SYSCO CORP (SYY) Stock Fundamental Analysis
NYSE:SYY - US8718291078 - Common Stock
79.42 USD
+0.09 (+0.11%)
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. 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
SYY had positive earnings in the past year.
In the past year SYY had a positive cash flow from operations.
Each year in the past 5 years SYY has been profitable.
SYY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.83%, SYY is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
SYY has a Return On Equity of 99.89%. This is amongst the best in the industry. SYY outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.92%, SYY belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SYY is significantly above the industry average of 8.14%.
| 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
The Profit Margin of SYY (2.25%) is better than 62.50% of its industry peers.
SYY's Profit Margin has improved in the last couple of years.
SYY has a Operating Margin of 3.80%. This is in the better half of the industry: SYY outperforms 72.50% of its industry peers.
SYY's Operating Margin has improved in the last couple of years.
SYY has a worse Gross Margin (18.40%) than 62.50% of its industry peers.
SYY's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, SYY has less shares outstanding
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 5.11. This indicates that SYY is financially healthy and has little risk of bankruptcy at the moment.
SYY's Altman-Z score of 5.11 is fine compared to the rest of the industry. SYY outperforms 75.00% of its industry peers.
SYY has a debt to FCF ratio of 8.30. This is a slightly negative value and a sign of low solvency as SYY would need 8.30 years to pay back of all of its debts.
The Debt to FCF ratio of SYY (8.30) is comparable to the rest of the industry.
SYY has a Debt/Equity ratio of 6.75. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.75, SYY is doing worse than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 8.3 | ||
| Altman-Z | 5.11 |
ROIC/WACC1.83
WACC7.62%
2.3 Liquidity
SYY has a Current Ratio of 1.21. 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 Current ratio value of 1.21, SYY perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that SYY may have some problems paying its short term obligations.
With a Quick ratio value of 0.70, SYY perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.48%.
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 3Y7.17%
EPS Next 5Y10.85%
Revenue Next Year3.99%
Revenue Next 2Y4.41%
Revenue Next 3Y4.12%
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.
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
A Price/Earnings ratio of 17.81 indicates a rather expensive valuation of SYY.
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.
The average S&P500 Price/Earnings ratio is at 27.03. SYY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.13, which indicates a rather expensive current valuation of SYY.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than 72.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, SYY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 17.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SYY.
SYY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.64 | ||
| EV/EBITDA | 12.42 |
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.
The decent profitability rating of SYY may justify a higher PE ratio.
PEG (NY)4.53
PEG (5Y)1.02
EPS Next 2Y6.84%
EPS Next 3Y7.17%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.93, SYY pays a better dividend. On top of this SYY pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SYY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
SYY pays out 54.70% 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.
DP54.7%
EPS Next 2Y6.84%
EPS Next 3Y7.17%
NYSE:SYY (8/26/2025, 12:05:09 PM)
79.42
+0.09 (+0.11%)
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 Change1.53%
Market Cap37.92B
Analysts74.17
Price Target87.69 (10.41%)
Short Float %2.9%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)7.54%
PT rev (3m)7.94%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)-4.56%
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 17.13 | ||
| P/S | 0.47 | ||
| P/FCF | 23.64 | ||
| P/OCF | 15.11 | ||
| P/B | 20.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.42 |
EPS(TTM)4.46
EY5.62%
EPS(NY)4.64
Fwd EY5.84%
FCF(TTM)3.36
FCFY4.23%
OCF(TTM)5.26
OCFY6.62%
SpS170.41
BVpS3.83
TBVpS-9.38
PEG (NY)4.53
PEG (5Y)1.02
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
WACC7.62%
ROIC/WACC1.83
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 3Y7.17%
EPS Next 5Y10.85%
Revenue 1Y (TTM)3.21%
Revenue growth 3Y5.84%
Revenue growth 5Y9%
Sales Q2Q%2.83%
Revenue Next Year3.99%
Revenue Next 2Y4.41%
Revenue Next 3Y4.12%
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%