SYSCO CORP (SYY.DE) Stock Fundamental Analysis
FRA:SYY - Deutsche Boerse Ag - US8718291078 - Common Stock - Currency: EUR
SYY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 26 industry peers in the Consumer Staples Distribution & Retail industry. While SYY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SYY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SYY was profitable.
In the past year SYY had a positive cash flow from operations.
In the past 5 years SYY has always been profitable.
SYY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.63%, SYY belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
SYY has a Return On Equity of 95.95%. This is amongst the best in the industry. SYY outperforms 100.00% of its industry peers.
SYY has a better Return On Invested Capital (15.69%) than 92.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYY is significantly above the industry average of 9.21%.
The 3 year average ROIC (15.19%) for SYY is below the current ROIC(15.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.63% | ||
| ROE | 95.95% | ||
| ROIC | 15.69% |
ROA(3y)7.25%
ROA(5y)5.03%
ROE(3y)97.18%
ROE(5y)68.77%
ROIC(3y)15.19%
ROIC(5y)11.61%
1.3 Margins
SYY has a better Profit Margin (2.40%) than 72.00% of its industry peers.
In the last couple of years the Profit Margin of SYY has declined.
SYY has a better Operating Margin (3.99%) than 68.00% of its industry peers.
In the last couple of years the Operating Margin of SYY has remained more or less at the same level.
The Gross Margin of SYY (18.43%) is worse than 68.00% of its industry peers.
In the last couple of years the Gross Margin of SYY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.99% | ||
| PM (TTM) | 2.4% | ||
| GM | 18.43% |
OM growth 3Y12.91%
OM growth 5Y0.94%
PM growth 3Y34.38%
PM growth 5Y-2.29%
GM growth 3Y0.52%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SYY is creating value.
Compared to 1 year ago, SYY has less shares outstanding
Compared to 5 years ago, SYY has less shares outstanding
The debt/assets ratio for SYY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.28 indicates that SYY is not in any danger for bankruptcy at the moment.
SYY has a Altman-Z score of 5.28. This is amongst the best in the industry. SYY outperforms 88.00% of its industry peers.
The Debt to FCF ratio of SYY is 6.96, which is on the high side as it means it would take SYY, 6.96 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.96, SYY perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
A Debt/Equity ratio of 5.66 is on the high side and indicates that SYY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.66, SYY is doing worse than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 5.28 |
ROIC/WACC2.02
WACC7.78%
2.3 Liquidity
SYY has a Current Ratio of 1.20. This is a normal value and indicates that SYY is financially healthy and should not expect problems in meeting its short term obligations.
SYY has a Current ratio of 1.20. This is in the better half of the industry: SYY outperforms 76.00% of its industry peers.
SYY has a Quick Ratio of 1.20. This is a bad value and indicates that SYY is not financially healthy enough and could expect problems in meeting its short term obligations.
SYY's Quick ratio of 0.68 is fine compared to the rest of the industry. SYY outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.05%.
Measured over the past 5 years, SYY shows a small growth in Earnings Per Share. The EPS has been growing by 3.96% on average per year.
The Revenue has been growing slightly by 3.95% in the past year.
The Revenue has been growing slightly by 5.57% on average over the past years.
EPS 1Y (TTM)4.05%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%4.49%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%4.47%
3.2 Future
The Earnings Per Share is expected to grow by 11.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y7.1%
EPS Next 2Y7.8%
EPS Next 3Y7.9%
EPS Next 5Y11.03%
Revenue Next Year4.2%
Revenue Next 2Y4.15%
Revenue Next 3Y4.16%
Revenue Next 5Y4.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.13, SYY is valued correctly.
SYY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.62. SYY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.09 indicates a correct valuation of SYY.
Based on the Price/Forward Earnings ratio, SYY is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.70. SYY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYY is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as SYY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.04 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SYY may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)4.08
EPS Next 2Y7.8%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.86%.
Compared to an average industry Dividend Yield of 3.93, SYY has a dividend in line with its industry peers.
SYY's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of SYY is nicely growing with an annual growth rate of 6.16%!
