DEO

Consumer Defensive

Diageo plc · Beverages - Wineries & Distilleries · $48B

UQS Score — Balanced Preset
43.4
Below Average

Diageo plc scores 43.4/100 using the Balanced preset.

UQS vs Consumer Defensive Sector
DEO
43.4
Sector avg
38.4
Quality
Good
Moat
Neutral
Growth
Weak
Risk
Weak
Valuation
Good

What is Diageo plc?

Diageo plc is one of the world's largest producers and marketers of alcoholic beverages, operating across more than 180 countries with a portfolio of globally recognized spirits and beer brands.

Diageo generates revenue by producing, marketing, and selling a broad range of alcoholic beverages — from scotch and whisky to vodka, tequila, rum, gin, and beer. The company earns through both retail and on-trade channels globally, leveraging premium brand positioning to support pricing power across its portfolio.

Diageo was incorporated in 1886 and is headquartered in London, United Kingdom.

  • Scotch and whisky — Johnnie Walker, Buchanan's, Crown Royal
  • Vodka — Smirnoff, Cîroc, Ketel One
  • Tequila — Don Julio, Casamigos, DeLeon
  • Beer and other — Guinness, Captain Morgan, Baileys, Tanqueray

Is DEO a Good Stock to Buy?

UQS Score rates DEO as Below Average overall.

Diageo's Quality pillar stands out as a relative bright spot, reflecting the durability of its brand-driven business model. Valuation also registers as Good, suggesting the stock is not obviously expensive relative to its current fundamentals.

Growth and Risk both register as Weak, pointing to meaningful headwinds in near-term expansion and elevated uncertainty in the business environment.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does DEO pay dividends?

Yes — Diageo plc pays a dividend.

Diageo pays a regular dividend, consistent with its position as a large, established consumer defensive company. The dividend reflects the company's mature cash generation profile and its commitment to returning capital to shareholders over time.

When does DEO report earnings?

Diageo reports earnings on a regular cadence, typical for internationally listed consumer companies.

Growth has been under pressure in recent periods, consistent with the Weak Growth pillar in the UQS framework. The Risk pillar also signals that the operating environment carries above-average uncertainty for investors to consider.

For the most recent results, visit Diageo's official investor relations page.

DEO Price History

-51.6% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Diageo plc?

$
Today it would be worth
$5,241
That's a -47.6% total return, or -12.1% annualized.

Based on Diageo plc's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

Frequently Asked Questions

What does Diageo do?

Diageo produces, markets, and sells alcoholic beverages worldwide. Its portfolio spans scotch, whisky, vodka, tequila, rum, gin, beer, and ready-to-drink products under brands including Johnnie Walker, Guinness, Smirnoff, and Don Julio.

Does DEO pay dividends?

Yes, Diageo pays a regular dividend. As a mature consumer defensive company, it has a long history of returning capital to shareholders. Check Diageo's investor relations page for the current dividend schedule and yield.

When does DEO report earnings?

Diageo reports on a regular cadence as an internationally listed company. For confirmed reporting dates, refer to Diageo's investor relations page rather than relying on third-party estimates.

Is DEO a good stock to buy?

UQS Score rates DEO as Below Average overall. While Quality and Valuation pillars are relatively constructive, Weak Growth and Risk pillars indicate meaningful challenges. The complete pillar breakdown is available to Pro members.

Is DEO overvalued?

The UQS Valuation pillar for DEO is rated Good, suggesting the stock does not appear significantly overpriced relative to its fundamentals. Full valuation metrics are available in the Pro analysis.

What is DEO's market cap bracket?

Diageo is classified as a large-cap stock, reflecting its scale as one of the world's leading spirits and beer companies with a global operating footprint.

Is DEO a long-term quality investment?

As a long-term quality indicator, DEO's UQS profile is mixed. The Quality pillar is Good, supported by strong brand assets, but Weak Growth and Risk pillars suggest investors should weigh the durability of returns carefully over a longer horizon.

What sector does DEO belong to?

Diageo operates in the Consumer Defensive sector. This classification reflects the relatively stable demand for alcoholic beverages across economic cycles, though company-specific risks still apply.

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Pro Analysis

DEO — Score History

3540455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 30 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202643.763.549.017.915.864.3-0.1
May 21, 202643.863.549.017.915.864.7+0.1
May 20, 202643.763.549.017.915.864.4-0.1
May 19, 202643.863.549.017.915.864.6-0.2
May 16, 202644.063.549.017.915.866.1-0.1
May 15, 202644.163.549.017.915.866.6-0.1
May 14, 202644.263.549.018.015.866.9+0.1
May 13, 202644.163.549.018.015.866.80.0
May 12, 202644.163.549.018.115.866.5+0.2
May 11, 202643.963.549.018.115.865.3+1.4

DEO — Pillar Breakdown

Quality

63.5/100 (25%)

Diageo plc shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationModerate

Free cash flow relative to market value.

Growth

17.9/100 (20%)

Diageo plc faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

15.8/100 (15%)

Diageo plc presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityWeak

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

62.0/100 (15%)

Diageo plc trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioModerate

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

49/100 (25%)

Diageo plc possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DEO.

Score Composition

Quality
63.5×25%15.9
Growth
17.9×20%3.6
Risk
15.8×15%2.4
Valuation
62.0×15%9.3
Moat
49.0×25%12.3
Total
43.4Below Average

Financial Data

More Stock Analysis

How is the DEO UQS Score Calculated?

The UQS (Unified Quality Score) for Diageo plc is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Diageo plc's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Diageo plc is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.