range
Where DEO sits versus the Consumer Staples companies we cover.
Bands show the middle half (25th–75th percentile) of the 48 Consumer Staples companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How DEO stacks up against its Consumer Staples peers — valuation, profitability, and growth versus the sector median.
Among the 48 rated Consumer Staples companies we cover, DEO ranks #39 by our overall rating. It trades at roughly in line versus the sector on earnings (18.9x P/E vs. 22x median) with a higher return on equity (21.3% vs. 18.1%) and slower revenue growth (-2.0% vs. 3.4%).
P/E vs sector
18.9x
median 22x
ROE vs sector
21.3%
median 18.1%
Growth vs sector
-2.0%
median 3.4%
Sector rank
#39
of 48 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Staples companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 48 rated companies among the 74 Consumer Staples stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$70.23 – $121.30
vs. $94.79 today · implied CAGR -6% – 5%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $28.80B | $29.67B | $30.56B | $31.47B | $32.42B |
| Net income | $2.59B | $2.67B | $2.75B | $2.83B | $2.92B |
| EPS | $5.67 | $5.84 | $6.02 | $6.20 | $6.38 |
| Share price (low) | $62.40 | $64.27 | $66.20 | $68.18 | $70.23 |
| Share price (high) | $107.77 | $111.01 | $114.34 | $117.77 | $121.30 |
| CAGR (low–high) | -34% / 14% | -18% / 8% | -11% / 6% | -8% / 6% | -6% / 5% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for DEO:
- Strong return on equity (21.3%) shows capital is put to work well.
- Pays a 4.1% dividend on top of any price gains.
Bear Case
The case against DEO:
- Revenue growth is slow/negative (-2.0%), limiting the upside engine.
- Elevated leverage (debt/equity 2.2x) adds financial risk.
- Our model's overall read is Weak (36/100).
Key Risks
Balance-sheet risk — debt/equity of 2.2x magnifies the impact of higher rates or weaker earnings.
Growth risk — sluggish revenue (-2.0%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen weakly: Diageo PLC is a large-cap consumer staples business with shrinking revenue, with solid profitability, and a heavier debt load to watch. It trades at 18.9x earnings, which our model scores Weak (36/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 32 Wall Street analysts covering DEO recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
DEO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
DEO — frequently asked questions
Is DEO a good stock to buy?
We don't give buy or sell advice. Our model rates Diageo PLC Weak (36/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is DEO's rating on The Stocks School?
Diageo PLC currently scores 36/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does DEO's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Diageo PLC's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for DEO calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this DEO analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell DEO. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.