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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 71820.13. Since its IPO date on the 5/13/1996, Diageo plc, DEO performance year to date is 8.11%. Today Diageo plc, DEO has gained 0.17%, with a current price of 114.69.

Ownership of the company is 0.70% for insider ownership while institutional ownership is 12.20%. 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 12.70%.

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 11.59%. The 52-week high is -1.25%, and the 52-week low is 17.97%. The average volume for Diageo plc, DEO is 314722.

With a target price of 119.73, can Diageo plc, DEO reach this target? Looking at the value indicators of Diageo plc, DEO. Diageo plc has a P/E of 24.4 and a forward P/E of 18.68. Perhaps the more useful indicator than P/E, is PEG which has a value of 3.59. Diageo plc also has a P/S and a P/B of 5.2 and 6.4 respectively. For P/cash, Diageo plc has a value of 34.44, while it is 91.07 for P/free cash flow.

At the current price of 114.69, Diageo plc has a dividend yield of 3.36%. 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 10.65% 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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Stephen Butters

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