Added to YB: 2025-08-25
Pitch date: 2025-08-21
DEO [neutral]
Diageo plc
-19.03%
current return
Author Info
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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 20.55
Price Target
N/A
Dividend
4.85%
EV/EBITDA
10.86
P/E
20.20
EV/Sales
3.54
Sector
Beverages
Category
turnaround
Diageo – Does Johnnie keep on stumblin’?
DEO (overview): Stock down 50% amid spirits sector collapse. 1.7% organic growth (0.8% volume, 0.7% price) but high 27x EV/FCF ratio with flat sales, declining margins, and 3.4x debt/EBITDA. 3.7% dividend appears safe but business faces structural decline as consumers drink less. Non-alcoholic growth (40%) could mean lower margins due to competition.
Read full article (8 min)