NYSE:DEO

Diageo PLC (DEO)

80.24
-0.19 (0.24%)
as of Jun 8, 2026, 8:00:00 pm Market Open.
86 watching
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Investor Insights
star iconJun 8, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Diageo PLC has faced significant challenges recently, including an 80% cut to their dividend, signaling a troubling shift in the company's trajectory. Analysts express concerns about declining consumption among younger demographics and increased competition from alternative beverages, such as cannabis. The company, known for its premium-brand focus, has seen sales decline, notably in Agave, and has faced distribution issues. Furthermore, there is skepticism about the efficacy of the new CEO's turnaround strategies. While some analysts believe there is potential for recovery, the consensus is more cautious given the current state of the business and external pressures.

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Consensus
Sell
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Valuation
Overvalued
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PAST TOP PICK
(A Top Pick Oct 31/06. Up 3.7%.) Generous yield. Cdn$ has weakened considerably giving it an even bigger win.
BUY
Key brands are Guinness, Johnnie Walker, etc. Multiple is about 16 X next year's earnings. Likes the growth they are having in their spirits business throughout Asia.
TOP PICK
The world's biggest liquor company. Huge margins and huge cash flows. Regularly buy back large amounts of stock. Raise their dividend regularly.
BUY
Undervalued. Management is making an effort to grow their existing brands. Lots of free cash flow. Good price.
TOP PICK
A British company. World's largest liquor/food company. Has over a quarter of the world's premium brand. Good defensive name. 7% organic growth. 3.5% yield. Throws off huge cash which it uses to buy back stock.
TOP PICK
World's largest liquor company. Bought a lot of the Seagrams' brands. Shows good annual growth in sales and earnings. Throws off lots of cash and uses the cash to increase dividends regularily, buy back shares and to make acquisitions. Not terribly expensive here.
BUY
Likes the outlook for the spirits companies. He likes and owns Pernod (?). There seems to be a surge in demand for spitrits. The one big problem for these companies is the strong Euro. Believes the US$ is turning around, and if so, this is a good time to pick up the spirits companies.
BUY
This is the world's largest liquor company. Liquor business gives much cash which helps to increase the dividend.
TOP PICK
TOP PICK
World's largest liquor company. Owns most of the leading brands. A 10% grower with a 3½% yield. Throws off huge amounts of cash and uses it to increased dividends or buy back shares.
BUY
Trades at 13.5 X multiple. 4.9% dividend. Well diversified. Good long term.
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