NYSE:SYY

Stock Analysis Report

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Executive Summary

Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. More Details


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Sysco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SYY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

SYY

-0.9%

US Consumer Retailing

-0.8%

US Market


1 Year Return

-17.6%

SYY

16.2%

US Consumer Retailing

18.0%

US Market

Return vs Industry: SYY underperformed the US Consumer Retailing industry which returned 16.9% over the past year.

Return vs Market: SYY underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

SYYIndustryMarket
7 Day-0.9%-0.9%-0.8%
30 Day7.8%5.2%6.8%
90 Day18.7%8.8%8.9%
1 Year-15.0%-17.6%18.1%16.2%20.7%18.0%
3 Year28.4%19.0%65.1%55.9%41.5%32.1%
5 Year79.8%58.1%98.5%78.5%84.6%63.8%

Price Volatility Vs. Market

How volatile is Sysco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sysco undervalued compared to its fair value and its price relative to the market?

12.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYY ($65.21) is trading below our estimate of fair value ($74.18)

Significantly Below Fair Value: SYY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SYY is poor value based on its PE Ratio (154.4x) compared to the US Consumer Retailing industry average (15.6x).

PE vs Market: SYY is poor value based on its PE Ratio (154.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SYY is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: SYY is overvalued based on its PB Ratio (28.6x) compared to the US Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Sysco forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYY's forecast earnings growth (31% per year) is above the savings rate (2.2%).

Earnings vs Market: SYY's earnings (31% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SYY's revenue (6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: SYY's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SYY's Return on Equity is forecast to be very high in 3 years time (127.2%).


Next Steps

Past Performance

How has Sysco performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYY has a large one-off loss of $944.7M impacting its June 27 2020 financial results.

Growing Profit Margin: SYY's current net profit margins (0.4%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: SYY's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: SYY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SYY had negative earnings growth (-87.1%) over the past year, making it difficult to compare to the Consumer Retailing industry average (46.1%).


Return on Equity

High ROE: SYY's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is Sysco's financial position?


Financial Position Analysis

Short Term Liabilities: SYY's short term assets ($12.3B) exceed its short term liabilities ($6.7B).

Long Term Liabilities: SYY's short term assets ($12.3B) do not cover its long term liabilities ($14.7B).


Debt to Equity History and Analysis

Debt Level: SYY's debt to equity ratio (1202.5%) is considered high.

Reducing Debt: SYY's debt to equity ratio has increased from 136.3% to 1202.5% over the past 5 years.

Debt Coverage: SYY's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: SYY's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

What is Sysco current dividend yield, its reliability and sustainability?

2.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYY's dividend (2.76%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: SYY's dividend (2.76%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

Stable Dividend: SYY's dividends per share have been stable in the past 10 years.

Growing Dividend: SYY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (411.9%), SYY's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SYY's dividends in 3 years are forecast to be covered by earnings (57.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Kevin Hourican (47 yo)

0.67

Tenure

US$25,872,425

Compensation

Mr. Kevin P. Hourican has been President and Chief Executive Officer at Sysco Corporation since February 1, 2020 and serves as its Director. Mr. Hourican served as Executive Vice President at CVS Health Co ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD25.87M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Insufficient data to compare Kevin's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Shirley
Interim Executive Chairman0.75yrUS$2.34m0.0028%
$ 929.5k
Kevin Hourican
President0.67yrUS$25.87mno data
Joel Grade
Executive VP & CFO5.08yrsUS$3.42m0.012%
$ 3.8m
Michael Foster
Executive VP0.83yrUS$7.09mno data
Greg Bertrand
Executive Vice President of U.S. Foodservice Operations8.25yrsUS$3.59m0.0065%
$ 2.2m
Marie Robinson
Chief Supply Chain Officer & Executive VP0.58yrUS$3.49mno data
Anita Zielinski
Senior VP & Chief Accounting Officer3.5yrsno data0.00018%
$ 59.8k
Camilla Zuckero
Senior Director of Investor Relationsno datano datano data
Eve Mcfadden
Senior VP of Legal1.75yrsno data0.0013%
$ 441.5k
Jose Colondres
Vice President of Compliance4.83yrsno datano data
Neil Russell
Vice President Corporate Affairsno datano datano data
Brian Todd
Senior Vice President of Merchandising & Marketingno datano data0.0043%
$ 1.4m

1.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: SYY's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Edward Shirley
Interim Executive Chairman0.75yrUS$2.34m0.0028%
$ 929.5k
Kevin Hourican
President0.67yrUS$25.87mno data
Larry Glasscock
Independent Director10.08yrsUS$305.01k0.014%
$ 4.5m
Nelson Peltz
Independent Director5.17yrsUS$285.01k0.00045%
$ 149.4k
John Cassaday
Independent Director15.92yrsUS$305.01k0.011%
$ 3.5m
Sheila Talton
Independent Director3.08yrsUS$285.01k0.00014%
$ 46.5k
Hans-Joachim Koerber
Independent Director12.75yrsUS$285.01k0.011%
$ 3.6m
Daniel Brutto
Independent Director4.08yrsUS$300.01k0.0037%
$ 1.2m
Bradley Halverson
Lead Independent Director0.75yrUS$335.01k0.0030%
$ 986.0k
Nancy Newcomb
Independent Director14.67yrsUS$285.01k0.012%
$ 4.0m
John Hinshaw
Independent Director2.5yrsUS$285.01k0.000040%
$ 13.3k
Joshua Frank
Independent Director5.17yrsUS$285.01k0.00045%
$ 149.4k

4.6yrs

Average Tenure

65yo

Average Age

Experienced Board: SYY's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SYY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sysco Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sysco Corporation
  • Ticker: SYY
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: US$33.198b
  • Shares outstanding: 509.09m
  • Website: https://www.sysco.com

Number of Employees


Location

  • Sysco Corporation
  • 1390 Enclave Parkway
  • Houston
  • Texas
  • 77077-2099
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYYNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1971
SYYDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1971
SYY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1971
0LC6LSE (London Stock Exchange)YesCommon StockGBUSDFeb 1971
SYYETLX (Eurotlx)YesCommon StockITEURFeb 1971
SYYBASE (Buenos Aires Stock Exchange)CEDEAR EACH 2 REP 1 ORD USD1ARARSJun 2009
S1YY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLJan 2020

Biography

Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry in the United States, Canada, the Unit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:47
End of Day Share Price2020/10/22 00:00
Earnings2020/06/27
Annual Earnings2020/06/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.