SYSCO CORP (SYY) Stock Fundamental Analysis
NYSE:SYY - New York Stock Exchange, Inc. - US8718291078 - Common Stock
Overall SYY gets a fundamental rating of 5 out of 10. We evaluated SYY against 41 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.
In the past year SYY had a positive cash flow from operations.
In the past 5 years SYY has always been profitable.
In the past 5 years SYY always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.50%, SYY belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
The Return On Equity of SYY (87.97%) is better than 100.00% of its industry peers.
SYY's Return On Invested Capital of 14.95% is amongst the best of the industry. SYY outperforms 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 8.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 87.97% | ||
| ROIC | 14.95% |
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's Profit Margin of 2.44% is fine compared to the rest of the industry. SYY outperforms 72.50% of its industry peers.
SYY's Profit Margin has declined in the last couple of years.
SYY has a better Operating Margin (4.02%) than 77.50% of its industry peers.
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 18.46%, 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 | 4.02% | ||
| PM (TTM) | 2.44% | ||
| GM | 18.46% |
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.
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 5.19 indicates that SYY is not in any danger for bankruptcy at the moment.
SYY has a better Altman-Z score (5.19) than 75.00% of its industry peers.
SYY has a debt to FCF ratio of 5.69. This is a neutral value as SYY would need 5.69 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.69, SYY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 5.38 is on the high side and indicates that SYY has dependencies on debt financing.
SYY has a Debt to Equity ratio of 5.38. This is amonst the worse of the industry: SYY underperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 5.19 |
ROIC/WACC1.88
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SYY should not have too much problems paying its short term obligations.
SYY has a Current ratio of 1.26. This is in the better half of the industry: SYY outperforms 65.00% of its industry peers.
A Quick Ratio of 0.73 indicates that SYY may have some problems paying its short term obligations.
SYY has a better Quick ratio (0.73) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.35% over the past year.
The Earnings Per Share has been growing slightly by 3.96% on average over the past years.
SYY shows a small growth in Revenue. In the last year, the Revenue has grown by 3.76%.
SYY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
EPS 1Y (TTM)5.35%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%1.87%
Revenue 1Y (TTM)3.76%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%4.4%
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 11.03% yearly.
SYY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y6.99%
EPS Next 2Y7.53%
EPS Next 3Y7.92%
EPS Next 5Y11.03%
Revenue Next Year4.24%
Revenue Next 2Y4.26%
Revenue Next 3Y4.35%
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
The Price/Earnings ratio is 17.00, which indicates a correct valuation of SYY.
SYY's Price/Earnings ratio is a bit cheaper when compared to the industry. SYY is cheaper than 67.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. SYY is valued slightly cheaper when compared to this.
SYY is valuated correctly with a Price/Forward Earnings ratio of 14.77.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. SYY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
SYY's Enterprise Value to EBITDA is on the same level as the industry average.
SYY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYY is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.64 | ||
| EV/EBITDA | 11.62 |
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)2.43
PEG (5Y)4.3
EPS Next 2Y7.53%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.47, SYY pays a better dividend. On top of this SYY pays more dividend than 85.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SYY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of SYY is nicely growing with an annual growth rate of 6.16%!
SYY has paid a dividend for at least 10 years, which is a reliable track record.
SYY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
51.82% 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.
DP51.82%
EPS Next 2Y7.53%
EPS Next 3Y7.92%
SYSCO CORP
NYSE:SYY (1/22/2025, 2:40:43 PM)
73.6002
+0.11 (+0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners86.21%
Inst Owner Change0.39%
Ins Owners0.16%
Ins Owner Change5.03%
Market Cap36.15B
Analysts75.83
Price Target86.64 (17.72%)
Short Float %2.82%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend2.02
Dividend Growth(5Y)6.16%
DP51.82%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.11%
Min EPS beat(2)-4.2%
Max EPS beat(2)-0.02%
EPS beat(4)2
Avg EPS beat(4)-0.88%
Min EPS beat(4)-4.2%
Max EPS beat(4)0.58%
EPS beat(8)3
Avg EPS beat(8)-1.32%
EPS beat(12)5
Avg EPS beat(12)-0.43%
EPS beat(16)7
Avg EPS beat(16)-2.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)-0.89%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)5
Avg Revenue beat(12)0%
Revenue beat(16)7
Avg Revenue beat(16)0.11%
PT rev (1m)-0.45%
PT rev (3m)0.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.77 | ||
| P/S | 0.45 | ||
| P/FCF | 16.64 | ||
| P/OCF | 12.24 | ||
| P/B | 16.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.62 |
EPS(TTM)4.33
EY5.88%
EPS(NY)4.98
Fwd EY6.77%
FCF(TTM)4.42
FCFY6.01%
OCF(TTM)6.02
OCFY8.17%
SpS162.26
BVpS4.49
TBVpS-8.58
PEG (NY)2.43
PEG (5Y)4.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 87.97% | ||
| ROCE | 19.46% | ||
| ROIC | 14.95% | ||
| ROICexc | 15.64% | ||
| ROICexgc | 26.42% | ||
| OM | 4.02% | ||
| PM (TTM) | 2.44% | ||
| GM | 18.46% | ||
| FCFM | 2.73% |
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-Score6
Asset Turnover3.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 5.69 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 86.77% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 5.28 | ||
| Cash Conversion | 71.92% | ||
| Profit Quality | 111.88% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 5.19 |
F-Score6
WACC7.96%
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)5.35%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%1.87%
EPS Next Y6.99%
EPS Next 2Y7.53%
EPS Next 3Y7.92%
EPS Next 5Y11.03%
Revenue 1Y (TTM)3.76%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%4.4%
Revenue Next Year4.24%
Revenue Next 2Y4.26%
Revenue Next 3Y4.35%
Revenue Next 5Y4.67%
EBIT growth 1Y3.17%
EBIT growth 3Y30.31%
EBIT growth 5Y6.56%
EBIT Next Year29.52%
EBIT Next 3Y13.12%
EBIT Next 5Y10.01%
FCF growth 1Y93.25%
FCF growth 3Y14.6%
FCF growth 5Y4.65%
OCF growth 1Y60.67%
OCF growth 3Y16.22%
OCF growth 5Y4.39%