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. While SYY has a great profitability rating, there are some minor concerns on its financial health. SYY is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years SYY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.24%, SYY belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
SYY's Return On Equity of 99.31% is amongst the best of the industry. SYY outperforms 100.00% of its industry peers.
SYY has a Return On Invested Capital of 14.70%. This is amongst the best in 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 9.26%.
| 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.
SYY has a worse Gross Margin (18.35%) than 72.00% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SYY is creating value.
SYY has less shares outstanding than it did 1 year ago.
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
SYY has an Altman-Z score of 5.15. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
SYY's Altman-Z score of 5.15 is amongst the best of the industry. SYY outperforms 88.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 6.42, SYY is in line with its industry, outperforming 56.00% 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.
The Debt to Equity ratio of SYY (6.37) is worse than 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.37 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 5.15 |
ROIC/WACC1.92
WACC7.65%
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.
SYY's Current ratio of 1.26 is fine compared to the rest of the industry. SYY outperforms 80.00% of its industry peers.
A Quick Ratio of 0.76 indicates that SYY may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.76, SYY belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.58% 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.
The Revenue has been growing slightly by 3.55% in the past year.
The Revenue has been growing slightly by 5.57% on average over the past years.
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%1.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.44% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.33% on average over the next years.
EPS Next Y2.39%
EPS Next 2Y4.5%
EPS Next 3Y6.31%
EPS Next 5Y10.44%
Revenue Next Year3.04%
Revenue Next 2Y3.41%
Revenue Next 3Y3.8%
Revenue Next 5Y4.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
The Price/Earnings ratio is 17.01, which indicates a rather expensive current valuation of SYY.
The rest of the industry has a similar Price/Earnings ratio as SYY.
Compared to an average S&P500 Price/Earnings ratio of 26.35, SYY is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.81, which indicates a correct valuation of SYY.
Based on the Price/Forward Earnings ratio, SYY is valued a bit more expensive than 64.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SYY to the average of the S&P500 Index (22.19), we can say SYY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.01 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
64.00% of the companies in the same industry are cheaper than SYY, based on the Enterprise Value to EBITDA ratio.
SYY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.18 | ||
| EV/EBITDA | 11.67 |
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)7.12
PEG (5Y)4.3
EPS Next 2Y4.5%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, SYY has a reasonable but not impressive dividend return.
SYY's Dividend Yield is comparable with the industry average which is at 3.77.
SYY's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
On average, the dividend of SYY grows each year by 6.16%, which is quite nice.
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 2Y4.5%
EPS Next 3Y6.31%
FRA:SYY (6/17/2025, 7:00:00 PM)
64.81
+0.54 (+0.84%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.56%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap31.42B
Analysts74.17
Price Target71.83 (10.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend1.76
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)-4.03%
Min EPS beat(2)-7.55%
Max EPS beat(2)-0.51%
EPS beat(4)0
Avg EPS beat(4)-3.07%
Min EPS beat(4)-7.55%
Max EPS beat(4)-0.02%
EPS beat(8)3
Avg EPS beat(8)-1.21%
EPS beat(12)4
Avg EPS beat(12)-1.65%
EPS beat(16)6
Avg EPS beat(16)-0.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-1.63%
Revenue beat(12)3
Avg Revenue beat(12)-0.76%
Revenue beat(16)7
Avg Revenue beat(16)0.53%
PT rev (1m)0.01%
PT rev (3m)-12.68%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)-9.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.39%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.01 | ||
| Fwd PE | 15.81 | ||
| P/S | 0.45 | ||
| P/FCF | 17.18 | ||
| P/OCF | 12.3 | ||
| P/B | 18.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.67 |
EPS(TTM)3.81
EY5.88%
EPS(NY)4.1
Fwd EY6.33%
FCF(TTM)3.77
FCFY5.82%
OCF(TTM)5.27
OCFY8.13%
SpS145.2
BVpS3.45
TBVpS-7.87
PEG (NY)7.12
PEG (5Y)4.3
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 | 5.15 |
F-Score5
WACC7.65%
ROIC/WACC1.92
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 Y2.39%
EPS Next 2Y4.5%
EPS Next 3Y6.31%
EPS Next 5Y10.44%
Revenue 1Y (TTM)3.55%
Revenue growth 3Y15.4%
Revenue growth 5Y5.57%
Sales Q2Q%1.73%
Revenue Next Year3.04%
Revenue Next 2Y3.41%
Revenue Next 3Y3.8%
Revenue Next 5Y4.33%
EBIT growth 1Y-0.56%
EBIT growth 3Y30.31%
EBIT growth 5Y6.56%
EBIT Next Year24.6%
EBIT Next 3Y11.77%
EBIT Next 5Y9.54%
FCF growth 1Y24.09%
FCF growth 3Y14.6%
FCF growth 5Y4.65%
OCF growth 1Y18.68%
OCF growth 3Y16.22%
OCF growth 5Y4.39%