WinstonWınston
Back
Diageo logo

Diageo

DEO
48
Beverages - Alcoholic · Consumer Defensive
Exchange
New York Stock Exchange
Winston Score
48
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Weak
Cash Flow
Exceptional
Stability
Mixed
Valuation
Good
Dividends
Mixed

Winston Score History

The full picture

Diageo is one of the world's largest producers of alcoholic beverages. It owns a massive portfolio of well-known spirits, beer, and wine brands, including Johnnie Walker Scotch whisky, Guinness stout, Smirnoff vodka, Captain Morgan rum, and Tanqueray gin. The company sells to bars, restaurants, retailers, and individual consumers across more than 180 countries.

Diageo makes money by producing and selling its branded drinks at a premium, keeping roughly 60 cents of gross profit on every dollar of revenue. It is headquartered in London and generates sales across North America, Europe, Africa, Latin America, and Asia Pacific, with no single region dominating entirely. Its main competitive advantage is its deep library of iconic, hard-to-replicate brand names built over decades. The biggest risk the company faces is slowing consumer demand for alcohol, particularly among younger generations who are drinking less than previous ones.

Politician Trades

6 trades / 12mo

2 Congressional buys and 4 sells on DEO in the last 12 months.

Unlock the full Smart Money Map — every trade plotted on the price chart with politicians, amounts and returns since each trade. Founder's Deal is $57/mo locked for life.

Unlock politician trades
Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
57.7%
Premium pricing power — 57.7% gross margin
Profit after running costs
Operating Margin
25.2%
Excellent — 25.2% operating margin
Return on the money invested
ROCE
17.0%
Strong — 17.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth
Sales YoY
-3.6%
Shrinking sales (-3.6% YoY)
Profit growth
EPS YoY
-26.4%
Earnings shrinking (-26.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash
Cash Conversion
254%
Turns 254% of profit into real cash
Spare cash per sale
FCF Margin
16.3%
Converts sales into free cash efficiently (16.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns
Debt / Equity
2.00
Heavy debt load (2.00)
Covers its interest
Interest Cover
5.27x
Adequate interest coverage (5.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit
P/E Ratio (TTM)
30.1x
no trend
Pricey — P/E 30.1

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+12.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (30.1 → 17.4)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend
Dividend Yield
3.81%
no trend
Moderate income — 3.81% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-4.8%
no trend
Dividend cut (-4.8% YoY) — warning sign

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free
🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.
Start free trial