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, Bahamas, Mexico, Costa Rica, Panama, the United Kingdom, France, Sweden, Ireland, Belgium, Spain, and Luxembourg. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$1,848.50||$1,914.50||$1,962.00||$2,247.00||$2,352.00|
|Source||Analyst x4||Analyst x6||Analyst x3||Analyst x1||Analyst x1|
Discounted (@ 8.49%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $2,352 × (1 + 2.47%) ÷ (8.49% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$34,668 = $8,053 + $26,615
Value = Total value / Shares Outstanding ($34,668 / 522)Discount to Share Price
Value per share:
Current discount (share price of $60): 9.67%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.49% = 2.47% + (0.8 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($31,315,124,820).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.623 = 0.532 (1 + (1- 40%) (28.38%))
Levered Beta used in calculation = 0.8
Mr. Thomas L. Bene, also known as Tom, has been the President of Sysco Corporation since January 1, 2016 and its Chief Executive Officer and Director since January 1, 2018. Mr. Bené served as the President of Foodservice Operations at Sysco Corporation since January 1, 2015 until January 1, 2016 and its Executive Vice President since April 15, 2013 until January 1, 2016. Mr. Bene served as the Chief Commercial Officer of Sysco Corporation from September 1, 2013 to December 31, 2014 and its Chief Operating Officer since January 1, 2016 until December 31, 2017. He was responsible for the strategic oversight of Sysco’s entire commercial chain - merchandising, supply chain, marketing and sales - to drive profitable growth among existing and new customers. He served as Chief Merchandising Officer at Sysco Corporation from April 15, 2013 to September 1, 2013. He joined Sysco in April 2013 as Executive Vice President and Chief Merchandising Officer. He spent the previous 23 years in positions of increasing responsibility at PepsiCo, where he was President of the North American foodservice business. He served as the President of Beverages Business at Pepsi-Cola North America, subsidiary of Pepsico, Inc. since December 2009. Mr. Bene served as Senior Vice President of Sales and System Transformation for North America Operations of Pepsico Inc. since November 14, 2005. He serves as the Chairman of The American Beverage Association and served as its Vice Chairman.
Average tenure and age of the Sysco management team in years:
Average tenure and age of the Sysco board of directors in years:
Margin Calculation for SYY Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 1.19 Billion ÷ 56.05 Billion = 2.12% There has been a contraction in Sysco's margin over the past five years, as a result of a positive 5.12% average growth in revenue and decline in net income of -2.94% on average, which suggests that a smaller percentage of revenue falls to the bottom line despite the fact revenue has increased over the previous 5 years. … Understanding what could be driving Sysco's future earnings It is expected that margins will reverse its previous trend and start to expand, with annual revenue growth tipped at 3.82% and 8.53% earnings growth expected annually. … Thus, it is essential to run your own analysis on Sysco's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.Simply Wall St - – Full article
See our latest analysis for Sysco 5 questions I ask before picking a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it paying an annual yield above 75% of dividend payers? … Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. … Keeping in mind the dividend characteristics above, Sysco is definitely worth considering for investors looking to build a dedicated income portfolio.Simply Wall St - – Full article
SYY is trading at price-to-earnings (PE) ratio of 27.74x, which suggests that Sysco is overvalued based on current earnings compared to the consumer retailing industry average of 20.12x , and overvalued compared to the US market average ratio of 19.55x. … But, to be able to properly assess the value of a high-growth stock such as Sysco, we must incorporate its earnings growth in our valuation. … Sysco's PE ratio of 27.74x and estimated 25.01% growth in earnings next year give it a quite high PEG ratio of 2.95x.Simply Wall St - – Full article
In this article I am going to calculate the intrinsic value of Sysco Corporation (NYSE:SYY) by estimating the company's future cash flows and discounting them to their present value. … 5-year cash flow forecast 2017 2018 2019 2020 2021 Levered FCF (USD, Millions) $1,556.50 $1,746.50 $1,851.33 $1,986.00 $2,247.00 Source Analyst x2 Analyst x2 Analyst x3 Analyst x1 Analyst x1 Present Value Discounted @ 8.49% $1,434.64 $1,483.74 $1,449.66 $1,433.36 $1,494.77 Present Value of 5-year Cash Flow (PVCF)= $7,296 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2021 × (1 + g) ÷ (r – g) = $2,247 × (1 + 2.5%) ÷ (8.5% – 2.5%) = $38,222 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $38,222 / ( 1 + 8.5%)5 = $25,426 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $32,723.Simply Wall St - – Full article
See our latest analysis for SYY Did SYY beat its long-term earnings growth trend and its industry? … This suggests that, on average, Sysco has been able to steadily grow its earnings over the last few years as well. … Over the past couple of years, Sysco top-line expansion has overtaken earnings and the growth rate of expenses.Simply Wall St - – Full article
NYSE:SYY Historical Debt Nov 18th 17 A simple way to determine whether the company has put debt into good use is to look at its operating cash flow against its debt obligation. … SYY’s recent operating cash flow was 0.22 times its debt within the past year. … This means, over a tenth of SYY’s near term debt can be covered by its day-to-day cash income, which somewhat reduces its riskiness to its debtholders.Simply Wall St - – Full article
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, Bahamas, Mexico, Costa Rica, Panama, the United Kingdom, France, Sweden, Ireland, Belgium, Spain, and Luxembourg. It operates through three segments: U.S. Foodservice Operations, International Foodservice Operations, and SYGMA. The company distributes a line of frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of China and silverware; cookware, which include pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing homes, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues through 324 distribution facilities. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.
1390 Enclave Parkway,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||SYY||Common Stock||New York Stock Exchange||US||USD||26. Feb 1971|
|DB||SYY||Common Stock||Deutsche Boerse AG||DE||EUR||26. Feb 1971|
|LSE||0LC6||Common Stock||London Stock Exchange||GB||USD||26. Feb 1971|
|BMV||SYY *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||26. Feb 1971|
|Company Analysis updated:||2018/02/18|
|Last estimates confirmation:||2018/02/12|
|Last earnings update:||2017/12/30|
|Last annual earnings update:||2017/07/01|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.