Taking a Fresh Look at Sysco (SYY)’s Valuation as Earnings and Revenue Keep Climbing

Sysco (SYY) shares have drifted lower over the past 3 months, even as revenue and earnings keep grinding higher. That disconnect is prompting investors to revisit what they are actually paying for this cash generating food distributor.

See our latest analysis for Sysco.

Over the past year, Sysco’s share price return has been slightly negative even as the business posts steady revenue and earnings growth. This suggests sentiment has cooled rather than the underlying cash engine, though its five year total shareholder return remains modestly positive.

If Sysco’s mix of stability and slower momentum has you curious about what else is out there, this could be a smart moment to explore fast growing stocks with high insider ownership.

With earnings climbing, a moderate value score, and shares still trading below analyst targets, are investors overlooking a quietly compounding foodservice leader, or has the market already baked Sysco’s future growth into today’s price?

Most Popular Narrative Narrative: 14.5% Undervalued

With Sysco last closing at $74.34 against a narrative fair value near $86.94, the storyline leans toward upside if execution matches expectations.

The company is expanding its fulfillment capacity with new facilities in Florida and internationally in Sweden and Ireland, boosting its storage and distribution ability to capture profitable revenue growth in key markets. Sysco is piloting pricing agility tools to improve case volume and customer retention by enabling quicker response to competitive pricing, likely benefiting net margins and revenue.

Read the complete narrative.

Want to see the math behind that upside story? The narrative leans on rising margins, steady top line growth, and a future earnings multiple that assumes Sysco keeps compounding. Curious which assumptions really move that fair value line higher? Dive in to see how each forecasted turn of revenue, profit, and share count shapes the final number.

Result: Fair Value of $86.94 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer restaurant traffic and lingering sales consultant turnover could easily derail case growth momentum and temper the optimistic earnings trajectory.

Find out about the key risks to this Sysco narrative.

Build Your Own Sysco Narrative

If you see the story differently or prefer to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A great starting point for your Sysco research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Ready for your next investing move?

Take the lead on your portfolio’s next step by putting powerful screeners to work now so you are not looking back wishing you had acted sooner.

• Target reliable income streams by scanning these 13 dividend stocks with yields > 3% that could strengthen your long term cash flow.
• Uncover early stage innovation by reviewing these 3611 penny stocks with strong financials that combine growth potential with improving fundamentals.
• Position ahead of major tech shifts by evaluating these 27 quantum computing stocks before they become mainstream headlines.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com