SYSCO CORP (SYY) Stock Fundamental Analysis
NYSE:SYY - New York Stock Exchange, Inc. - US8718291078 - Common Stock - Currency: USD
Taking everything into account, SYY scores 5 out of 10 in our fundamental rating. SYY was compared to 40 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
SYY had positive earnings in the past year.
SYY had a positive operating cash flow in the past year.
SYY had positive earnings in each of the past 5 years.
SYY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SYY has a Return On Assets of 7.24%. This is amongst the best in the industry. SYY outperforms 82.50% of its industry peers.
Looking at the Return On Equity, with a value of 99.31%, SYY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SYY has a better Return On Invested Capital (14.70%) than 95.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYY is significantly above the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 99.31% | ||
| ROIC | 14.7% |
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 (2.36%) than 65.00% of its industry peers.
SYY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 3.93%, SYY is doing good in the industry, outperforming 72.50% of the companies in the same industry.
In the last couple of years the Operating Margin of SYY has remained more or less at the same level.
Looking at the Gross Margin, with a value of 18.35%, SYY is doing worse than 65.00% of the companies in the same industry.
SYY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 2.36% | ||
| GM | 18.35% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SYY is creating value.
Compared to 1 year ago, SYY has less shares outstanding
Compared to 5 years ago, SYY has less shares outstanding
Compared to 1 year ago, SYY has a worse debt to assets ratio.
2.2 Solvency
SYY has an Altman-Z score of 5.17. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.17, SYY is doing good in the industry, outperforming 72.50% of the companies in the same industry.
SYY has a debt to FCF ratio of 6.42. This is a slightly negative value and a sign of low solvency as SYY would need 6.42 years to pay back of all of its debts.
The Debt to FCF ratio of SYY (6.42) is comparable to the rest of the industry.
A Debt/Equity ratio of 6.37 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 6.37, SYY is doing worse than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.37 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 5.17 |
ROIC/WACC1.88
WACC7.83%
2.3 Liquidity
SYY has a Current Ratio of 1.26. 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 better Current ratio (1.26) than 70.00% of its industry peers.
SYY has a Quick Ratio of 1.26. This is a bad value and indicates that SYY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.76, SYY is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.58% over the past year.
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.
SYY shows a small growth in Revenue. In the last year, the Revenue has grown by 3.55%.
The Revenue has been growing slightly by 5.57% on average over the past years.
EPS 1Y (TTM)2.58%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%0%
Revenue 1Y (TTM)3.55%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%1.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.44% on average over the next years. This is quite good.
Based on estimates for the next years, SYY will show a small growth in Revenue. The Revenue will grow by 4.33% on average per year.
EPS Next Y1.92%
EPS Next 2Y4.73%
EPS Next 3Y6.23%
EPS Next 5Y10.44%
Revenue Next Year3.04%
Revenue Next 2Y3.41%
Revenue Next 3Y3.8%
Revenue Next 5Y4.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.51, the valuation of SYY can be described as rather expensive.
Based on the Price/Earnings ratio, SYY is valued a bit cheaper than 67.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SYY is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.19 indicates a correct valuation of SYY.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than 77.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SYY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 16.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SYY.
65.00% of the companies in the same industry are more expensive than SYY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.67 | ||
| EV/EBITDA | 11.92 |
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.
SYY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.1
PEG (5Y)4.43
EPS Next 2Y4.73%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.02, SYY pays a better dividend. On top of this SYY pays more dividend than 92.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SYY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
On average, the dividend of SYY grows each year by 6.16%, which is quite nice.
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)6.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SYY pays out 52.49% 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.
DP52.49%
EPS Next 2Y4.73%
EPS Next 3Y6.23%
76.53
-0.18 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.56%
Inst Owner Change-0.24%
Ins Owners0.16%
Ins Owner Change0.25%
Market Cap37.10B
Analysts74.17
Price Target81.15 (6.04%)
Short Float %3.09%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend2.02
Dividend Growth(5Y)6.16%
DP52.49%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.03%
Min EPS beat(2)-7.55%
Max EPS beat(2)-0.51%
EPS beat(4)0
Avg EPS beat(4)-3.07%
Min EPS beat(4)-7.55%
Max EPS beat(4)-0.02%
EPS beat(8)3
Avg EPS beat(8)-1.21%
EPS beat(12)4
Avg EPS beat(12)-1.65%
EPS beat(16)6
Avg EPS beat(16)-0.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-1.63%
Revenue beat(12)3
Avg Revenue beat(12)-0.76%
Revenue beat(16)7
Avg Revenue beat(16)0.53%
PT rev (1m)-0.12%
PT rev (3m)-5.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.9%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 16.19 | ||
| P/S | 0.46 | ||
| P/FCF | 17.67 | ||
| P/OCF | 12.65 | ||
| P/B | 19.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.92 |
EPS(TTM)4.37
EY5.71%
EPS(NY)4.73
Fwd EY6.18%
FCF(TTM)4.33
FCFY5.66%
OCF(TTM)6.05
OCFY7.91%
SpS166.66
BVpS3.96
TBVpS-9.03
PEG (NY)9.1
PEG (5Y)4.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 99.31% | ||
| ROCE | 19.13% | ||
| ROIC | 14.7% | ||
| ROICexc | 16.18% | ||
| ROICexgc | 27.79% | ||
| OM | 3.93% | ||
| PM (TTM) | 2.36% | ||
| GM | 18.35% | ||
| FCFM | 2.6% |
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-Score5
Asset Turnover3.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.37 | ||
| Debt/FCF | 6.42 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 89.17% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 5.02 | ||
| Cash Conversion | 71.31% | ||
| Profit Quality | 109.97% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 5.17 |
F-Score5
WACC7.83%
ROIC/WACC1.88
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)2.58%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%0%
EPS Next Y1.92%
EPS Next 2Y4.73%
EPS Next 3Y6.23%
EPS Next 5Y10.44%
Revenue 1Y (TTM)3.55%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%1.73%
Revenue Next Year3.04%
Revenue Next 2Y3.41%
Revenue Next 3Y3.8%
Revenue Next 5Y4.33%
EBIT growth 1Y-0.56%
EBIT growth 3Y30.31%
EBIT growth 5Y6.56%
EBIT Next Year24.6%
EBIT Next 3Y11.77%
EBIT Next 5Y9.54%
FCF growth 1Y24.09%
FCF growth 3Y14.6%
FCF growth 5Y4.65%
OCF growth 1Y18.68%
OCF growth 3Y16.22%
OCF growth 5Y4.39%