SYSCO CORP (SYY) Stock Fundamental Analysis
NYSE:SYY - New York Stock Exchange, Inc. - US8718291078 - Common Stock - Currency: USD
SYY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. SYY scores excellent on profitability, 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.
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 7.63%, SYY belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 95.95%, SYY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.69%, SYY belongs to the top of the industry, outperforming 94.87% 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 8.35%.
The 3 year average ROIC (15.19%) for SYY is below the current ROIC(15.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.63% | ||
| ROE | 95.95% | ||
| ROIC | 15.69% |
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
The Profit Margin of SYY (2.40%) is better than 71.79% of its industry peers.
In the last couple of years the Profit Margin of SYY has declined.
SYY has a Operating Margin of 3.99%. This is in the better half of the industry: SYY outperforms 74.36% of its industry peers.
SYY's Operating Margin has been stable in the last couple of years.
SYY has a Gross Margin of 18.43%. This is in the lower half of the industry: SYY underperforms 66.67% of its industry peers.
SYY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.99% | ||
| PM (TTM) | 2.4% | ||
| GM | 18.43% |
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
SYY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
SYY has an Altman-Z score of 5.29. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
SYY's Altman-Z score of 5.29 is fine compared to the rest of the industry. SYY outperforms 76.92% of its industry peers.
The Debt to FCF ratio of SYY is 6.96, which is on the high side as it means it would take SYY, 6.96 years of fcf income to pay off all of its debts.
SYY has a Debt to FCF ratio of 6.96. This is comparable to the rest of the industry: SYY outperforms 51.28% of its industry peers.
A Debt/Equity ratio of 5.66 is on the high side and indicates that SYY has dependencies on debt financing.
The Debt to Equity ratio of SYY (5.66) is worse than 94.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 5.29 |
ROIC/WACC2.01
WACC7.81%
2.3 Liquidity
SYY has a Current Ratio of 1.20. This is a normal value and indicates that SYY is financially healthy and should not expect problems in meeting its short term obligations.
SYY's Current ratio of 1.20 is in line compared to the rest of the industry. SYY outperforms 58.97% of its industry peers.
SYY has a Quick Ratio of 1.20. This is a bad value and indicates that SYY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.68, SYY perfoms like the industry average, outperforming 56.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.05%.
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 3.95%.
Measured over the past years, SYY shows a small growth in Revenue. The Revenue has been growing by 5.57% on average per year.
EPS 1Y (TTM)4.05%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%4.49%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%4.47%
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 11.03% on average per year.
Based on estimates for the next years, SYY will show a small growth in Revenue. The Revenue will grow by 4.67% on average per year.
EPS Next Y7.07%
EPS Next 2Y7.83%
EPS Next 3Y7.86%
EPS Next 5Y11.03%
Revenue Next Year4.19%
Revenue Next 2Y4.18%
Revenue Next 3Y4.18%
Revenue Next 5Y4.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
SYY is valuated correctly with a Price/Earnings ratio of 16.76.
Based on the Price/Earnings ratio, SYY is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
SYY is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
SYY is valuated correctly with a Price/Forward Earnings ratio of 14.61.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than 74.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SYY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
SYY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SYY is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.76 | ||
| EV/EBITDA | 11.27 |
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)2.37
PEG (5Y)4.24
EPS Next 2Y7.83%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.38, SYY pays a better dividend. On top of this SYY pays more dividend than 87.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, SYY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of SYY is nicely growing with an annual growth rate of 6.16%!
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 52.03% 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.
DP52.03%
EPS Next 2Y7.83%
EPS Next 3Y7.86%
73.22
+2 (+2.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change0.67%
Ins Owners0.16%
Ins Owner Change3.11%
Market Cap35.82B
Analysts75
Price Target85.66 (16.99%)
Short Float %2.77%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend2.02
Dividend Growth(5Y)6.16%
DP52.03%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.36%
Min EPS beat(2)-4.2%
Max EPS beat(2)-0.51%
EPS beat(4)1
Avg EPS beat(4)-1.15%
Min EPS beat(4)-4.2%
Max EPS beat(4)0.12%
EPS beat(8)3
Avg EPS beat(8)-0.63%
EPS beat(12)5
Avg EPS beat(12)1.27%
EPS beat(16)7
Avg EPS beat(16)1.1%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)-0.75%
Revenue beat(8)1
Avg Revenue beat(8)-1.19%
Revenue beat(12)4
Avg Revenue beat(12)-0.14%
Revenue beat(16)7
Avg Revenue beat(16)0.51%
PT rev (1m)1.01%
PT rev (3m)0.92%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.61 | ||
| P/S | 0.44 | ||
| P/FCF | 19.76 | ||
| P/OCF | 13.61 | ||
| P/B | 17.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.27 |
EPS(TTM)4.37
EY5.97%
EPS(NY)5.01
Fwd EY6.84%
FCF(TTM)3.71
FCFY5.06%
OCF(TTM)5.38
OCFY7.35%
SpS164.69
BVpS4.12
TBVpS-8.69
PEG (NY)2.37
PEG (5Y)4.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.63% | ||
| ROE | 95.95% | ||
| ROCE | 20.41% | ||
| ROIC | 15.69% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 28.39% | ||
| OM | 3.99% | ||
| PM (TTM) | 2.4% | ||
| GM | 18.43% | ||
| FCFM | 2.25% |
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-Score7
Asset Turnover3.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.96 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 88.88% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 5.25 | ||
| Cash Conversion | 63.57% | ||
| Profit Quality | 93.82% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 5.29 |
F-Score7
WACC7.81%
ROIC/WACC2.01
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)4.05%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%4.49%
EPS Next Y7.07%
EPS Next 2Y7.83%
EPS Next 3Y7.86%
EPS Next 5Y11.03%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%4.47%
Revenue Next Year4.19%
Revenue Next 2Y4.18%
Revenue Next 3Y4.18%
Revenue Next 5Y4.67%
EBIT growth 1Y1.62%
EBIT growth 3Y30.31%
EBIT growth 5Y6.56%
EBIT Next Year29.55%
EBIT Next 3Y12.84%
EBIT Next 5Y10.01%
FCF growth 1Y56.74%
FCF growth 3Y14.6%
FCF growth 5Y4.65%
OCF growth 1Y37.2%
OCF growth 3Y16.22%
OCF growth 5Y4.39%