SYSCO CORP (SYY) Stock Fundamental Analysis
USA - NYSE:SYY - US8718291078 - Common Stock
74.71 USD
-0.36 (-0.48%)
74.71 USD
0 (0%)
Taking everything into account, SYY scores 6 out of 10 in our fundamental rating. SYY was compared to 39 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SYY had positive earnings in the past year.
SYY had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 6.71%, SYY is doing good in the industry, outperforming 74.36% of the companies in the same industry.
SYY has a better Return On Equity (87.76%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 16.61%, SYY belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
SYY had an Average Return On Invested Capital over the past 3 years of 15.85%. This is significantly above the industry average of 8.72%.
The 3 year average ROIC (15.85%) for SYY is below the current ROIC(16.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 87.76% | ||
| ROIC | 16.61% |
ROA(3y)7.48%
ROA(5y)6.21%
ROE(3y)97.71%
ROE(5y)85.04%
ROIC(3y)15.85%
ROIC(5y)13.74%
1.3 Margins
SYY's Profit Margin of 2.21% is fine compared to the rest of the industry. SYY outperforms 64.10% of its industry peers.
SYY's Profit Margin has improved in the last couple of years.
The Operating Margin of SYY (4.33%) is better than 79.49% of its industry peers.
SYY's Operating Margin has improved in the last couple of years.
The Gross Margin of SYY (18.43%) is worse than 66.67% 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 | 4.33% | ||
| PM (TTM) | 2.21% | ||
| GM | 18.43% |
OM growth 3Y8.19%
OM growth 5Y19.17%
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.
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
Compared to 1 year ago, SYY has a worse debt to assets ratio.
2.2 Solvency
SYY has an Altman-Z score of 5.08. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
SYY has a better Altman-Z score (5.08) than 76.92% of its industry peers.
SYY has a debt to FCF ratio of 8.35. This is a slightly negative value and a sign of low solvency as SYY would need 8.35 years to pay back of all of its debts.
The Debt to FCF ratio of SYY (8.35) is comparable to the rest of the industry.
SYY has a Debt/Equity ratio of 5.54. This is a high value indicating a heavy dependency on external financing.
SYY has a Debt to Equity ratio of 5.54. This is amonst the worse of the industry: SYY underperforms 89.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 8.35 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.22
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.15 indicates that SYY should not have too much problems paying its short term obligations.
The Current ratio of SYY (1.15) is comparable to the rest of the industry.
SYY has a Quick Ratio of 1.15. This is a bad value and indicates that SYY is not financially healthy enough and could expect problems in meeting its short term obligations.
SYY has a Quick ratio of 0.65. This is comparable to the rest of the industry: SYY outperforms 58.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.39% 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.
Looking at the last year, SYY shows a small growth in Revenue. The Revenue has grown by 2.92% in the last year.
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)4.39%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%5.5%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%3.24%
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 11.09% on average per year.
SYY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y4%
EPS Next 2Y6.94%
EPS Next 3Y7.86%
EPS Next 5Y11.09%
Revenue Next Year3.88%
Revenue Next 2Y4.36%
Revenue Next 3Y4.1%
Revenue Next 5Y4.22%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
The Price/Earnings ratio is 16.53, which indicates a correct valuation of SYY.
Based on the Price/Earnings ratio, SYY is valued a bit cheaper than 71.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, SYY is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.65, which indicates a correct valuation of SYY.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
SYY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
SYY's Enterprise Value to EBITDA ratio is in line with the industry average.
SYY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.36 | ||
| EV/EBITDA | 10.74 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.13
PEG (5Y)0.94
EPS Next 2Y6.94%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.88%.
SYY's Dividend Yield is rather good when compared to the industry average which is at 1.98. SYY pays more dividend than 92.31% of the companies in the same industry.
SYY's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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
55.57% of the earnings are spent on dividend by SYY. 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.
