SYSCO CORP (SYY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYY - US8718291078 - Common Stock
74.28 USD
+0.01 (+0.01%)
74.28 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SYY. SYY was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. SYY has an excellent profitability rating, 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
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.
Each year in the past 5 years SYY had a positive operating cash flow.
1.2 Ratios
SYY has a better Return On Assets (6.71%) than 71.05% of its industry peers.
SYY has a Return On Equity of 87.76%. This is amongst the best in the industry. SYY outperforms 97.37% of its industry peers.
SYY has a Return On Invested Capital of 16.61%. This is amongst the best in the industry. SYY outperforms 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYY is significantly below the industry average of 28.32%.
The 3 year average ROIC (15.85%) for SYY is below the current ROIC(16.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 87.76% | ||
| ROIC | 16.61% |
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 has a better Profit Margin (2.21%) than 60.53% of its industry peers.
In the last couple of years the Profit Margin of SYY has grown nicely.
The Operating Margin of SYY (4.33%) is better than 73.68% of its industry peers.
SYY's Operating Margin has improved 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 63.16% of its industry peers.
SYY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.33% | ||
| PM (TTM) | 2.21% | ||
| GM | 18.43% |
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.
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
SYY has an Altman-Z score of 5.08. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.08, SYY is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
The Debt to FCF ratio of SYY is 8.35, which is on the high side as it means it would take SYY, 8.35 years of fcf income to pay off all of its debts.
SYY has a Debt to FCF ratio of 8.35. This is comparable to the rest of the industry: SYY outperforms 44.74% of its industry peers.
A Debt/Equity ratio of 5.54 is on the high side and indicates that SYY has dependencies on debt financing.
SYY has a worse Debt to Equity ratio (5.54) than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 8.35 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.12
WACC7.82%
2.3 Liquidity
SYY has a Current Ratio of 1.15. 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 1.15 is in line compared to the rest of the industry. SYY outperforms 55.26% of its industry peers.
A Quick Ratio of 0.65 indicates that SYY may have some problems paying its short term obligations.
SYY's Quick ratio of 0.65 is in line compared to the rest of the industry. SYY outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.39% over the past year.
The Earnings Per Share has been growing by 17.52% on average over the past years. This is quite good.
SYY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.92%.
Measured over the past years, SYY shows a quite strong growth in Revenue. The Revenue has been growing by 9.00% on average per year.
EPS 1Y (TTM)4.39%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%5.5%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%3.24%
3.2 Future
The Earnings Per Share is expected to grow by 11.09% on average over the next years. This is quite good.
SYY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y3.61%
EPS Next 2Y6.95%
EPS Next 3Y7.3%
EPS Next 5Y11.09%
Revenue Next Year3.92%
Revenue Next 2Y4.44%
Revenue Next 3Y4.03%
Revenue Next 5Y4.22%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 16.43 indicates a correct valuation of SYY.
65.79% of the companies in the same industry are more expensive than SYY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, SYY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.56, the valuation of SYY can be described as correct.
65.79% of the companies in the same industry are more expensive than SYY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SYY to the average of the S&P500 Index (23.92), we can say SYY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 14.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYY is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
SYY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 10.7 |
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)4.56
PEG (5Y)0.94
EPS Next 2Y6.95%
EPS Next 3Y7.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, SYY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.76, SYY pays a better dividend. On top of this SYY pays more dividend than 92.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, SYY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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.
The dividend of SYY decreased in the last 3 years.
Dividend Growth(5Y)4.23%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
55.57% of the earnings are spent on dividend by SYY. 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.
DP55.57%
EPS Next 2Y6.95%
EPS Next 3Y7.3%
74.28
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.04%
Inst Owner Change0.16%
Ins Owners0.18%
Ins Owner Change5.19%
Market Cap35.57B
Revenue(TTM)82.03B
Net Income(TTM)1.81B
Analysts74.78
Price Target89.26 (20.17%)
Short Float %2.71%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend2.06
Dividend Growth(5Y)4.23%
DP55.57%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.46%
Min EPS beat(2)1.47%
Max EPS beat(2)5.45%
EPS beat(4)2
Avg EPS beat(4)-0.28%
Min EPS beat(4)-7.55%
Max EPS beat(4)5.45%
EPS beat(8)4
Avg EPS beat(8)-0.58%
EPS beat(12)5
Avg EPS beat(12)-0.98%
EPS beat(16)7
Avg EPS beat(16)-0.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.29%
Revenue beat(12)1
Avg Revenue beat(12)-1.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.28%
PT rev (1m)-0.08%
PT rev (3m)1.79%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 14.56 | ||
| P/S | 0.43 | ||
| P/FCF | 22.24 | ||
| P/OCF | 13.99 | ||
| P/B | 17.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.7 |
EPS(TTM)4.52
EY6.09%
EPS(NY)5.1
Fwd EY6.87%
FCF(TTM)3.34
FCFY4.5%
OCF(TTM)5.31
OCFY7.15%
SpS171.31
BVpS4.32
TBVpS-8.7
PEG (NY)4.56
PEG (5Y)0.94
Graham Number20.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 87.76% | ||
| ROCE | 21.86% | ||
| ROIC | 16.61% | ||
| ROICexc | 17.52% | ||
| ROICexgc | 29.44% | ||
| OM | 4.33% | ||
| PM (TTM) | 2.21% | ||
| GM | 18.43% | ||
| FCFM | 1.95% |
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-Score5
Asset Turnover3.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 8.35 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 100.11% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 56.61% | ||
| Profit Quality | 88.15% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 5.08 |
F-Score5
WACC7.82%
ROIC/WACC2.12
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)4.39%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%5.5%
EPS Next Y3.61%
EPS Next 2Y6.95%
EPS Next 3Y7.3%
EPS Next 5Y11.09%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%3.24%
Revenue Next Year3.92%
Revenue Next 2Y4.44%
Revenue Next 3Y4.03%
Revenue Next 5Y4.22%
EBIT growth 1Y8.49%
EBIT growth 3Y14.51%
EBIT growth 5Y29.89%
EBIT Next Year30.47%
EBIT Next 3Y13.21%
EBIT Next 5Y9.79%
FCF growth 1Y-20%
FCF growth 3Y11.46%
FCF growth 5Y12.29%
OCF growth 1Y-9.05%
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.
What is the valuation status of SYSCO CORP (SYY) stock?
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 expected EPS growth for SYSCO CORP (SYY) stock?
The Earnings per Share (EPS) of SYSCO CORP (SYY) is expected to grow by 3.61% in the next year.
Can you provide the dividend sustainability for SYY stock?
The dividend rating of SYSCO CORP (SYY) is 6 / 10 and the dividend payout ratio is 55.57%.