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Diageo

DB:GUIA
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GUIA
DB
£75B
Market Cap
  1. Home
  2. DE
  3. Food, Beverage & Tobacco
Company description

Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The last earnings update was 69 days ago. More info.


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GUIA Share Price and Events
7 Day Returns
-0.7%
DB:GUIA
-0.5%
DE Beverage
2.8%
DE Market
1 Year Returns
27.8%
DB:GUIA
5.6%
DE Beverage
3%
DE Market
GUIA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Diageo (GUIA) -0.7% 0% -1.3% 27.8% 50.1% 70.3%
DE Beverage -0.5% 2.4% -0.7% 5.6% 30% 68%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • GUIA outperformed the Beverage industry which returned 5.6% over the past year.
  • GUIA outperformed the Market in Germany which returned 3% over the past year.
Price Volatility
GUIA
Industry
5yr Volatility vs Market

GUIA Value

 Is Diageo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Diageo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Diageo.

DB:GUIA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:GUIA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.51
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.508 (1 + (1- 19%) (16.82%))
0.716
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 6.65%)
5.55%

Discounted Cash Flow Calculation for DB:GUIA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Diageo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:GUIA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 5.55%)
2020 2,878.39 Analyst x12 2,727.09
2021 3,178.66 Analyst x13 2,853.27
2022 3,411.27 Analyst x9 2,901.12
2023 3,439.50 Analyst x2 2,771.37
2024 3,538.00 Analyst x1 2,700.90
2025 3,604.61 Est @ 1.88% 2,607.10
2026 3,654.58 Est @ 1.39% 2,504.31
2027 3,692.55 Est @ 1.04% 2,397.32
2028 3,721.93 Est @ 0.8% 2,289.38
2029 3,745.20 Est @ 0.63% 2,182.60
Present value of next 10 years cash flows £25,934.00
DB:GUIA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £3,745.20 × (1 + 0.23%) ÷ (5.55% – 0.23%)
£70,558.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £70,558.99 ÷ (1 + 5.55%)10
£41,119.92
DB:GUIA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £25,934.00 + £41,119.92
£67,053.92
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £67,053.92 / 2,351.68
£28.51
DB:GUIA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:GUIA represents 4.57938x of LSE:DGE
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
4.57938x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 28.51 x 4.57938
€130.57
Value per share (EUR) From above. €130.57
Current discount Discount to share price of €147.00
= -1 x (€147.00 - €130.57) / €130.57
-12.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Diageo is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Diageo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Diageo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:GUIA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £1.31
LSE:DGE Share Price ** LSE (2019-10-11) in GBP £32.1
Germany Beverage Industry PE Ratio Median Figure of 7 Publicly-Listed Beverage Companies 27.57x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Diageo.

DB:GUIA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:DGE Share Price ÷ EPS (both in GBP)

= 32.1 ÷ 1.31

24.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diageo is good value based on earnings compared to the DE Beverage industry average.
  • Diageo is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Diageo's expected growth come at a high price?
Raw Data
DB:GUIA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
5.8%per year
Europe Beverage Industry PEG Ratio Median Figure of 31 Publicly-Listed Beverage Companies 2.84x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:GUIA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.56x ÷ 5.8%

4.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diageo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Diageo's assets?
Raw Data
DB:GUIA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £3.53
LSE:DGE Share Price * LSE (2019-10-11) in GBP £32.1
Germany Beverage Industry PB Ratio Median Figure of 8 Publicly-Listed Beverage Companies 1.56x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:GUIA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:DGE Share Price ÷ Book Value per Share (both in GBP)

= 32.1 ÷ 3.53

9.1x

* Primary Listing of Diageo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diageo is overvalued based on assets compared to the DE Beverage industry average.
X
Value checks
We assess Diageo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Diageo has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GUIA Future Performance

 How is Diageo expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Diageo expected to grow at an attractive rate?
  • Diageo's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Diageo's earnings growth is positive but not above the Germany market average.
  • Diageo's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:GUIA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:GUIA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 5.8%
DB:GUIA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 5.5%
Germany Beverage Industry Earnings Growth Rate Market Cap Weighted Average -0.6%
Europe Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:GUIA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:GUIA Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 17,177 4,343 4,327 3
2023-06-30 16,181 4,147 3,941 5
2022-06-30 15,294 4,144 3,786 13
2021-06-30 14,517 3,899 3,547 21
2020-06-30 13,842 3,552 3,336 20
2019-10-13
DB:GUIA Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 12,867 3,248 3,160
2019-03-31 12,704 3,344 3,050
2018-12-31 12,541 3,440 2,940
2018-09-30 12,352 3,262 2,981
2018-06-30 12,163 3,084 3,022
2018-03-31 12,161 3,099 3,114
2017-12-31 12,159 3,113 3,206
2017-09-30 12,105 3,123 2,962
2017-06-30 12,050 3,132 2,717
2017-03-31 11,675 2,955 2,562
2016-12-31 11,300 2,778 2,407
2016-09-30 10,893 2,663 2,326

