SYSCO CORP (SYY) Stock Fundamental Analysis
USA - NYSE:SYY - US8718291078 - Common Stock
77.35 USD
-0.86 (-1.1%)
77.35 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SYY. SYY was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. While SYY has a great profitability rating, there are some minor concerns on its financial health. SYY is not valued too expensively and it also shows a decent 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.
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
The Return On Assets of SYY (6.83%) is better than 76.92% of its industry peers.
SYY has a better Return On Equity (99.89%) than 100.00% of its industry peers.
SYY's Return On Invested Capital of 15.59% is amongst the best of the industry. SYY outperforms 94.87% of its industry peers.
SYY had an Average Return On Invested Capital over the past 3 years of 15.85%. This is significantly above the industry average of 8.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 99.89% | ||
| ROIC | 15.59% |
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's Profit Margin of 2.25% is fine compared to the rest of the industry. SYY outperforms 64.10% of its industry peers.
SYY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.25%, SYY is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
SYY's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 18.40%, SYY is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
SYY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.25% | ||
| PM (TTM) | 2.25% | ||
| GM | 18.4% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SYY is creating value.
SYY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SYY has less shares outstanding
SYY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.14 indicates that SYY is not in any danger for bankruptcy at the moment.
SYY's Altman-Z score of 5.14 is fine compared to the rest of the industry. SYY outperforms 74.36% of its industry peers.
SYY has a debt to FCF ratio of 8.30. This is a slightly negative value and a sign of low solvency as SYY would need 8.30 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.30, SYY perfoms like the industry average, outperforming 41.03% of the companies in the same industry.
SYY has a Debt/Equity ratio of 6.75. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.75, SYY is not doing good in the industry: 89.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 8.3 | ||
| Altman-Z | 5.14 |
ROIC/WACC2.1
WACC7.41%
2.3 Liquidity
A Current Ratio of 1.21 indicates that SYY should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.21, SYY is doing good in the industry, outperforming 61.54% of the companies in the same industry.
SYY has a Quick Ratio of 1.21. 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 0.70, SYY is in line with its industry, outperforming 58.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.48%.
Measured over the past years, SYY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.52% on average per year.
The Revenue has been growing slightly by 3.21% in the past year.
The Revenue has been growing by 9.00% on average over the past years. This is quite good.
EPS 1Y (TTM)3.48%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%6.47%
Revenue 1Y (TTM)3.21%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%2.83%
3.2 Future
The Earnings Per Share is expected to grow by 10.97% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y3.9%
EPS Next 2Y6.99%
EPS Next 3Y7.86%
EPS Next 5Y10.97%
Revenue Next Year3.95%
Revenue Next 2Y4.37%
Revenue Next 3Y4.15%
Revenue Next 5Y4.36%
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
With a Price/Earnings ratio of 17.34, SYY is valued on the expensive side.
Based on the Price/Earnings ratio, SYY is valued a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SYY to the average of the S&P500 Index (26.91), we can say SYY is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.69, SYY is valued correctly.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SYY to the average of the S&P500 Index (22.92), we can say SYY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 16.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SYY.
SYY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.08 | ||
| EV/EBITDA | 11.28 |
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)4.44
PEG (5Y)0.99
EPS Next 2Y6.99%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, SYY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.94, SYY pays a better dividend. On top of this SYY pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SYY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
The dividend of SYY has a limited annual growth rate of 4.23%.
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)4.23%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SYY pays out 54.70% 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.
DP54.7%
EPS Next 2Y6.99%
EPS Next 3Y7.86%
77.35
-0.86 (-1.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.33%
Inst Owner Change-0.26%
Ins Owners0.19%
Ins Owner Change4.37%
Market Cap37.01B
Revenue(TTM)81.37B
Net Income(TTM)1.83B
Analysts74.17
Price Target87.69 (13.37%)
Short Float %2.75%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend2.06
Dividend Growth(5Y)4.23%
DP54.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.05%
Min EPS beat(2)-7.55%
Max EPS beat(2)5.45%
EPS beat(4)1
Avg EPS beat(4)-1.7%
Min EPS beat(4)-7.55%
Max EPS beat(4)5.45%
EPS beat(8)4
Avg EPS beat(8)-0.51%
EPS beat(12)4
Avg EPS beat(12)-1.39%
EPS beat(16)6
Avg EPS beat(16)-0.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.4%
Revenue beat(12)2
Avg Revenue beat(12)-1.02%
Revenue beat(16)6
Avg Revenue beat(16)-0.07%
PT rev (1m)0%
PT rev (3m)7.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.92%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 16.69 | ||
| P/S | 0.45 | ||
| P/FCF | 23.08 | ||
| P/OCF | 14.75 | ||
| P/B | 20.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.28 |
EPS(TTM)4.46
EY5.77%
EPS(NY)4.63
Fwd EY5.99%
FCF(TTM)3.35
FCFY4.33%
OCF(TTM)5.25
OCFY6.78%
SpS170.05
BVpS3.82
TBVpS-9.36
PEG (NY)4.44
PEG (5Y)0.99
Graham Number19.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 99.89% | ||
| ROCE | 20.52% | ||
| ROIC | 15.59% | ||
| ROICexc | 16.64% | ||
| ROICexgc | 27.73% | ||
| OM | 4.25% | ||
| PM (TTM) | 2.25% | ||
| GM | 18.4% | ||
| FCFM | 1.97% |
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-Score6
Asset Turnover3.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 8.3 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 95.87% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 5.5 | ||
| Cash Conversion | 56.99% | ||
| Profit Quality | 87.75% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 5.14 |
F-Score6
WACC7.41%
ROIC/WACC2.1
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)3.48%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%6.47%
EPS Next Y3.9%
EPS Next 2Y6.99%
EPS Next 3Y7.86%
EPS Next 5Y10.97%
Revenue 1Y (TTM)3.21%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%2.83%
Revenue Next Year3.95%
Revenue Next 2Y4.37%
Revenue Next 3Y4.15%
Revenue Next 5Y4.36%
EBIT growth 1Y8.03%
EBIT growth 3Y14.51%
EBIT growth 5Y29.89%
EBIT Next Year31.02%
EBIT Next 3Y13.62%
EBIT Next 5Y9.76%
FCF growth 1Y-25.64%
FCF growth 3Y11.46%
FCF growth 5Y12.29%
OCF growth 1Y-16.03%
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 5 / 10 to SYY.
Can you provide the valuation status for SYSCO CORP?
ChartMill assigns a valuation rating of 4 / 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 7 / 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 17.34 and the Price/Book (PB) ratio is 20.23.
Can you provide the financial health for SYY stock?
The financial health rating of SYSCO CORP (SYY) is 4 / 10.