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Diageo (DEO) Stock Analysis

This is a peer-relative look at Diageo (DEO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Food, Beverage & Tobacco peers, so every number reads in context rather than in isolation.

Company Profile

Diageo (DEO) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Diageo (DEO)
Profile ItemDEO
NameDiageo plc Sponsored ADR
Country/RegionUnited Kingdom
GICS SectorConsumer Staples
GICS Industry GroupFood, Beverage & Tobacco
GICS IndustryBeverages
GICS Sub-IndustryDistillers & Vintners
Market Capitalization55.56 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 14, 1991
Security TypeADR

Price Performance

Cumulative Growth

DEO
GSPC
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Diageo (DEO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Diageo (DEO) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Diageo (DEO) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Diageo (DEO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: DEOIndustry group median
Total Return (1Y)13.51%9.07%
Total Return (3Y, Annualized)-11.57%2.06%
Total Return (5Y, Annualized)-10.73%1.14%

Risk Profile

Drawdown History

DEO
GSPC
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Diageo (DEO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Diageo (DEO) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Diageo (DEO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: DEOIndustry group median
Volatility (1Y, Annualized)33.21%32.65%
Beta (5Y)0.520.43
Max Drawdown (5Y)-63.41%-51.71%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. DEO is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Diageo (DEO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: DEOIndustry group median
Sharpe Ratio (1Y)0.280.14
Sortino Ratio (1Y)0.380.20

Profitability

ROE (TTM)

Diageo (DEO) posts ROE of 14.99%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

DEO

Food, Beverage & Tobacco industry group

14.99%

Group distribution
Max
32.02%
Q3
16.61%
DEO
14.99%
Median
10.05%
Q1
4.10%
Min
-10.50%
Largest peers
PEP
52.19%
KO
40.59%
DEO
14.99%
BTI
13.42%
PM
--
BUD
--
MO
--
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Where Diageo (DEO) stands on ROE within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Diageo (DEO) keeps 8.84% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

DEO

Food, Beverage & Tobacco industry group

8.84%

Group distribution
Max
24.83%
Q3
11.22%
DEO
8.84%
Median
5.94%
Q1
2.05%
Min
-11.49%
Largest peers
MO
39.33%
KO
28.65%
BTI
24.99%
PM
24.83%
BUD
15.42%
PEP
11.09%
DEO
8.84%
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Where Diageo (DEO) stands on net margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Diageo (DEO) turns 27.04% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

DEO

Food, Beverage & Tobacco industry group

27.04%

Group distribution
Max
34.91%
DEO
27.04%
Q3
17.57%
Median
11.06%
Q1
4.15%
Min
-15.06%
Largest peers
MO
61.48%
PM
41.94%
BTI
34.91%
KO
33.36%
BUD
27.48%
DEO
27.04%
PEP
16.88%
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Where Diageo (DEO) stands on operating margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Diageo (DEO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: DEOIndustry group median
ROE (TTM)14.99%10.05%
ROA (TTM)7.48%5.25%
Net Margin (TTM)8.84%5.94%
Operating Margin (TTM)27.04%11.06%
Gross Margin (TTM)59.82%34.26%

Growth

Revenue Growth

Diageo (DEO) grew revenue -2.97%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

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Diageo (DEO): Revenue Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

EPS Growth

Diageo (DEO) grew earnings per share -26.30%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Diageo (DEO): EPS Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

Growth Metrics

Diageo (DEO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: DEOIndustry group median
Revenue Growth (YoY)-2.97%2.38%
Revenue Growth (3Y CAGR)-1.50%2.51%
EPS Growth (YoY)-26.30%-2.47%
EPS Growth (3Y CAGR)-27.84%4.29%

Financial Strength

Current Ratio (MRQ)

Diageo (DEO) has current ratio of 1.60, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

DEO

Food, Beverage & Tobacco industry group

1.60

Group distribution
Max
4.01
Q3
2.35
DEO
1.60
Median
1.53
Q1
1.02
Min
0.33
Largest peers
DEO
1.60
KO
1.38
PM
1.02
PEP
0.94
BTI
0.84
MO
0.58
BUD
--
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Where Diageo (DEO) stands on current ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Diageo (DEO) has debt-to-equity ratio of 1.71, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

DEO

Food, Beverage & Tobacco industry group

1.71

Group distribution
Max
2.19
DEO
1.71
Q3
1.11
Median
0.68
Q1
0.33
Min
0.00
Largest peers
PEP
2.31
DEO
1.71
KO
1.07
BTI
0.72
BUD
0.72
PM
--
MO
--
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Where Diageo (DEO) stands on debt-to-equity ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Diageo (DEO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: DEOIndustry group median
Current Ratio (MRQ)1.601.53
Debt / Equity (MRQ)1.710.68
Net Debt / EBITDA3.182.57

Dividends

Dividend Yield (TTM)

Diageo (DEO) has dividend yield of 0.50%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

DEO

Food, Beverage & Tobacco industry group

0.50%

Group distribution
Max
9.38%
Q3
3.77%
Median
1.76%
DEO
0.50%
Q1
0.00%
Min
0.00%
Largest peers
MO
5.53%
PEP
4.07%
BTI
3.88%
PM
2.98%
KO
2.19%
BUD
1.91%
DEO
0.50%
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Where Diageo (DEO) stands on dividend yield within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Diageo (DEO) has payout ratio of 106.52%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.

DEO

Food, Beverage & Tobacco industry group

106.52%

Group distribution
Max
199.19%
DEO
106.52%
Q3
81.03%
Median
41.52%
Q1
0.00%
Min
0.00%
Largest peers
DEO
106.52%
MO
88.45%
PM
87.74%
BTI
83.97%
PEP
73.02%
KO
61.95%
BUD
27.35%
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Where Diageo (DEO) stands on payout ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Diageo (DEO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: DEOIndustry group median
Dividend Yield (TTM)0.50%1.76%
Dividend Payout Ratio (TTM)106.52%41.52%

Valuation

P/E Ratio (TTM)

Diageo (DEO) trades at P/E ratio of 31.97, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

DEO

Food, Beverage & Tobacco industry group

31.97

Group distribution
Max
52.52
DEO
31.97
Q3
30.78
Median
18.76
Q1
12.77
Min
4.72
Largest peers
DEO
31.97
PM
28.89
KO
28.22
PEP
17.78
BUD
17.07
MO
15.69
BTI
15.61
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Where Diageo (DEO) stands on P/E ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Diageo (DEO) trades at 2.83 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

DEO

Food, Beverage & Tobacco industry group

2.83

Group distribution
Max
4.64
DEO
2.83
Q3
2.27
Median
1.17
Q1
0.52
Min
0.00
Largest peers
KO
8.06
PM
7.15
MO
6.14
BTI
5.08
DEO
2.83
BUD
2.58
PEP
1.96
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Where Diageo (DEO) stands on P/S ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Diageo (DEO) trades at 91.95 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

DEO

Food, Beverage & Tobacco industry group

91.95

Group distribution
DEO
91.95
Max
6.35
Q3
3.07
Median
1.58
Q1
0.82
Min
0.00
Largest peers
DEO
91.95
KO
11.01
BUD
10.60
BTI
10.59
PEP
8.65
PM
-38.86
MO
-56.93
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Where Diageo (DEO) stands on P/B ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Diageo (DEO) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: DEOIndustry group median
P/E Ratio (TTM)31.9718.76
P/S Ratio (TTM)2.831.17
P/B Ratio (MRQ)91.951.58
Free Cash Flow Yield (TTM)4.62%4.66%