-0.37%
-5.04%
0.98%
0.79%
-16.73%
-35.38%
-21.92%
AI Spotlight on DGE
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.
Market Data
| Last Price | 2419 |
| Change Percentage | -0.37% |
| Open | 2431 |
| Previous Close | 2428 |
| Market Cap ( Millions) | 53754 |
| Volume | 4287713 |
| Year High | 3056 |
| Year Low | 2275 |
| M A 50 | 2450.19 |
| M A 200 | 2528.02 |
Financial Ratios
| FCF Yield | 5.03% |
| Dividend Yield | 3.28% |
| ROE | 50.44% |
| Debt / Equity | 234.57% |
| Net Debt / EBIDTA | 261.22% |
| Price To Book | 6.81 |
| Price Earnings Ratio | 13.56 |
| Price To FCF | 19.87 |
| Price To sales | 2.61 |
| EV / EBITDA | 10.64 |
News
- Jan -31 - DEO North America Invests in Montgomery: What It Means for the Stock
- Jan -31 - Diageo invests $415m in new US facility
- Jan -30 - Diageo North America Announces New Manufacturing and Warehousing Facility in Alabama
- Jan -30 - Jim Cramer Says Diageo plc (DEO) Has Been a ‘Horrendous’ Stock
- Jan -30 - Park the Guinness debate: getting back to basics will cheer Diageo shareholders
- Jan -30 - JOHNNIE WALKER BLENDED SCOTCH WHISKY AND RONNY CHIENG CELEBRATE LUNAR NEW YEAR, HONORING TRADITIONS WHILE MAKING THEM YOUR OWN FOR A MEMORABLE CELEBRATION
- Jan -29 - CROWN ROYAL HONORS NEW ORLEANS WITH LIMITED-EDITION STARTER SUPER BOWL LIX SATIN JACKET INSPIRED BY THE HISTORIC CITY
- Jan -29 - Analysis-Top investors question Diageo's growth goals
- Jan -28 - Diageo sells Guinness Ghana stake to Castel Group
- Jan -28 - POPEYES® AND TEQUILA DON JULIO LAUNCH "THE CHAMPIONSHIP LINEUP" - A LIMITED EDITION MENU FOR FOOTBALL'S BIG GAME
- Jan -27 - European Equities Close Mixed in Monday Trading; Tesla Sues EC Over China Duties
- Jan -27 - CÎROC Ultra-Premium Vodka Opens Applications for Inaugural Blue Dot Creative Residency in Park City During Festival Week
- Jan -27 - Diageo denies speculation swirling around Guinness, Moët Hennessy
- Jan -26 - Diageo rules out Guinness sale as demand for ‘black stuff’ soars
- Jan -26 - Diageo says it has no intention to sell Guinness or stake in Moet Hennessy
- Jan -24 - Diageo's Billion-Dollar Dilemma: Why the Spirits Giant Might Sell Guinness
- Jan -24 - Diageo silent as Guinness, Moët Hennessy talk boosts shares
- Jan -24 - Diageo considers Guinness sale or spin-off: Bloomberg
- Jan -24 - Diageo considering possible sale of Guinness business – reports
- Jan -24 - Diageo plots £8bn sale of Guinness
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Spirits
Expected Growth : 2.5 %
What the company do ?
Diageo plc's Spirits segment includes a portfolio of premium spirits brands, such as Johnnie Walker, Smirnoff, and Baileys, offering a range of whiskey, vodka, rum, and liqueurs.
Why we expect these perspectives ?
Diageo's spirits segment growth of 2.5% is driven by premiumization, with consumers trading up to higher-end brands like Johnnie Walker and The Singleton. Additionally, expansion in emerging markets, particularly in Africa and Latin America, contributes to growth. The company's focus on innovation, such as the launch of new flavors and packaging, also supports sales growth.
Segment n°2 -> Excise Duties
Expected Growth : 1.8 %
What the company do ?
Excise duties from Diageo plc refer to taxes levied on the production and sale of spirits, such as whiskey and vodka, by governments, which Diageo plc pays as a manufacturer.
Why we expect these perspectives ?
Diageo plc's 1.8% growth in Excise Duties is driven by increased spirits sales, particularly in premium categories, and favorable mix shifts towards higher-margin products. Additionally, the company's pricing power and effective cost management have contributed to the growth, despite ongoing macroeconomic and regulatory challenges.
