Diageo Plc Adr Stock Buy Hold or Sell Recommendation
| DEO Stock | USD 109.90 0.37 0.34% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Diageo PLC ADR is 'Cautious Hold'. The recommendation algorithm takes into account all of Diageo PLC's available fundamental, technical, and predictive indicators you will find on this site.
Check out Diageo PLC Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Diageo and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Diageo PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.
Diageo |
Execute Diageo PLC Buy or Sell Advice
The Diageo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Diageo PLC ADR. Macroaxis does not own or have any residual interests in Diageo PLC ADR or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Diageo PLC's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Diageo PLC Trading Alerts and Improvement Suggestions
| Diageo PLC ADR generated a negative expected return over the last 90 days | |
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Diageo PLC Returns Distribution Density
The distribution of Diageo PLC's historical returns is an attempt to chart the uncertainty of Diageo PLC's future price movements. The chart of the probability distribution of Diageo PLC daily returns describes the distribution of returns around its average expected value. We use Diageo PLC ADR price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Diageo PLC returns is essential to provide solid investment advice for Diageo PLC.
| Mean Return | -0.1 | Value At Risk | -2.53 | Potential Upside | 2.78 | Standard Deviation | 1.79 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Diageo PLC historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Diageo Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Diageo PLC, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Diageo PLC ADR back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Markel Group Inc | 2024-12-31 | 1.4 M | Massachusetts Financial Services Company | 2024-12-31 | 1.2 M | Confluence Investment Management Llc | 2024-12-31 | 1.2 M | Wellington Management Company Llp | 2024-12-31 | 1.1 M | London Company Of Virginia | 2024-12-31 | 1.1 M | Clearbridge Advisors, Llc | 2024-12-31 | 1.1 M | Goldman Sachs Group Inc | 2024-12-31 | 948.1 K | Natixis Advisors, Llc. | 2024-12-31 | 915.9 K | Blackrock Inc | 2024-12-31 | 862.6 K | Canoe Financial Lp | 2024-12-31 | 8.1 M | Fmr Inc | 2024-12-31 | 5.8 M |
Diageo PLC Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (443M) | (900.8M) | (675M) | (123.9M) | (111.5M) | (117.1M) | |
| Change In Cash | (516M) | (956.3M) | (808M) | (659M) | (593.1M) | (563.4M) | |
| Free Cash Flow | 3.0B | 3.5B | 1.8B | 2.1B | 2.4B | 1.7B | |
| Depreciation | 447M | 552.6M | 1.1B | 537.8M | 618.5M | 475.0M | |
| Other Non Cash Items | 77M | 1.6B | (633M) | 75.6M | 86.9M | 91.3M | |
| Capital Expenditures | 626M | 1.3B | 1.2B | 1.2B | 1.4B | 1.4B | |
| Net Income | 2.8B | 4.0B | 3.8B | 3.1B | 3.5B | 2.3B | |
| End Period Cash Flow | 2.6B | 2.7B | 1.4B | 1.1B | 1.3B | 1.3B | |
| Investments | (1.1B) | (1.3B) | (1.2B) | (1.6B) | (1.4B) | (1.4B) | |
| Net Borrowings | 4.1B | (969M) | 821M | 948M | 1.1B | 1.1B | |
| Change To Netincome | 759M | 216M | 373M | (601M) | (691.2M) | (656.6M) |
Diageo PLC Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Diageo PLC or Beverages sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Diageo PLC's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Diageo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.12 | |
β | Beta against Dow Jones | 0.28 | |
σ | Overall volatility | 1.87 | |
Ir | Information ratio | -0.07 |
Diageo PLC Volatility Alert
Diageo PLC ADR exhibits very low volatility with skewness of -0.07 and kurtosis of 1.54. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Diageo PLC's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Diageo PLC's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Diageo PLC Fundamentals Vs Peers
Comparing Diageo PLC's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Diageo PLC's direct or indirect competition across all of the common fundamentals between Diageo PLC and the related equities. This way, we can detect undervalued stocks with similar characteristics as Diageo PLC or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Diageo PLC's fundamental indicators could also be used in its relative valuation, which is a method of valuing Diageo PLC by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Diageo PLC to competition |
| Fundamentals | Diageo PLC | Peer Average |
| Return On Equity | 0.32 | -0.31 |
| Return On Asset | 0.0772 | -0.14 |
| Profit Margin | 0.18 % | (1.27) % |
| Operating Margin | 0.29 % | (5.51) % |
| Current Valuation | 81.28 B | 16.62 B |
| Shares Outstanding | 555.54 M | 571.82 M |
| Shares Owned By Insiders | 0.23 % | 10.09 % |
| Shares Owned By Institutions | 10.50 % | 39.21 % |
| Number Of Shares Shorted | 1.16 M | 4.71 M |
| Price To Earning | 69.32 X | 28.72 X |
| Price To Book | 5.96 X | 9.51 X |
| Price To Sales | 3.05 X | 11.42 X |
| Revenue | 16.1 B | 9.43 B |
| Gross Profit | 12.24 B | 27.38 B |
| EBITDA | 5.41 B | 3.9 B |
| Net Income | 3.07 B | 570.98 M |
| Cash And Equivalents | 1.44 B | 2.7 B |
| Cash Per Share | 4.25 X | 5.01 X |
| Total Debt | 18.62 B | 5.32 B |
| Debt To Equity | 1.76 % | 48.70 % |
| Current Ratio | 1.53 X | 2.16 X |
| Book Value Per Share | 4.63 X | 1.93 K |
| Cash Flow From Operations | 3.26 B | 971.22 M |
| Short Ratio | 1.09 X | 4.00 X |
| Earnings Per Share | 6.45 X | 3.12 X |
| Price To Earnings To Growth | 1.99 X | 4.89 X |
| Target Price | 126.71 | |
| Number Of Employees | 30.09 K | 18.84 K |
| Beta | 0.35 | -0.15 |
| Market Capitalization | 61.66 B | 19.03 B |
| Total Asset | 45.47 B | 29.47 B |
| Retained Earnings | 7.74 B | 9.33 B |
| Working Capital | 5.26 B | 1.48 B |
Diageo PLC Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Diageo . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 9403.11 | |||
| Daily Balance Of Power | (0.23) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 110.53 | |||
| Day Typical Price | 110.32 | |||
| Price Action Indicator | (0.81) | |||
| Period Momentum Indicator | (0.37) | |||
| Relative Strength Index | 30.67 |
About Diageo PLC Buy or Sell Advice
When is the right time to buy or sell Diageo PLC ADR? Buying financial instruments such as Diageo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Diageo PLC Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Is Distillers & Vintners space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diageo PLC. If investors know Diageo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diageo PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Dividend Share 1.035 | Earnings Share 6.45 | Revenue Per Share | Quarterly Revenue Growth (0.01) |
The market value of Diageo PLC ADR is measured differently than its book value, which is the value of Diageo that is recorded on the company's balance sheet. Investors also form their own opinion of Diageo PLC's value that differs from its market value or its book value, called intrinsic value, which is Diageo PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diageo PLC's market value can be influenced by many factors that don't directly affect Diageo PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diageo PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diageo PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diageo PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.