Diageo Plc Stock Piotroski F Score

DGE Stock   2,518  17.50  0.69%   
This module uses fundamental data of Diageo PLC to approximate its Piotroski F score. Diageo PLC F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Diageo PLC. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Diageo PLC financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Diageo PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
  
At present, Diageo PLC's Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Short and Long Term Debt is expected to grow to about 2.1 B, whereas Net Debt is forecasted to decline to about 4.8 B.
At this time, it appears that Diageo PLC's Piotroski F Score is Inapplicable. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
2.0
Piotroski F Score - Inapplicable
Current Return On Assets

N/A

Focus
Change in Return on Assets

N/A

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Improving

Focus
Asset Turnover Growth

N/A

Focus
Current Ratio Change

N/A

Focus
Long Term Debt Over Assets Change

Higher Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

N/A

Focus

Diageo PLC Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Diageo PLC is to make sure Diageo is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Diageo PLC's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Diageo PLC's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Debt4.8 B17.5 B
Way Down
Slightly volatile
Total Current Liabilities5.1 B9.9 B
Way Down
Slightly volatile
Non Current Liabilities Total5.6 B23.5 B
Way Down
Slightly volatile
Total Assets17.9 B36 B
Way Down
Slightly volatile
Total Current Assets8.1 B15.1 B
Way Down
Slightly volatile
Total Cash From Operating Activities690 M3.3 B
Way Down
Slightly volatile

Diageo PLC F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Diageo PLC's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Diageo PLC in a much-optimized way.

About Diageo PLC Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Short Long Term Debt Total

6.3 Billion

At present, Diageo PLC's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting.

Diageo PLC ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Diageo PLC's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Diageo PLC's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Diageo PLC Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Diageo PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Diageo PLC using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Diageo PLC based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Other Information on Investing in Diageo Stock

Diageo PLC financial ratios help investors to determine whether Diageo Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Diageo with respect to the benefits of owning Diageo PLC security.