SYSCO CORP (SYY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYY - US8718291078 - Common Stock
74.25 USD
+0.26 (+0.35%)
73.8 USD
-0.45 (-0.61%)
We assign a fundamental rating of 6 out of 10 to SYY. SYY was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. SYY has an excellent profitability rating, but 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.
Each year in the past 5 years SYY has been profitable.
In the past 5 years SYY always reported a positive cash flow from operatings.
1.2 Ratios
SYY has a Return On Assets of 6.71%. This is in the better half of the industry: SYY outperforms 76.32% of its industry peers.
With an excellent Return On Equity value of 87.76%, SYY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.61%, SYY belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
SYY had an Average Return On Invested Capital over the past 3 years of 15.85%. This is significantly above the industry average of 8.25%.
The 3 year average ROIC (15.85%) for SYY is below the current ROIC(16.61%), indicating increased profibility in the last year.
| 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
SYY has a Profit Margin of 2.21%. This is in the better half of the industry: SYY outperforms 63.16% of its industry peers.
SYY's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 4.33%, SYY is doing good in the industry, outperforming 76.32% of the companies in the same industry.
In the last couple of years the Operating Margin of SYY has grown nicely.
SYY has a Gross Margin of 18.43%. This is in the lower half of the industry: SYY underperforms 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SYY is creating value.
SYY has less shares outstanding than it did 1 year ago.
SYY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SYY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.08 indicates that SYY is not in any danger for 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 78.95% of the companies in the same industry.
The Debt to FCF ratio of SYY is 8.35, which is on the high side as it means it would take SYY, 8.35 years of fcf income to pay off all of its debts.
SYY has a Debt to FCF ratio (8.35) which is in line with its industry peers.
A Debt/Equity ratio of 5.54 is on the high side and indicates that SYY has dependencies on debt 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/WACC2.21
WACC7.5%
2.3 Liquidity
A Current Ratio of 1.15 indicates that SYY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, SYY is in line with its industry, outperforming 57.89% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.39%.
SYY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.52% yearly.
The Revenue has been growing slightly by 2.92% in the past year.
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.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y3.72%
EPS Next 2Y6.94%
EPS Next 3Y7.42%
EPS Next 5Y11.09%
Revenue Next Year3.93%
Revenue Next 2Y4.43%
Revenue Next 3Y4.08%
Revenue Next 5Y4.22%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
SYY is valuated correctly with a Price/Earnings ratio of 16.43.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.59, SYY is valued a bit cheaper.
SYY is valuated correctly with a Price/Forward Earnings ratio of 14.56.
SYY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYY is cheaper than 63.16% of the companies in the same industry.
SYY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 14.56 |
4.2 Price Multiples
65.79% of the companies in the same industry are more expensive than SYY, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SYY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SYY does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SYY may justify a higher PE ratio.
PEG (NY)4.42
PEG (5Y)0.94
EPS Next 2Y6.94%
EPS Next 3Y7.42%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.88%.
Compared to an average industry Dividend Yield of 0.77, SYY pays a better dividend. On top of this SYY pays more dividend than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, SYY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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.
SYY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.23%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
55.57% of the earnings are spent on dividend by SYY. 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.
DP55.57%
EPS Next 2Y6.94%
EPS Next 3Y7.42%
74.25
+0.26 (+0.35%)
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 Cap35.56B
Revenue(TTM)82.03B
Net Income(TTM)1.81B
Analysts74.17
Price TargetN/A
Short Float %2.75%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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)-0.1%
PT rev (3m)1.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 14.56 | ||
| P/S | 0.43 | ||
| P/FCF | 22.24 | ||
| P/OCF | 13.98 | ||
| P/B | 17.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.7 |
EPS(TTM)4.52
EY6.09%
EPS(NY)5.1
Fwd EY6.87%
FCF(TTM)3.34
FCFY4.5%
OCF(TTM)5.31
OCFY7.15%
SpS171.31
BVpS4.32
TBVpS-8.7
PEG (NY)4.42
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
WACC7.5%
ROIC/WACC2.21
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 Y3.72%
EPS Next 2Y6.94%
EPS Next 3Y7.42%
EPS Next 5Y11.09%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%3.24%
Revenue Next Year3.93%
Revenue Next 2Y4.43%
Revenue Next 3Y4.08%
Revenue Next 5Y4.22%
EBIT growth 1Y8.49%
EBIT growth 3Y14.51%
EBIT growth 5Y29.89%
EBIT Next Year30.53%
EBIT Next 3Y13.31%
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 6 / 10 to SYY.
Can you provide the valuation status for SYSCO CORP?
ChartMill assigns a valuation rating of 5 / 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 8 / 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 16.43 and the Price/Book (PB) ratio is 17.2.
Can you provide the financial health for SYY stock?
The financial health rating of SYSCO CORP (SYY) is 4 / 10.