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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

SYY
GSPC
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Sysco (SYY) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Sysco (SYY) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Sysco (SYY) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: SYYIndustry group median
1-Year Return8.06%16.68%

Risk

Drawdown

SYY
GSPC
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Sysco (SYY) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Sysco (SYY) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: SYYIndustry group median
1-Year Volatility26.97%32.49%
Beta0.650.64

Company Profile

Company profile fields for Sysco (SYY)
Profile ItemSYY
NameSysco Corporation
Country/RegionUnited States
GICS SectorConsumer Staples
GICS Industry GroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
GICS Sub-IndustryFood Distributors
Market Capitalization37.87 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMay 8, 1973
Security TypeCommon 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
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Where Sysco (SYY) stands on P/E ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Sysco (SYY) stands on P/S ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Sysco (SYY) stands on P/B ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Sysco (SYY) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: SYYIndustry group median
Price-to-Earnings Ratio (TTM)22.0021.91
Price-to-Sales Ratio (TTM)0.450.52
Price-to-Book Ratio (MRQ)16.614.10
Free Cash Flow Yield4.93%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%
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Where Sysco (SYY) stands on ROE within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Sysco (SYY) stands on net margin within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Sysco (SYY) stands on operating margin within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Sysco (SYY) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: SYYIndustry 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
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Where Sysco (SYY) stands on current ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Sysco (SYY) stands on debt-to-equity ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Sysco (SYY) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: SYYIndustry group median
Current Ratio (MRQ)1.331.17
Debt-to-Equity Ratio (MRQ)6.701.29
Net Debt / EBITDA2.962.59

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%
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Where Sysco (SYY) stands on dividend yield within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Sysco (SYY) stands on payout ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Sysco (SYY) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: SYYIndustry group median
Dividend Yield (TTM)2.78%0.66%
Dividend Payout Ratio (TTM)60.00%16.54%