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Diageo's earnings are expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
  • Diageo's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:GUIA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Diageo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:GUIA Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30 2.08 2.08 2.08 1.00
2023-06-30 1.76 1.89 1.66 3.00
2022-06-30 1.64 1.72 1.57 10.00
2021-06-30 1.52 1.61 1.46 15.00
2020-06-30 1.41 1.49 1.35 15.00
2019-10-13
DB:GUIA Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 1.31
2019-03-31 1.25
2018-12-31 1.20
2018-09-30 1.21
2018-06-30 1.22
2018-03-31 1.25
2017-12-31 1.28
2017-09-30 1.18
2017-06-30 1.08
2017-03-31 1.02
2016-12-31 0.96
2016-09-30 0.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Diageo is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Diageo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Diageo has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GUIA Past Performance

  How has Diageo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Diageo's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Diageo's year on year earnings growth rate has been positive over the past 5 years.
  • Diageo's 1-year earnings growth is less than its 5-year average (4.6% vs 8.6%)
  • Diageo's earnings growth has exceeded the DE Beverage industry average in the past year (4.6% vs -2%).
Earnings and Revenue History
Diageo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Diageo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:GUIA Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 12,867.00 3,160.00 2,035.00
2019-03-31 12,704.00 3,050.00 2,002.50
2018-12-31 12,541.00 2,940.00 1,970.00
2018-09-30 12,352.00 2,981.00 1,931.50
2018-06-30 12,163.00 3,022.00 1,893.00
2018-03-31 12,161.00 3,114.00 1,885.00
2017-12-31 12,159.00 3,206.00 1,877.00
2017-09-30 12,104.50 2,961.50 1,850.00
2017-06-30 12,050.00 2,717.00 1,823.00
2017-03-31 11,675.00 2,562.00 1,743.50
2016-12-31 11,300.00 2,407.00 1,664.00
2016-09-30 10,892.50 2,325.50 1,615.50
2016-06-30 10,485.00 2,244.00 1,567.00
2016-03-31 10,502.00 2,360.00 1,558.00
2015-12-31 10,519.00 2,476.00 1,575.00
2015-09-30 10,666.00 2,428.50 1,615.00
2015-06-30 10,813.00 2,381.00 1,642.00
2015-03-31 10,519.50 2,166.00 1,649.00
2014-12-31 10,226.00 1,951.00 1,643.00
2014-09-30 10,242.00 2,141.00 1,646.00
2014-06-30 10,258.00 2,331.00 1,649.00
2014-03-31 10,759.00 2,476.50 1,713.00
2013-12-31 11,260.00 2,622.00 1,777.00
2013-09-30 11,281.50 2,537.00 1,792.00
2013-06-30 11,303.00 2,452.00 1,807.00
2012-12-31 10,980.00 2,521.00 1,731.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Diageo has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Diageo used its assets more efficiently than the DE Beverage industry average last year based on Return on Assets.
  • Diageo has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Diageo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Diageo has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GUIA Health

 How is Diageo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Diageo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Diageo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Diageo's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Diageo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Diageo Company Filings, last reported 3 months ago.

DB:GUIA Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 10,156.00 12,567.00 1,056.00
2019-03-31 10,156.00 12,567.00 1,056.00
2018-12-31 11,133.00 12,168.00 1,591.00
2018-09-30 11,133.00 12,168.00 1,591.00
2018-06-30 11,713.00 9,972.00 899.00
2018-03-31 11,713.00 9,972.00 899.00
2017-12-31 11,690.00 10,025.00 920.00
2017-09-30 11,690.00 10,025.00 920.00
2017-06-30 12,028.00 9,067.00 1,215.00
2017-03-31 12,028.00 9,067.00 1,215.00
2016-12-31 11,253.00 10,253.00 1,380.00
2016-09-30 11,253.00 10,253.00 1,380.00
2016-06-30 10,180.00 10,129.00 1,237.00
2016-03-31 10,180.00 10,129.00 1,237.00
2015-12-31 9,677.00 9,865.00 762.00
2015-09-30 9,677.00 9,865.00 762.00
2015-06-30 9,256.00 9,838.00 489.00
2015-03-31 9,256.00 9,838.00 489.00
2014-12-31 8,696.00 11,363.00 802.00
2014-09-30 8,696.00 11,363.00 802.00
2014-06-30 7,590.00 9,214.00 657.00
2014-03-31 7,590.00 9,214.00 657.00
2013-12-31 8,038.00 9,723.00 891.00
2013-09-30 8,038.00 9,723.00 891.00
2013-06-30 8,088.00 10,069.00 1,750.00
2012-12-31 7,448.00 8,453.00 708.00
  • Diageo's level of debt (123.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (121.5% vs 123.7% today).
  • Debt is well covered by operating cash flow (25.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.8x coverage).
X
Financial health checks
We assess Diageo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Diageo has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GUIA Dividends

