Is Diageo PLC Stock a Good Investment?
Diageo PLC Investment Advice | DEO |
- Examine Diageo PLC's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Diageo PLC's leadership team and their track record. Good management can help Diageo PLC navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Distillers & Vintners space and any emerging trends that could impact Diageo PLC's business and its evolving consumer preferences.
- Compare Diageo PLC's performance and market position to its competitors. Analyze how Diageo PLC is positioned in terms of product offerings, innovation, and market share.
- Check if Diageo PLC pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Diageo PLC's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Diageo PLC ADR stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Diageo PLC ADR is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Diageo PLC Stock
Researching Diageo PLC's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has Price/Earnings To Growth (PEG) ratio of 1.98. Diageo PLC ADR recorded earning per share (EPS) of 6.91. The entity last dividend was issued on the 30th of August 2024. The firm had 2:1 split on the 28th of October 1991.
To determine if Diageo PLC is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Diageo PLC's research are outlined below:
| Diageo PLC ADR generated a negative expected return over the last 90 days | |
| Diageo PLC ADR has a strong financial position based on the latest SEC filings | |
| On 17th of October 2024 Diageo PLC paid $ 2.5192 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Russian rouble falls to 31-month low as fresh sanctions hammer currency |
Diageo PLC uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Diageo PLC ADR. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Diageo PLC's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of July 2023 Upcoming Quarterly Report | View | |
| 30th of June 2023 Next Fiscal Quarter End | View | |
| 27th of July 2023 Next Fiscal Year End | View | |
| 31st of March 2023 Last Quarter Report | View | |
| 30th of June 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Diageo PLC's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Diageo PLC's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-07-27 | 2017-06-30 | 0.55 | 0.46 | -0.09 | 16 | ||
2023-08-01 | 2023-06-30 | 3.33 | 1.56 | -1.77 | 53 | ||
2020-08-04 | 2020-06-30 | 1.4 | 109.0 | 107.6 | 7685 |
Know Diageo PLC's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Diageo PLC is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Diageo PLC ADR backward and forwards among themselves. Diageo PLC's institutional investor refers to the entity that pools money to purchase Diageo PLC's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Confluence Investment Management Llc | 2024-09-30 | 1.2 M | Clearbridge Advisors, Llc | 2024-09-30 | 1.1 M | Wellington Management Company Llp | 2024-06-30 | 927.1 K | Goldman Sachs Group Inc | 2024-06-30 | 910.1 K | Jpmorgan Chase & Co | 2024-06-30 | 887 K | Raymond James & Associates | 2024-09-30 | 853.6 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 853.6 K | Kovitz Investment Group Partners, Llc | 2024-06-30 | 809 K | Bank Of Montreal | 2024-06-30 | 799.7 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 6 M | Fmr Inc | 2024-09-30 | 5.2 M |
Diageo PLC's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 67.23 B.Market Cap |
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Diageo PLC's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.16 | 0.05 | |
| Return On Capital Employed | 0.23 | 0.15 | |
| Return On Assets | 0.11 | 0.04 | |
| Return On Equity | 0.49 | 0.11 |
Determining Diageo PLC's profitability involves analyzing its financial statements and using various financial metrics to determine if Diageo PLC is a good buy. For example, gross profit margin measures Diageo PLC's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Diageo PLC's profitability and make more informed investment decisions.
