SYSCO CORP (SYY) Stock Fundamental Analysis
NYSE:SYY - New York Stock Exchange, Inc. - US8718291078 - Common Stock - Currency: USD
Overall SYY gets a fundamental rating of 5 out of 10. We evaluated SYY 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 decent growth rate and is not valued too expensively.
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.
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 (7.63%) than 87.50% of its industry peers.
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.
The Return On Invested Capital of SYY (15.69%) is better than 95.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SYY is significantly above the industry average of 8.16%.
The last Return On Invested Capital (15.69%) for SYY is above the 3 year average (15.19%), which is a sign of increasing profitability.
| 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
SYY has a Profit Margin of 2.40%. This is in the better half of the industry: SYY outperforms 72.50% of its industry peers.
In the last couple of years the Profit Margin of SYY has declined.
SYY's Operating Margin of 3.99% is fine compared to the rest of the industry. SYY outperforms 75.00% of its industry peers.
SYY's Operating Margin has been stable in the last couple of years.
SYY's Gross Margin of 18.43% is on the low side compared to the rest of the industry. SYY is outperformed by 65.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SYY is creating value.
The number of shares outstanding for SYY has been reduced compared to 1 year ago.
Compared to 5 years ago, SYY has less shares outstanding
The debt/assets ratio for SYY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.30 indicates that SYY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.30, SYY is doing good in the industry, outperforming 77.50% of the companies in the same industry.
SYY has a debt to FCF ratio of 6.96. This is a slightly negative value and a sign of low solvency as SYY would need 6.96 years to pay back of all of its debts.
SYY has a Debt to FCF ratio (6.96) which is in line with its industry peers.
A Debt/Equity ratio of 5.66 is on the high side and indicates that SYY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.66, SYY is doing worse than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.66 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 5.3 |
ROIC/WACC2.03
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.20 indicates that SYY should not have too much problems paying its short term obligations.
SYY has a Current ratio (1.20) which is in line with 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.
SYY's Quick ratio of 0.68 is in line compared to the rest of the industry. SYY outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.05% over the past year.
SYY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.96% yearly.
Looking at the last year, SYY shows a small growth in Revenue. The Revenue has grown by 3.95% in the last 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)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
SYY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% 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 Y7.02%
EPS Next 2Y7.71%
EPS Next 3Y8.01%
EPS Next 5Y11.09%
Revenue Next Year4.13%
Revenue Next 2Y4.1%
Revenue Next 3Y4.25%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.42, SYY is valued correctly.
65.00% of the companies in the same industry are more expensive than SYY, based on the Price/Earnings ratio.
SYY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.35, which indicates a correct valuation of SYY.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than the industry average as 77.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SYY to the average of the S&P500 Index (21.08), we can say SYY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 14.35 |
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.
72.50% 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 | 19.36 | ||
| EV/EBITDA | 11.34 |
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)2.34
PEG (5Y)4.15
EPS Next 2Y7.71%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.84%.
Compared to an average industry Dividend Yield of 2.34, SYY pays a better dividend. On top of this SYY pays more dividend than 92.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, SYY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
52.03% 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.
DP52.03%
EPS Next 2Y7.71%
EPS Next 3Y8.01%
71.74
+1.05 (+1.49%)
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 Change0.01%
Ins Owners0.16%
Ins Owner Change0.21%
Market Cap35.10B
Analysts75
Price Target85.98 (19.85%)
Short Float %2.75%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)-0.09%
PT rev (3m)-0.77%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-0.15%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 14.35 | ||
| P/S | 0.44 | ||
| P/FCF | 19.36 | ||
| P/OCF | 13.34 | ||
| P/B | 17.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.34 |
EPS(TTM)4.37
EY6.09%
EPS(NY)5
Fwd EY6.97%
FCF(TTM)3.71
FCFY5.17%
OCF(TTM)5.38
OCFY7.5%
SpS164.69
BVpS4.12
TBVpS-8.69
PEG (NY)2.34
PEG (5Y)4.15
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 | 5.3 |
F-Score7
WACC7.73%
ROIC/WACC2.03
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 Y7.02%
EPS Next 2Y7.71%
EPS Next 3Y8.01%
EPS Next 5Y11.09%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%4.47%
Revenue Next Year4.13%
Revenue Next 2Y4.1%
Revenue Next 3Y4.25%
Revenue Next 5Y4.67%
EBIT growth 1Y1.62%
EBIT growth 3Y30.31%
EBIT growth 5Y6.56%
EBIT Next Year29.4%
EBIT Next 3Y12.87%
EBIT Next 5Y9.94%
FCF growth 1Y56.74%
FCF growth 3Y14.6%
FCF growth 5Y4.65%
OCF growth 1Y37.2%
OCF growth 3Y16.22%
OCF growth 5Y4.39%