SYSCO CORP (SYY) Stock Fundamental Analysis
NYSE:SYY - New York Stock Exchange, Inc. - US8718291078 - Common Stock - Currency: USD
Taking everything into account, SYY scores 5 out of 10 in our fundamental rating. SYY was compared to 40 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SYY was profitable.
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
SYY has a Return On Assets of 7.24%. This is amongst the best in the industry. SYY outperforms 82.50% of its industry peers.
The Return On Equity of SYY (99.31%) is better than 100.00% of its industry peers.
The Return On Invested Capital of SYY (14.70%) is better than 95.00% 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 8.23%.
| 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
SYY has a better Profit Margin (2.36%) than 65.00% of its industry peers.
SYY's Profit Margin has declined in the last couple of years.
SYY has a Operating Margin of 3.93%. This is in the better half of the industry: SYY outperforms 72.50% of its industry peers.
In the last couple of years the Operating Margin of SYY has remained more or less at the same level.
The Gross Margin of SYY (18.35%) is worse than 65.00% 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.
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.
The debt/assets ratio for SYY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.18 indicates that SYY is not in any danger for bankruptcy at the moment.
SYY has a better Altman-Z score (5.18) than 75.00% 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.
SYY's Debt to FCF ratio of 6.42 is in line compared to the rest of the industry. SYY outperforms 55.00% of its industry peers.
A Debt/Equity ratio of 6.37 is on the high side and indicates that SYY has dependencies on debt financing.
With a Debt to Equity ratio value of 6.37, SYY is not doing good in the industry: 95.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.37 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 5.18 |
ROIC/WACC1.87
WACC7.86%
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.
With a decent Current ratio value of 1.26, SYY is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that SYY may have some problems paying its short term obligations.
SYY has a Quick ratio of 0.76. This is in the better half of the industry: SYY outperforms 65.00% 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.
SYY shows a small growth in Revenue. In the last year, the Revenue has grown by 3.55%.
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%1.73%
3.2 Future
The Earnings Per Share is expected to grow by 10.44% on average over the next years. This is quite good.
Based on estimates for the next years, SYY will show a small growth in Revenue. The Revenue will grow by 4.33% on average per year.
EPS Next Y1.92%
EPS Next 2Y4.73%
EPS Next 3Y6.23%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SYY is valuated rather expensively with a Price/Earnings ratio of 17.58.
Compared to the rest of the industry, the Price/Earnings ratio of SYY indicates a somewhat cheap valuation: SYY is cheaper than 67.50% 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 27.30.
With a Price/Forward Earnings ratio of 16.25, SYY is valued correctly.
77.50% 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 (21.76), we can say SYY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 16.25 |
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 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 12.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SYY does not grow enough to justify the current Price/Earnings ratio.
SYY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.14
PEG (5Y)4.44
EPS Next 2Y4.73%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.79%. 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 2.03. SYY pays more dividend than 92.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SYY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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.
SYY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SYY pays out 52.49% of its income as dividend. 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 2Y4.73%
EPS Next 3Y6.23%
76.84
-0.62 (-0.8%)
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 Change-0.24%
Ins Owners0.16%
Ins Owner Change0.25%
Market Cap37.25B
Analysts74.17
Price Target81.15 (5.61%)
Short Float %3.09%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend2.02
Dividend Growth(5Y)6.16%
DP52.49%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-0.12%
PT rev (3m)-5.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.9%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 16.25 | ||
| P/S | 0.46 | ||
| P/FCF | 17.75 | ||
| P/OCF | 12.7 | ||
| P/B | 19.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.03 |
EPS(TTM)4.37
EY5.69%
EPS(NY)4.73
Fwd EY6.15%
FCF(TTM)4.33
FCFY5.64%
OCF(TTM)6.05
OCFY7.87%
SpS166.66
BVpS3.96
TBVpS-9.03
PEG (NY)9.14
PEG (5Y)4.44
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 | 5.18 |
F-Score5
WACC7.86%
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)2.58%
EPS 3Y44.11%
EPS 5Y3.96%
EPS Q2Q%0%
EPS Next Y1.92%
EPS Next 2Y4.73%
EPS Next 3Y6.23%
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%