Sysco
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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. The last earnings update was 17 days ago. More info.
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SYY Share Price and Events
7 Day Returns
1 Year Returns
SYY Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Sysco (SYY) | 0.2% | 7.1% | 11.5% | 15.4% | 54.2% | 100% |
| US Consumer Retailing | -0.1% | -0.7% | 0.4% | 14.5% | 24.4% | 30.5% |
| US Market | -2.1% | -4.2% | 0% | 1.3% | 33.5% | 38% |
1 Year Return vs Industry and Market
- SYY outperformed the Market in United States of America which returned 1.3% over the past year.
Value
Is Sysco undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Sysco
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Sysco.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 12 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Consumer Retailing Unlevered Beta | Simply Wall St/ S&P Global | 0.47 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.469 (1 + (1- 21%) (22.55%)) |
0.7 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%) |
7.5% |
Discounted Cash Flow Calculation for NYSE:SYY using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Sysco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 7.5%) |
|
|---|---|---|---|
| 2019 | 1,945.40 | Analyst x6 | 1,809.71 |
| 2020 | 2,097.35 | Analyst x6 | 1,814.97 |
| 2021 | 2,104.00 | Analyst x2 | 1,693.73 |
| 2022 | 2,125.90 | Est @ 1.04% | 1,591.99 |
| 2023 | 2,158.80 | Est @ 1.55% | 1,503.87 |
| 2024 | 2,199.86 | Est @ 1.9% | 1,425.58 |
| 2025 | 2,247.17 | Est @ 2.15% | 1,354.67 |
| 2026 | 2,299.41 | Est @ 2.32% | 1,289.47 |
| 2027 | 2,355.65 | Est @ 2.45% | 1,228.87 |
| 2028 | 2,415.28 | Est @ 2.53% | 1,172.10 |
| Present value of next 10 years cash flows | $14,884.97 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,415.28 × (1 + 2.73%) ÷ (7.5% – 2.73%) |
$52,038.91 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $52,038.91 ÷ (1 + 7.5%)10 |
$25,253.66 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $14,884.97 + $25,253.66 |
$40,138.63 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $40,138.63 / 513.98 |
$78.09 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $78.09 |
| Current discount | Discount to share price of
$75.05
= -1 x ($75.05 - $78.09) / $78.09 |
3.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Sysco's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Sysco's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Sysco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Sysco's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-30) in USD | $3.06 |
| NYSE:SYY Share Price ** | NYSE (2019-05-24) in USD | $75.05 |
| United States of America Consumer Retailing Industry PE Ratio | Median Figure of 22 Publicly-Listed Consumer Retailing Companies | 21.1x |
| United States of America Market PE Ratio | Median Figure of 3,082 Publicly-Listed Companies | 17.36x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Sysco.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:SYY Share Price ÷ EPS (both in USD) = 75.05 ÷ 3.06 |
24.52x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Sysco is overvalued based on earnings compared to the US Consumer Retailing industry average.
- Sysco is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Sysco's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 24.52x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts |
8.3%per year |
| United States of America Consumer Retailing Industry PEG Ratio | Median Figure of 14 Publicly-Listed Consumer Retailing Companies | 2.85x |
| United States of America Market PEG Ratio | Median Figure of 2,120 Publicly-Listed Companies | 1.5x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 24.52x ÷ 8.3% |
2.95x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Sysco is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Sysco's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-30) in USD | $4.60 |
| NYSE:SYY Share Price * | NYSE (2019-05-24) in USD | $75.05 |
| United States of America Consumer Retailing Industry PB Ratio | Median Figure of 30 Publicly-Listed Consumer Retailing Companies | 2.24x |
| United States of America Market PB Ratio | Median Figure of 5,207 Publicly-Listed Companies | 1.8x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:SYY Share Price ÷ Book Value per Share (both in USD) = 75.05 ÷ 4.60 |
16.33x |
* Primary Listing of Sysco.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Sysco is overvalued based on assets compared to the US Consumer Retailing industry average.
Value checks
We assess Sysco's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check) Sysco has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Sysco expected to perform in the next 1 to 3 years based on estimates from 12 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Sysco's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Sysco's earnings growth is positive but not above the United States of America market average.
