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.


Snowflake Analysis

Solid track record, good value and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-18.2%

SYY

4.2%

US Consumer Retailing

-2.0%

US Market


1 Year Return

-38.5%

SYY

9.3%

US Consumer Retailing

-15.1%

US Market

Return vs Industry: SYY underperformed the US Consumer Retailing industry which returned 9.2% over the past year.

Return vs Market: SYY underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

SYYIndustryMarket
7 Day-18.2%4.2%-2.0%
30 Day-41.6%-5.4%-19.7%
90 Day-51.0%-7.4%-23.2%
1 Year-36.8%-38.5%11.3%9.3%-13.4%-15.1%
3 Year-14.2%-20.3%38.9%30.1%10.9%3.7%
5 Year23.0%8.2%37.6%23.4%28.4%14.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYY ($41.29) is trading below our estimate of fair value ($105.77)

Significantly Below Fair Value: SYY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SYY is good value based on its PE Ratio (11.7x) compared to the Consumer Retailing industry average (16.2x).

PE vs Market: SYY is good value based on its PE Ratio (11.7x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: SYY is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SYY is overvalued based on its PB Ratio (8.3x) compared to the US Consumer Retailing industry average (1.2x).


Next Steps

Future Growth

How is Sysco forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYY's forecast earnings growth (8.7% per year) is above the savings rate (1.7%).

Earnings vs Market: SYY's earnings (8.7% per year) are forecast to grow slower than the US market (12.2% 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 (7.1% 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 (47.1%).


Next Steps

Past Performance

How has Sysco performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYY has high quality earnings.

Growing Profit Margin: SYY's current net profit margins (3%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: SYY's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: SYY's earnings growth over the past year (22.7%) exceeds its 5-year average (18.6% per year).

Earnings vs Industry: SYY earnings growth over the past year (22.7%) exceeded the Consumer Retailing industry -0.6%.


Return on Equity

High ROE: Whilst SYY's Return on Equity (70.78%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Sysco's financial position?


Financial Position Analysis

Short Term Liabilities: SYY's short term assets ($8.7B) exceed its short term liabilities ($6.9B).

Long Term Liabilities: SYY's short term assets ($8.7B) do not cover its long term liabilities ($9.9B).


Debt to Equity History and Analysis

Debt Level: SYY's debt to equity ratio (343.1%) is considered high.

Reducing Debt: SYY's debt to equity ratio has increased from 142% to 343.1% over the past 5 years.

Debt Coverage: SYY's debt is well covered by operating cash flow (25.6%).

Interest Coverage: SYY's interest payments on its debt are well covered by EBIT (7.8x 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?

4.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYY's dividend (4.36%) is higher than the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: SYY's dividend (4.36%) is low compared to the top 25% of dividend payers in the US market (5.7%).


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 (45.8%), SYY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Kevin Hourican (44yo)

0.17

Tenure

Mr. Kevin Hourican serves as President and Chief Executive Officer at Sysco Corporation since February 1, 2020. Mr. Hourican served as Executive Vice President at CVS Health Corp., and President of CVS Pha ...


Leadership Team

NamePositionTenureCompensationOwnership
Edward Shirley
Executive Chair0.25yrUS$328.77k0.0028% $587.9k
Joel Grade
Executive VP & CFO4.58yrsUS$3.94m0.011% $2.3m
Paul Moskowitz
Executive Vice President of Human Resources4.67yrsUS$2.85m0.011% $2.2m
Greg Bertrand
Executive Vice President of U.S. Foodservice Operations7.75yrsUS$4.08m0.0063% $1.3m
Kevin Hourican
President & CEO0.17yrno datano data
Anita Zielinski
Senior VP & Chief Accounting Officer3yrsno datano data
Michael Foster
Executive VP0.33yrno datano data
Camilla Zuckero
Senior Director of Investor Relationsno datano datano data
Eve Mcfadden
Senior VP of Legal1.25yrsno data0.0012% $252.0k
Jose Colondres
Vice President of Compliance4.33yrsno datano data

3.0yrs

Average Tenure

49.5yo

Average Age

Experienced Management: SYY's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Shirley
Executive Chair0.25yrUS$328.77k0.0028% $587.9k
Larry Glasscock
Independent Director9.58yrsUS$317.52k0.013% $2.8m
Nelson Peltz
Independent Director4.67yrsUS$297.52k0.0011% $224.7k
John Cassaday
Independent Director15.42yrsUS$317.52k0.011% $2.2m
Sheila Talton
Independent Director2.58yrsUS$297.52kno data
Hans-Joachim Koerber
Independent Director12.25yrsUS$297.52k0.011% $2.3m
Daniel Brutto
Independent Director3.58yrsUS$312.52k0.0036% $758.0k
Bradley Halverson
Lead Independent Director0.25yrUS$313.14k0.0030% $623.6k
Nancy Newcomb
Independent Director14.17yrsUS$297.52k0.014% $3.0m
Joshua Frank
Independent Director4.67yrsUS$297.52k0.0011% $224.7k

4.7yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SYY's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$20.996b
  • Shares outstanding: 508.51m
  • 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
SYYBRSE (Berne Stock Exchange)YesCommon StockCHCHFFeb 1971
SYYETLX (Eurotlx)YesCommon StockITEURFeb 1971
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 United Kingdom, France, and internationally. 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 June 29, 2019, it operated 325 distribution facilities. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 04:54
End of Day Share Price2020/04/02 00:00
Earnings2019/12/28
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.