SYSCO CORP (SYY) Stock Fundamental Analysis
USA - NYSE:SYY - US8718291078 - Common Stock
81.53 USD
+1.66 (+2.08%)
81.53 USD
0 (0%)
SYY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. SYY scores excellent on profitability, but 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
In the past year SYY was profitable.
SYY had a positive operating cash flow in the past year.
SYY had positive earnings in each of the past 5 years.
SYY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SYY (6.83%) is better than 75.00% of its industry peers.
SYY has a better Return On Equity (99.89%) than 100.00% of its industry peers.
SYY has a Return On Invested Capital of 13.92%. This is amongst the best in the industry. SYY outperforms 95.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYY is significantly above the industry average of 8.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 99.89% | ||
| ROIC | 13.92% |
ROA(3y)7.48%
ROA(5y)6.21%
ROE(3y)97.71%
ROE(5y)85.04%
ROIC(3y)15.2%
ROIC(5y)13.35%
1.3 Margins
Looking at the Profit Margin, with a value of 2.25%, SYY is in line with its industry, outperforming 60.00% of the companies in the same industry.
SYY's Profit Margin has improved in the last couple of years.
The Operating Margin of SYY (3.80%) is better than 72.50% of its industry peers.
In the last couple of years the Operating Margin of SYY has grown nicely.
With a Gross Margin value of 18.40%, SYY is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
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 | 3.8% | ||
| PM (TTM) | 2.25% | ||
| GM | 18.4% |
OM growth 3Y3.54%
OM growth 5Y16.07%
PM growth 3Y4.31%
PM growth 5Y40.76%
GM growth 3Y0.82%
GM growth 5Y-0.35%
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
The debt/assets ratio for SYY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.11 indicates that SYY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.11, SYY is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of SYY is 8.30, which is on the high side as it means it would take SYY, 8.30 years of fcf income to pay off all of its debts.
SYY has a Debt to FCF ratio of 8.30. This is comparable to the rest of the industry: SYY outperforms 50.00% of its industry peers.
SYY has a Debt/Equity ratio of 6.75. This is a high value indicating a heavy dependency on external financing.
SYY's Debt to Equity ratio of 6.75 is on the low side compared to the rest of the industry. SYY is outperformed by 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 8.3 | ||
| Altman-Z | 5.11 |
ROIC/WACC1.86
WACC7.49%
2.3 Liquidity
A Current Ratio of 1.21 indicates that SYY should not have too much problems paying its short term obligations.
SYY has a Current ratio (1.21) which is comparable to the rest of the industry.
A Quick Ratio of 0.70 indicates that SYY may have some problems paying its short term obligations.
SYY has a Quick ratio (0.70) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.48% over the past year.
Measured over the past years, SYY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.52% on average per year.
SYY shows a small growth in Revenue. In the last year, the Revenue has grown by 3.21%.
Measured over the past years, SYY shows a quite strong growth in Revenue. The Revenue has been growing by 9.00% on average per year.
EPS 1Y (TTM)3.48%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%6.47%
Revenue 1Y (TTM)3.21%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%2.83%
3.2 Future
The Earnings Per Share is expected to grow by 10.85% 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 5.24% on average per year.
EPS Next Y3.93%
EPS Next 2Y6.84%
EPS Next 3Y8.26%
EPS Next 5Y10.85%
Revenue Next Year3.95%
Revenue Next 2Y4.37%
Revenue Next 3Y4.13%
Revenue Next 5Y5.24%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 18.28, the valuation of SYY can be described as rather expensive.
62.50% of the companies in the same industry are more expensive than SYY, based on the Price/Earnings ratio.
SYY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
SYY is valuated rather expensively with a Price/Forward Earnings ratio of 17.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SYY indicates a somewhat cheap valuation: SYY is cheaper than 70.00% of the companies listed in the same industry.
SYY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 17.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SYY.