- Sysco's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:SYY Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts | 8.3% |
| NYSE:SYY Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts | 3.5% |
| United States of America Consumer Retailing Industry Earnings Growth Rate | Market Cap Weighted Average | 5.5% |
| United States of America Consumer Retailing Industry Revenue Growth Rate | Market Cap Weighted Average | 3.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.7% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 69,580 | 3,184 | 2,261 | 1 |
| 2022-06-30 | 67,065 | 3,137 | 2,154 | 1 |
| 2021-06-30 | 64,852 | 2,951 | 2,098 | 5 |
| 2020-06-30 | 62,339 | 2,715 | 1,905 | 12 |
| 2019-06-30 | 60,376 | 2,462 | 1,696 | 12 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-30 | 59,955 | 2,403 | 1,587 |
| 2018-12-29 | 59,646 | 2,143 | 1,477 |
| 2018-09-29 | 59,292 | 2,347 | 1,494 |
| 2018-06-30 | 58,727 | 2,159 | 1,431 |
| 2018-03-31 | 57,832 | 2,278 | 1,287 |
| 2017-12-30 | 57,007 | 2,533 | 1,195 |
| 2017-09-30 | 56,053 | 2,068 | 1,186 |
| 2017-07-01 | 55,371 | 2,239 | 1,143 |
| 2017-04-01 | 54,598 | 2,027 | 1,053 |
| 2016-12-31 | 53,077 | 2,104 | 1,032 |
| 2016-10-01 | 51,773 | 2,449 | 1,029 |
| 2016-07-02 | 50,367 | 1,988 | 950 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
All data from Sysco Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 4.60 | 4.60 | 4.60 | 1.00 |
| 2022-06-30 | 4.32 | 4.32 | 4.32 | 1.00 |
| 2021-06-30 | 4.11 | 4.17 | 4.08 | 3.00 |
| 2020-06-30 | 3.72 | 3.78 | 3.55 | 6.00 |
| 2019-06-30 | 3.25 | 3.42 | 3.15 | 5.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-30 | 3.06 |
| 2018-12-29 | 2.84 |
| 2018-09-29 | 2.87 |
| 2018-06-30 | 2.74 |
| 2018-03-31 | 2.45 |
| 2017-12-30 | 2.25 |
| 2017-09-30 | 2.21 |
| 2017-07-01 | 2.10 |
| 2017-04-01 | 1.91 |
| 2016-12-31 | 1.85 |
| 2016-10-01 | 1.83 |
| 2016-07-02 | 1.66 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Sysco's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Sysco has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Sysco performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Sysco's year on year earnings growth rate has been positive over the past 5 years.
- Sysco's 1-year earnings growth exceeds its 5-year average (23.4% vs 13.9%)
- Sysco's earnings growth has exceeded the US Consumer Retailing industry average in the past year (23.4% vs -5%).
Earnings and Revenue History
All data from Sysco Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-30 | 59,954.97 | 1,587.43 | 8,706.26 | |
| 2018-12-29 | 59,646.40 | 1,477.44 | 8,719.41 | |
| 2018-09-29 | 59,292.18 | 1,494.17 | 8,675.02 | |
| 2018-06-30 | 58,727.32 | 1,430.77 | 8,590.75 | |
| 2018-03-31 | 57,832.46 | 1,287.01 | 8,637.25 | |
| 2017-12-30 | 57,007.13 | 1,195.20 | 8,513.99 | |
| 2017-09-30 | 56,052.91 | 1,186.26 | 8,393.66 | |
| 2017-07-01 | 55,371.14 | 1,142.50 | 8,318.57 | |
| 2017-04-01 | 54,597.99 | 1,053.00 | 8,044.50 | |
| 2016-12-31 | 53,076.60 | 1,031.86 | 7,696.84 | |
| 2016-10-01 | 51,772.96 | 1,029.09 | 7,384.30 | |
| 2016-07-02 | 50,366.92 | 949.62 | 7,031.22 | |
| 2016-03-26 | 49,120.97 | 806.98 | 6,867.56 | |
| 2015-12-26 | 48,864.83 | 766.80 | 6,842.60 | |
| 2015-09-26 | 48,798.28 | 652.38 | 6,811.53 | |
| 2015-06-27 | 48,680.75 | 686.77 | 6,759.69 | |
| 2015-03-28 | 48,565.81 | 867.92 | 6,674.64 | |
| 2014-12-27 | 48,096.63 | 871.90 | 6,621.59 | |
| 2014-09-27 | 47,247.53 | 924.76 | 6,538.78 | |
| 2014-06-28 | 46,516.71 | 931.53 | 6,447.41 | |
| 2014-03-29 | 45,830.78 | 960.41 | 6,282.55 | |
| 2013-12-28 | 45,479.66 | 980.89 | 6,168.14 | |
| 2013-09-28 | 45,038.58 | 991.42 | 6,030.97 | |
| 2013-06-29 | 44,411.23 | 992.43 | 5,912.91 | |
| 2013-03-30 | 43,855.56 | 1,018.65 | 5,867.72 | |
| 2012-12-29 | 43,433.93 | 1,076.79 | 5,733.31 | |
| 2012-09-29 | 42,881.47 | 1,105.53 | 5,608.00 | |
| 2012-06-30 | 42,380.94 | 1,121.59 | 5,659.17 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Sysco made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
- Sysco used its assets more efficiently than the US Consumer Retailing industry average last year based on Return on Assets.
