Sysco (SYY) AI Stock Analysis

• Market Cap: $37.72B
• Dividend Yield: 2.63%
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 21.1
• 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: 478,507,450
• 10 Day Avg. Volume: 2,542,951
• 30 Day Avg. Volume: 2,874,286
• 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: 1.32
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 12.23
• 1Y Price Target: $88.63
• Price Target Upside: 10.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $86.00 ▲(7.62% Upside)

Sysco's overall stock score reflects a solid financial performance and positive earnings call sentiment, offset by technical indicators suggesting limited momentum and a high P/E ratio indicating potential overvaluation. The company's strategic initiatives and strong international segment performance contribute positively to the outlook.

Positive Factors

Revenue Growth

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

Strategic Initiatives

Strategic initiatives like AI tools and loyalty programs enhance customer engagement and operational efficiency, driving sustainable growth.

Defense Contract Award

Securing a significant defense contract strengthens Sysco's revenue base and enhances its reputation as a reliable supplier, supporting long-term stability.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Colleague Turnover

High turnover can disrupt customer relationships and sales performance, challenging long-term growth and operational efficiency.

Potential Strike

A potential strike could disrupt operations and supply chains, impacting Sysco's ability to deliver products and maintain customer satisfaction.

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 2025	Dec 2024	Dec 2024	Dec 2023
Income Statement
Total Revenue	81.37B	81.37B	81.37B	78.84B	78.84B	76.33B
Gross Profit	14.97B	14.97B	14.97B	14.61B	14.61B	13.95B
EBITDA	4.06B	4.14B	4.14B	4.17B	4.17B	3.70B
Net Income	1.83B	1.83B	1.83B	1.96B	1.96B	1.77B
Balance Sheet
Total Assets	26.77B	26.77B	26.77B	24.92B	24.92B	22.82B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.07B	1.07B	696.00M	696.00M	745.00M
Total Debt	14.49B	14.49B	14.49B	12.95B	12.95B	11.17B
Total Liabilities	24.92B	24.92B	24.92B	23.03B	23.03B	20.78B
Stockholders Equity	1.83B	1.83B	1.83B	1.86B	1.86B	2.01B
Cash Flow
Free Cash Flow	1.78B	1.78B	1.78B	2.16B	2.16B	2.08B
Operating Cash Flow	2.69B	2.69B	2.69B	2.99B	2.99B	2.87B
Investing Cash Flow	-717.00M	-717.00M	-717.00M	-1.96B	-1.96B	-785.00M
Financing Cash Flow	-1.59B	-1.59B	-1.59B	-1.04B	-1.04B	-2.06B

Sysco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 79.91 is below the 20-day moving average (MA) of 80.47, below the 50-day MA of 80.33, and above the 200-day MA of 74.74, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 48.87 is Neutral, neither overbought nor oversold. The STOCH value of 44.34 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
SYY	69 Neutral	$37.72B	21.12	99.08%	2.63%	3.21%	-4.03%
USFD	68 Neutral	$16.88B	32.04	11.48%	―	5.32%	11.65%
PFGC	66 Neutral	$15.78B	46.54	7.91%	―	8.61%	-22.16%
CHEF	63 Neutral	$2.35B	35.65	13.64%	―	7.90%	68.05%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPTN	58 Neutral	―	―	―	―	1.54%	-134.75%
UNFI	53 Neutral	$2.55B	―	-7.39%	―	2.60%	-3.23%

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.