Sysco (SYY) AI Stock Analysis

• Market Cap: $36.27B
• Dividend Yield: 2.8%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.15
• 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: 3,105,532
• 30 Day Avg. Volume: 3,053,135
• 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: 1.46
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 12.90
• 1Y Price Target: $87.60
• Price Target Upside: 16.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.59
• Revenue Forecast (FY): $84.44B

• Rating: 71 Outperform
• Price Target: $84.00 ▲(11.90% 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 (SYY) is a leading global distributor of food products and non-food items, primarily serving the foodservice industry, which includes restaurants, healthcare facilities, and educational institutions. Founded in 1969 and headquartered in Houston, Texas, Sysco operates through a vast network of distribution centers and a fleet of delivery vehicles, providing a wide range of products including fresh and frozen foods, canned and dry goods, as well as kitchen equipment and supplies. The company is committed to sourcing high-quality products and offering exceptional service to its customers across various sectors.

How the Company Makes Money

Sysco generates revenue through the distribution of food and non-food products to its customers in the foodservice sector. The company's primary revenue streams include the sale of food products, which encompasses fresh, frozen, and dry goods, as well as non-food items such as kitchen supplies and equipment. Sysco benefits from economies of scale due to its extensive distribution network and strong supplier relationships, allowing it to negotiate favorable pricing. Additionally, the company has developed partnerships with various suppliers and manufacturers, enhancing its product offerings and market reach. Sysco also invests in technology and logistics to streamline operations and improve delivery efficiency, contributing to its profitability. The company's diverse customer base, which includes independent restaurants, chain restaurants, and institutional clients, further stabilizes its revenue flow.

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	13.96B	12.32B	9.36B
EBITDA	4.11B	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	1.78B	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: Positive
• Last Price: 75.07
• 50DMA: Negative
• 100DMA: Negative
• 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 75.07 is above the 20-day moving average (MA) of 74.73, below the 50-day MA of 75.82, and below the 200-day MA of 75.47, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 72.62 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
USFD	74 Outperform	$17.05B	32.09	12.29%	―	4.80%	3.49%
CHEF	72 Outperform	$2.61B	36.67	14.12%	―	8.88%	54.12%
SYY	71 Outperform	$36.27B	20.29	84.89%	2.80%	2.92%	-4.06%
ANDE	71 Outperform	$1.87B	25.77	5.85%	1.44%	2.19%	-39.07%
PFGC	64 Neutral	$14.87B	44.05	7.42%	―	10.55%	-23.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNFI	52 Neutral	$2.02B	-19.78	-6.37%	―	1.45%	-5.49%

Sysco Corporate Events

Sysco Announces Executive Transition for Greg D. Bertrand

On November 17, 2025, Sysco announced that Greg D. Bertrand, its Executive Vice President and Global Chief Operating Officer, will transition to a senior advisor role effective January 1, 2026, as he prepares for retirement. This transition involves a strategic advisor agreement lasting at least nine months, during which Bertrand will work at least 20 hours per week and receive specific compensation and benefits. His retirement and the transition plan are significant for Sysco’s operational continuity and strategic planning.

Sysco Stockholders Re-elect Directors, Reject Role Separation

At Sysco Corporation’s Annual Meeting of Stockholders on November 14, 2025, all director nominees were re-elected, with Francesca DeBiase receiving the highest approval at 99.35%. The meeting also saw the approval of executive compensation and the ratification of Ernst & Young LLP as the independent auditor for fiscal 2026. However, a proposal to separate the roles of Board Chair and CEO was rejected by 65.88% of the votes. These decisions reflect the stockholders’ confidence in the current leadership and operational strategies, while the rejection of the separation proposal indicates a preference for maintaining the existing governance structure.