Segment n°3 -> Beer
Expected Growth : 1.2 %
What the company do ?
Diageo plc's beer segment includes Guinness, Smithwick's, and Harp, offering a range of stouts, ales, and lagers with a rich heritage and brewing expertise.
Why we expect these perspectives ?
Diageo's beer segment growth of 1.2% is driven by premiumization, with consumers trading up to higher-end brands like Guinness and Crown Royal. Additionally, expansion in emerging markets, particularly in Africa and Latin America, contributes to growth. Furthermore, the company's focus on innovation, such as the launch of new flavors and packaging, also supports sales growth.
Segment n°4 -> Ready to Drink
Expected Growth : 2.2 %
What the company do ?
Ready to Drink (RTD) from Diageo plc refers to pre-mixed, convenient beverages like Smirnoff Sourced and Ketel One Botanicals, offering a hassle-free drinking experience.
Why we expect these perspectives ?
Diageo's Ready to Drink segment growth of 2.2% is driven by increasing demand for convenient, portable, and premium beverages, particularly among younger consumers. Expansion in emerging markets, innovative product launches, and strategic partnerships also contribute to growth. Additionally, the segment benefits from the rising popularity of low- and no-alcohol drinks, as well as the company's efforts to enhance its e-commerce capabilities.
Segment n°5 -> Other
Expected Growth : 1.5 %
What the company do ?
The 'Other' segment from Diageo plc includes non-beverage operations, such as Baileys Global Supply, Diageo Global Supply, and Diageo India Private Limited.
Why we expect these perspectives ?
Diageo's 1.5% growth in 'Other' segment is driven by premiumization in emerging markets, particularly in Africa and Latin America, where consumers are trading up to higher-end spirits. Additionally, the company's focus on innovation, such as the launch of new products like Johnnie Walker Black Label Sherry Edition, has contributed to growth.
Diageo Plc Products
| Product Range | What is it ? |
|---|---|
| Johnnie Walker | A Scotch whisky brand that offers a range of blends and single malts |
| Smirnoff | A vodka brand that offers a range of flavors and styles |
| Guinness | A stout beer brand that offers a rich, smooth, and creamy drinking experience |
| Baileys | A cream liqueur brand that offers a range of flavors and styles |
| Captain Morgan | A rum brand that offers a range of flavors and styles |
| Tanqueray | A gin brand that offers a range of flavors and styles |
| Cîroc | A vodka brand that offers a range of flavors and styles |
Diageo plc's Porter Forces
Threat Of Substitutes
Diageo plc has a diverse portfolio of brands, which reduces the threat of substitutes. However, the increasing popularity of craft spirits and the rise of low-alcohol and non-alcoholic beverages pose a moderate threat.
Bargaining Power Of Customers
Diageo plc's customers, primarily retailers and wholesalers, have limited bargaining power due to the company's strong brand portfolio and global distribution network.
Bargaining Power Of Suppliers
Diageo plc's suppliers, primarily agricultural producers and packaging providers, have limited bargaining power due to the company's large scale and diversified supply chain.
Threat Of New Entrants
The spirits industry has high barriers to entry, including significant capital requirements, complex regulatory environments, and established distribution networks, making it difficult for new entrants to compete with Diageo plc.
Intensity Of Rivalry
The spirits industry is highly competitive, with several large players, including Pernod Ricard and Bacardi, competing for market share and premium positioning.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 67.84% |
| Debt Cost | 5.60% |
| Equity Weight | 32.16% |
| Equity Cost | 5.60% |
| WACC | 5.60% |
| Leverage | 210.97% |
Diageo plc : Quality Control
Diageo plc passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| RI.PA | Pernod Ricard SA produces and sells wines and spirits worldwide. It offers its products under various brands. The company was founded in 1805 and is headquartered in Paris, France. |
| IMB.L | Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, Americas, Africa, Asia, and Australasia. It offers a range of cigarettes, fine … |
| AD.AS | Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce primarily in the United States and Europe. Its store formats include supermarkets, convenience stores, drugstores, and hypermarkets. It also subleases … |
| CCEP.L | Coca-Cola Europacific Partners PLC, together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages. The company offers flavours, mixers, and energy drinks; soft drinks, … |
| HEN3.DE | Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies, beauty care, and laundry and home care businesses worldwide. The company's Adhesive Technologies segment offers adhesives, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Ahold Delhaize
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Henkel
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Diageo
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Coca-Cola Europacific Partners
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