The rest of the industry has a similar Price/Free Cash Flow ratio as SYY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.31 | ||
| EV/EBITDA | 12.5 |
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)4.65
PEG (5Y)1.04
EPS Next 2Y6.84%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.00, SYY pays a better dividend. On top of this SYY pays more dividend than 92.50% of the companies listed in the same industry.
SYY's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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.
SYY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.23%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
54.70% 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.
DP54.7%
EPS Next 2Y6.84%
EPS Next 3Y8.26%
81.53
+1.66 (+2.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.89%
Inst Owner Change-0.62%
Ins Owners0.17%
Ins Owner Change4.59%
Market Cap38.99B
Analysts74.17
Price Target87.69 (7.56%)
Short Float %2.75%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend2.06
Dividend Growth(5Y)4.23%
DP54.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.05%
Min EPS beat(2)-7.55%
Max EPS beat(2)5.45%
EPS beat(4)1
Avg EPS beat(4)-1.7%
Min EPS beat(4)-7.55%
Max EPS beat(4)5.45%
EPS beat(8)4
Avg EPS beat(8)-0.51%
EPS beat(12)4
Avg EPS beat(12)-1.39%
EPS beat(16)6
Avg EPS beat(16)-0.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.4%
Revenue beat(12)2
Avg Revenue beat(12)-1.02%
Revenue beat(16)6
Avg Revenue beat(16)-0.07%
PT rev (1m)0.49%
PT rev (3m)8.06%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 17.59 | ||
| P/S | 0.48 | ||
| P/FCF | 24.31 | ||
| P/OCF | 15.53 | ||
| P/B | 21.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.5 |
EPS(TTM)4.46
EY5.47%
EPS(NY)4.64
Fwd EY5.69%
FCF(TTM)3.35
FCFY4.11%
OCF(TTM)5.25
OCFY6.44%
SpS170.16
BVpS3.83
TBVpS-9.37
PEG (NY)4.65
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 99.89% | ||
| ROCE | 18.33% | ||
| ROIC | 13.92% | ||
| ROICexc | 14.87% | ||
| ROICexgc | 24.77% | ||
| OM | 3.8% | ||
| PM (TTM) | 2.25% | ||
| GM | 18.4% | ||
| FCFM | 1.97% |
ROA(3y)7.48%
ROA(5y)6.21%
ROE(3y)97.71%
ROE(5y)85.04%
ROIC(3y)15.2%
ROIC(5y)13.35%
ROICexc(3y)16.05%
ROICexc(5y)14.47%
ROICexgc(3y)27.22%
ROICexgc(5y)24.87%
ROCE(3y)20.01%
ROCE(5y)17.58%
ROICexcg growth 3Y-1.06%
ROICexcg growth 5Y12.8%
ROICexc growth 3Y1.3%
ROICexc growth 5Y15.13%
OM growth 3Y3.54%
OM growth 5Y16.07%
PM growth 3Y4.31%
PM growth 5Y40.76%
GM growth 3Y0.82%
GM growth 5Y-0.35%
F-Score6
Asset Turnover3.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 8.3 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 95.87% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 4.91 | ||
| Cash Conversion | 62.21% | ||
| Profit Quality | 87.75% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 5.11 |
F-Score6
WACC7.49%
ROIC/WACC1.86
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)3.48%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%6.47%
EPS Next Y3.93%
EPS Next 2Y6.84%
EPS Next 3Y8.26%
EPS Next 5Y10.85%
Revenue 1Y (TTM)3.21%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%2.83%
Revenue Next Year3.95%
Revenue Next 2Y4.37%
Revenue Next 3Y4.13%
Revenue Next 5Y5.24%
EBIT growth 1Y-3.5%
EBIT growth 3Y9.59%
EBIT growth 5Y26.51%
EBIT Next Year31.25%
EBIT Next 3Y14.01%
EBIT Next 5Y12.36%
FCF growth 1Y-25.64%
FCF growth 3Y11.46%
FCF growth 5Y12.29%
OCF growth 1Y-16.03%
OCF growth 3Y11.9%
OCF growth 5Y9.17%