DEO
Diageo·NYSE
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9.88 / 10
Outperform
Diageo's fundamentals score 9.9/10, reflecting outstanding quality. Key strengths include high net income-to-revenue, strong net assets per share growth, and solid interest coverage. However, declining revenue growth and a negative diluted EPS trend temper the outlook. The company remains well-protected by cash and maintains healthy margins, but investors should monitor top-line deceleration and the EABL sale legal dispute.
Analysis Checks(5/10)
Revenue-MV
Value-0.18
Score3/3
Weight57.21%
1M Return1.37%
Value-0.18
Score3/3
Weight57.21%
1M Return1.37%
Profit-MV
Value1.00
Score1/3
Weight-143.79%
1M Return-3.45%
Value1.00
Score1/3
Weight-143.79%
1M Return-3.45%
Net cash flow from operating activities (YoY growth rate %)
Value4.68
Score1/3
Weight7.47%
1M Return0.19%
Value4.68
Score1/3
Weight7.47%
1M Return0.19%
Interest coverage ratio (EBIT / Interest expense) (%)
Value5.59
Score0/3
Weight-26.78%
1M Return-0.64%
Value5.59
Score0/3
Weight-26.78%
1M Return-0.64%
Total assets turnover ratio
Value0.43
Score1/3
Weight55.59%
1M Return1.32%
Value0.43
Score1/3
Weight55.59%
1M Return1.32%
Net assets per share (growth rate compared to beginning of year %)
Value10.44
Score3/3
Weight212.68%
1M Return4.69%
Value10.44
Score3/3
Weight212.68%
1M Return4.69%
Net income-Revenue
Value0.41
Score2/3
Weight-115.41%
1M Return-3.36%
Value0.41
Score2/3
Weight-115.41%
1M Return-3.36%
Cash-UP
Value-0.04
Score1/3
Weight-268.42%
1M Return-11.95%
Value-0.04
Score1/3
Weight-268.42%
1M Return-11.95%
Diluted earnings per share (YoY growth rate %)
Value-38.83
Score3/3
Weight210.97%
1M Return4.24%
Value-38.83
Score3/3
Weight210.97%
1M Return4.24%
Cash-MV
Value1.50
Score3/3
Weight110.48%
1M Return2.38%
Value1.50
Score3/3
Weight110.48%
1M Return2.38%
Revenue-MV
Value-0.18
Score3/3
Weight57.21%
1M Return1.37%
Value-0.18
Score3/3
Weight57.21%
1M Return1.37%
Net assets per share (growth rate compared to beginning of year %)
Value10.44
Score3/3
Weight212.68%
1M Return4.69%
Value10.44
Score3/3
Weight212.68%
1M Return4.69%
Profit-MV
Value1.00
Score1/3
Weight-143.79%
1M Return-3.45%
Value1.00
Score1/3
Weight-143.79%
1M Return-3.45%
Net income-Revenue
Value0.41
Score2/3
Weight-115.41%
1M Return-3.36%
Value0.41
Score2/3
Weight-115.41%
1M Return-3.36%
Net cash flow from operating activities (YoY growth rate %)
Value4.68
Score1/3
Weight7.47%
1M Return0.19%
Value4.68
Score1/3
Weight7.47%
1M Return0.19%
Cash-UP
Value-0.04
Score1/3
Weight-268.42%
1M Return-11.95%
Value-0.04
Score1/3
Weight-268.42%
1M Return-11.95%
Interest coverage ratio (EBIT / Interest expense) (%)
Value5.59
Score0/3
Weight-26.78%
1M Return-0.64%
Value5.59
Score0/3
Weight-26.78%
1M Return-0.64%
Diluted earnings per share (YoY growth rate %)
Value-38.83
Score3/3
Weight210.97%
1M Return4.24%
Value-38.83
Score3/3
Weight210.97%
1M Return4.24%
Total assets turnover ratio
Value0.43
Score1/3
Weight55.59%
1M Return1.32%
Value0.43
Score1/3
Weight55.59%
1M Return1.32%
Cash-MV
Value1.50
Score3/3
Weight110.48%
1M Return2.38%
Value1.50
Score3/3
Weight110.48%
1M Return2.38%
Is DEO undervalued or overvalued?
- DEO scores 9.88/10 on fundamentals and holds a Discounted valuation at present. Backed by its 18.65% ROE, 12.54% net margin, 22.91 P/E ratio, 4.09 P/B ratio, and -38.86% earnings growth, these metrics solidify its Outperform investment rating.
