The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.

Financial Strength

5/10

Name	Current	Vs Industry
Cash-To-Debt	0.1
Equity-to-Asset	0.21
Debt-to-Equity	2.19
Debt-to-EBITDA	2.68
Interest Coverage	4.82
Piotroski F-Score	6/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	2.78	Distress Grey Safe
Beneish M-Score	-2.46	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

8/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	15.3
	3-Year EBITDA Growth Rate	16
	3-Year EPS without NRI Growth Rate	14.9
	3-Year FCF Growth Rate	6.2
	3-Year Book Growth Rate	6.9
	Future 3-5Y EPS without NRI Growth Rate	1.93
	Future 3-5Y Total Revenue Growth Rate	3

Momentum Rank

2/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	35.91
	9-Day RSI	37.43
	14-Day RSI	38.36
	6-1 Month Momentum %	-3.43
	12-1 Month Momentum %	-21.23

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.58
	Quick Ratio	0.65
	Cash Ratio	0.2
	Days Inventory	407.08
	Days Sales Outstanding	68.03
	Days Payable	257.2

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	2.89
	Dividend Payout Ratio	0.5
	3-Year Dividend Growth Rate	1.6
	Forward Dividend Yield %	2.89
	5-Year Yield-on-Cost %	3.42
	3-Year Average Share Buyback Ratio	1.3
	Shareholder Yield %	4.67

Profitability Rank

9/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	59.56
	Operating Margin %	25.33
	Net Margin %	19.65
	FCF Margin %	13.68
	ROE %	42.27
	ROA %	9
	ROIC %	11.41
	ROC (Joel Greenblatt) %	47.84
	ROCE %	18.23
	Years of Profitability over Past 10-Year	10

GF Value Rank

8/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	18.54
	Forward PE Ratio	14.92
	PE Ratio without NRI	17.56
	Shiller PE Ratio	21.43
	Price-to-Owner-Earnings	14.92
	PEG Ratio	2.28
	PS Ratio	3.67
	PB Ratio	7.99
	Price-to-Free-Cash-Flow	26.9
	Price-to-Operating-Cash-Flow	17.62
	EV-to-EBIT	14.59
	EV-to-Forward-EBIT	13.86
	EV-to-EBITDA	11.99
	EV-to-Forward-EBITDA	11.43
	EV-to-Revenue	4.47
	EV-to-Forward-Revenue	4.26
	EV-to-FCF	33.18
	Price-to-Projected-FCF	1.84
	Price-to-DCF (Earnings Based)	1.48
	Price-to-DCF (FCF Based)	2.07
	Price-to-Median-PS-Value	0.67
	Price-to-Peter-Lynch-Fair-Value	2.22
	Earnings Yield (Greenblatt) %	6.85
	FCF Yield %	3.83
	Forward Rate of Return (Yacktman) %	11.28

GF Value: $233.15

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