Skip to Content
Morningstar

Sysco Corp SYY

Morningstar Rating
Unlock
Stock XNYS Rating as of
$76.17 +1.02 (1.36%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Sysco Earnings: Top-Line Growth Cools Amid Slowing Traffic; Shares Fairly Valued

Kristoffer Inton

Wide-moat Sysco delivered decent (March-ended) third-quarter fiscal 2024 results amid a challenging macroenvironmental backdrop. Sales increased nearly 3% year over year, with an adjusted operating margin of 4.1%, up about 22 basis points over the prior year. Amid slower restaurant foot traffic, the company trimmed its fiscal 2024 sales guidance to about $79 billion, down from $80 billion. However, its focus on cost management led the firm to maintain adjusted earnings per share guidance of $4.20-$4.40. This outlook compares with our earlier fiscal 2024 forecast of $79.8 billion and $4.31, respectively.

Read Full Report

Price vs Fair Value

View History
SYY is trading at a 582% premium.
Price
$76.17
Fair Value
$57.00
Uncertainty
Medium
1-Star Price
$597.60
5-Star Price
$69.80
Economic Moat
Rmyr
Capital Allocation
Fzsrxlls

Bulls Say, Bears Say

Bulls

Sysco’s dense distribution network allows it to deliver perishable goods more quickly and cost-effectively, and this edge should help it continue to take market share over time.

Bears

The lack of pricing power and switching costs among foodservice distributors leaves Sysco at risk for intense price competition.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if SYY is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$75.15
Day Range
$74.95–76.26
52-Week Range
$62.24–82.55
Bid/Ask
$75.26 / $76.40
Market Cap
$37.93 Bil
Volume/Avg
1.8 Mil / 2.7 Mil

Key Statistics

Price/Earnings (Normalized)
17.80
Price/Sales
0.49
Dividend Yield (Trailing)
2.68%
Dividend Yield (Forward)
2.73%
Total Yield
4.79%

Company Profile

Sysco is the largest U.S. foodservice distributor with 17% share of the highly fragmented $350 billion domestic market. Sysco distributes roughly 500,000 food and nonfood products to restaurants (62% of fiscal 2023 revenue), education and government buildings (8%), travel and leisure (8%), healthcare facilities (7%) and other locations (15%) where individuals consume away-from-home meals. In fiscal 2023, 70% of the firm’s revenue was derived from its U.S. foodservice operations, while its international (18%), quick-service logistics (10%), and other (2%) segments made up the difference.
Sector
Consumer Defensive
Industry
Food Distribution
Stock Style Box
Mid Core
Total Number of Employees
72,000
Website
https://www.sysco.com

Competitors

Valuation

View More
Metric
SYY
CPG
Price/Earnings (Normalized)
 17.8025.21
Price/Book Value
 18.007.63
Price/Sales
 0.491.28
Price/Cash Flow
 11.5218.33
Price/Earnings
SYY
CPG

Financial Strength

Metric
SYY
CPG
Quick Ratio
 0.740.65
Current Ratio
 1.340.75
Interest Coverage
 5.719.83
Quick Ratio
SYY
CPG

Profitability

Metric
SYY
CPG
Return on Assets (Normalized)
 9.12%8.39%
Return on Equity (Normalized)
 105.59%27.41%
Return on Invested Capital (Normalized)
 18.29%15.99%
Return on Assets
SYY
CPG
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Food Distribution Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JRONY
Jeronimo Martins SGPS SA ADR—Lmkyf$13.5 Bil
BZLFY
Bunzl PLC ADR—Ddfpk$13.3 Bil
BZLFF
Bunzl PLC—Tprkzlk$13.3 Bil
JRONF
Jeronimo Martins SGPS SA—Vcxplkt$13.3 Bil
USFD
US Foods Holding CorpSfrhylhcZdpr$12.8 Bil
PFGC
Performance Food Group CoQsymhjdtKcl$11.0 Bil
SMKUF
CP Axtra PCL Units Non-Voting Depository Receipt—Hpkg$9.4 Bil
BDDDY
Bid Corp Ltd ADR—Qfgqr$7.8 Bil
BPPPF
Bid Corp Ltd—Dgyqkq$7.8 Bil

Sponsor Center