SYSCO CORP (SYY)
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. While SYY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SYY has a decent growth rate and is not valued too expensively.
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.
In the past 5 years SYY always reported a positive cash flow from operatings.
1.2 Ratios
SYY has a better Return On Assets (7.50%) than 82.93% of its industry peers.
SYY has a better Return On Equity (87.97%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.95%, SYY belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SYY is significantly above the industry average of 9.04%.
| 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
Looking at the Profit Margin, with a value of 2.44%, SYY is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
SYY's Profit Margin has declined in the last couple of years.
SYY has a better Operating Margin (4.02%) than 73.17% of its industry peers.
In the last couple of years the Operating Margin of SYY has remained more or less at the same level.
With a Gross Margin value of 18.46%, SYY perfoms like the industry average, outperforming 41.46% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SYY is creating value.
The number of shares outstanding for SYY has been reduced compared to 1 year ago.
SYY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SYY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.22 indicates that SYY is not in any danger for bankruptcy at the moment.
SYY has a better Altman-Z score (5.22) than 70.73% of its industry peers.
The Debt to FCF ratio of SYY is 5.69, which is a neutral value as it means it would take SYY, 5.69 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.69, SYY perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
SYY has a Debt/Equity ratio of 5.38. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SYY (5.38) is worse than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 5.22 |
ROIC/WACC1.92
WACC7.8%
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 68.29% of its industry peers.
A Quick Ratio of 0.73 indicates that SYY may have some problems paying its short term obligations.
The Quick ratio of SYY (0.73) is better than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.35%.
SYY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.96% yearly.
The Revenue has been growing slightly by 3.76% in the past year.
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
Based on estimates for the next years, SYY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.06% on average per year.
SYY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.97% yearly.
EPS Next Y7.22%
EPS Next 2Y7.48%
EPS Next 3Y7.98%
EPS Next 5Y10.06%
Revenue Next Year4.33%
Revenue Next 2Y4.33%
Revenue Next 3Y4.36%
Revenue Next 5Y4.97%
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
Based on the Price/Earnings ratio of 17.41, the valuation of SYY can be described as rather expensive.
Based on the Price/Earnings ratio, SYY is valued a bit cheaper than 63.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.20, SYY is valued a bit cheaper.
SYY is valuated correctly with a Price/Forward Earnings ratio of 15.14.
68.29% of the companies in the same industry are more expensive than SYY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.28. SYY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYY is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SYY is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.04 | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SYY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)4.4
EPS Next 2Y7.48%
EPS Next 3Y7.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, SYY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, SYY pays a better dividend. On top of this SYY pays more dividend than 85.37% of the companies listed in the same industry.
SYY's Dividend Yield is a higher than the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
On average, the dividend of SYY grows each year by 6.16%, which is quite nice.
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
SYY pays out 51.82% 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.
DP51.82%
EPS Next 2Y7.48%
EPS Next 3Y7.98%
SYSCO CORP
NYSE:SYY (11/4/2024, 8:04:00 PM)
After market: 75.37 0 (0%)75.37
+0.34 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 15.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.41
PEG (5Y)4.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 87.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.02% | ||
| PM (TTM) | 2.44% | ||
| GM | 18.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.35%
EPS 3Y44.11%
EPS 5Y
EPS Q2Q%
EPS Next Y7.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.76%
Revenue growth 3Y15.4%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y