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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 71267.74. Since its IPO date on the 5/13/1996, Diageo plc, DEO performance year to date is 5.57%. Today Diageo plc, DEO has gained -0.38%, with a current price of 113.28.

Ownership of the company is 0.70% for insider ownership while institutional ownership is 11.80%. The management of the company have seen the company have a payout ratio of 58.20%. Return of assets are at 9.60%, with return on investment at 15.40%.

In terms of debt levels and profit levels, Diageo plc, DEO is seeing a long-term debt/equity of 1.03. While Total debt/equity is 1.28. With a profit margin of 23.50%, this is combined with a gross margin of 57.60%, and operating margin of 30.70%. Diageo plc ability to meet debt levels, with a current ratio of 1.5, while the quick ratio is 0.8.

For the last year Diageo plc, DEO has seen a EPS growth of 2.10%. A performance for the year of -0.49%. The 52-week high is -4.28%, and the 52-week low is 14.57%. The average volume for Diageo plc, DEO is 575573.

With a target price of 119.31, can Diageo plc, DEO reach this target? Looking at the value indicators of Diageo plc, DEO. Diageo plc has a P/E of 21.74 and a forward P/E of 20.4. Perhaps the more useful indicator than P/E, is PEG which has a value of 4.63. Diageo plc also has a P/S and a P/B of 5.09 and 6.58 respectively. For P/cash, Diageo plc has a value of 70.28, while it is 83.3 for P/free cash flow.

At the current price of 113.28, Diageo plc has a dividend yield of 2.23%. We see a return on equity of 33.10%.

Looking more long-term Diageo plc, is projected to get an EPS growth for the next five years of 4.70%. In the short-term an EPS growth of -16.13% in the next year is forecasted. This is after a EPS growth of 2.10% for this year and for the last five years a 7.40% 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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