SYSCO CORP (SYY)
US8718291078 - Common Stock
We assign a fundamental rating of 6 out of 10 to SYY. SYY was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. SYY has an excellent profitability rating, but 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.
Each year in the past 5 years SYY has been profitable.
Each year in the past 5 years SYY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SYY (8.42%) is better than 95.12% of its industry peers.
With an excellent Return On Equity value of 86.60%, SYY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SYY has a Return On Invested Capital of 14.91%. This is amongst the best in the industry. SYY outperforms 95.12% of its industry peers.
SYY had an Average Return On Invested Capital over the past 3 years of 12.71%. This is above the industry average of 9.90%.
The last Return On Invested Capital (14.91%) for SYY is above the 3 year average (12.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 86.6% | ||
| ROIC | 14.91% |
ROA(3y)5.45%
ROA(5y)5.32%
ROE(3y)73.39%
ROE(5y)61.12%
ROIC(3y)12.71%
ROIC(5y)11.61%
1.3 Margins
Looking at the Profit Margin, with a value of 2.69%, SYY belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
In the last couple of years the Profit Margin of SYY has remained more or less at the same level.
SYY's Operating Margin of 4.09% is fine compared to the rest of the industry. SYY outperforms 75.61% of its industry peers.
SYY's Operating Margin has been stable in the last couple of years.
SYY has a Gross Margin of 18.42%. This is in the lower half of the industry: SYY underperforms 63.41% 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 | 4.09% | ||
| PM (TTM) | 2.69% | ||
| GM | 18.42% |
OM growth 3Y30.25%
OM growth 5Y0.08%
PM growth 3Y78.69%
PM growth 5Y-0.98%
GM growth 3Y-0.78%
GM growth 5Y-0.64%
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.
The number of shares outstanding for SYY has been reduced compared to 1 year ago.
Compared to 5 years ago, SYY has less shares outstanding
The debt/assets ratio for SYY has been reduced compared to a year ago.
2.2 Solvency
SYY has an Altman-Z score of 5.38. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.38, SYY belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
SYY has a debt to FCF ratio of 5.07. This is a neutral value as SYY would need 5.07 years to pay back of all of its debts.
SYY has a better Debt to FCF ratio (5.07) than 60.98% of its industry peers.
A Debt/Equity ratio of 5.00 is on the high side and indicates that SYY has dependencies on debt financing.
SYY has a worse Debt to Equity ratio (5.00) than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 5.38 |
ROIC/WACC1.85
WACC8.04%
2.3 Liquidity
SYY has a Current Ratio of 1.37. This is a normal value and indicates that SYY is financially healthy and should not expect problems in meeting its short term obligations.
SYY has a better Current ratio (1.37) than 68.29% of its industry peers.
A Quick Ratio of 0.80 indicates that SYY may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.80, SYY is doing good in the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.70% over the past year.
Measured over the past 5 years, SYY shows a small growth in Earnings Per Share. The EPS has been growing by 5.90% on average per year.
Looking at the last year, SYY shows a small growth in Revenue. The Revenue has grown by 5.34% in the last year.
SYY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.38% yearly.
EPS 1Y (TTM)15.7%
EPS 3Y26.31%
EPS 5Y5.9%
EPS growth Q2Q11.25%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y13%
Revenue growth 5Y5.38%
Revenue growth Q2Q3.73%
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 9.02% on average per year.
Based on estimates for the next years, SYY will show a small growth in Revenue. The Revenue will grow by 4.30% on average per year.
EPS Next Y8.78%
EPS Next 2Y9.37%
EPS Next 3Y9.36%
EPS Next 5Y9.02%
Revenue Next Year3.68%
Revenue Next 2Y4.13%
Revenue Next 3Y4.13%
Revenue Next 5Y4.3%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.01, the valuation of SYY can be described as rather expensive.
Based on the Price/Earnings ratio, SYY is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
SYY is valuated rather cheaply when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
SYY is valuated correctly with a Price/Forward Earnings ratio of 15.77.
SYY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYY is cheaper than 78.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SYY to the average of the S&P500 Index (21.27), we can say SYY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
SYY's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SYY is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.76 | ||
| EV/EBITDA | 12.23 |
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 excellent profitability rating of SYY may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)3.05
EPS Next 2Y9.37%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.61%.
Compared to an average industry Dividend Yield of 3.02, SYY pays a better dividend. On top of this SYY pays more dividend than 85.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SYY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
On average, the dividend of SYY grows each year by 7.41%, which is quite nice.
SYY has been paying a dividend for at least 10 years, so it has a reliable track record.
SYY has decreased its dividend recently.
Dividend Growth(5Y)7.41%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SYY pays out 48.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
SYY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.19%
EPS Next 2Y9.37%
EPS Next 3Y9.36%
SYSCO CORP
NYSE:SYY (4/18/2024, 7:22:27 PM)
After market: 75.64 0 (0%)75.64
+0.2 (+0.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 15.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.05
PEG (5Y)3.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 86.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.09% | ||
| PM (TTM) | 2.69% | ||
| GM | 18.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.7%
EPS 3Y26.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.34%
Revenue growth 3Y13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y