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A look at a High Market Cap Stock: Diageo plc, DEO

Diageo plc, DEO is in the exchange NYSE and its industry is Beverages – Wineries & Distillers in the sector of Consumer Goods. Based in United Kingdom, Diageo plc, DEO  has a market cap of 73304.11. Since its IPO date on the 5/13/1996, Diageo plc, DEO performance year to date is 9.95%. Today Diageo plc, DEO has gained 0.34%, with a current price of 116.45.

Ownership of the company is 0.70% for insider ownership while institutional ownership is 12.30%. The management of the company have seen the company have a payout ratio of 66.20%. Return of assets are at 8.20%, with return on investment at 13.10%.

In terms of debt levels and profit levels, Diageo plc, DEO is seeing a long-term debt/equity of 1. While Total debt/equity is 1.28. With a profit margin of 21.40%, this is combined with a gross margin of 59.50%, and operating margin of 28.30%. Diageo plc ability to meet debt levels, with a current ratio of 1.4, while the quick ratio is 0.7.

For the last year Diageo plc, DEO has seen a EPS growth of -5.80%. A performance for the year of 15.01%. The 52-week high is -0.83%, and the 52-week low is 19.78%. The average volume for Diageo plc, DEO is 479600.

With a target price of 123.15, can Diageo plc, DEO reach this target? Looking at the value indicators of Diageo plc, DEO. Diageo plc has a P/E of 25.18 and a forward P/E of 19.06. Perhaps the more useful indicator than P/E, is PEG which has a value of 3.7. Diageo plc also has a P/S and a P/B of 5.39 and 6.6 respectively. For P/cash, Diageo plc has a value of 35.67, while it is 94.34 for P/free cash flow.

At the current price of 116.45, Diageo plc has a dividend yield of 3.31%. We see a return on equity of 28.30%.

Looking more long-term Diageo plc, is projected to get an EPS growth for the next five years of 6.80%. In the short-term an EPS growth of 11.09% in the next year is forecasted. This is after a EPS growth of -5.80% for this year and for the last five years a 3.20% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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