NYSE:SYY

Stock Analysis Report

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.

Rewards

Earnings are forecast to grow 7.57% per year

Earnings grew by 13.6% over the past year

Pays a high and reliable dividend of 2.15%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Established dividend payer with proven track record.


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

-0.2%

US Consumer Retailing

0.6%

US Market


1 Year Return

27.6%

SYY

21.7%

US Consumer Retailing

20.8%

US Market

Return vs Industry: SYY exceeded the US Consumer Retailing industry which returned 21.7% over the past year.

Return vs Market: SYY exceeded the US Market which returned 20.8% over the past year.


Shareholder returns

SYYIndustryMarket
7 Day0.9%-0.2%0.6%
30 Day2.5%-1.5%2.5%
90 Day6.7%2.0%4.9%
1 Year30.6%27.6%24.1%21.7%23.5%20.8%
3 Year58.9%48.2%48.6%39.1%46.5%37.0%
5 Year134.6%106.4%52.5%36.0%64.6%46.5%

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?

25.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SYY ($83.54) is trading above our estimate of fair value ($82.19)

Significantly Below Fair Value: SYY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SYY is poor value based on its PE Ratio (25.4x) compared to the Consumer Retailing industry average (22.6x).

PE vs Market: SYY is poor value based on its PE Ratio (25.4x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SYY is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: SYY is overvalued based on its PB Ratio (17.4x) compared to the US Consumer Retailing industry average (2.2x).


Next Steps

Future Growth

How is Sysco forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYY's forecast earnings growth (7.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SYY's earnings (7.6% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: SYY's earnings are forecast to grow, but not significantly.

Revenue vs Market: SYY's revenue (3.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SYY's revenue (3.9% 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 (54.5%).


Next Steps

Past Performance

How has Sysco performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYY has high quality earnings.

Growing Profit Margin: SYY's current net profit margins (2.8%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: SYY's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: SYY's earnings growth over the past year (13.6%) is below its 5-year average (17.2% per year).

Earnings vs Industry: SYY earnings growth over the past year (13.6%) exceeded the Consumer Retailing industry -18.5%.


Return on Equity

High ROE: Whilst SYY's Return on Equity (68.21%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sysco's financial position?


Financial Position Analysis

Short Term Liabilities: SYY's short term assets ($8.5B) exceed its short term liabilities ($6.1B).

Long Term Liabilities: SYY's short term assets ($8.5B) do not cover its long term liabilities ($10.4B).


Debt to Equity History and Analysis

Debt Level: SYY's debt to equity ratio (345.9%) is considered high.

Reducing Debt: SYY's debt to equity ratio has increased from 58.6% to 345.9% over the past 5 years.

Debt Coverage: SYY's debt is well covered by operating cash flow (26.9%).

Interest Coverage: SYY's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

Inventory Level: SYY has a high level of physical assets or inventory.

Debt Coverage by Assets: SYY's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

2.15%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sysco before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: SYY's dividend (2.15%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SYY's dividend (2.15%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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 reasonably low payout ratio (47.3%), SYY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SYY's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).


Next Steps

Management

What is the CEO of Sysco's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Tom Bené (57yo)

1.9yrs

Tenure

US$10,732,619

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD10.73M) is about average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: SYY's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: SYY's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$788,10026 Sep 19
Greg Bertrand
EntityIndividual
Role
Senior Key Executive
Executive Vice President of U.S. Foodservice Operations
Shares10,000
Max PriceUS$78.81
SellUS$1,560,27817 Sep 19
John Cassaday
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,203
Max PriceUS$77.23
SellUS$733,50022 Aug 19
Hans-Joachim Koerber
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$73.35
SellUS$46,876,61714 Mar 19
Trian Fund Management, L.P.
EntityCompany
Shares707,000
Max PriceUS$66.43

Ownership Breakdown

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


Management Team

  • Robert Charlton (60yo)

    Executive Vice President of Supply Chain

    • Tenure: 6.4yrs
    • Compensation: US$2.80m
  • Greg Bertrand (55yo)

    Executive Vice President of U.S. Foodservice Operations

    • Tenure: 7.4yrs
    • Compensation: US$4.08m
  • Tom Bené (57yo)

    Chairman of the board

    • Tenure: 1.9yrs
    • Compensation: US$10.73m
  • Paul Moskowitz (55yo)

    Executive Vice President of Human Resources

    • Tenure: 4.3yrs
    • Compensation: US$2.85m
  • Joel Grade (48yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$3.94m
  • Eve Mcfadden (43yo)

    VP of Legal

    • Tenure: 0yrs
  • Michael Foster (52yo)

    Chief Information & Technology Officer

    • Tenure: 0yrs
  • Jose Colondres

    Vice President of Compliance

    • Tenure: 4yrs
  • Anita Zielinski (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 2.7yrs
  • Camilla Zuckero

    Senior Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Larry Glasscock (71yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$317.52k
  • Nelson Peltz (76yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$297.52k
  • John Cassaday (65yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$317.52k
  • Ed Shirley (62yo)

    Independent Lead Director

    • Tenure: 1.1yrs
    • Compensation: US$328.77k
  • Hans-Joachim Koerber (73yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$297.52k
  • Dan Brutto (63yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$312.52k
  • Brad Halverson (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$313.14k
  • Nancy Newcomb (74yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$297.52k
  • Tom Bené (57yo)

    Chairman of the board

    • Tenure: 1.9yrs
    • Compensation: US$10.73m
  • Josh Frank (40yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$297.52k

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$42.624b
  • Shares outstanding: 510.23m
  • Website: https://www.sysco.com

Number of Employees


Location

  • Sysco Corporation
  • 1390 Enclave Parkway
  • Houston
  • Texas
  • 77077
  • 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

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 Analysis2019/12/14 23:40
End of Day Share Price2019/12/13 00:00
Earnings2019/09/28
Annual Earnings2019/06/29


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.