SYSCO CORP (SYY)
US8718291078 - Common Stock
We assign a fundamental rating of 5 out of 10 to SYY. SYY was compared to 43 industry peers in the Consumer Staples Distribution & Retail industry. While SYY belongs to the best of the industry regarding profitability, 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.
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
SYY has a better Return On Assets (7.50%) than 83.72% of its industry peers.
With an excellent Return On Equity value of 87.97%, SYY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.95%, SYY belongs to the best of the industry, outperforming 95.35% 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 8.39%.
| 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
SYY's Profit Margin of 2.44% is fine compared to the rest of the industry. SYY outperforms 72.09% of its industry peers.
SYY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.02%, SYY is in the better half of the industry, outperforming 76.74% 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 has a Gross Margin of 18.46%. This is in the lower half of the industry: SYY underperforms 62.79% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SYY is creating value.
Compared to 1 year ago, SYY has less shares outstanding
Compared to 5 years ago, SYY has less shares outstanding
Compared to 1 year ago, SYY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.24 indicates that SYY is not in any danger for bankruptcy at the moment.
SYY has a Altman-Z score of 5.24. This is in the better half of the industry: SYY outperforms 76.74% 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.
The Debt to FCF ratio of SYY (5.69) is better than 60.47% of its industry peers.
A Debt/Equity ratio of 5.38 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 5.38, SYY is doing worse than 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 5.24 |
ROIC/WACC1.87
WACC7.98%
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.
The Current ratio of SYY (1.26) is better than 67.44% of its industry peers.
A Quick Ratio of 0.73 indicates that SYY may have some problems paying its short term obligations.
SYY's Quick ratio of 0.73 is fine compared to the rest of the industry. SYY outperforms 65.12% of its industry peers.
| 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%.
SYY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
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 11.03% yearly.
The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y6.99%
EPS Next 2Y7.53%
EPS Next 3Y7.92%
EPS Next 5Y11.03%
Revenue Next Year4.24%
Revenue Next 2Y4.28%
Revenue Next 3Y4.35%
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 17.78, SYY is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SYY indicates a somewhat cheap valuation: SYY is cheaper than 67.44% of the companies listed in the same industry.
SYY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 15.45 indicates a correct valuation of SYY.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SYY to the average of the S&P500 Index (23.73), we can say SYY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
SYY's Enterprise Value to EBITDA ratio is in line with the industry average.
SYY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYY is cheaper than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.41 | ||
| EV/EBITDA | 12.03 |
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)2.54
PEG (5Y)4.49
EPS Next 2Y7.53%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
SYY's Dividend Yield is rather good when compared to the industry average which is at 2.46. SYY pays more dividend than 88.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SYY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
On average, the dividend of SYY grows each year by 6.16%, which is quite nice.
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
SYY pays out 51.82% of its income as dividend. 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.
DP51.82%
EPS Next 2Y7.53%
EPS Next 3Y7.92%
SYSCO CORP
NYSE:SYY (12/20/2024, 8:04:00 PM)
After market: 76.97 0 (0%)76.97
+0.42 (+0.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners86.21%
Inst Owner Change0.97%
Ins Owners0.16%
Ins Owner Change5.15%
Market Cap37.81B
Analysts76.52
Price Target87.03 (13.07%)
Short Float %2.61%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Dividend Growth(5Y)6.16%
DP51.82%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.11%
Min EPS beat(2)-4.2%
Max EPS beat(2)-0.02%
EPS beat(4)2
Avg EPS beat(4)-0.88%
Min EPS beat(4)-4.2%
Max EPS beat(4)0.58%
EPS beat(8)3
Avg EPS beat(8)-1.32%
EPS beat(12)5
Avg EPS beat(12)-0.43%
EPS beat(16)7
Avg EPS beat(16)-2.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)-0.89%
Revenue beat(4)0
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)-0.89%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)5
Avg Revenue beat(12)0%
Revenue beat(16)7
Avg Revenue beat(16)0.11%
PT rev (1m)0.36%
PT rev (3m)0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.78 | ||
| Fwd PE | 15.45 | ||
| P/S | 0.47 | ||
| P/FCF | 17.41 | ||
| P/OCF | 12.8 | ||
| P/B | 17.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.03 |
EPS(TTM)4.33
EY5.63%
EPS(NY)4.98
Fwd EY6.47%
FCF(TTM)4.42
FCFY5.75%
OCF(TTM)6.02
OCFY7.81%
SpS162.26
BVpS4.49
TBVpS-8.58
PEG (NY)2.54
PEG (5Y)4.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 87.97% | ||
| ROCE | 19.46% | ||
| ROIC | 14.95% | ||
| ROICexc | 15.64% | ||
| ROICexgc | 26.42% | ||
| OM | 4.02% | ||
| PM (TTM) | 2.44% | ||
| GM | 18.46% | ||
| FCFM | 2.73% |
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-Score6
Asset Turnover3.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 5.69 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 86.77% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 5.28 | ||
| Cash Conversion | 71.92% | ||
| Profit Quality | 111.88% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 5.24 |
F-Score6
WACC7.98%
ROIC/WACC1.87
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)5.35%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%1.87%
EPS Next Y6.99%
EPS Next 2Y7.53%
EPS Next 3Y7.92%
EPS Next 5Y11.03%
Revenue 1Y (TTM)3.76%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%4.4%
Revenue Next Year4.24%
Revenue Next 2Y4.28%
Revenue Next 3Y4.35%
Revenue Next 5Y4.67%
EBIT growth 1Y3.17%
EBIT growth 3Y30.31%
EBIT growth 5Y6.56%
EBIT Next Year28.88%
EBIT Next 3Y13.74%
EBIT Next 5Y10.01%
FCF growth 1Y93.25%
FCF growth 3Y14.6%
FCF growth 5Y4.65%
OCF growth 1Y60.67%
OCF growth 3Y16.22%
OCF growth 5Y4.39%