-0.57%
-3.69%
-2.81%
-3.81%
-11.46%
-8.23%
-4.90%
AI Spotlight on SYY
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.
Market Data
| Last Price | 72.92 |
| Change Percentage | -0.57% |
| Open | 72.95 |
| Previous Close | 73.34 |
| Market Cap ( Millions) | 35820 |
| Volume | 2260439 |
| Year High | 82.89 |
| Year Low | 69.03 |
| M A 50 | 76.3 |
| M A 200 | 75.25 |
Financial Ratios
| FCF Yield | 5.46% |
| Dividend Yield | 2.78% |
| ROE | 94.47% |
| Debt / Equity | 679.74% |
| Net Debt / EBIDTA | 306.60% |
| Price To Book | 17.77 |
| Price Earnings Ratio | 18.52 |
| Price To FCF | 18.3 |
| Price To sales | 0.44 |
| EV / EBITDA | 11.58 |
News
- Jan -29 - Sysco's Sales Perform Well, But Case Growth Concerns Weigh On Stock, Say Analysts
- Jan -28 - Sysco Corporation (SYY) Q2 2025 Earnings Call Transcript
- Jan -28 - Sysco's Q2 Earnings Meet Estimates, Share Buyback Program Gets a Boost
- Jan -28 - Sysco Edges Past Fiscal Q2 Expectations
- Jan -28 - Sysco (SYY) Reports Q2 Earnings: What Key Metrics Have to Say
- Jan -28 - Sysco (SYY) Q2 Earnings Match Estimates
- Jan -28 - Food supplier Sysco keeps full-year forecasts unchanged despite quarterly beat
- Jan -28 - Sysco Reports Second Quarter Fiscal Year 2025 Results
- Jan -27 - Sysco Shares Cross Above 200 DMA
- Jan -27 - Sysco Set to Release Q2 Earnings: Should You Expect a Beat This Time?
- Jan -23 - Curious about Sysco (SYY) Q2 Performance? Explore Wall Street Estimates for Key Metrics
- Jan -17 - Happy Belly Food Group Signs National Distributional Agreement with Sysco
- Jan -15 - Buy 3 'Safer' Dividend Kings Of 25 From 53 For January
- Jan -13 - Sysco Offers Houston Colleagues Unprecedented Wage Increases, Improved Benefits and More Time Off, Teamsters' Strike Call Harms Our Colleagues
- Jan -13 - SYY's Foodservice Channel & Operational Excellence Power Bring Success
- Dec -31 - Sysco's Operational Strategies Help Overcome Industry Slowdowns
- Dec -30 - Sysco Corporation: Eating Up The Competition, Serving Up Value
- Dec -19 - Square Teams With Sysco to Bolster Restaurant Technology
- Dec -18 - Square Teams up with Sysco, Delivers New Features to Save Restaurants Time and Smooth Cash Flow
- Dec -03 - Sysco Corporation (SYY) Presents at Morgan Stanley Global Consumer and Retail Conference - Company Call Transcript
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> United States Foodservice
Expected Growth : 3.5 %
What the company do ?
United States Foodservice from Sysco Corporation is a leading distributor of food and food-related products to restaurants, healthcare, and educational facilities.
Why we expect these perspectives ?
Sysco's United States Foodservice segment growth of 3.5% is driven by increasing demand from restaurants, healthcare, and educational institutions. Additionally, the company's focus on digital transformation, customer service, and supply chain optimization are contributing to growth. Furthermore, Sysco's strategic acquisitions and investments in emerging markets, such as meal kits and ghost kitchens, are also driving segment growth.
Segment n°2 -> International Foodservice
Expected Growth : 2.8 %
What the company do ?
International Foodservice from Sysco Corporation is a leading distributor of food and food-related products to the foodservice industry, providing a wide range of products and services to restaurants, healthcare, education, and hospitality customers.
Why we expect these perspectives ?
Sysco's International Foodservice segment growth of 2.8% is driven by increasing demand for convenient and affordable meal solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, menu innovation, and supply chain optimization are contributing to its growth momentum.
