SYSCO CORP (SYY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYY - US8718291078 - Common Stock
74.29 USD
-0.17 (-0.23%)
Taking everything into account, SYY scores 5 out of 10 in our fundamental rating. SYY was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. While SYY has a great profitability rating, there are some minor concerns on its financial health. SYY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SYY was profitable.
SYY had a positive operating cash flow in the past year.
SYY had positive earnings in each of the past 5 years.
Each year in the past 5 years SYY had a positive operating cash flow.
1.2 Ratios
SYY has a Return On Assets of 6.71%. This is in the better half of the industry: SYY outperforms 71.05% of its industry peers.
SYY has a Return On Equity of 87.76%. This is amongst the best in the industry. SYY outperforms 97.37% of its industry peers.
The Return On Invested Capital of SYY (16.61%) is better than 94.74% of its industry peers.
SYY had an Average Return On Invested Capital over the past 3 years of 15.85%. This is significantly below the industry average of 28.32%.
The last Return On Invested Capital (16.61%) for SYY is above the 3 year average (15.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 87.76% | ||
| ROIC | 16.61% |
ROA(3y)7.48%
ROA(5y)6.21%
ROE(3y)97.71%
ROE(5y)85.04%
ROIC(3y)15.85%
ROIC(5y)13.74%
1.3 Margins
The Profit Margin of SYY (2.21%) is better than 60.53% of its industry peers.
In the last couple of years the Profit Margin of SYY has grown nicely.
With a decent Operating Margin value of 4.33%, SYY is doing good in the industry, outperforming 73.68% of the companies in the same industry.
SYY's Operating Margin has improved in the last couple of years.
SYY's Gross Margin of 18.43% is on the low side compared to the rest of the industry. SYY is outperformed by 63.16% of its industry peers.
SYY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.33% | ||
| PM (TTM) | 2.21% | ||
| GM | 18.43% |
OM growth 3Y8.19%
OM growth 5Y19.17%
PM growth 3Y4.31%
PM growth 5Y40.76%
GM growth 3Y0.82%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
SYY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SYY has less shares outstanding
The number of shares outstanding for SYY has been reduced compared to 5 years ago.
The debt/assets ratio for SYY is higher compared to a year ago.
2.2 Solvency
SYY has an Altman-Z score of 5.08. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.08, SYY is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
SYY has a debt to FCF ratio of 8.35. This is a slightly negative value and a sign of low solvency as SYY would need 8.35 years to pay back of all of its debts.
SYY has a Debt to FCF ratio (8.35) which is in line with its industry peers.
SYY has a Debt/Equity ratio of 5.54. This is a high value indicating a heavy dependency on external financing.
SYY has a worse Debt to Equity ratio (5.54) than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 8.35 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.22
WACC7.47%
2.3 Liquidity
SYY has a Current Ratio of 1.15. This is a normal value and indicates that SYY is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.15, SYY perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that SYY may have some problems paying its short term obligations.
SYY has a Quick ratio (0.65) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.39% over the past year.
Measured over the past years, SYY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.52% on average per year.
SYY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.92%.
SYY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.00% yearly.
EPS 1Y (TTM)4.39%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%5.5%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%3.24%
3.2 Future
SYY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% yearly.
Based on estimates for the next years, SYY will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y3.61%
EPS Next 2Y6.95%
EPS Next 3Y7.3%
EPS Next 5Y11.09%
Revenue Next Year3.92%
Revenue Next 2Y4.44%
Revenue Next 3Y4.03%
Revenue Next 5Y4.22%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.44 indicates a correct valuation of SYY.
Compared to the rest of the industry, the Price/Earnings ratio of SYY indicates a somewhat cheap valuation: SYY is cheaper than 65.79% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SYY to the average of the S&P500 Index (26.84), we can say SYY is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.56, SYY is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SYY indicates a somewhat cheap valuation: SYY is cheaper than 65.79% of the companies listed in the same industry.
SYY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYY indicates a somewhat cheap valuation: SYY is cheaper than 63.16% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SYY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.25 | ||
| EV/EBITDA | 10.72 |
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)4.56
PEG (5Y)0.94
EPS Next 2Y6.95%
EPS Next 3Y7.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, SYY has a reasonable but not impressive dividend return.
SYY's Dividend Yield is rather good when compared to the industry average which is at 0.78. SYY pays more dividend than 94.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, SYY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
The dividend of SYY has a limited annual growth rate of 4.23%.
SYY has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SYY decreased in the last 3 years.