 What is Diageo's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.14%
Current annual income from Diageo dividends. Estimated to be 2.43% next year.
If you bought €2,000 of Diageo shares you are expected to receive €43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Diageo's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Diageo's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:GUIA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Germany Beverage Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:GUIA Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.94 1.00
2023-06-30 0.88 3.00
2022-06-30 0.83 15.00
2021-06-30 0.78 20.00
2020-06-30 0.73 19.00
2019-10-13
DB:GUIA Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-08-05 0.686 2.036
2019-07-25 0.686 2.017
2018-08-06 0.653 2.216
2018-07-26 0.653 2.321
2018-01-25 0.634 2.453
2017-08-08 0.622 2.415
2017-08-02 0.622 2.498
2017-07-27 0.622 2.555
2016-08-09 0.592 2.689
2016-07-28 0.592 2.735
2015-08-11 0.564 3.035
2015-07-30 0.564 3.112
2014-08-12 0.517 2.792
2014-07-31 0.517 2.952
2013-08-12 0.474 2.479
2013-07-31 0.474 2.262
2013-01-31 0.450 2.284
2012-10-24 0.435 2.382
2012-04-11 0.415 2.514
2011-09-13 0.404 2.927
2011-08-25 0.404 3.333
2010-09-14 0.381 3.184
2010-08-26 0.381 3.508
2009-09-14 0.361 3.411
2009-08-27 0.361 3.767
2009-02-12 0.351 4.138

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Diageo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Diageo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Diageo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Diageo has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GUIA Management

 What is the CEO of Diageo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ivan Menezes
COMPENSATION £11,654,000
AGE 60
TENURE AS CEO 6.3 years
CEO Bio

Mr. Ivan M. Menezes has been the Chief Executive Officer at Diageo PLC since July 1, 2013. Mr. Menezes served as the Chief Operating Officer of Diageo PLC from March 1, 2012 to July 1, 2013. He served as Chief Executive Officer and President of North America at Diageo PLC since January 1, 2004 and Chief Operating Officer- North America since July 2002. He served as the Chief Executive Officer, President and Chief Operating Officer of Diageo North America Inc., a subsidiary of Diageo PLC since January 1, 2004. He served as the Chief Operating Officer of Diageo North America since July 2002 and served as the President of Diageo, Venture Markets since July 2000. Since 1997, Mr. Menezes has held progressively senior management positions at Diageo North America and played a leadership role in streamlining Diageo North America's business processes while focusing on marketplace execution. He served as the Managing Director and President, Venture Markets of Guinness United Distillers & Vintners. He served as Global Marketing Director of UDV in the United Kingdom since September 1998 and as a Group Integration Director of Diageo PLC since May 1997. He held senior marketing positions with the Whirlpool Corporation in Europe and served as a Principal of Booz Allen Hamilton, Inc., both in Chicago and in London. He started his career with Nestle, India in 1981. Mr. Menezes worked across a variety of sales, marketing and strategy roles with Nestlé in Asia, Booz-Allen & Hamilton, Inc. in North America and Whirlpool in Europe. He has been the Chairman of Diageo Asia Pacific since October 1, 2008 and of Latin America & Caribbean since June 2011. He has been an Independent Non Executive Director of Coach, Inc. since February 7, 2005. He has been an Executive Director at Diageo PLC since July 2, 2012. He has been Member of Governing Council at The Scotch Whisky Association since December 2014. Mr. Menezes holds a Post Graduate Diploma from the Indian Institute of Management, Ahmedabad, an MBA from Northwestern University's Kellogg School of Management and a Bachelor of Arts degree in Economics from St Stephen's College, Delhi.

CEO Compensation
  • Ivan's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Ivan's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Diageo management team in years:

6.3
Average Tenure
56
Average Age
  • The average tenure for the Diageo management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ivan Menezes

TITLE
CEO & Executive Director
COMPENSATION
£12M
AGE
60
TENURE
6.3 yrs

Kathryn Mikells

TITLE
CFO & Executive Director
COMPENSATION
£7M
AGE
53
TENURE
3.9 yrs

Yvonne Harrison

TITLE
Corporate Information Officer

Vinod Rao

TITLE
Group Treasurer & Head of Investor Relations
AGE
56
TENURE
0.7 yrs

Siobhan Moriarty

TITLE
General Counsel & Company Secretary
AGE
57
TENURE
6.3 yrs

Syl Saller

TITLE
Chief Marketing Officer
AGE
62
TENURE
6.3 yrs

Tom Day

TITLE
Chief Sales Officer

Mairéad Nayager

TITLE
Chief HR Officer
AGE
44
TENURE
4 yrs

John Kennedy

TITLE
President of Europe
AGE
54
TENURE
8.3 yrs

Galip Yorgancýoðlu

TITLE
Managing Director of Turkey
Board of Directors Tenure

Average tenure and age of the Diageo board of directors in years:

