Diageo plc
LSE: DGE.L
Stock price
1753.5 GBX
(-51.72%) 5 years
Financial Performance
5Y price score: (79)
The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.
A score of 100 indicates that the stock did as well as the S&P 500 Index.
A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.
10Y return: 12.1%
%
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1350.0
52-week range
1903.9
Your model inputs
Your fair value & Margin of safety
To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.
Forecast:
Valuation
Free Cash Flow Yield
8.1 %
Dividend Yield TTM
2.1 %
Market cap
39,008
Price / Earnings TTM
22.5
Price / Book TTM
4.8
PEG TTM
(0.8)
Earnings growth and return
LTM
5YR
10YR
Total return (price & dividends)
5.7 %
(41.2) %
12.1 %
Free cash flow per share growth
64.8 %
10.2 %
75.5 %
Earnings per share growth
(116) %
(31.9) %
(13.5) %
Founded: 1,997
Employees: 30,092
Business Summary:
Q&A
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Latest Earnings Call Takeaways
2026 Q4 (Aug 6, 2026)
1) Strategy & Leadership
- Diageo is focused on becoming more competitive in the U.S. market, particularly addressing challenges in the spirits category.
- The company is implementing a new operating model, which is well-progressed and expected to yield cost savings that will support investment without reducing operating profit.
- The management emphasized their commitment to investing in brands for future growth despite current challenges.
2) Financial & Segment Results
- Organic net sales declined by 2% for fiscal 2026, while group operating profit increased by 2%.
- Excluding the impact of Chinese white spirits, organic net sales would have declined by approximately 0.5%, with organic profit growth around 4.5%.
- North America faced an 8.4% organic sales decline, primarily due to a 21% drop in tequila sales.
- Strong growth was observed in Europe (3% increase) and Latin America & Caribbean (LAC), with notable performance in Brazil and Colombia.
- Free cash flow increased to $3.2 billion, up $463 million from the previous year, driven by disciplined CapEx and lower tax payments.
3) Problems / Headwinds
- The company faced significant challenges in North America and Asia Pacific, particularly due to softness in U.S. spirits and the adverse impact of Chinese white spirits.
- The spirits category, especially tequila, has been underperforming, contributing to the overall decline in organic sales.
- Impairment charges totaled approximately $1.5 billion, primarily related to the Turkey business and the Don Papa brand, reflecting the impact of hyperinflation and category declines.
4) Operational or Product Plans
- Diageo's Accelerate program has delivered $514 million in savings, with a focus on efficiency in advertising and promotion (A&P) and overhead costs.
- The company plans to continue optimizing its supply chain and investing in digital infrastructure, with CapEx of approximately $1.2 billion for fiscal 2026.
- A significant restructuring plan of $1.2 billion is underway, with expected savings of around $1 billion, which will support future investments.
5) Guidance & Outlook / Investor Angle
- Specific guidance was not provided during the call but is expected to be detailed at the Capital Markets Day.
- The company is positioned to leverage cost savings from restructuring to enhance competitiveness and invest in innovation.
- The completion of the sale of EABL is anticipated to reduce net debt further, improving the balance sheet.
Bottom line: Diageo is navigating a challenging environment with mixed results across regions, but strategic cost-saving measures and a focus on brand investment position the company for potential recovery and growth. Investors should watch for updates from the Capital Markets Day for further insights into future guidance and operational strategies.
Diageo plc — Financial Overview, Stock Price, Market Cap
Diageo plc is a company. Founded in 1997. As of October 30, 2026, the company's market capitalization is $39008015070 with a current stock price of $1753.50.