- Sysco has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Sysco's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Sysco has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Sysco's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Sysco's finances.
The net worth of a company is the difference between its assets and liabilities.
- Sysco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Sysco's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Sysco Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-30 | 2,396.96 | 8,699.89 | 521.62 |
| 2018-12-29 | 2,202.99 | 8,843.47 | 744.81 |
| 2018-09-29 | 2,675.46 | 8,759.02 | 790.30 |
| 2018-06-30 | 2,544.61 | 8,377.00 | 552.33 |
| 2018-03-31 | 2,387.12 | 9,179.07 | 901.55 |
| 2017-12-30 | 2,302.13 | 8,886.84 | 961.19 |
| 2017-09-30 | 2,318.36 | 8,987.17 | 909.43 |
| 2017-07-01 | 2,464.36 | 8,216.28 | 870.21 |
| 2017-04-01 | 2,410.77 | 8,606.05 | 855.79 |
| 2016-12-31 | 2,554.94 | 8,370.58 | 847.29 |
| 2016-10-01 | 3,097.65 | 7,859.57 | 759.90 |
| 2016-07-02 | 3,554.99 | 7,435.40 | 3,919.30 |
| 2016-03-26 | 4,046.36 | 4,361.90 | 610.84 |
| 2015-12-26 | 3,986.92 | 4,362.55 | 595.60 |
| 2015-09-26 | 5,349.93 | 3,088.23 | 388.26 |
| 2015-06-27 | 5,301.53 | 7,321.88 | 5,130.04 |
| 2015-03-28 | 5,352.61 | 7,668.93 | 5,084.70 |
| 2014-12-27 | 5,377.90 | 7,636.83 | 4,907.68 |
| 2014-09-27 | 5,355.51 | 3,039.55 | 384.90 |
| 2014-06-28 | 5,266.70 | 2,866.55 | 413.05 |
| 2014-03-29 | 5,231.38 | 3,126.15 | 341.09 |
| 2013-12-28 | 5,303.79 | 3,205.97 | 450.81 |
| 2013-09-28 | 5,199.14 | 3,130.13 | 361.55 |
| 2013-06-29 | 5,191.81 | 2,888.92 | 415.27 |
| 2013-03-30 | 5,152.36 | 2,798.15 | 335.51 |
| 2012-12-29 | 4,901.57 | 3,105.21 | 321.29 |
| 2012-09-29 | 4,894.18 | 3,019.12 | 550.01 |
| 2012-06-30 | 4,685.04 | 3,018.34 | 691.34 |
- Sysco's level of debt (363%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (59.6% vs 363% today).
- Debt is well covered by operating cash flow (27.6%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
Financial health checks
We assess Sysco's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Sysco has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Sysco's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Sysco
shares you are expected to receive
$42
in your first year as a dividend.
