Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio. The firm has also shed noncore brands over the years, including the majority of its wine assets in 2015.

Financial Strength

4/10

Name	Current	Vs Industry
Cash-To-Debt	0.06
Equity-to-Asset	0.22
Debt-to-Equity	2.2
Debt-to-EBITDA	3.11
Interest Coverage	5.29
Piotroski F-Score	6/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	2.56	Distress Grey Safe
Beneish M-Score	-2.27	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

8/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	9.9
	3-Year EBITDA Growth Rate	8.3
	3-Year EPS without NRI Growth Rate	6.8
	3-Year FCF Growth Rate	-10.6
	3-Year Book Growth Rate	6.8
	Future 3-5Y EPS without NRI Growth Rate	4.15
	Future 3-5Y Total Revenue Growth Rate	4.39

Momentum Rank

1/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	39.62
	9-Day RSI	41.03
	14-Day RSI	40.42
	6-1 Month Momentum %	-2.84
	12-1 Month Momentum %	-8.16

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.53
	Quick Ratio	0.55
	Cash Ratio	0.14
	Days Inventory	441.06
	Days Sales Outstanding	58.85
	Days Payable	207.12

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	3.37
	Dividend Payout Ratio	0.58
	3-Year Dividend Growth Rate	5.9
	Forward Dividend Yield %	3.37
	5-Year Yield-on-Cost %	3.96
	3-Year Average Share Buyback Ratio	1.7
	Shareholder Yield %	4.87

Profitability Rank

9/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	60.18
	Operating Margin %	29.61
	Net Margin %	19.1
	FCF Margin %	12.81
	ROE %	39.07
	ROA %	8.46
	ROIC %	12.04
	ROC (Joel Greenblatt) %	45.96
	ROCE %	18.46
	Years of Profitability over Past 10-Year	10

GF Value Rank

8/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	17.27
	Forward PE Ratio	17.13
	PE Ratio without NRI	16.65
	Shiller PE Ratio	17.42
	Price-to-Owner-Earnings	17.29
	PEG Ratio	2.38
	PS Ratio	3.3
	PB Ratio	6.62
	Price-to-Free-Cash-Flow	25.77
	Price-to-Operating-Cash-Flow	16.29
	EV-to-EBIT	13.19
	EV-to-Forward-EBIT	13.2
	EV-to-EBITDA	12.28
	EV-to-Forward-EBITDA	10.54
	EV-to-Revenue	4.29
	EV-to-Forward-Revenue	3.77
	EV-to-FCF	33.52
	Price-to-Projected-FCF	1.53
	Price-to-DCF (Earnings Based)	1.44
	Price-to-DCF (FCF Based)	2.23
	Price-to-Median-PS-Value	0.62
	Price-to-Peter-Lynch-Fair-Value	2.37
	Earnings Yield (Greenblatt) %	7.58
	FCF Yield %	3.91
	Forward Rate of Return (Yacktman) %	11.29

GF Value: £36.21

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