5.1
Average Tenure
60
Average Age
  • The tenure for the Diageo board of directors is about average.
Board of Directors

Javier Ferrán

TITLE
Chairman
COMPENSATION
£601K
AGE
62
TENURE
2.8 yrs

Ivan Menezes

TITLE
CEO & Executive Director
COMPENSATION
£12M
AGE
60
TENURE
7.3 yrs

Kathryn Mikells

TITLE
CFO & Executive Director
COMPENSATION
£7M
AGE
53
TENURE
3.9 yrs

Alan James Stewart

TITLE
Non-Executive Director
COMPENSATION
£123K
AGE
59
TENURE
5.1 yrs

Susan Kilsby

TITLE
Non-Executive Director
COMPENSATION
£111K
AGE
61
TENURE
1.5 yrs

Mark Davies

TITLE
Senior Non-Executive Director
COMPENSATION
£135K
AGE
67
TENURE
8 yrs

KwonPing Ho

TITLE
Non-Executive Director
COMPENSATION
£94K
AGE
66
TENURE
7 yrs

Nicola Mendelsohn

TITLE
Non-Executive Director
COMPENSATION
£93K
AGE
47
TENURE
5.1 yrs

Debra Crew

TITLE
Non-Executive Director
COMPENSATION
£19K
AGE
48
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • Diageo individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. Sep 19 Sell Ivan Menezes Individual 06. Sep 19 06. Sep 19 -23,500 €154.19 €-3,623,557
11. Mar 19 Sell Ivan Menezes Individual 08. Mar 19 08. Mar 19 -11,976 €140.91 €-1,687,563
08. Feb 19 Sell Syl Saller Individual 01. Feb 19 01. Feb 19 -2,713 €131.82 €-357,557
X
Management checks
We assess Diageo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Diageo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GUIA News

Simply Wall St News

GUIA Company Info

Description

Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, Irish cream liqueur, raki, liqueur, wine, tequila, Canadian whisky, American whiskey, adult beverages, cachaça, and brandy, as well as beer, including cider and non-alcoholic products. It provides its products primarily under the Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray, and Guinness brands. The company also offers its products under the Crown Royal, Yenì Raki, Shui Jing Fang, Johnnie Walker Blue Label, Bulleit Bourbon, Don Julio, Buchanan’s, J?B, Grand Old Parr, Tanqueray No. TEN, Ron Zacapa Centenario XO, Casamigos, Bundaberg, McDowell’s No. 1, Ypióca, Lagavulin, The Singleton of Glen Ord, Johnnie Walker Gold Label Reserve, Windsor, Black&White, Cîroc, Ketel One vodka, and Talisker brands. It has operations in North America, Europe, Turkey, Africa, Latin America, the Caribbean, the Asia Pacific, and internationally. The company was founded in 1886 and is headquartered in London, the United Kingdom.

Details
Name: Diageo plc
GUIA
Exchange: DB
Founded: 1886
£86,649,957,043
2,351,678,134
Website: http://www.diageo.com
Address: Diageo plc
Lakeside Drive,
Park Royal,
London,
Greater London, NW10 7HQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE DGE Ordinary Shares London Stock Exchange GB GBP 02. Jan 1980
OTCPK DGEA.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1980
DB GUI Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1980
XTRA GUI Ordinary Shares XETRA Trading Platform DE EUR 02. Jan 1980
ENXTPA DGE Ordinary Shares Euronext Paris FR EUR 02. Jan 1980
BATS-CHIXE DGEP Ordinary Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1980
BATS-CHIXE DGEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1980
NYSE DEO ADR EA REPR 4 ORD GBX28.935185 New York Stock Exchange US USD 31. May 1990
DB GUIA ADR EA REPR 4 ORD GBX28.935185 Deutsche Boerse AG DE EUR 31. May 1990
LSE DGED ADR EA REPR 4 ORD GBX28.935185 London Stock Exchange GB USD 31. May 1990
BMV DEO N ADR EA REPR 4 ORD GBX28.935185 Bolsa Mexicana de Valores MX MXN 31. May 1990
Number of employees
Current staff
Staff numbers
28,150
Diageo employees.
Industry
Distillers and Vintners
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 22:29
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/11
Last earnings filing: 2019/08/05
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.