Diageo PLC's Earnings Breakdown by Geography
Evaluate Diageo PLC's management efficiency
Diageo PLC ADR has Return on Asset of 0.083 % which means that on every $100 spent on assets, it made $0.083 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3504 %, implying that it generated $0.3504 on every 100 dollars invested. Diageo PLC's management efficiency ratios could be used to measure how well Diageo PLC manages its routine affairs as well as how well it operates its assets and liabilities. As of the 28th of November 2024, Return On Tangible Assets is likely to drop to 0.05. In addition to that, Return On Capital Employed is likely to drop to 0.15. At this time, Diageo PLC's Other Current Assets are very stable compared to the past year. As of the 28th of November 2024, Other Assets is likely to grow to about 1 B, while Total Assets are likely to drop about 25.9 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 4.26 | 1.77 | |
| Tangible Book Value Per Share | (0.97) | 0.55 | |
| Enterprise Value Over EBITDA | 13.51 | 8.12 | |
| Price Book Value Ratio | 7.00 | 3.60 | |
| Enterprise Value Multiple | 13.51 | 8.12 | |
| Price Fair Value | 7.00 | 3.60 | |
| Enterprise Value | 65.7 B | 36.3 B |
Diageo PLC ADR benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0349 | Forward Dividend Yield 0.0349 | Forward Dividend Rate 4.14 | Beta 0.391 |
Basic technical analysis of Diageo Stock
As of the 28th of November, Diageo PLC shows the Mean Deviation of 1.03, standard deviation of 1.42, and Coefficient Of Variation of (872.33). Diageo PLC ADR technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Diageo PLC's Outstanding Corporate Bonds
Diageo PLC issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Diageo PLC ADR uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Diageo bonds can be classified according to their maturity, which is the date when Diageo PLC ADR has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| DGELN 53 24 OCT 27 Corp BondUS25243YBG35 | View | |
| DGELN 55 24 JAN 33 Corp BondUS25243YBH18 | View | |
| DIAGEO CAPITAL PLC Corp BondUS25243YBB48 | View | |
| DIAGEO CAPITAL PLC Corp BondUS25243YBC21 | View | |
| DIAGEO CAPITAL PLC Corp BondUS25243YBD04 | View | |
| DIAGEO CAPITAL PLC Corp BondUS25243YBE86 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| DGELN 52 24 OCT 25 Corp BondUS25243YBF51 | View |
Understand Diageo PLC's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Diageo PLC's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.35) | |||
| Mean Deviation | 1.03 | |||
| Coefficient Of Variation | (872.33) | |||
| Standard Deviation | 1.42 | |||
| Variance | 2.03 | |||
| Information Ratio | (0.21) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.40) | |||
| Treynor Ratio | (0.36) | |||
| Maximum Drawdown | 8.81 | |||
| Value At Risk | (2.30) | |||
| Potential Upside | 1.92 | |||
| Skewness | 0.9203 | |||
| Kurtosis | 3.03 |
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.35) | |||
| Mean Deviation | 1.03 | |||
| Coefficient Of Variation | (872.33) | |||
| Standard Deviation | 1.42 | |||
| Variance | 2.03 | |||
| Information Ratio | (0.21) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.40) | |||
| Treynor Ratio | (0.36) | |||
| Maximum Drawdown | 8.81 | |||
| Value At Risk | (2.30) | |||
| Potential Upside | 1.92 | |||
| Skewness | 0.9203 | |||
| Kurtosis | 3.03 |
Consider Diageo PLC's intraday indicators
Diageo PLC intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Diageo PLC stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 11818.63 | |||
| Daily Balance Of Power | (0.05) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 118.98 | |||
| Day Typical Price | 118.87 | |||
| Price Action Indicator | (0.35) | |||
| Period Momentum Indicator | (0.06) |
Diageo PLC Corporate Filings
6K | 1st of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 28th of June 2024 Other Reports | ViewVerify | |
13A | 9th of February 2024 An amended filing to the original Schedule 13G | ViewVerify |
Diageo Stock media impact
Far too much social signal, news, headlines, and media speculation about Diageo PLC that are available to investors today. That information is available publicly through Diageo media outlets and privately through word of mouth or via Diageo internal channels. However, regardless of the origin, that massive amount of Diageo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Diageo PLC news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Diageo PLC relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Diageo PLC's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Diageo PLC alpha.
Diageo PLC Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Diageo PLC can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Diageo PLC ADR Historical Investor Sentiment
Investor biases related to Diageo PLC's public news can be used to forecast risks associated with an investment in Diageo. The trend in average sentiment can be used to explain how an investor holding Diageo can time the market purely based on public headlines and social activities around Diageo PLC ADR. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Diageo PLC's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Diageo PLC and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Diageo PLC news discussions. The higher the estimate score, the more favorable the investor's outlook on Diageo PLC.
Diageo PLC Corporate Directors
| Melissa Bethell | Non-Executive Independent Director | Profile | |
| Lavanya Chandrashekar | Chief Financial Officer, Executive Director | Profile | |
| Manik CPA | CFO Director | Profile | |
| John Manzoni | Non-Executive Independent Director | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in 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. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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 (0.03) | Dividend Share 1.035 | Earnings Share 6.91 | Revenue Per Share 2.0142 | 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.
In summary, please note that there is a difference between Diageo PLC's value and its price, as these two are different measures arrived at by various 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.