Sysco (SYY) AI Stock Analysis

• Market Cap: $37.01B
• Dividend Yield: 2.77%
• Average Volume (3M): 2.93M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.24
• Revenue Growth: 2.92%
• EPS Growth: -4.06%
• Country: US
• Employees: 76,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 1.15
• Shares Outstanding: 478,507,450
• 10 Day Avg. Volume: 2,614,784
• 30 Day Avg. Volume: 2,929,803
• PEG Ratio: -4.88
• Price to Book (P/B): 20.01
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 20.56
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $88.00
• Price Target Upside: 15.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $85.00 ▲(12.00% Upside)

Sysco's overall stock score reflects strong earnings call results and strategic initiatives driving growth, despite technical analysis indicating short-term bearish momentum. Financial performance is stable, but high leverage poses a risk. Valuation is fair, offering moderate income through dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

International Segment Success

Strong international performance diversifies revenue streams and reduces reliance on domestic markets, enhancing resilience.

Strategic Initiatives

Innovative tools like AI360 and Perks 2.0 enhance operational efficiency and customer loyalty, supporting sustainable growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting long-term financial health.

Declining Free Cash Flow Growth

Reduced free cash flow growth may limit the company's ability to invest in growth opportunities and manage debt effectively.

National Restaurant Segment Underperformance

Underperformance in a key segment could hinder overall growth and profitability, requiring strategic adjustments.

Sysco Business Overview & Revenue Model

Company Description

Sysco Corporation is a leading global distributor of food products and related services, primarily serving restaurants, healthcare facilities, educational institutions, and other foodservice operations. Headquartered in Houston, Texas, Sysco operates across multiple segments, including food and non-food products, offering a wide range of items such as fresh produce, meat, dairy, and kitchen supplies. The company focuses on providing high-quality products, supply chain solutions, and innovative services to enhance the efficiency and profitability of its customers in the foodservice industry.

How the Company Makes Money

Sysco generates revenue primarily through the sale of food and non-food products to its customers in the foodservice sector. The company operates on a wholesale model, purchasing products from manufacturers and distributing them to various clients, including restaurants, schools, and hospitals. Key revenue streams include the sale of perishable goods (such as meat, seafood, and produce), dry goods (such as canned and packaged items), and non-food supplies (such as kitchen equipment and cleaning products). Additionally, Sysco benefits from its extensive distribution network and logistics capabilities, which enable it to serve a diverse customer base efficiently. Strategic partnerships with manufacturers and suppliers also enhance its product offerings, allowing for competitive pricing and a broad selection of goods. Seasonal demand fluctuations, restaurant openings, and changes in consumer dining habits further influence the company's revenue potential.

Sysco Financial Statement Overview

Summary

Sysco shows strong revenue growth and operational efficiency, but faces challenges with high leverage and declining free cash flow growth. The company maintains a solid return on equity, yet the high debt levels could pose risks if not managed carefully.

Income Statement

Sysco has demonstrated consistent revenue growth over the years, with a notable increase in the latest period. The gross profit margin has remained stable, indicating effective cost management. However, the net profit margin has slightly decreased, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, which poses a risk in terms of financial leverage. However, the return on equity is impressive, indicating that the company is generating good returns on its equity base. The equity ratio is relatively low, which could be a concern for long-term financial stability.

Cash Flow

Sysco's operating cash flow has shown resilience, although there is a decline in free cash flow growth in the latest period. The operating cash flow to net income ratio is moderate, suggesting that the company is converting its earnings into cash effectively. The free cash flow to net income ratio is strong, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	82.03B	81.37B	78.84B	76.33B	68.64B	51.30B
Gross Profit	15.12B	14.97B	14.61B	13.95B	12.32B	9.36B
EBITDA	4.00B	4.14B	4.17B	3.70B	3.25B	2.32B
Net Income	1.81B	1.83B	1.96B	1.77B	1.36B	524.21M
Balance Sheet
Total Assets	27.04B	26.77B	24.92B	22.82B	22.09B	21.41B
Cash, Cash Equivalents and Short-Term Investments	844.00M	1.07B	696.00M	745.00M	867.09M	3.01B
Total Debt	14.58B	14.49B	12.95B	11.17B	11.39B	11.82B
Total Liabilities	14.12B	24.92B	23.03B	20.78B	20.67B	19.83B
Stockholders Equity	2.07B	1.83B	1.86B	2.01B	1.38B	1.55B
Cash Flow
Free Cash Flow	1.94B	1.78B	2.16B	2.08B	1.16B	1.43B
Operating Cash Flow	2.72B	2.69B	2.99B	2.87B	1.79B	1.90B
Investing Cash Flow	-778.00M	-717.00M	-1.96B	-785.00M	-1.88B	-428.70M
Financing Cash Flow	-1.65B	-1.59B	-1.04B	-2.06B	-1.99B	-4.63B

Sysco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 75.89 is below the 20-day moving average (MA) of 79.38, below the 50-day MA of 80.08, and above the 200-day MA of 74.91, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 33.82 is Neutral, neither overbought nor oversold. The STOCH value of 14.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYY.

Sysco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYY	―	$37.01B	20.73	84.89%	2.77%	2.92%	-4.06%
PFGC	―	$15.70B	46.04	7.91%	―	8.61%	-22.16%
USFD	―	$16.73B	31.72	11.48%	―	5.32%	11.65%
CHEF	―	$2.39B	36.17	13.64%	―	7.90%	68.05%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPTN	―	―	―	―	―	1.54%	-134.75%
UNFI	―	$2.35B	-19.85	-7.39%	―	2.60%	-3.23%

Sysco Corporate Events

Sysco’s Earnings Call: Strong Growth and Strategic Confidence

Sysco Corporation’s recent earnings call was marked by a strong sense of optimism and confidence, as the company reported robust financial results and positive momentum across its local and international segments. Despite facing some challenges in the national restaurant sector and the impact of exiting the FreshPoint business, Sysco remains confident in its growth trajectory and strategic initiatives.

Sysco Enters New $3B Credit Agreement with Bank

On September 5, 2025, Sysco Corporation and its subsidiaries entered into a new Credit Agreement with Bank of America, replacing its existing $3.0 billion credit facility. The new agreement maintains the $3.0 billion commitment with an option to increase to $4.0 billion, maturing in 2030, and includes standard covenants and guarantees, serving as a backstop for Sysco’s commercial paper program.

The most recent analyst rating on (SYY) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Sysco stock, see the SYY Stock Forecast page.

Sysco’s Earnings Call Highlights Record Growth

Sysco Corporation’s recent earnings call painted a picture of robust performance, with the company achieving record sales and profit growth. The sentiment was overwhelmingly positive, buoyed by strong results in the international and SYGMA segments. Despite some challenges in the U.S. Foodservice segment, Sysco’s strategic sourcing and profitability improvements suggest a promising outlook. The company’s forward-looking initiatives, including AI-driven sales tools and a revamped customer loyalty program, further bolster confidence in its future trajectory.

Sysco Corporation Reports Steady 2025 Financial Results

Sysco Corporation, a global leader in foodservice distribution, provides food and related products to customers who prepare meals away from home, including restaurants and healthcare facilities.