Diageo plc
LSE: DGE.L
Stock price
1790 GBX
(-50.49%) 5 years
Financial Performance
5Y price score: (70)
The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.
A score of 100 indicates that the stock did as well as the S&P 500 Index.
A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.
10Y return: 13.7%
%
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1350.0
52-week range
1903.9
Your model inputs
Your fair value & Margin of safety
To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.
Forecast:
Valuation
Free Cash Flow Yield
8 %
Dividend Yield TTM
2.1 %
Market cap
$ 39,820
Price / Earnings TTM
22.9
Price / Book TTM
4.9
PEG TTM
(0.8)
Earnings growth and return
LTM
5YR
10YR
Total return (price & dividends)
3.7 %
(39.9) %
13.7 %
Free cash flow per share growth
64.8 %
10.2 %
75.5 %
Earnings per share growth
(116) %
(31.9) %
(13.5) %
Founded: 1,997
Employees: 30,092
Business Summary:
Q&A
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Latest Earnings Call Takeaways
2025 Q2 (Feb 4, 2025)
1) Performance Overview - Diageo reported a 1% organic net sales growth in the first half of fiscal '25, marking a return to growth despite a challenging macro environment. - Growth was observed in four out of five regions, with North America showing slight improvement. - The company maintained or gained market share in 65% of its net sales in measured markets. - Notable growth drivers included Guinness in Europe and Tequila, particularly Don Julio, in North America.
2) Financial Results - Organic operating profit declined by 1.2%, impacted by increased overhead costs and strategic investments. - Pre-exceptional EPS fell by approximately 10% to $0.977 per share, influenced by the performance of Moet Hennessy and unfavorable foreign exchange rates. - Free cash flow improved by $125 million to around $1.7 billion, driven by effective working capital management. - The company declared a flat dividend of $0.405 for the half, maintaining a commitment to future growth in dividends.
3) Market Dynamics and Challenges - The macroeconomic recovery is slower than anticipated, particularly in North America and China, leading to cautious consumer sentiment. - Recent 25% tariffs on goods imported into the U.S. from Canada and Mexico add complexity to future guidance and could impact input costs significantly, especially for Tequila and Canadian Whiskey. - The company is actively managing these challenges through strategic pricing, inventory management, and supply chain optimization.
4) Strategic Initiatives and Outlook - Diageo is focused on enhancing financial resilience and driving sustainable long-term growth through strategic initiatives. - The company aims to improve operating leverage and free cash flow while maintaining a robust investment-grade balance sheet. - Future guidance remains cautious due to tariff uncertainties, but the company expects to continue outperforming the market as consumer confidence improves. - Diageo has removed its medium-term guidance of 5% to 7% organic net sales growth due to current uncertainties.
5) Conclusion and Missing Elements - The earnings call highlighted Diageo's resilience and strategic focus amid a challenging environment, but specific details on the impact of tariffs and future financial performance remain unclear. - Bottom line: Diageo is navigating a volatile landscape with a focus on growth and market share retention, but uncertainties surrounding tariffs and macroeconomic conditions may hinder short-term performance, necessitating careful management and strategic agility.
Diageo plc — Financial Overview, Stock Price, Market Cap
Diageo plc is a company. Founded in 1997. As of October 19, 2026, the company's market capitalization is $39819986869 with a current stock price of $1790.00.