SYSCO CORP (SYY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYY - US8718291078 - Common Stock
72.62 USD
-1.07 (-1.45%)
72.69 USD
+0.07 (+0.1%)
Overall SYY gets a fundamental rating of 5 out of 10. We evaluated SYY against 38 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 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.
In the past 5 years SYY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.71%, SYY is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
SYY has a better Return On Equity (87.76%) than 97.37% of its industry peers.
SYY's Return On Invested Capital of 16.61% is amongst the best of 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
The Profit Margin of SYY (2.21%) is better than 60.53% of its industry peers.
SYY's Profit Margin has improved in the last couple of years.
SYY has a Operating Margin of 4.33%. This is in the better half of the industry: SYY outperforms 73.68% of its industry peers.
SYY's Operating Margin has improved in the last couple of years.
The Gross Margin of SYY (18.43%) is worse than 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
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.
The number of shares outstanding for SYY has been reduced compared to 5 years ago.
Compared to 1 year ago, SYY has a worse debt to assets ratio.
2.2 Solvency
SYY has an Altman-Z score of 5.06. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
SYY's Altman-Z score of 5.06 is fine compared to the rest of the industry. SYY outperforms 76.32% of its industry peers.
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's Debt to FCF ratio of 8.35 is in line compared to the rest of the industry. SYY outperforms 42.11% 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.
With a Debt to Equity ratio value of 5.54, SYY is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 8.35 | ||
| Altman-Z | 5.06 |
ROIC/WACC2.22
WACC7.48%
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.
The Current ratio of SYY (1.15) is comparable to the rest of the industry.
SYY has a Quick Ratio of 1.15. 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 has a Quick ratio of 0.65. This is comparable 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
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.39%.
SYY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.52% yearly.
SYY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.92%.
SYY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.00% yearly.
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
Based on estimates for the next years, SYY will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.09% on average per year.
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 16.07 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 26.60, SYY is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.24 indicates a correct valuation of SYY.
65.79% of the companies in the same industry are more expensive than SYY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. SYY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 14.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYY is valued a bit cheaper than the industry average as 63.16% 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 | 21.75 | ||
| EV/EBITDA | 10.53 |
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)4.46
PEG (5Y)0.92
EPS Next 2Y6.95%
EPS Next 3Y7.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, SYY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.77, SYY pays a better dividend. On top of this SYY pays more dividend than 94.74% of the companies listed in the same industry.
SYY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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.
The dividend of SYY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.57%
EPS Next 2Y6.95%
EPS Next 3Y7.3%
72.62
-1.07 (-1.45%)
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%
Ins Owners0.18%
Ins Owner Change5.22%
Market Cap34.77B
Revenue(TTM)82.03B
Net Income(TTM)1.81B
Analysts74.17
Price Target89.26 (22.91%)
Short Float %2.71%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)0.04%
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 | 16.07 | ||
| Fwd PE | 14.24 | ||
| P/S | 0.42 | ||
| P/FCF | 21.75 | ||
| P/OCF | 13.67 | ||
| P/B | 16.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.53 |
EPS(TTM)4.52
EY6.22%
EPS(NY)5.1
Fwd EY7.02%
FCF(TTM)3.34
FCFY4.6%
OCF(TTM)5.31
OCFY7.31%
SpS171.31
BVpS4.32
TBVpS-8.7
PEG (NY)4.46
PEG (5Y)0.92
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 | 5.06 |
F-Score5
WACC7.48%
ROIC/WACC2.22
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%.