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.

Snowflake

Fundamentals

Solid track record established dividend payer.


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


Market Performance


7 Day Return

-0.2%

NYSE:SYY

-1.2%

US Consumer Retailing

-1.6%

US Market


1 Year Return

-3.9%

NYSE:SYY

7.1%

US Consumer Retailing

-3.0%

US Market

SYY underperformed the Consumer Retailing industry which returned 8.6% over the past year.

SYY underperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

SYYIndustryMarket
7 Day-0.2%-1.2%-1.6%
30 Day3.8%-1.2%-5.8%
90 Day-3.0%6.3%0.2%
1 Year-1.7%-3.9%9.2%7.1%-0.8%-3.0%
3 Year50.0%39.7%38.7%29.9%38.0%29.1%
5 Year119.3%92.4%59.1%42.0%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

0.195%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Sysco is poor value based on expected growth next year.


Price Based on Value of Assets

Sysco is overvalued based on assets compared to the US Consumer Retailing industry average.


Next Steps

Future Growth

How is Sysco expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sysco's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Sysco's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

Sysco's revenue growth is positive but not above the United States of America market average.

Sysco's earnings growth is positive but not above the United States of America market average.

Sysco's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Sysco is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Sysco performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History


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 (17.1% vs 15.8%)

Sysco's earnings growth has exceeded the US Consumer Retailing industry average in the past year (17.1% vs -15%).


Return on Equity

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.


Return on Assets

Sysco used its assets more efficiently than the US Consumer Retailing industry average last year based on Return on Assets.


Return on Capital Employed

Sysco has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sysco's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Sysco's level of debt (317.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (54.5% vs 317.4% today).

Debt is well covered by operating cash flow (29.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

2.32%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Sysco's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Sysco's dividend is below the markets top 25% of dividend payers in United States of America (3.82%).

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

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Tom Bené (57yo)

1.6yrs

Tenure

US$8,774,577

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

Tom's remuneration is about average for companies of similar size in United States of America.

Tom's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

51.5yo

Average Age

The tenure for the Sysco management team is about average.


Board Age and Tenure

4.0yrs

Average Tenure

64yo

Average Age

The tenure for the Sysco board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$46,876,61714 Mar 19
Trian Fund Management, L.P.
EntityCompany
Shares707,000
Max PriceUS$66.43
SellUS$101,377,58829 Nov 18
Trian Fund Management, L.P.
EntityCompany
Shares1,524,475
Max PriceUS$66.50
SellUS$147,228,72420 Nov 18
Trian Fund Management, L.P.
EntityCompany
Shares2,215,532
Max PriceUS$66.61
SellUS$158,244,10112 Sep 18
Trian Fund Management, L.P.
EntityCompany
Shares2,115,358
Max PriceUS$75.12
SellUS$209,380,12207 Sep 18
Trian Fund Management, L.P.
EntityCompany
Shares2,790,710
Max PriceUS$75.06

Ownership Breakdown


Management Team

  • Greg Bertrand (55yo)

    Executive Vice President of U.S. Foodservice Operations

    • Tenure: 7.1yrs
    • Compensation: US$3.39m
  • Tom Bené (57yo)

    Chairman of the board

    • Tenure: 1.6yrs
    • Compensation: US$8.77m
  • Neil Russell (48yo)

    Vice President Corporate Affairs

    • Tenure: 0.0yrs
  • Joel Grade (48yo)

    Executive VP & CFO

    • Tenure: 3.9yrs
    • Compensation: US$4.77m
  • Greg Keller

    Senior Vice President of National Sales

    • Tenure: 0.0yrs
  • Brian Todd (56yo)

    Senior Vice President of Merchandising & Marketing

    • Tenure: 0.0yrs
  • Eve Mcfadden

    VP of Legal

    • Tenure: 0.0yrs
  • Jose Colondres

    Vice President of Compliance

    • Tenure: 3.7yrs
  • Anita Zielinski (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 2.3yrs
  • Camilla Zuckero

    Senior Director of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Larry Glasscock (71yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$305.03k
  • Nelson Peltz (76yo)

    Independent Director

    • Tenure: 4.0yrs
    • Compensation: US$285.03k
  • John Cassaday (65yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$305.03k
  • Ed Shirley (62yo)

    Independent Lead Director

    • Tenure: 0.8yrs
    • Compensation: US$285.03k
  • Hans-Joachim Koerber (73yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$285.03k
  • Dan Brutto (63yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$294.40k
  • Brad Halverson (59yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$285.03k
  • Nancy Newcomb (74yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$285.03k
  • Tom Bené (57yo)

    Chairman of the board

    • Tenure: 1.6yrs
    • Compensation: US$8.77m
  • Josh Frank (40yo)

    Independent Director

    • Tenure: 4.0yrs
    • Compensation: US$285.03k

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$37.337b
  • Shares outstanding: 512.88m
  • 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. It operates through three segments: U ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:42
End of Day Share Price2019/08/23 00:00
Earnings2019/06/29
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.