Sysco (SYY) AI Stock Analysis

• Market Cap: $35.57B
• Dividend Yield: 2.83%
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): 19.9
• 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: 478,861,050
• 10 Day Avg. Volume: 3,552,513
• 30 Day Avg. Volume: 2,960,624
• 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: 1.49
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.52
• Enterprise Value/Ebitda: 13.30
• 1Y Price Target: $87.75
• Price Target Upside: 18.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: $84.00 ▲(13.09% Upside)

Sysco's overall stock score reflects strong financial performance and positive earnings call sentiment, which are partially offset by technical analysis indicating potential short-term weakness. The company's strategic initiatives and international growth provide a solid foundation, but high leverage and challenges in certain segments warrant caution.

Positive Factors

Revenue Growth

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

International Segment Success

Strong international performance suggests successful global expansion and diversification, enhancing resilience against domestic market fluctuations.

Strategic Initiatives

Innovative tools like AI360 and Perks 2.0 improve sales efficiency and customer loyalty, fostering sustainable competitive advantages.

Negative Factors

High Leverage

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

National Restaurant Segment Challenges

Underperformance in national restaurants may limit growth in a key segment, requiring strategic adjustments to regain market share.

Impact of FreshPoint Exit

The FreshPoint exit impacts local performance, highlighting potential challenges in adapting to strategic shifts and maintaining consistent growth.

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's financial performance is strong, with robust revenue growth and stable profitability. The company demonstrates efficient operations and cash generation, although high leverage poses a potential risk. Overall, Sysco is well-positioned in the food distribution industry with a solid financial foundation, but should monitor its debt levels closely.

Income Statement

Sysco demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 81.6%, indicating robust expansion. The gross profit margin is stable around 18.4%, and the net profit margin is modest at 2.2%. EBIT and EBITDA margins are healthy, reflecting efficient operations. Overall, the income statement shows a positive growth trajectory with stable profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 7.05, indicating significant leverage, which could pose financial risk. However, the return on equity is exceptionally high at 92.6%, showcasing strong profitability relative to equity. The equity ratio is not directly provided, but the high leverage suggests a lower equity proportion in total assets. Overall, the balance sheet reflects strong profitability but also highlights potential risks due to high leverage.

Cash Flow

Sysco's cash flow statement shows a positive free cash flow growth rate of 8.7% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.25, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.71, indicating that a significant portion of income is converted to free cash flow. Overall, the cash flow statement reflects healthy cash generation with room for improvement in cash conversion efficiency.

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	24.93B	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: 74.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 74.28 is below the 20-day moving average (MA) of 78.18, below the 50-day MA of 79.77, and below the 200-day MA of 74.94, indicating a bearish trend. The MACD of -1.41 indicates Positive momentum. The RSI at 30.63 is Neutral, neither overbought nor oversold. The STOCH value of 6.71 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	―	$35.57B	19.90	84.89%	2.83%	2.92%	-4.06%
PFGC	―	$15.17B	44.48	7.91%	―	8.61%	-22.16%
USFD	―	$16.35B	31.04	11.48%	―	5.32%	11.65%
CHEF	―	$2.40B	34.12	14.12%	―	8.88%	54.12%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPTN	―	―	―	―	―	1.54%	-134.75%
UNFI	―	$2.28B	―	-7.39%	―	2.60%	-3.23%

Sysco Corporate Events

Sysco Corporation Reports Solid Q1 2026 Results

Sysco Corporation is a global leader in selling, marketing, and distributing food and related products to various sectors, including restaurants, healthcare, and educational facilities. The company operates in the foodservice industry and is known for its extensive distribution network and customized supply chain solutions.

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.