Dividend Amount
- Sysco's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
- Sysco's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 12 Analyst Estimates (S&P Global) | See Below |
| United States of America Consumer Retailing Industry Average Dividend Yield | Market Cap Weighted Average of 12 Stocks | 2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-06-30 | ||
| 2022-06-30 | ||
| 2021-06-30 | 1.72 | 2.00 |
| 2020-06-30 | 1.62 | 5.00 |
| 2019-06-30 | 1.52 | 5.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-21 | 1.560 | 2.261 |
| 2018-11-15 | 1.560 | 2.429 |
| 2018-07-27 | 1.440 | 2.016 |
| 2018-05-24 | 1.440 | 2.117 |
| 2018-02-23 | 1.440 | 2.351 |
| 2017-11-17 | 1.440 | 2.399 |
| 2017-07-28 | 1.320 | 2.471 |
| 2017-05-25 | 1.320 | 2.525 |
| 2017-02-24 | 1.320 | 2.496 |
| 2016-11-16 | 1.320 | 2.444 |
| 2016-08-26 | 1.240 | 2.491 |
| 2016-05-20 | 1.240 | 2.446 |
| 2016-02-19 | 1.240 | 2.663 |
| 2015-11-18 | 1.240 | 3.007 |
| 2015-11-03 | 1.200 | 2.954 |
| 2015-11-02 | 1.200 | 2.927 |
| 2015-05-22 | 1.200 | 3.121 |
| 2015-02-13 | 1.200 | 3.155 |
| 2014-11-19 | 1.200 | 2.998 |
| 2014-08-22 | 1.160 | 3.065 |
| 2014-05-23 | 1.160 | 3.130 |
| 2014-02-21 | 1.160 | 3.205 |
| 2013-11-15 | 1.160 | 3.271 |
| 2013-08-23 | 1.120 | 3.453 |
| 2013-05-17 | 1.120 | 3.268 |
| 2013-02-13 | 1.120 | 3.298 |
| 2012-11-14 | 1.120 | 3.560 |
| 2012-08-24 | 1.080 | 3.505 |
| 2012-05-23 | 1.080 | 3.722 |
| 2012-02-17 | 1.080 | 3.715 |
| 2011-11-16 | 1.080 | 3.705 |
| 2011-08-26 | 1.040 | 3.866 |
| 2011-05-20 | 1.040 | 3.436 |
| 2011-02-25 | 1.040 | 3.613 |
| 2010-11-12 | 1.040 | 3.566 |
| 2010-08-27 | 1.000 | 3.450 |
| 2010-05-21 | 1.000 | 3.347 |
| 2010-02-19 | 1.000 | 3.365 |
| 2009-11-17 | 1.000 | 3.582 |
| 2009-09-25 | 0.960 | 3.660 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Sysco's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
Income/ dividend checks
We assess Sysco's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Sysco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Sysco has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $8,774,577 |
| AGE | 56 |
| TENURE AS CEO | 1.3 years |
CEO Bio
Mr. Thomas L. Bené, 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. He serves as the Chairman of the Board at Sysco Corporation since November 16, 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. Bené 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 from 2011 until 2013. He served as the President of Beverages Business at Pepsi-Cola North America, subsidiary of Pepsico, Inc. since December 2009. Mr. Bené 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. He serves as a Director of Greater Houston Partnership, Inc. Mr. Bené held various senior roles with PepsiCo, included SVP of Sales and Franchise Development, President, PepsiCo Foods & Beverages, Canada; and Chief Operating Officer, South Beach Beverage Co. Mr. Bené joined PepsiCo in 1989 after working for American Hospital Supply. Through these various operations and management positions within PepsiCo and Sysco, Mr. Bené has gained valuable insight into the foodservice industry and has acquired significant experience and knowledge in the areas of foodservice operations, leadership and management development, corporate strategy development, merchandising, sales, marketing, revenue management, shared services and distribution and supply chain management. Mr. Bené earned a Bachelor of Science degree in Business Administration from the University of Kansas.
CEO Compensation
- Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
- Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Sysco management team in years:
- The tenure for the Sysco management team is about average.
Management Team
Tom Bené
Chairman of the board
$9M
56
1.3 yrs
Joel Grade
Executive VP & CFO
$5M
47
3.7 yrs
Russell Libby
$4M
52
0.3 yrs
Greg Bertrand
Executive Vice President of U.S. Foodservice Operations
$3M
54
6.8 yrs
Wayne Shurts
$4M
59
0.3 yrs
Anita Zielinski
Senior VP & Chief Accounting Officer
45
2.1 yrs
Neil Russell
VP of Investor Relations
47
Jose Colondres
Vice President of Compliance
3.4 yrs
Bill Goetz
Senior Vice President of Sales & Marketing
3.1 yrs
Paul Moskowitz
Executive Vice President of Human Resources
54
3.8 yrs
Board of Directors Tenure
Average tenure and age of the Sysco board of directors in years:
- The tenure for the Sysco board of directors is about average.