DP55.57%
EPS Next 2Y6.94%
EPS Next 3Y7.86%
74.71
-0.36 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.33%
Inst Owner Change-0.57%
Ins Owners0.19%
Ins Owner Change8.62%
Market Cap35.75B
Revenue(TTM)82.03B
Net Income(TTM)1.81B
Analysts73.6
Price Target89.42 (19.69%)
Short Float %2.26%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend2.06
Dividend Growth(5Y)4.23%
DP55.57%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.46%
Min EPS beat(2)1.47%
Max EPS beat(2)5.45%
EPS beat(4)2
Avg EPS beat(4)-0.28%
Min EPS beat(4)-7.55%
Max EPS beat(4)5.45%
EPS beat(8)4
Avg EPS beat(8)-0.58%
EPS beat(12)5
Avg EPS beat(12)-0.98%
EPS beat(16)7
Avg EPS beat(16)-0.39%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-0.48%
Revenue beat(8)0
Avg Revenue beat(8)-1.29%
Revenue beat(12)1
Avg Revenue beat(12)-1.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.28%
PT rev (1m)1.97%
PT rev (3m)2.46%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-1.82%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 14.65 | ||
| P/S | 0.44 | ||
| P/FCF | 22.36 | ||
| P/OCF | 14.06 | ||
| P/B | 17.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.74 |
EPS(TTM)4.52
EY6.05%
EPS(NY)5.1
Fwd EY6.83%
FCF(TTM)3.34
FCFY4.47%
OCF(TTM)5.31
OCFY7.11%
SpS171.44
BVpS4.32
TBVpS-8.71
PEG (NY)4.13
PEG (5Y)0.94
Graham Number20.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 87.76% | ||
| ROCE | 21.86% | ||
| ROIC | 16.61% | ||
| ROICexc | 17.52% | ||
| ROICexgc | 29.44% | ||
| OM | 4.33% | ||
| PM (TTM) | 2.21% | ||
| GM | 18.43% | ||
| FCFM | 1.95% |
ROA(3y)7.48%
ROA(5y)6.21%
ROE(3y)97.71%
ROE(5y)85.04%
ROIC(3y)15.85%
ROIC(5y)13.74%
ROICexc(3y)16.75%
ROICexc(5y)14.89%
ROICexgc(3y)28.38%
ROICexgc(5y)25.57%
ROCE(3y)20.87%
ROCE(5y)18.09%
ROICexgc growth 3Y3.38%
ROICexgc growth 5Y15.81%
ROICexc growth 3Y5.84%
ROICexc growth 5Y18.2%
OM growth 3Y8.19%
OM growth 5Y19.17%
PM growth 3Y4.31%
PM growth 5Y40.76%
GM growth 3Y0.82%
GM growth 5Y-0.35%
F-Score5
Asset Turnover3.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 8.35 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 100.11% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 5.35 | ||
| Cash Conversion | 56.61% | ||
| Profit Quality | 88.15% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 5.08 |
F-Score5
WACC7.47%
ROIC/WACC2.22
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)4.39%
EPS 3Y11.01%
EPS 5Y17.52%
EPS Q2Q%5.5%
EPS Next Y4%
EPS Next 2Y6.94%
EPS Next 3Y7.86%
EPS Next 5Y11.09%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%3.24%
Revenue Next Year3.88%
Revenue Next 2Y4.36%
Revenue Next 3Y4.1%
Revenue Next 5Y4.22%
EBIT growth 1Y8.49%
EBIT growth 3Y14.51%
EBIT growth 5Y29.89%
EBIT Next Year31.02%
EBIT Next 3Y13.47%
EBIT Next 5Y9.79%
FCF growth 1Y-20%
FCF growth 3Y11.46%
FCF growth 5Y12.29%
OCF growth 1Y-9.05%
OCF growth 3Y11.9%
OCF growth 5Y9.17%
SYSCO CORP / SYY FAQ
What is the ChartMill fundamental rating of SYSCO CORP (SYY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SYY.
Can you provide the valuation status for SYSCO CORP?
ChartMill assigns a valuation rating of 5 / 10 to SYSCO CORP (SYY). This can be considered as Fairly Valued.
What is the profitability of SYY stock?
SYSCO CORP (SYY) has a profitability rating of 8 / 10.
What is the valuation of SYSCO CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SYSCO CORP (SYY) is 16.53 and the Price/Book (PB) ratio is 17.3.
Can you provide the financial health for SYY stock?
The financial health rating of SYSCO CORP (SYY) is 4 / 10.