Sysco Corp
Exchange: NYSESector: Consumer DefensiveIndustry: Food Distribution
Sysco Corporation (Sysco), along with its subsidiaries and divisions, is a North American distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company provides products and related services to approximately 425,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. Sysco provides food and related products to the foodservice or food-away-from-home industry. The Company has aggregated its operating companies into a number of segments, of which only Broadline and SYGMA are the main segments. Broadline operating companies distribute a line of food products and a variety of non-food products to their customers. SYGMA operating companies distribute a line of food products and a variety of non-food products to chain restaurant customer locations. On October 3, 2012, the Company acquired Keelings Foods.
Did you know?
Profit margin stands at 2.1%.
Current Price
$74.05
-0.88%GoodMoat Value
$448.17
505.2% undervaluedProfile
Valuation (TTM)
Market Cap$35.46B
P/E20.43
EV$52.82B
P/B19.38
Shares Out478.93M
P/Sales0.42
Revenue$83.57B
EV/EBITDA12.05
Sysco Corp (SYY) Stock Analysis
GoodMoat Analysis
Sysco is a massive food distribution company with a strong operational moat built on scale, but its valuation appears unfavourable. The stock trades at a significant premium to its estimated intrinsic value, making it a low-priority candidate for a value investor's watchlist.
Read full analysis
Sysco Corp is a leading global foodservice distributor, connecting suppliers with restaurants, healthcare facilities, and other foodservice operators. Its primary competitive advantages, as assessed through the GoodMoat framework, stem from its massive scale and vertical integration within its supply chain. This likely translates to a Moat Score focused on criteria like Scale Privilege, Supply Chain Advantage, and Niche Dominance in a critical but low-margin industry. However, the business quality indicators present a mixed picture. While the ROE of 98.2% is exceptionally high, it is heavily leveraged by a Debt/Equity ratio of 7.92, which is a significant risk factor. Revenue growth is modest at 3.0% YoY, and profit margins are thin at 2.2%. Applying the Decision Framework, the valuation assessment is the most critical hurdle. The current price of $82.39 is far below the provided GoodMoat Target of $441.10, but this target implies a valuation disconnect that requires extreme scrutiny. With a P/E of 22x on low single-digit growth and a high debt load, the stock does not appear to offer a margin of safety. For a value investor, Sysco's strong market position is offset by its financial leverage, slow growth, and an apparent valuation that lacks a clear margin of safety, making further investigation a lower priority unless a more compelling price emerges.
Market Cap$35.46B
Current Price$74.05
P/E Ratio20.43
Forward P/E—
PEG Ratio-1.52
EPS$3.73
Book Value$3.82
P/B Ratio19.38
SYY Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 0.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 13.4B
Revenue
60.1B
FY19
52.9B
FY20
51.3B
FY21
68.6B
FY22
76.3B
FY23
78.8B
FY24
81.4B
FY25
Net Income
1.7B
FY19
215M
FY20
524M
FY21
1.4B
FY22
1.8B
FY23
2.0B
FY24
1.8B
FY25
SYY 52-Week Range
$68.04
$90.47
50-Day MA: $79.65200-Day MA: $78.07
Did you know?
Trading 505% below its estimated fair value of $448.17.
Sysco Corp (SYY) Financial Summary
Sysco Corp (SYY) is a Consumer Defensive company in the Food Distribution industry, listed on NYSE. The stock currently trades at $74.05 with a market capitalization of $35.46B.
Key valuation metrics include a P/E ratio of 20.43, price-to-book ratio of 19.38, and EPS of $3.73. The company reports a profit margin of 2.1% and return on equity of 94.9%.
SYY Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $35.46B |
| P/E Ratio | 20.43 |
| EPS | $3.73 |
| P/B Ratio | 19.38 |
| P/S Ratio | 0.42 |
| EV/EBITDA | 12.05 |
| Dividend Yield | 2.82% |
| Profit Margin | 2.1% |
| Return on Equity | 94.9% |
| Debt/Equity | 7.92 |
SYY Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $60.11B | $1.67B |
| FY20 | $52.89B | $215.47M |
| FY21 | $51.30B | $524.21M |
| FY22 | $68.64B | $1.36B |
| FY23 | $76.33B | $1.77B |
| FY24 | $78.84B | $1.96B |
| FY25 | $81.37B | $1.83B |
Sysco Corp (SYY) Valuation
Based on GoodMoat's DCF model, Sysco Corp has a fair value estimate of $448.17. At the current price of $74.05, the stock appears 83.5% undervalued relative to our intrinsic value estimate.
SYY Quality Indicators
Sysco Corp maintains a profit margin of 2.1% and an operating margin of 3.8%. Return on equity stands at 94.9%. The current ratio is 1.21. Debt-to-equity ratio is 7.92.
About Sysco Corp
Sysco Corporation (Sysco), along with its subsidiaries and divisions, is a North American distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company provides products and related services to approximately 425,000 customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. Sysco provides food and related products to the foodservice or food-away-from-home industry. The Company has aggregated its operating companies into a number of segments, of which only Broadline and SYGMA are the main segments. Broadline operating companies distribute a line of food products and a variety of non-food products to their customers. SYGMA operating companies distribute a line of food products and a variety of non-food products to chain restaurant customer locations. On October 3, 2012, the Company acquired Keelings Foods.
SYY Free Cash Flow
Sysco Corp generated $1.82B in trailing twelve-month free cash flow, representing an FCF yield of 5.13%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
SYY Shares Outstanding
Sysco Corp has 0.48 billion shares outstanding at a share price of $74.05, giving it a market capitalization of $35.46B.
SYY Recent Insider Trades
Recent insider transactions at Sysco Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Talton Sheila | SELL | 2,801 | $232454.99 |
| Phillips Ronald L (EVP and CHRO) | SELL | 5,601 | $453681.00 |