Added to YB: 2025-08-12
Pitch date: 2025-08-05
DEO [bullish]
Diageo plc
-10.53%
current return
Author Info
No bio for this author
Company Info
Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa.
Market Cap
GBP 47.5B
Pitch Price
GBP 18.60
Price Target
N/A
Dividend
4.85%
EV/EBITDA
10.86
P/E
20.20
EV/Sales
3.54
Sector
Beverages
Category
turnaround
Diageo's Turnaround: A Problem Well-Defined is a Problem Half-Solved
DEO: New leadership addressing key issues - low FCF conversion, bloated capex, excess inventory, flawed incentives. 1.7% organic sales growth. Capex declining to mid-single digits vs 7.7%, freeing $200-300M FCF. $625M cost-cutting program launched. Balanced growth strategy beyond premiumization. P/E ~15x, 4% yield. Turnaround promising but execution risks remain.
Read full article (6 min)