Diageo DGE.L
Diageo is a British multinational alcoholic beverages company, owner of iconic brands such as Johnnie Walker, Smirnoff, and Guinness, operating across the entire value chain, from production and distillation to distribution and global marketing. Diageo shows acceptable financial health (score 5.68) with a 27% operating margin, but growth is negative (-1.7%) and the dividend is barely covered (payout 106.6%), limiting its appeal in the current environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Diageo is a British multinational alcoholic beverages company, owner of iconic brands such as Johnnie Walker, Smirnoff, and Guinness, operating across the entire value chain, from production and distillation to distribution and global marketing. Diageo shows acceptable financial health (score 5.68) with a 27% operating margin, but growth is negative (-1.7%) and the dividend is barely covered (payout 106.6%), limiting its appeal in the current environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.4 |
| Quality / Moat | 6.7 |
| Valuation | 5.9 |
| Growth | 3.4 |
| Dividend | 1.0 |
| Momentum | 4.1 |
| Risk & Context | 8.8 |
OVERALL SCORE: 5.6/10
Context and risks
Moderate regulatory risk in the UK from potential tightening of alcohol policies (taxes, advertising), which could impact the 27% operating margin.
News considered in the analysis
- Diageo brings in former Britvic, Tesco executive Joanne Wilson as CFO — Nombramiento de una CFO externa con experiencia en consumo y retail; refuerza la gestión financiera y la disciplina de costes, aunque el impacto en beneficios es moderado.
- Diageo Picks WPP’s Wilson to Succeed Finance Chief Jhangiani — Misma noticia que la anterior, con cobertura amplia; el mercado ya lo descuenta parcialmente, pero confirma continuidad en la estrategia financiera.
- Guinness owner Diageo hires WPP CFO with cost-cutting bonafides — El perfil de la nueva CFO sugiere foco en eficiencia y reducción de costes, relevante para un margen operativo del 27% que podría expandirse.
- CFOs On the Move: Week ending Sept. 25 — Listado genérico de movimientos de CFOs, sin información específica sobre Diageo.
- Sin Stock Investing: Finding Opportunities in Controversial Industries — Artículo de opinión sobre inversión en industrias controvertidas, sin datos concretos sobre Diageo.
Verdict: Hold; valuation is reasonable (forward P/E 12.39) but weak growth and a tight dividend do not justify aggressive entry.
Main risk: High leverage (Net Debt/EBITDA 3.18) and a 106.6% payout leave little room to absorb a sales decline or a rate hike.
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