DGE:GBR – Market expectations are for record-high Uniform ROA, but management has concerns about organic growth, international operations, and their portfolio

• • • Diageo plc (DGE:GBR)currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 22.6x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about organic growth, international operations, and their portfolio
    • Specifically, management may lack confidence in the sustainability of organic net sales and operating margin improvements, and may be downplaying concerns about their strategy in Mexico. Additionally, they may have concerns about their ability to attract multicultural millennial consumers, and may lack confidence in the resilience of their North American portfolio in the face of competition and slowing growth