Board of Directors
Tom Bené
Chairman of the board
$9M
56
0.5 yrs
John Cassaday
Independent Director
$305K
64
14.5 yrs
Larry Glasscock
Independent Director
$305K
70
8.7 yrs
Dan Brutto
Independent Director
$294K
62
2.7 yrs
Ed Shirley
Independent Lead Director
$285K
61
0.5 yrs
Nancy Newcomb
Independent Director
$285K
73
13.3 yrs
Hans-Joachim Koerber
Independent Director
$285K
72
11.3 yrs
Josh Frank
Independent Director
$285K
39
3.8 yrs
Nelson Peltz
Independent Director
$285K
75
3.8 yrs
Brad Halverson
Independent Director
$285K
58
2.7 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 14. Mar 19 | Sell | Trian Fund Management, L.P. | Company | 12. Mar 19 | 13. Mar 19 | -707,000 | $66.43 | $-46,876,617 | ||
| 29. Nov 18 | Sell | Trian Fund Management, L.P. | Company | 28. Nov 18 | 28. Nov 18 | -1,524,475 | $66.50 | $-101,377,588 | ||
| 20. Nov 18 | Sell | Trian Fund Management, L.P. | Company | 16. Nov 18 | 20. Nov 18 | -2,215,532 | $66.61 | $-147,228,724 | ||
| 12. Sep 18 | Sell | Trian Fund Management, L.P. | Company | 10. Sep 18 | 12. Sep 18 | -2,115,358 | $75.12 | $-158,244,101 | ||
| 07. Sep 18 | Sell | Trian Fund Management, L.P. | Company | 05. Sep 18 | 07. Sep 18 | -2,790,710 | $75.06 | $-209,380,122 | ||
| 14. Jun 18 | Sell | Trian Fund Management, L.P. | Company | 12. Jun 18 | 14. Jun 18 | -2,278,939 | $66.17 | $-150,737,403 | ||
Management checks
We assess Sysco's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Sysco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
A Look At The Intrinsic Value Of Sysco Corporation (NYSE:SYY)
In this article we are going to estimate the intrinsic value of Sysco Corporation (NYSE:SYY) by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.95k $2.10k $2.10k $2.13k $2.16k $2.20k $2.25k $2.30k $2.36k $2.42k Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x2 Est @ 1.04% Est @ 1.55% Est @ 1.9% Est @ 2.15% Est @ 2.32% Est @ 2.45% Est @ 2.53% Present Value ($, Millions) Discounted @ 7.5% $1.81k $1.81k $1.69k $1.59k $1.50k $1.43k $1.35k $1.29k $1.23k $1.17k Present Value of 10-year Cash Flow (PVCF)= $14.88b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%.
Simply Wall St - – Full articleWhat Kind Of Shareholders Own Sysco Corporation (NYSE:SYY)?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Insider Ownership Of Sysco The definition of company insiders can be subjective, and does vary between jurisdictions.
Simply Wall St - – Full articleA Close Look At Sysco Corporation’s (NYSE:SYY) 22% ROCE
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
Simply Wall St - – Full articleHere's Why I Think Sysco (NYSE:SYY) Might Deserve Your Attention Today
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … Sysco maintained stable EBIT margins over the last year, all while growing revenue 4.6% to US$60b.
Simply Wall St - – Full articleCan Sysco Corporation (NYSE:SYY) Maintain Its Strong Returns?
Sysco has a ROE of 67%, based on the last twelve months. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.67 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleDoes Sysco's (NYSE:SYY) Share Price Gain of 85% Match Its Business Performance?
For example, the Sysco Corporation (NYSE:SYY) share price is up 85% in the last 5 years, clearly besting than the market return of around 43% (ignoring dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Sysco managed to grow its earnings per share at 11% a year.
Simply Wall St - – Full articleWill Sysco Corporation's (NYSE:SYY) Earnings Grow In The Year Ahead?
On 29 December 2018, Sysco Corporation (NYSE:SYY) released its earnings update. … with profits predicted to increase by 19% next year … the past 5-year average growth rate of 12%.
Simply Wall St - – Full articleWhy Sysco Corporation's (NYSE:SYY) High P/E Ratio Isn't Necessarily A Bad Thing
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use Sysco Corporation's (NYSE:SYY) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleA Look At The Intrinsic Value Of Sysco Corporation (NYSE:SYY)
by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.
Simply Wall St - – Full articleSysco Corporation (NYSE:SYY) Is An Attractive Dividend Stock, Here's Why
Over the past 10 years Sysco Corporation (NYSE:SYY) has been paying dividends to shareholders. … The company currently pays out a dividend yield of 2.5% to shareholders, making it a relatively attractive dividend stock. … 5 checks you should use to assess a dividend stock
Simply Wall St - – Full articleCompany Info
Description
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. 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. As of February 25, 2019, it operated 330 distribution facilities worldwide. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.
Details
| Name: | Sysco Corporation |
| SYY | |
| Exchange: | NYSE |
| Founded: | 1969 |
| $38,573,849,717 | |
| 513,975,346 | |
| Website: | http://www.sysco.com |
| Address: |
Sysco Corporation 1390 Enclave Parkway, Houston, Texas, 77077, United States |
Listings
| 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 |
Number of employees
Current staff
Industry
| Food Distributors | |
| Consumer Retailing |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/24 23:46 |
| End of day share price update: | 2019/05/24 00:00 |
| Last estimates confirmation: | 2019/05/23 |
| Last earnings filing: | 2019/05/07 |
| Last earnings reported: | 2019/03/30 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times 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.
