Sysco (SYY) AI Stock Analysis

• Market Cap: $39.40B
• Dividend Yield: 2.54%
• Average Volume (3M): 2.97M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.23
• Revenue Growth: 3.21%
• EPS Growth: -4.03%
• Country: US
• Employees: 76,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 1.48
• Shares Outstanding: 478,212,370
• 10 Day Avg. Volume: 3,265,010
• 30 Day Avg. Volume: 2,966,590
• 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: 1.26
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 12.23
• 1Y Price Target: $86.89
• Price Target Upside: 5.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: $91.00 ▲(10.45% Upside)

Sysco's overall stock score reflects strong financial performance and positive earnings call outcomes, driven by international growth and strategic initiatives. However, high debt levels and valuation concerns weigh on the score. Technical indicators suggest a positive trend, but potential overbought conditions should be monitored.

Positive Factors

International Segment Growth

The robust growth in the International segment indicates Sysco's successful expansion efforts and diversification, enhancing its global market position and reducing reliance on domestic markets.

Strategic Initiatives

Innovative initiatives like AI tools and loyalty programs are set to improve customer retention and sales efficiency, driving long-term growth and competitive advantage.

SYGMA Segment Performance

Strong performance in the SYGMA segment underscores Sysco's ability to capitalize on distribution efficiencies and market demand, contributing to overall profitability and growth.

Negative Factors

High Debt Levels

Elevated debt levels can constrain financial flexibility and increase vulnerability to economic downturns, potentially impacting long-term financial health.

Decline in U.S. Foodservice Volume

A decline in U.S. Foodservice volume suggests challenges in the domestic market, which could affect revenue growth and market share if not addressed.

Colleague Turnover Impact

High turnover rates can disrupt customer relationships and sales continuity, potentially leading to revenue loss and increased operational costs.

Sysco Business Overview & Revenue Model

Company Description

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products primarily to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen foods, such as meats, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of China and silverware; cookware, which include pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing homes, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. As of August 27, 2021, it operated 343 distribution facilities. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

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, with stable gross profit margins. However, high debt levels and declining free cash flow growth present risks. The company maintains a solid return on equity, but should focus on improving balance sheet strength.

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	81.37B	81.37B	78.84B	76.33B	68.64B	51.30B
Gross Profit	14.97B	14.97B	14.61B	13.95B	12.32B	9.36B
EBITDA	4.06B	4.14B	4.17B	3.70B	3.25B	2.32B
Net Income	1.83B	1.83B	1.96B	1.77B	1.36B	524.21M
Balance Sheet
Total Assets	26.77B	26.77B	24.92B	22.82B	22.09B	21.41B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.07B	696.00M	745.00M	867.09M	3.01B
Total Debt	14.49B	14.49B	12.95B	11.17B	11.39B	11.82B
Total Liabilities	24.92B	24.92B	23.03B	20.78B	20.67B	19.83B
Stockholders Equity	1.83B	1.83B	1.86B	2.01B	1.38B	1.55B
Cash Flow
Free Cash Flow	1.78B	1.78B	2.16B	2.08B	1.16B	1.43B
Operating Cash Flow	2.69B	2.69B	2.99B	2.87B	1.79B	1.90B
Investing Cash Flow	-717.00M	-717.00M	-1.96B	-785.00M	-1.88B	-428.70M
Financing Cash Flow	-1.59B	-1.59B	-1.04B	-2.06B	-1.99B	-4.63B

Sysco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYY, the sentiment is Positive. The current price of 82.39 is above the 20-day moving average (MA) of 81.02, above the 50-day MA of 80.21, and above the 200-day MA of 74.87, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 63.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYY.

Sysco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHEF	75 Outperform	2.45B	37.03	10.32%	―	7.90%	68.05%
SYY	74 Outperform	$39.40B	22.08	99.08%	2.54%	3.21%	-4.03%
PFGC	74 Outperform	16.18B	47.53	7.61%	―	8.61%	-22.16%
USFD	69 Neutral	17.36B	32.96	11.95%	―	5.32%	11.65%
UNFI	66 Neutral	1.75B	-25.33	0.00%	―	6.62%	53.12%
SPTN	58 Neutral	910.78M	-56.39	-2.14%	3.26%	1.54%	-134.75%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Sysco Corporate Events

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.