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Sysco Corp (SYY)
NYSE:SYY
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Sysco
(NYSE:SYY)
69Neutral
Positive Factors
Market Share Growth
The return to net sales force growth along with capacity expansions should support stronger local market share trends over time.
Sales Team Productivity
Sysco Corporation is expected to benefit from increased productivity of sales teams towards the end of the fiscal year.
Negative Factors
Earnings Shortfall
The magnitude of SYY's 3Q EPS shortfall and guidance reduction was deeper than expected.
Operational Issues
SYY's operational issues remain a key drag, contributing to a disappointing performance.
Sysco (SYY) vs. S&P 500 (SPY)
Market Cap
$34.30B
Dividend Yield2.88%
Average Volume (3M)3.56M
Price to Earnings (P/E)18.3
Beta (1Y)0.22
Revenue Growth3.55%
EPS Growth-5.79%
CountryUS
Employees76,000
SectorConsumer Defensive
Sector Strength77
IndustryFood Distribution
Share Statistics
EPS (TTM)3.87
Shares Outstanding484,751,680
10 Day Avg. Volume3,761,280
30 Day Avg. Volume3,559,088
Financial Highlights & Ratios
PEG Ratio2.05
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.44
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.38
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$80.80Price Target Upside14.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Sysco Business Overview & Revenue Model
Company DescriptionSysco Corporation, headquartered in Houston, Texas, is a global leader in selling, marketing, and distributing food products to restaurants, healthcare and educational facilities, lodging establishments, and other customers who prepare meals away from home. The company operates through various segments including Broadline, SYGMA, and International Foodservice Operations, providing a broad range of food and related products to meet the diverse needs of its customers.
How the Company Makes MoneySysco Corporation generates revenue primarily through the sale and distribution of food and related products to a wide array of customers in the foodservice industry. The company's broadline segment, which distributes a wide variety of fresh and frozen foods, as well as non-food products, is a significant contributor to its revenue. Sysco also earns revenue through its SYGMA segment, which provides food and non-food products to chain restaurants in the U.S., and through its International Foodservice Operations, which extends its reach to global markets. The company's earnings are bolstered by its extensive supply chain capabilities, strategic partnerships with suppliers, and its ability to leverage economies of scale to offer competitive pricing and services. Additionally, Sysco's investment in technology and logistics improves its operational efficiency, further enhancing its profitability.
Sysco Key Performance Indicators (KPIs)
Any
Revenue by Product
Details sales generated from different products, offering insight into consumer preferences and the company's product strategy effectiveness.
Details sales generated from different products, offering insight into consumer preferences and the company's product strategy effectiveness.
Data provided by:
Main Street Data
Main Street DataSysco Financial Statement Overview
Summary
Sysco shows strong financial health with consistent revenue growth, stable profitability margins, and effective cash flow management. While high debt levels pose potential risks, robust operating performance and efficient capital management mitigate these concerns.Income Statement
Sysco's income statement shows a strong performance with a consistent increase in revenue over the years. The gross profit margin remains stable, and the net profit margin has improved significantly, reflecting increased efficiency. The company also demonstrates robust EBIT and EBITDA margins, indicating strong operating performance and profitability.85
Very Positive
Balance Sheet
Sysco's balance sheet indicates a high debt-to-equity ratio, suggesting a reliance on debt financing, which could pose a risk in economic downturns. However, the company's return on equity is commendable, signaling effective use of equity for generating profits. The equity ratio is low, which suggests potential vulnerability to liabilities, but the company maintains a solid asset base.70
Positive
Cash Flow
Sysco's cash flow statement reflects strong operational cash generation with a healthy operating cash flow to net income ratio. The free cash flow growth is positive, suggesting efficient capital expenditure management. The free cash flow to net income ratio indicates that the company is generating substantial free cash relative to its net income, supporting its liquidity and investment capacity.80
Positive
| Breakdown | ||||
| Jun 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 78.84B | 76.32B | 68.64B | 51.30B | 52.89B | Gross Profit |
| 14.61B | 13.95B | 12.32B | 9.36B | 9.90B | EBIT |
| 3.20B | 3.04B | 2.34B | 1.44B | 749.50M | EBITDA |
| 4.17B | 3.67B | 3.10B | 1.94B | 1.54B | Net Income Common Stockholders |
| 1.96B | 1.77B | 1.36B | 524.21M | 215.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 696.00M | 745.20M | 867.09M | 3.01B | 6.06B | Total Assets |
| 24.92B | 22.82B | 22.13B | 21.41B | 22.63B | Total Debt |
| 12.95B | 11.17B | 11.39B | 11.82B | 15.08B | Net Debt |
| 12.25B | 10.42B | 10.52B | 8.81B | 9.02B | Total Liabilities |
| 23.03B | 20.78B | 20.71B | 19.83B | 21.44B | Stockholders Equity |
| 1.86B | 2.01B | 1.38B | 1.55B | 1.16B |
| Cash Flow | Free Cash Flow | |||
| 2.16B | 2.07B | 1.16B | 1.43B | 898.26M | Operating Cash Flow |
| 2.99B | 2.87B | 1.79B | 1.90B | 1.62B | Investing Cash Flow |
| -1.96B | -784.61M | -1.88B | -428.70M | -756.31M | Financing Cash Flow |
| -1.04B | -2.06B | -1.99B | -4.63B | 4.72B |
Sysco Technical Analysis
Negative
70.75
Price Trends
72.52
Negative
73.26
Negative
73.98
Negative
Market Momentum
-0.41
Positive
46.75
Neutral
43.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYY, the sentiment is Negative. The current price of 70.75 is below the 20-day moving average (MA) of 70.98, below the 50-day MA of 72.52, and below the 200-day MA of 73.98, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 43.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYY.