Segment n°3 -> Sygma
Expected Growth : 2.2 %
What the company do ?
Sygma from Sysco Corporation is a leading food distributor specializing in customized meat, produce, and dairy products for restaurants and foodservice providers.
Why we expect these perspectives ?
Sygma's 2.2% growth is driven by increasing demand for drop-ship services, expansion of its customer base in the healthcare and hospitality industries, and strategic investments in digital capabilities to enhance customer experience and improve operational efficiency.
Segment n°4 -> Other
Expected Growth : 1.8 %
What the company do ?
Other from Sysco Corporation refers to the company's non-foodservice operations, including its SYGMA network, which serves various customer segments.
Why we expect these perspectives ?
Sysco's 1.8% growth in 'Other' segment is driven by increasing demand for specialty meat products, expansion of Sysco's e-commerce platform, and strategic acquisitions in the foodservice industry. Additionally, the company's focus on digital transformation, cost savings initiatives, and investments in supply chain optimization are contributing to this growth.
Sysco Corporation Products
| Product Range | What is it ? |
|---|---|
| Meat, Poultry, and Seafood | Sysco offers a wide range of high-quality meat, poultry, and seafood products to meet the diverse needs of its customers. |
| Canned and Dry Goods | Sysco's canned and dry goods products include a variety of staples such as fruits, vegetables, soups, and snacks. |
| Dairy and Bakery Products | Sysco offers a range of dairy and bakery products, including milk, cheese, bread, and pastries. |
| Produce | Sysco sources fresh produce from local farms and suppliers to provide customers with a wide range of fruits and vegetables. |
| Beverages | Sysco offers a variety of beverages, including juices, sodas, coffee, and tea. |
| Pantry and Janitorial Supplies | Sysco provides a range of pantry and janitorial supplies, including cleaning products, paper goods, and disposables. |
| Equipment and Supplies | Sysco offers a range of equipment and supplies, including cooking utensils, appliances, and furniture. |
Sysco Corporation's Porter Forces
Threat Of Substitutes
Sysco Corporation, being a food distributor, faces a moderate threat of substitutes. While there are alternative food distributors, Sysco's strong relationships with suppliers and customers, as well as its efficient logistics network, make it difficult for substitutes to gain significant market share.
Bargaining Power Of Customers
Sysco's customers, primarily restaurants and foodservice providers, have limited bargaining power due to the company's large market share and diversified customer base. Additionally, Sysco's ability to offer a wide range of products and services makes it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
Sysco's suppliers, primarily food manufacturers, have some bargaining power due to the company's reliance on them for products. However, Sysco's large scale and diversified supplier base mitigate this power, allowing the company to negotiate favorable prices.
Threat Of New Entrants
The threat of new entrants in the food distribution industry is low due to the high barriers to entry, including significant capital requirements, complex logistics, and established relationships with suppliers and customers.
Intensity Of Rivalry
The food distribution industry is highly competitive, with several large players competing for market share. Sysco faces intense rivalry from companies like US Foods, Gordon Food Service, and Performance Food Group, which can lead to pricing pressures and high marketing expenses.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 0.00% |
| Debt Cost | 5.19% |
| Equity Weight | 100.00% |
| Equity Cost | 9.69% |
| WACC | 9.69% |
| Leverage | 0.00% |
Sysco Corporation : Quality Control
Sysco Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MO | Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe … |
| COST | Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, … |
| ANDE | The Andersons, Inc., an agriculture company, operates in trade, renewables, and plant nutrient sectors in the United States and internationally. The company's Trade segment operates grain elevators; stores commodities; and … |
| KHC | The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and … |
| WMT | Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Altria
A-Score
1-Year Total Return ->
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Walmart
A-Score
1-Year Total Return ->
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Costco Wholesale
A-Score
1-Year Total Return ->
4
Kraft Heinz
A-Score
1-Year Total Return ->
5
Sysco
A-Score
1-Year Total Return ->
6
