Sysco Corporation
Sysco Corporation Fundamental Analysis
Sysco Corporation (SYY) shows moderate financial fundamentals with a PE ratio of 18.88, profit margin of 2.17%, and ROE of 88.72%. The company generates $82.6B in annual revenue with moderate year-over-year growth of 3.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SYY's fundamental strength across five key dimensions:
Efficiency Score
WeakSYY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSYY trades at attractive valuation levels.
Growth Score
WeakSYY faces weak or negative growth trends.
Financial Health Score
ModerateSYY shows balanced financial health with some risks.
Profitability Score
ModerateSYY maintains healthy but balanced margins.
Key Financial Metrics
Is SYY Expensive or Cheap?
P/E Ratio
SYY trades at 18.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SYY's PEG of -35.31 indicates potential undervaluation.
Price to Book
The market values Sysco Corporation at 14.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.66 times EBITDA. This is generally considered low.
How Well Does SYY Make Money?
Net Profit Margin
For every $100 in sales, Sysco Corporation keeps $2.17 as profit after all expenses.
Operating Margin
Core operations generate 3.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $88.72 in profit for every $100 of shareholder equity.
ROA
Sysco Corporation generates $6.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sysco Corporation generates limited operating cash flow of $2.80B, signaling weaker underlying cash strength.
Free Cash Flow
Sysco Corporation generates weak or negative free cash flow of $1.93B, restricting financial flexibility.
FCF Per Share
Each share generates $4.02 in free cash annually.
FCF Yield
SYY converts 5.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-35.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.89
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How SYY Stacks Against Its Sector Peers
| Metric | SYY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.88 | 22.46 | Better (Cheaper) |
| ROE | 88.72% | 1260.00% | Weak |
| Net Margin | 2.17% | -5313.00% (disorted) | Weak |
| Debt/Equity | 7.10 | 0.84 | Weak (High Leverage) |
| Current Ratio | 1.30 | 2.49 | Neutral |
| ROA | 6.61% | -193380.00% (disorted) | Weak |
SYY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sysco Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.76%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
786.55%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
73.47%
Industry Style: Defensive, Dividend, Low Volatility
High Growth