Sysco Risk Analysis
Sysco disclosed 28 risk factors in its most recent earnings report. Sysco reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sysco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $15.65B | 33.69 | 10.65% | ― | 6.41% | -2.01% | |
75 Outperform | $12.90B | 33.29 | 9.54% | ― | 3.85% | -9.74% | |
74 Outperform | $2.44B | 46.14 | 12.90% | ― | 10.50% | 59.18% | |
69 Neutral | $34.30B | 18.30 | 94.91% | 2.88% | 3.55% | -5.79% | |
64 Neutral | $8.88B | 14.97 | 4.71% | 174.26% | 3.67% | 4.40% | |
63 Neutral | $660.34M | 2,242.53 | 0.04% | 4.47% | -2.66% | 8.18% | |
53 Neutral | $1.62B | ― | -4.94% | ― | 4.73% | 29.70% |
* Consumer Defensive Sector Average
Performance Comparison
SYY
Sysco
70.75
-2.68
-3.65%
SPTN
SpartanNash Co
19.51
0.79
4.22%
CHEF
The Chefs' Warehouse
59.94
22.21
58.87%
UNFI
United Natural Foods
26.81
17.12
176.68%
PFGC
Performance Food Group
82.59
13.04
18.75%
USFD
US Foods Holding
67.90
15.15
28.72%
Sysco Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q3-2025)
| % Change Since: 0.47%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
Sysco Corporation's third quarter faced significant challenges due to adverse weather conditions, declining consumer confidence, and a downturn in key segments like US food service. However, international success, improved colleague retention, and strategic expansions provide a balanced outlook.Q3-2025 Updates
Positive Updates
International Segment Success
The international segment posted another compelling quarter with profit growth of double digits, marking the sixth consecutive quarter of such growth. Local volume increased by 4.5%, and adjusted operating income increased by 17.4%, particularly driven by Canada, Great Britain, and Ireland.
Sales and Volume Growth in Sigma
The Sigma segment delivered sales growth of 9.5% for the quarter, driven by strong customer wins compared to the prior year. Year-to-date, Sigma's top line grew by 9% and the bottom line by 17%.
Colleague Retention and Engagement Improvement
Sales consultant retention has significantly improved versus the first half of the year. The company completed an annual employment engagement survey, showing solid year-over-year improvements in sales colleague job satisfaction.
New Facility and Expansion Plans
Sysco Corporation opened a new facility in Allentown, PA, and plans to open another in Tampa, Florida, this summer, to support net new business growth. Internationally, new facilities in Sweden and Ireland are on track to open in the summer.
Negative Updates
Weather and Traffic Challenges
Q3 was affected by wildfires in California and historic winter storms, reducing sales trends by 150 basis points. Traffic to restaurants during the quarter declined by 3.1% overall.
Decline in Consumer Confidence
The Michigan Consumer Confidence Survey highlighted very low consumer confidence levels, which gives concern for future performance.
Underperformance in US Food Service Segment
The US food service segment saw a volume decrease of 2% and local volume decreasing by 3.5% for the quarter. The national sales business delivered flat volume growth for the quarter and sales growth of 2.3%, both below expectations.
Impact of Colleague Turnover
Elevated colleague turnover in the first half of fiscal 2025 negatively impacted business performance. The net impact was expected to shift from negative to positive as the company enters fiscal 2026.
Company Guidance
During Sysco Corporation's third quarter fiscal year 2025 earnings call, CEO Kevin Hourican and CFO Kenny Cheung provided guidance amidst a challenging macroeconomic environment. The company reported sales of $19.6 billion, up 1.1% on a reported basis and 1.8% when excluding the divestiture of Mexico. Despite negative 3.1% restaurant foot traffic, Sysco converted this into positive sales through new business acquisition and passing on approximately 2.1% inflation. Adjusted operating income was $773 million, down 3.3%, with adjusted EPS flat at $0.96. Sysco is focusing on $100 million profit improvement initiatives, with significant contributions expected in Q4. International operations posted double-digit profit growth for the sixth consecutive quarter, while the Sigma segment showed 9.5% sales growth. Despite industry challenges, Sysco is cautiously optimistic, noting improved April performance and planning for the remainder of 2025 with caution due to tariff uncertainties and shaken consumer confidence.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.