| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 56 | 27.8x | 17.8x | Around median | |
Growth | 21 | -3.2% | 7.1% | Bottom tier | |
Quality | 83 | — | 4.5% | Top tier | |
Safety | 36 | 3.3x | 2.6x | Bottom tier | |
Capital Return | 86 | — | 2.12% | Top tier | |
Momentum | 52 | -8.7% | 2.9% | Around median | |
Sentiment | 63 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Diageo plc is a global alcoholic beverages company whose revenue depends on a portfolio of brands spanning Scotch whisky, tequila, beer, and other categories, across regions including North America, Europe, Asia Pacific, Latin America and the Caribbean, and Africa. Scotch whisky represents one-quarter of global net sales, and the company's brands sell more than one in every three bottles of Scotch whisky worldwide, while its prominent drivers include Johnnie Walker, Don Julio, Crown Royal, and Guinness. The company benefits from pricing and product mix, distribution expansion, innovation, and smaller formats, alongside investment in marketing, production capacity, and supply chains.
In the first half of fiscal year 2025, organic net sales returned to growth at 1%, with growth in four of five regions and North America and Latin America and the Caribbean returning to growth. Gross profit increased by $83 million and gross margin improved by 19 basis points, but organic operating profit declined 1.2% due to employee costs, incentives, and strategic investments, while earnings per share before exceptional items fell by about 10% to $0.977. Free cash flow increased by $125 million to approximately $1.7 billion, while capital expenditure exceeded $600 million.
The growth mix was clearly uneven in the first half of fiscal year 2025; organic tequila sales rose 21%, and Guinness recorded organic growth of 17% for the eighth consecutive half of double-digit growth, while organic Scotch whisky sales declined 5%. Diageo maintained or increased its share across 65% of its net sales in measured markets, and the proportion reached approximately 90% of its U.S. net sales that maintained or increased share in the total beverage alcohol market. For the annual comparison, fiscal year 2023 revenue was approximately $23.5 billion, gross profit was $10.2 billion, and net income was $3.8 billion, compared with revenue of $22.4 billion and net income of $3.3 billion in fiscal year 2022.
The average analyst price target is $99, with the highest and lowest targets both at $99 and the consensus rated "Buy," but the absence of variation among published targets makes the estimate range of limited use in measuring differences of opinion. The target is approximately 12.6% below the 52-week range high of $113.28 and approximately 36.6% above its low of $72.45; the wide range reflects a reassessment associated with weak profits, higher leverage, and uncertainty about the impact of tariffs, balanced against the opportunity for the savings and liquidity plan to succeed.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
The group's organic net sales increased 1% in the first half of fiscal year 2025, with growth in four of five regions. Tequila led performance with organic growth of 21%, driven particularly by Don Julio and Don Julio Reposado, while Guinness recorded growth of 17% for the eighth consecutive half of double-digit growth. In contrast, organic Scotch whisky sales declined 5%, so the improvement depended more on the strength of specific brands and categories than on a broad-based portfolio recovery.
The company explained during its Q2 fiscal year 2025 call that approximately 45% of net sales of its products in the United States must be produced in Canada or Mexico because of rules of origin. The exposure is concentrated in tequila made in Mexico and Canadian whisky, with most affected net sales located in Mexico. Mitigation tools include pricing, promotion and inventory management, supply chain optimization, and investment reallocation, but the company suspended its previous view regarding fiscal year 2026 momentum until visibility into the impact improves.
Automated analysis for informational purposes only — not investment advice.
Diageo announced on August 6, 2026, a plan targeting $1 billion in cost savings beginning in the current fiscal year through improvements to operations and supply chains. The plan also included a cash target of $8 billion, and the stock responded to the announcement by rising 6.3%. On August 18, 2026, news reports stated that the company had reduced its workforce by more than 6% as part of an organizational restructuring intended to simplify operations.
Average net debt reached $21.7 billion in the first half of fiscal year 2025, an increase of $1.1 billion from the comparable period. The net debt-to-EBITDA ratio rose to 3.1 times, exceeding the company's targeted range of 2.5 to 3 times. Management expects to end fiscal year 2025 above the targeted range and above the level at the end of the first half, and therefore made deleveraging, tighter capital discipline, and investment reviews priorities.
Guinness achieved organic net sales growth of 17% in the first half of fiscal year 2025, and one in every ten pints of beer sold in Great Britain was Guinness. Guinness 0.0 represented approximately 12% of the brand's net sales in Great Britain, prompting Diageo to double its original investment in production capacity. Tequila grew 21% organically, led by Don Julio, and organic growth of Don Julio Reposado more than doubled during the period.
Gross profit increased by $83 million and gross margin improved by 19 basis points, but higher employee costs, incentives, and strategic investments led organic operating profit to decline 1.2%. Earnings per share before exceptional items fell by about 10% to $0.977, also affected by the performance of Moet Hennessy and exchange rates. In contrast, free cash flow improved by $125 million to approximately $1.7 billion, although the company explained that the reduction in investment in maturing inventory would not recur in the second half of fiscal year 2025.
