SYSCO CORP (SYY)
US8718291078 - Common Stock
Taking everything into account, SYY scores 5 out of 10 in our fundamental rating. SYY was compared to 41 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
In the past year SYY was profitable.
In the past year SYY had a positive cash flow from operations.
Each year in the past 5 years SYY has 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 82.93% of the companies in the same industry.
SYY has a better Return On Equity (87.97%) than 100.00% of its industry peers.
The Return On Invested Capital of SYY (14.95%) is better than 92.68% of its industry peers.
SYY had an Average Return On Invested Capital over the past 3 years of 15.19%. This is significantly above the industry average of 9.18%.
| 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
The Profit Margin of SYY (2.44%) is better than 73.17% of its industry peers.
In the last couple of years the Profit Margin of SYY has declined.
Looking at the Operating Margin, with a value of 4.02%, SYY is in the better half of the industry, outperforming 70.73% 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.
SYY's Gross Margin of 18.46% is in line compared to the rest of the industry. SYY outperforms 41.46% of its industry peers.
In the last couple of years the Gross Margin of SYY has remained more or less at the same level.
| 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.
SYY has a worse debt/assets ratio than last year.
2.2 Solvency
SYY has an Altman-Z score of 5.21. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
SYY's Altman-Z score of 5.21 is fine compared to the rest of the industry. SYY outperforms 75.61% 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.
SYY has a Debt to FCF ratio (5.69) which is comparable to the rest of the 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 worse Debt to Equity ratio (5.38) than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 5.21 |
ROIC/WACC1.91
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 70.73% of its industry peers.
A Quick Ratio of 0.73 indicates that SYY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, SYY is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
| 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%.
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)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 10.06% yearly.
SYY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.97% yearly.
EPS Next Y7.08%
EPS Next 2Y7.42%
EPS Next 3Y7.9%
EPS Next 5Y10.06%
Revenue Next Year4.21%
Revenue Next 2Y4.25%
Revenue Next 3Y4.34%
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
SYY is valuated rather expensively with a Price/Earnings ratio of 17.34.
SYY's Price/Earnings ratio is a bit cheaper when compared to the industry. SYY is cheaper than 68.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. SYY is valued slightly cheaper when compared to this.
SYY is valuated correctly with a Price/Forward Earnings ratio of 15.10.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. SYY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
SYY's Enterprise Value to EBITDA is on the same level as the industry average.
70.73% 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 | 16.98 | ||
| EV/EBITDA | 11.81 |
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)2.45
PEG (5Y)4.38
EPS Next 2Y7.42%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.55, 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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.
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
51.82% of the earnings are spent on dividend by SYY. 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.
DP51.82%
EPS Next 2Y7.42%
EPS Next 3Y7.9%
SYSCO CORP
NYSE:SYY (11/21/2024, 8:04:00 PM)
After market: 75.08 0 (0%)75.08
+1.45 (+1.97%)
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 Cap36.88B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 17.34 | ||
| Fwd PE | 15.1 | ||
| 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)2.45
PEG (5Y)4.38
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 Y7.08%
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