SYSCO CORP (SYY) Stock Fundamental Analysis
USA - NYSE:SYY - US8718291078 - Common Stock
75.49 USD
+0.91 (+1.22%)
75.49 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.
Each year in the past 5 years SYY has been profitable.
In the past 5 years SYY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.71%, SYY is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
SYY's Return On Equity of 87.76% is amongst the best of the industry. SYY outperforms 100.00% of its industry peers.
SYY has a Return On Invested Capital of 16.61%. This is amongst the best in the industry. SYY outperforms 97.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SYY is significantly above the industry average of 8.72%.
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
Looking at the Profit Margin, with a value of 2.21%, SYY is in the better half of the industry, outperforming 64.10% of the companies in the same industry.
In the last couple of years the Profit Margin of SYY has grown nicely.
With a decent Operating Margin value of 4.33%, SYY is doing good in the industry, outperforming 79.49% of the companies in the same industry.
In the last couple of years the Operating Margin of SYY has grown nicely.
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
SYY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SYY has less shares outstanding
SYY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SYY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.08 indicates that SYY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.08, SYY is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 8.35, SYY perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
A Debt/Equity ratio of 5.54 is on the high side and indicates that SYY has dependencies on debt financing.
With a Debt to Equity ratio value of 5.54, SYY is not doing good in the industry: 89.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.54 | ||
| Debt/FCF | 8.35 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.22
WACC7.47%
2.3 Liquidity
SYY has a Current Ratio of 1.15. 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 Current ratio (1.15) which is comparable to the rest of the industry.
A Quick Ratio of 0.65 indicates that SYY may have some problems paying 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
SYY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.39%.
SYY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.52% yearly.
The Revenue has been growing slightly by 2.92% in the past 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.
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
A Price/Earnings ratio of 16.70 indicates a correct valuation of SYY.
Based on the Price/Earnings ratio, SYY is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SYY to the average of the S&P500 Index (26.35), we can say SYY is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.80, the valuation of SYY can be described as correct.
Based on the Price/Forward Earnings ratio, SYY is valued a bit cheaper than 66.67% of the companies in the same industry.
SYY is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SYY is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.59 | ||
| EV/EBITDA | 10.73 |
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 excellent profitability rating of SYY may justify a higher PE ratio.
PEG (NY)4.18
PEG (5Y)0.95
EPS Next 2Y6.94%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.96%.
SYY's Dividend Yield is rather good when compared to the industry average which is at 2.02. SYY pays more dividend than 92.31% of the companies in the same industry.
SYY's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of SYY has a limited annual growth rate of 4.24%.
SYY has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SYY decreased in the last 3 years.
Dividend Growth(5Y)4.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SYY pays out 55.57% 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.
DP55.57%
EPS Next 2Y6.94%
EPS Next 3Y7.86%
75.49
+0.91 (+1.22%)
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-1.23%
Ins Owners0.19%
Ins Owner Change4.38%
Market Cap36.12B
Revenue(TTM)82.03B
Net Income(TTM)1.81B
Analysts73.6
Price Target89.42 (18.45%)
Short Float %2.26%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend2.06
Dividend Growth(5Y)4.24%
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)-0.07%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-1.82%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 14.8 | ||
| P/S | 0.44 | ||
| P/FCF | 22.59 | ||
| P/OCF | 14.2 | ||
| P/B | 17.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.73 |
EPS(TTM)4.52
EY5.99%
EPS(NY)5.1
Fwd EY6.76%
FCF(TTM)3.34
FCFY4.43%
OCF(TTM)5.31
OCFY7.04%
SpS171.44
BVpS4.32
TBVpS-8.71
PEG (NY)4.18
PEG (5Y)0.95
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 16.7 and the Price/Book (PB) ratio is 17.48.
Can you provide the financial health for SYY stock?
The financial health rating of SYSCO CORP (SYY) is 4 / 10.