Sysco (SYY) AI Stock Analysis

• Market Cap: $41.97B
• Dividend Yield: 2.84%
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.13
• Revenue Growth: 2.92%
• EPS Growth: -4.06%
• Country: US
• Employees: 76,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.99
• Shares Outstanding: 478,930,660
• 10 Day Avg. Volume: 3,038,338
• 30 Day Avg. Volume: 4,029,451
• 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: 1.34
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 13.80
• 1Y Price Target: $92.25
• Price Target Upside: 5.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.59
• Revenue Forecast (FY): $84.44B

• Rating: 62 Neutral
• Price Target: $93.00 ▲(6.13% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score reflects stable operating performance and supportive guidance/free-cash-flow momentum, tempered primarily by elevated leverage and a thin equity cushion. Technicals are moderately positive, while valuation is fair-to-slightly expensive with some support from the dividend; the CFO change is a manageable but notable risk.

Positive Factors

Free cash flow generation

Sysco's recurring operating cash flow (~$2.8B TTM) and roughly $1.9B of free cash flow provide durable internal funding for dividends, planned $1B buybacks, tuck-in M&A and partial debt term-outs. Reliable FCF preserves capital allocation optionality despite leverage.

Scale and revenue momentum

Substantial scale and multi-year top-line growth underpin broad supplier leverage, extensive distribution reach and diversified end markets (restaurants, healthcare, education). Large revenue base supports modest operating leverage and resilience across cyclical segments.

Sales productivity and international strength

High sales colleague retention plus rapid AI360 adoption (95%+ weekly use) signal durable productivity gains and stronger customer coverage. Combined with repeatable international outperformance, these factors sustainably boost organic volume growth and sales efficiency over coming quarters.

Negative Factors

Elevated leverage

Very high debt relative to a small equity base materially reduces financial flexibility and magnifies downside risk from demand shocks or rising rates. Persistent elevated leverage constrains investment optionality and makes meeting target leverage more operationally binding.

Naturally thin margins

Low absolute margins typical of distribution mean modest shocks to drop size, freight or labor quickly depress net income. Thin operating and net margins limit the firm's ability to self-insure against cost inflation and weaken resilience versus higher-margin peers.

Exposure to restaurant / national chain weakness

Sysco's earnings and volumes are tied to restaurant traffic and national chain contracts. Prolonged softness in dining demand or chain volumes can structurally reduce local case sizes and order economics, pressuring revenue mix and per-order profitability over several quarters.

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 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

Operations are steady with strong revenue growth and solid free-cash-flow conversion, but the balance sheet is a major constraint: rising debt and a very thin equity base increase financial risk and reduce flexibility despite stable profitability.

Income Statement

Results show steady top-line expansion, with revenue rising from ~$51.3B (2021) to ~$81.4B (2025 annual) and ~$82.6B in TTM (Trailing-Twelve-Months). Profitability is stable but inherently thin for the industry: gross margin holds near ~18–19%, while net margin improved versus 2021 but remains around ~2.2% in the latest periods. Operating profitability has been generally consistent (EBIT margin ~3.7% in TTM), though net income is slightly below the 2024 peak—suggesting modest margin pressure or higher costs/interest/taxes despite higher sales.

Balance Sheet

Leverage is the main constraint: total debt increased from ~$11.2B (2023) to ~$14.5B (2025 annual) and ~$15.0B in TTM (Trailing-Twelve-Months), while equity remains low (~$1.8B–$2.3B). This drives very high debt relative to equity (roughly ~7–8x recently), leaving less balance-sheet flexibility if conditions weaken. Returns on equity are extremely high, but largely reflect the small equity base rather than unusually strong underlying economics, which elevates financial risk.

