Sysco (SYY) Stock Analysis
Here is a fundamental analysis of Sysco (SYY), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: SYY | Industry group median |
|---|---|---|
| 1-Year Return | 8.06% | 16.68% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: SYY | Industry group median |
|---|---|---|
| 1-Year Volatility | 26.97% | 32.49% |
| Beta | 0.65 | 0.64 |
Company Profile
| Profile Item | SYY |
|---|---|
| Name | Sysco Corporation |
| Country/Region | United States |
| GICS Sector | Consumer Staples |
| GICS Industry Group | Consumer Staples Distribution & Retail |
| GICS Industry | Consumer Staples Distribution & Retail |
| GICS Sub-Industry | Food Distributors |
| Market Capitalization | 37.87 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | May 8, 1973 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Sysco (SYY) trades at P/E ratio of 22.00, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
SYY
Consumer Staples Distribution & Retail industry group
22.00
Group distribution
- Max
- 49.59
- Q3
- 40.27
- SYY
- 22.00
- Median
- 21.91
- Q1
- 17.31
- Min
- 11.33
Largest peers
- COST
- 49.51
- CASY
- 46.72
- WMT
- 42.62
- KR
- 42.02
- SYY
- 22.00
- TGT
- 17.86
- DG
- 16.24
Price-to-Sales Ratio (TTM)
Sysco (SYY) trades at 0.45 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
SYY
Consumer Staples Distribution & Retail industry group
0.45
Group distribution
- Max
- 1.89
- Q3
- 0.91
- Median
- 0.52
- SYY
- 0.45
- Q1
- 0.26
- Min
- 0.02
Largest peers
- CASY
- 1.89
- COST
- 1.48
- WMT
- 1.33
- DG
- 0.59
- TGT
- 0.58
- SYY
- 0.45
- KR
- 0.27
Price-to-Book Ratio (MRQ)
Sysco (SYY) trades at 16.61 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
SYY
Consumer Staples Distribution & Retail industry group
16.61
Group distribution
- SYY
- 16.61
- Max
- 9.68
- Q3
- 6.23
- Median
- 4.10
- Q1
- 2.15
- Min
- 0.76
Largest peers
- COST
- 26.35
- SYY
- 16.61
- WMT
- 9.68
- CASY
- 8.37
- KR
- 6.99
- TGT
- 3.75
- DG
- 2.86
Valuation at a Glance
| Metric | Current stock: SYY | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 22.00 | 21.91 |
| Price-to-Sales Ratio (TTM) | 0.45 | 0.52 |
| Price-to-Book Ratio (MRQ) | 16.61 | 4.10 |
| Free Cash Flow Yield | 4.93% | 4.72% |
Profitability
Return on Equity (TTM)
Sysco (SYY) posts ROE of 81.90%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
SYY
Consumer Staples Distribution & Retail industry group
81.90%
Group distribution
- SYY
- 81.90%
- Max
- 37.28%
- Q3
- 22.55%
- Median
- 14.81%
- Q1
- 8.71%
- Min
- -2.30%
Largest peers
- SYY
- 81.90%
- COST
- 29.15%
- WMT
- 24.13%
- TGT
- 22.02%
- CASY
- 19.15%
- DG
- 18.91%
- KR
- 14.41%
Net Profit Margin (TTM)
Sysco (SYY) keeps 2.08% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
SYY
Consumer Staples Distribution & Retail industry group
2.08%
Group distribution
- Max
- 6.51%
- Q3
- 3.51%
- Median
- 2.17%
- SYY
- 2.08%
- Q1
- 1.27%
- Min
- -0.12%
Largest peers
- CASY
- 4.07%
- DG
- 3.63%
- TGT
- 3.24%
- WMT
- 3.14%
- COST
- 3.01%
- SYY
- 2.08%
- KR
- 0.69%
Operating Profit Margin (TTM)
Sysco (SYY) turns 3.75% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
SYY
Consumer Staples Distribution & Retail industry group
3.75%
Group distribution
- Max
- 9.24%
- Q3
- 5.12%
- SYY
- 3.75%
- Median
- 3.55%
- Q1
- 1.19%
- Min
- -0.11%
Largest peers
- DG
- 5.92%
- CASY
- 5.14%
- TGT
- 4.52%
- WMT
- 4.22%
- SYY
- 3.75%
- COST
- 3.67%
- KR
- 3.44%
Profitability at a Glance
| Metric | Current stock: SYY | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 81.90% | 14.81% |
| Return on Assets (TTM) | 8.29% | 5.63% |
| Net Profit Margin (TTM) | 2.08% | 2.17% |
| Operating Profit Margin (TTM) | 3.75% | 3.55% |
| Gross Profit Margin (TTM) | 18.54% | 24.79% |
Financial Strength
Current Ratio (MRQ)
Sysco (SYY) has current ratio of 1.33, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
SYY
Consumer Staples Distribution & Retail industry group
1.33
Group distribution
- Max
- 1.52
- Q3
- 1.36
- SYY
- 1.33
- Median
- 1.17
- Q1
- 0.95
- Min
- 0.60
Largest peers
- SYY
- 1.33
- DG
- 1.17
- COST
- 1.07
- CASY
- 1.01
- TGT
- 0.93
- KR
- 0.80
- WMT
- 0.77
Debt-to-Equity Ratio (MRQ)
Sysco (SYY) has debt-to-equity ratio of 6.70, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.
SYY
Consumer Staples Distribution & Retail industry group
6.70
Group distribution
- SYY
- 6.70
- Max
- 3.40
- Q3
- 1.93
- Median
- 1.29
- Q1
- 0.65
- Min
- 0.00
Largest peers
- SYY
- 6.70
- KR
- 4.16
- DG
- 1.79
- TGT
- 1.18
- WMT
- 0.75
- CASY
- 0.73
- COST
- 0.60
Financial Strength at a Glance
| Metric | Current stock: SYY | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.33 | 1.17 |
| Debt-to-Equity Ratio (MRQ) | 6.70 | 1.29 |
| Net Debt / EBITDA | 2.96 | 2.59 |
Dividends
Dividend Yield (TTM)
Sysco (SYY) has dividend yield of 2.78%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
SYY
Consumer Staples Distribution & Retail industry group
2.78%
Group distribution
- Max
- 4.41%
- SYY
- 2.78%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- TGT
- 3.43%
- SYY
- 2.78%
- KR
- 2.16%
- DG
- 2.06%
- WMT
- 0.82%
- COST
- 0.60%
- CASY
- 0.26%
Dividend Payout Ratio (TTM)
Sysco (SYY) has payout ratio of 60.00%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
SYY
Consumer Staples Distribution & Retail industry group
60.00%
Group distribution
- SYY
- 60.00%
- Max
- 60.00%
- Q3
- 31.85%
- Median
- 16.54%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- KR
- 87.01%
- SYY
- 60.00%
- TGT
- 59.97%
- WMT
- 33.54%
- DG
- 33.38%
- COST
- 27.01%
- CASY
- 11.90%
Dividends at a Glance
| Metric | Current stock: SYY | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.78% | 0.66% |
| Dividend Payout Ratio (TTM) | 60.00% | 16.54% |