SYSCO CORP (SYY.DE) Stock Fundamental Analysis
FRA:SYY - Deutsche Boerse Ag - US8718291078 - Common Stock - Currency: EUR
SYY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Consumer Staples Distribution & Retail industry. SYY scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, SYY is valued expensive at the moment.
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's Return On Assets of 7.24% is amongst the best of the industry. SYY outperforms 88.00% of its industry peers.
The Return On Equity of SYY (99.31%) is better than 100.00% of its industry peers.
SYY's Return On Invested Capital of 14.70% is amongst the best of the industry. SYY outperforms 96.00% 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 9.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 99.31% | ||
| ROIC | 14.7% |
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
Looking at the Profit Margin, with a value of 2.36%, SYY is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SYY has declined.
The Operating Margin of SYY (3.93%) is better than 68.00% of its industry peers.
SYY's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 18.35%, SYY is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
SYY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 2.36% | ||
| GM | 18.35% |
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
SYY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SYY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SYY has been reduced compared to 5 years ago.
SYY has a worse debt/assets ratio than last year.
2.2 Solvency
SYY has an Altman-Z score of 5.10. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.10, SYY belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
The Debt to FCF ratio of SYY is 6.42, which is on the high side as it means it would take SYY, 6.42 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.42, SYY perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
SYY has a Debt/Equity ratio of 6.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.37, SYY is doing worse than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.37 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 5.1 |
ROIC/WACC1.91
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SYY should not have too much problems paying its short term obligations.
SYY has a better Current ratio (1.26) than 80.00% of its industry peers.
A Quick Ratio of 0.76 indicates that SYY may have some problems paying its short term obligations.
SYY has a better Quick ratio (0.76) than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.58%.
Measured over the past 5 years, SYY shows a small growth in Earnings Per Share. The EPS has been growing by 3.96% on average per year.
The Revenue has been growing slightly by 3.55% in the past 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)2.58%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%0%
Revenue 1Y (TTM)3.55%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%1.13%
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.
The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y6.81%
EPS Next 2Y7.44%
EPS Next 3Y8%
EPS Next 5Y11.09%
Revenue Next Year4.09%
Revenue Next 2Y4.07%
Revenue Next 3Y4.24%
Revenue Next 5Y4.67%
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
A Price/Earnings ratio of 16.13 indicates a correct valuation of SYY.
Compared to the rest of the industry, the Price/Earnings ratio of SYY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.18. SYY is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.16, the valuation of SYY can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SYY indicates a slightly more expensive valuation: SYY is more expensive than 64.00% of the companies listed in the same industry.
SYY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SYY is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
SYY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 11.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SYY may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)4.08
EPS Next 2Y7.44%
EPS Next 3Y8%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
SYY's Dividend Yield is comparable with the industry average which is at 4.05.
Compared to an average S&P500 Dividend Yield of 2.45, SYY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of SYY is nicely growing with an annual growth rate of 6.16%!
Dividend Growth(5Y)6.16%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
52.49% 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.
DP52.49%
EPS Next 2Y7.44%
EPS Next 3Y8%
FRA:SYY (5/2/2025, 7:00:00 PM)
62.1
+3.32 (+5.65%)
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 ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap30.10B
Analysts73.91
Price Target73.99 (19.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend1.78
Dividend Growth(5Y)6.16%
DP52.49%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.38%
Min EPS beat(2)-8.25%
Max EPS beat(2)-0.51%
EPS beat(4)0
Avg EPS beat(4)-3.25%
Min EPS beat(4)-8.25%
Max EPS beat(4)-0.02%
EPS beat(8)3
Avg EPS beat(8)-1.29%
EPS beat(12)4
Avg EPS beat(12)-1.7%
EPS beat(16)6
Avg EPS beat(16)-0.13%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)3
Avg Revenue beat(12)-0.82%
Revenue beat(16)7
Avg Revenue beat(16)0.48%
PT rev (1m)-5.81%
PT rev (3m)-10.68%
EPS NQ rev (1m)-6.71%
EPS NQ rev (3m)-6.52%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-1.66%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 14.16 | ||
| P/S | 0.42 | ||
| P/FCF | 16.27 | ||
| P/OCF | 11.64 | ||
| P/B | 17.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.21 |
EPS(TTM)3.85
EY6.2%
EPS(NY)4.39
Fwd EY7.06%
FCF(TTM)3.82
FCFY6.15%
OCF(TTM)5.33
OCFY8.59%
SpS146.93
BVpS3.5
TBVpS-7.96
PEG (NY)2.37
PEG (5Y)4.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 99.31% | ||
| ROCE | 19.13% | ||
| ROIC | 14.7% | ||
| ROICexc | 16.18% | ||
| ROICexgc | 27.79% | ||
| OM | 3.93% | ||
| PM (TTM) | 2.36% | ||
| GM | 18.35% | ||
| FCFM | 2.6% |
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-Score5
Asset Turnover3.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.37 | ||
| Debt/FCF | 6.42 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 89.17% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 5.02 | ||
| Cash Conversion | 71.31% | ||
| Profit Quality | 109.97% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 5.1 |
F-Score5
WACC7.7%
ROIC/WACC1.91
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)2.58%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%0%
EPS Next Y6.81%
EPS Next 2Y7.44%
EPS Next 3Y8%
EPS Next 5Y11.09%
Revenue 1Y (TTM)3.55%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%1.13%
Revenue Next Year4.09%
Revenue Next 2Y4.07%
Revenue Next 3Y4.24%
Revenue Next 5Y4.67%
EBIT growth 1Y-0.56%
EBIT growth 3Y30.31%
EBIT growth 5Y6.56%
EBIT Next Year29.4%
EBIT Next 3Y12.87%
EBIT Next 5Y9.94%
FCF growth 1Y24.09%
FCF growth 3Y14.6%
FCF growth 5Y4.65%
OCF growth 1Y18.68%
OCF growth 3Y16.22%
OCF growth 5Y4.39%