SYSCO CORP (SYY) Stock Fundamental Analysis
USA - NYSE:SYY - US8718291078 - Common Stock
78.76 USD
-1.19 (-1.49%)
We assign a fundamental rating of 5 out of 10 to SYY. SYY was compared to 39 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 correct valuation and a medium growth rate.
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.
In the past 5 years SYY has always been profitable.
In the past 5 years SYY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SYY (6.83%) is better than 74.36% of its industry peers.
With an excellent Return On Equity value of 99.89%, SYY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.59%, SYY belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SYY is significantly above the industry average of 8.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 99.89% | ||
| ROIC | 15.59% |
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
With a decent Profit Margin value of 2.25%, SYY is doing good in the industry, outperforming 61.54% of the companies in the same industry.
SYY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.25%, SYY is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
SYY's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 18.40%, SYY is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
SYY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.25% | ||
| PM (TTM) | 2.25% | ||
| GM | 18.4% |
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.
Compared to 1 year ago, SYY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.16 indicates that SYY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.16, SYY is doing good in the industry, outperforming 74.36% of the companies in the same industry.
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.
A Debt/Equity ratio of 6.75 is on the high side and indicates that SYY has dependencies on debt 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 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 8.3 | ||
| Altman-Z | 5.16 |
ROIC/WACC2.06
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.21 indicates that SYY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, SYY perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
SYY has a Quick Ratio of 1.21. This is a bad value and indicates that SYY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.70, SYY is in line with its industry, outperforming 56.41% 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%.
The Earnings Per Share has been growing by 17.52% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.21% in the past year.
The Revenue has been growing by 9.00% on average over the past years. This is quite good.
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
Based on estimates for the next years, SYY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.97% on average per year.
SYY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.36% yearly.
EPS Next Y3.9%
EPS Next 2Y6.99%
EPS Next 3Y7.86%
EPS Next 5Y10.97%
Revenue Next Year3.95%
Revenue Next 2Y4.37%
Revenue Next 3Y4.15%
Revenue Next 5Y4.36%
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
With a Price/Earnings ratio of 17.66, SYY is valued on the expensive side.
SYY's Price/Earnings ratio is a bit cheaper when compared to the industry. SYY is cheaper than 66.67% of the companies in the same industry.
SYY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.00, SYY is valued correctly.
64.10% of the companies in the same industry are more expensive than SYY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SYY to the average of the S&P500 Index (23.21), we can say SYY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 17 |
4.2 Price Multiples
SYY's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 23.48 | ||
| EV/EBITDA | 11.46 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.52
PEG (5Y)1.01
EPS Next 2Y6.99%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
SYY has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.96, SYY pays a better dividend. On top of this SYY pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SYY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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.
SYY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.7%
EPS Next 2Y6.99%
EPS Next 3Y7.86%
NYSE:SYY (10/8/2025, 3:51:10 PM)
78.76
-1.19 (-1.49%)
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-0.02%
Ins Owners0.19%
Ins Owner Change4.37%
Market Cap37.66B
Analysts74.17
Price Target87.69 (11.34%)
Short Float %2.75%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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%
PT rev (3m)8.06%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 17 | ||
| P/S | 0.46 | ||
| P/FCF | 23.48 | ||
| P/OCF | 15.01 | ||
| P/B | 20.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.46 |
EPS(TTM)4.46
EY5.66%
EPS(NY)4.63
Fwd EY5.88%
FCF(TTM)3.35
FCFY4.26%
OCF(TTM)5.25
OCFY6.66%
SpS170.16
BVpS3.83
TBVpS-9.37
PEG (NY)4.52
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 99.89% | ||
| ROCE | 20.52% | ||
| ROIC | 15.59% | ||
| ROICexc | 16.64% | ||
| ROICexgc | 27.73% | ||
| OM | 4.25% | ||
| 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)15.85%
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%
ROICexcg growth 3Y3.38%
ROICexcg 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-Score6
Asset Turnover3.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 8.3 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 95.87% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 5.5 | ||
| Cash Conversion | 56.99% | ||
| Profit Quality | 87.75% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 5.16 |
F-Score6
WACC7.57%
ROIC/WACC2.06
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 Y3.9%
EPS Next 2Y6.99%
EPS Next 3Y7.86%
EPS Next 5Y10.97%
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 3Y4.15%
Revenue Next 5Y4.36%
EBIT growth 1Y8.03%
EBIT growth 3Y14.51%
EBIT growth 5Y29.89%
EBIT Next Year31.02%
EBIT Next 3Y13.62%
EBIT Next 5Y9.76%
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%