Dividend Growth(5Y)4.23%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SYY pays out 55.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SYY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.57%
EPS Next 2Y6.95%
EPS Next 3Y7.3%
NYSE:SYY (12/30/2025, 1:28:02 PM)
74.29
-0.17 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.01%
Inst Owner Change-0.57%
Ins Owners0.18%
Ins Owner Change5.22%
Market Cap35.57B
Revenue(TTM)82.03B
Net Income(TTM)1.81B
Analysts74.17
Price Target89.26 (20.15%)
Short Float %2.71%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend2.06
Dividend Growth(5Y)4.23%
DP55.57%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.46%
Min EPS beat(2)1.47%
Max EPS beat(2)5.45%
EPS beat(4)2
Avg EPS beat(4)-0.28%
Min EPS beat(4)-7.55%
Max EPS beat(4)5.45%
EPS beat(8)4
Avg EPS beat(8)-0.58%
EPS beat(12)5
Avg EPS beat(12)-0.98%
EPS beat(16)7
Avg EPS beat(16)-0.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.29%
Revenue beat(12)1
Avg Revenue beat(12)-1.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.28%
PT rev (1m)0.04%
PT rev (3m)1.79%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.56 | ||
| P/S | 0.43 | ||
| P/FCF | 22.25 | ||
| P/OCF | 13.99 | ||
| P/B | 17.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.72 |
EPS(TTM)4.52
EY6.08%
EPS(NY)5.1
Fwd EY6.87%
FCF(TTM)3.34
FCFY4.49%
OCF(TTM)5.31
OCFY7.15%
SpS171.31
BVpS4.32
TBVpS-8.7
PEG (NY)4.56
PEG (5Y)0.94
Graham Number20.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 87.76% | ||
| ROCE | 21.86% | ||
| ROIC | 16.61% | ||
| ROICexc | 17.52% | ||
| ROICexgc | 29.44% | ||
| OM | 4.33% | ||
| PM (TTM) | 2.21% | ||
| GM | 18.43% | ||
| FCFM | 1.95% |
ROA(3y)7.48%
ROA(5y)6.21%
ROE(3y)97.71%
ROE(5y)85.04%
ROIC(3y)15.85%
ROIC(5y)13.74%
ROICexc(3y)16.75%
ROICexc(5y)14.89%
ROICexgc(3y)28.38%
ROICexgc(5y)25.57%
ROCE(3y)20.87%
ROCE(5y)18.09%
ROICexgc growth 3Y3.38%
ROICexgc growth 5Y15.81%
ROICexc growth 3Y5.84%
ROICexc growth 5Y18.2%
OM growth 3Y8.19%
OM growth 5Y19.17%
PM growth 3Y4.31%
PM growth 5Y40.76%
GM growth 3Y0.82%
GM growth 5Y-0.35%
F-Score5
Asset Turnover3.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 8.35 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 100.11% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 56.61% | ||
| Profit Quality | 88.15% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 5.08 |
F-Score5
WACC7.47%
ROIC/WACC2.22
Cap/Depr(3y)97.82%
Cap/Depr(5y)87.82%
Cap/Sales(3y)1.07%
Cap/Sales(5y)1.01%
Profit Quality(3y)105.09%
Profit Quality(5y)134.78%
High Growth Momentum
Growth
EPS 1Y (TTM)4.39%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%5.5%
EPS Next Y3.61%
EPS Next 2Y6.95%
EPS Next 3Y7.3%
EPS Next 5Y11.09%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%3.24%
Revenue Next Year3.92%
Revenue Next 2Y4.44%
Revenue Next 3Y4.03%
Revenue Next 5Y4.22%
EBIT growth 1Y8.49%
EBIT growth 3Y14.51%
EBIT growth 5Y29.89%
EBIT Next Year30.47%
EBIT Next 3Y13.21%
EBIT Next 5Y9.79%
FCF growth 1Y-20%
FCF growth 3Y11.46%
FCF growth 5Y12.29%
OCF growth 1Y-9.05%
OCF growth 3Y11.9%
OCF growth 5Y9.17%
SYSCO CORP / SYY FAQ
What is the ChartMill fundamental rating of SYSCO CORP (SYY) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SYY.
Can you provide the valuation status for SYSCO CORP?
ChartMill assigns a valuation rating of 4 / 10 to SYSCO CORP (SYY). This can be considered as Fairly Valued.
What is the profitability of SYY stock?
SYSCO CORP (SYY) has a profitability rating of 7 / 10.
What is the valuation of SYSCO CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SYSCO CORP (SYY) is 16.44 and the Price/Book (PB) ratio is 17.21.
Can you provide the financial health for SYY stock?
The financial health rating of SYSCO CORP (SYY) is 4 / 10.