Cash Flow

Cash generation is solid and generally supportive of the business: operating cash flow is ~$2.8B in TTM (Trailing-Twelve-Months) and free cash flow is ~$1.9B, with free cash flow typically running at ~65–72% of net income across recent years (good earnings quality). However, free cash flow has been somewhat choppy (down in 2022 and 2025 annual before rebounding in TTM), and operating cash flow covers only about a quarter to a third of total debt—adequate but not strong given the leverage profile.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	82.65B	81.37B	78.84B	76.33B	68.64B	51.30B
Gross Profit	15.26B	14.97B	14.61B	13.96B	12.32B	9.36B
EBITDA	4.06B	4.14B	4.17B	3.70B	3.25B	2.32B
Net Income	1.80B	1.83B	1.96B	1.77B	1.36B	524.21M
Balance Sheet
Total Assets	27.18B	26.77B	24.92B	22.82B	22.09B	21.41B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.07B	696.00M	745.00M	867.09M	3.01B
Total Debt	16.20B	14.49B	12.95B	11.17B	11.39B	11.82B
Total Liabilities	24.84B	24.92B	23.03B	20.78B	20.67B	19.83B
Stockholders Equity	2.28B	1.83B	1.86B	2.01B	1.38B	1.55B
Cash Flow
Free Cash Flow	1.93B	1.78B	2.16B	2.08B	1.16B	1.43B
Operating Cash Flow	2.80B	2.69B	2.99B	2.87B	1.79B	1.90B
Investing Cash Flow	-813.00M	-717.00M	-1.96B	-785.00M	-1.88B	-428.70M
Financing Cash Flow	-1.49B	-1.59B	-1.04B	-2.06B	-1.99B	-4.63B

Sysco Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.63
• 50DMA: Positive
• 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 Neutral. The current price of 87.63 is below the 20-day moving average (MA) of 88.60, above the 50-day MA of 81.42, and above the 200-day MA of 77.65, indicating a neutral trend. The MACD of 2.10 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 34.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYY.

Sysco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USFD	70 Outperform	$20.51B	25.64	15.30%	―	4.80%	3.49%
CHEF	69 Neutral	$2.54B	34.00	12.67%	―	8.88%	54.12%
ANDE	64 Neutral	$2.22B	18.89	5.85%	1.44%	2.19%	-39.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SYY	62 Neutral	$41.97B	22.87	83.64%	2.84%	2.92%	-4.06%
PFGC	57 Neutral	$14.46B	57.89	7.75%	―	10.55%	-23.38%
UNFI	52 Neutral	$2.31B	-142.83	-6.37%	―	1.45%	-5.49%

Sysco Corporate Events

Sysco Names Interim CFO and Reaffirms 2026 Outlook

On February 27, 2026, Sysco’s Executive Vice President and Chief Financial Officer, Kenny Cheung, resigned to join a Fortune 10 company in another industry, with the company stressing that his departure did not stem from any disagreements over operations, accounting or controls. He will remain in an advisory role until April 17, 2026, to support an orderly handover.

On March 4, 2026, Sysco’s board appointed Brandon Sewell, previously Senior Vice President and CFO of U.S. Foodservice Operations, as interim CFO effective March 6, 2026, with a new compensation package designed to reflect his expanded responsibilities and encourage retention. Sysco simultaneously reaffirmed its fiscal 2026 guidance, signaling confidence that the leadership transition will not disrupt its financial strategy or projected earnings and sales growth, which is likely to reassure investors and other stakeholders about continuity in performance and governance.

The most recent analyst rating on (SYY) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Sysco stock, see the SYY Stock Forecast page.

Sysco Issues $1.25 Billion in New Senior Notes

On February 13, 2026, Sysco Corporation issued and sold $600 million of 4.400% Senior Notes due 2031 and $650 million of 4.950% Senior Notes due 2036, raising net proceeds of about $1.24 billion. The notes, which are unsecured and guaranteed by certain subsidiaries, were sold under an existing shelf registration and will pay interest semi-annually until their respective maturities in 2031 and 2036.

Sysco plans to use the proceeds for general corporate purposes, including repaying borrowings under its commercial paper programs, effectively terming out a portion of its short-term debt. The structure of the notes, including optional redemption features and change-of-control repurchase protections, underscores Sysco’s effort to manage its capital structure and provide bondholders with defined safeguards in the event of a ratings downgrade following a change of control.

The most recent analyst rating on (SYY) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Sysco stock, see the SYY Stock Forecast page.

Sysco Announces New Senior Notes Debt Offering

On February 10, 2026, Sysco Corporation entered into an underwriting agreement with a syndicate of major banks to issue $600 million of 4.400% senior notes due 2031 and $650 million of 4.950% senior notes due 2036. The offering, conducted under an existing shelf registration, is expected to close on February 13, 2026, subject to customary conditions and protections for both Sysco and the underwriters.

The transaction underscores Sysco’s continued use of the debt capital markets to support its financing needs, with several underwriters’ affiliates already serving as lenders under Sysco’s credit facility and as dealers in its commercial paper programs. These existing relationships mean some of the offering’s proceeds may indirectly flow to these financial institutions, reflecting the close integration between Sysco’s long-term funding strategy and its broader banking partnerships.

The most recent analyst rating on (SYY) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Sysco stock, see the SYY Stock Forecast page.