Dividend Growth(5Y)6.16%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SYY pays out 52.03% of its income as dividend. This is a bit on the high side, but may be sustainable.
SYY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.03%
EPS Next 2Y7.8%
EPS Next 3Y7.9%
FRA:SYY (2/20/2025, 7:00:00 PM)
67.42
+0.21 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap32.98B
Analysts75
Price Target82.84 (22.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend2.02
Dividend Growth(5Y)6.16%
DP52.03%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.36%
Min EPS beat(2)-4.2%
Max EPS beat(2)-0.51%
EPS beat(4)1
Avg EPS beat(4)-1.15%
Min EPS beat(4)-4.2%
Max EPS beat(4)0.12%
EPS beat(8)3
Avg EPS beat(8)-0.63%
EPS beat(12)5
Avg EPS beat(12)1.27%
EPS beat(16)7
Avg EPS beat(16)1.1%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)-0.75%
Revenue beat(8)1
Avg Revenue beat(8)-1.19%
Revenue beat(12)4
Avg Revenue beat(12)-0.14%
Revenue beat(16)7
Avg Revenue beat(16)0.51%
PT rev (1m)-0.03%
PT rev (3m)4.04%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 14.09 | ||
| P/S | 0.43 | ||
| P/FCF | 19.04 | ||
| P/OCF | 13.12 | ||
| P/B | 17.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.2 |
EPS(TTM)4.18
EY6.2%
EPS(NY)4.79
Fwd EY7.1%
FCF(TTM)3.54
FCFY5.25%
OCF(TTM)5.14
OCFY7.62%
SpS157.37
BVpS3.93
TBVpS-8.3
PEG (NY)2.27
PEG (5Y)4.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.63% | ||
| ROE | 95.95% | ||
| ROCE | 20.41% | ||
| ROIC | 15.69% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 28.39% | ||
| OM | 3.99% | ||
| PM (TTM) | 2.4% | ||
| GM | 18.43% | ||
| FCFM | 2.25% |
ROA(3y)7.25%
ROA(5y)5.03%
ROE(3y)97.18%
ROE(5y)68.77%
ROIC(3y)15.19%
ROIC(5y)11.61%
ROICexc(3y)16.04%
ROICexc(5y)13.12%
ROICexgc(3y)27.8%
ROICexgc(5y)22.9%
ROCE(3y)19.77%
ROCE(5y)15.11%
ROICexcg growth 3Y17.94%
ROICexcg growth 5Y0.98%
ROICexc growth 3Y17.9%
ROICexc growth 5Y0.82%
OM growth 3Y12.91%
OM growth 5Y0.94%
PM growth 3Y34.38%
PM growth 5Y-2.29%
GM growth 3Y0.52%
GM growth 5Y-0.48%
F-Score7
Asset Turnover3.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.96 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 88.88% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 5.25 | ||
| Cash Conversion | 63.57% | ||
| Profit Quality | 93.82% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 5.28 |
F-Score7
WACC7.78%
ROIC/WACC2.02
Cap/Depr(3y)93.15%
Cap/Depr(5y)86.53%
Cap/Sales(3y)1.01%
Cap/Sales(5y)1.06%
Profit Quality(3y)104.26%
Profit Quality(5y)200.8%
High Growth Momentum
Growth
EPS 1Y (TTM)4.05%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%4.49%
EPS Next Y7.1%
EPS Next 2Y7.8%
EPS Next 3Y7.9%
EPS Next 5Y11.03%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%4.47%
Revenue Next Year4.2%
Revenue Next 2Y4.15%
Revenue Next 3Y4.16%
Revenue Next 5Y4.67%
EBIT growth 1Y1.62%
EBIT growth 3Y30.31%
EBIT growth 5Y6.56%
EBIT Next Year29.55%
EBIT Next 3Y12.84%
EBIT Next 5Y10.01%
FCF growth 1Y56.74%
FCF growth 3Y14.6%
FCF growth 5Y4.65%
OCF growth 1Y37.2%
OCF growth 3Y16.22%
OCF growth 5Y4.39%