Sysco (SYY) AI Stock Analysis

• Market Cap: $36.60B
• Dividend Yield: 2.7%
• Average Volume (3M): 2.80M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.25
• Revenue Growth: 3.55%
• EPS Growth: -5.79%
• Country: US
• Employees: 76,000
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Food Distribution
• EPS (TTM): 0.96
• Shares Outstanding: 484,751,680
• 10 Day Avg. Volume: 2,919,055
• 30 Day Avg. Volume: 2,799,515
• PEG Ratio: 0.68
• Price to Book (P/B): 18.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.15
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 2.89
• 1Y Price Target: $80.08
• Price Target Upside: 7.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $85.00 ▲(13.73%Upside)

Sysco's strong financial performance and positive earnings call guidance are significant strengths, reflecting robust operational capacity and strategic positioning. While the technical analysis suggests potential overbought conditions, the valuation and corporate events provide additional support, resulting in a favorable overall stock score.

Positive Factors

Future Growth Potential

Encouragingly, trends improved exiting March and into April, with initiatives showing progress and good set-up for future growth.

International Operations

Sysco's international operations have shown consistent operating profit growth and meaningful market share gains, demonstrating the effectiveness of its growth strategy.

Market Share Opportunity

There is an attractive market share opportunity in a fragmented food service distribution industry, with Sysco's industry-leading return on invested capital highlighting its strong financial position.

Negative Factors

Earnings and Guidance Shortfall

The magnitude of SYY's 3Q EPS shortfall and guidance reduction was deeper than expected.

Operational Challenges

SYY's operational issues remain a key drag, contributing to a disappointing performance.

Sales and Compensation Issues

Local case growth has been lagging, with factors such as changes in the compensation model leading to higher than expected turnover and customer attrition.

Sysco Business Overview & Revenue Model

Company Description

Sysco Corporation (SYY) is a leading global distributor of food and related products primarily serving the foodservice or food-away-from-home industry. The company operates across various sectors, including restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Sysco's core products and services include fresh and frozen foods, canned and dry foods, and various non-food items like tableware, kitchen equipment, and cleaning supplies.

How the Company Makes Money

Sysco makes money through its comprehensive distribution network that supplies a wide range of food and non-food products to foodservice operators. The company's primary revenue streams involve the sale of fresh, frozen, and dry foods, as well as non-food items such as paper products, kitchen supplies, and cleaning essentials. Sysco earns its revenue by procuring products from manufacturers and suppliers, then leveraging its extensive warehousing and transportation infrastructure to deliver these products efficiently to its customers. A significant factor contributing to Sysco's earnings is its scale and reach, allowing it to negotiate favorable terms with suppliers and provide competitive pricing to its clients. Additionally, Sysco often engages in partnerships and strategic acquisitions to expand its product offerings and market reach, further enhancing its revenue-generating capabilities.

Sysco Financial Statement Overview

Summary

Sysco shows strong financial performance with consistent revenue growth, solid profitability margins, and effective cash flow management. Despite high debt levels posing potential risks, robust operating performance and efficient capital management mitigate these concerns.

Income Statement

Sysco's income statement shows a strong performance with a consistent increase in revenue over the years. The gross profit margin remains stable, and the net profit margin has improved significantly, reflecting increased efficiency. The company also demonstrates robust EBIT and EBITDA margins, indicating strong operating performance and profitability.

Balance Sheet

Sysco's balance sheet indicates a high debt-to-equity ratio, suggesting a reliance on debt financing, which could pose a risk in economic downturns. However, the company's return on equity is commendable, signaling effective use of equity for generating profits. The equity ratio is low, which suggests potential vulnerability to liabilities, but the company maintains a solid asset base.

Cash Flow

Sysco's cash flow statement reflects strong operational cash generation with a healthy operating cash flow to net income ratio. The free cash flow growth is positive, suggesting efficient capital expenditure management. The free cash flow to net income ratio indicates that the company is generating substantial free cash relative to its net income, supporting its liquidity and investment capacity.

Breakdown
TTM	Jun 2024	Sep 2023	Sep 2022	Sep 2021	Jun 2020
Income Statement		Total Revenue
80.79B	78.84B	76.33B	68.64B	51.30B	52.89B
	Gross Profit
14.82B	14.61B	13.95B	12.32B	9.36B	9.90B
	EBIT
3.28B	3.20B	3.04B	2.35B	1.45B	749.50M
	EBITDA
4.13B	4.17B	3.67B	3.25B	2.32B	1.54B
	Net Income Common Stockholders
1.91B	1.96B	1.77B	1.36B	524.21M	215.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.53B	696.00M	745.20M	867.09M	3.01B	6.06B
	Total Assets
26.35B	24.92B	22.82B	22.09B	21.41B	22.63B
	Total Debt
14.61B	12.95B	11.17B	11.39B	11.82B	15.08B
	Net Debt
13.08B	12.25B	10.42B	10.52B	8.81B	9.02B
	Total Liabilities
24.40B	23.03B	20.78B	20.67B	19.83B	21.44B
	Stockholders Equity
1.92B	1.86B	2.01B	1.38B	1.55B	1.16B
Cash Flow		Free Cash Flow
2.10B	2.16B	2.08B	1.16B	1.43B	898.26M
	Operating Cash Flow
2.93B	2.99B	2.87B	1.79B	1.90B	1.62B
	Investing Cash Flow
-653.35M	-1.96B	-784.61M	-1.88B	-428.70M	-756.31M
	Financing Cash Flow
-1.40B	-1.04B	-2.06B	-1.99B	-4.63B	4.72B

Sysco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 74.74 is above the 20-day moving average (MA) of 73.03, above the 50-day MA of 72.02, and above the 200-day MA of 73.83, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 59.71 is Neutral, neither overbought nor oversold. The STOCH value of 82.26 is Negative, 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	78 Outperform	$36.60B	19.53	94.91%	2.70%	3.55%	-5.79%
USFD	77 Outperform	$17.80B	34.92	11.16%	―	6.32%	5.69%
PFGC	76 Outperform	$13.69B	36.09	9.05%	―	6.20%	-10.58%
CHEF	74 Outperform	$2.55B	41.81	12.90%	―	7.85%	79.89%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
SPTN	63 Neutral	$633.67M	2,245.98	-1.38%	4.70%	-2.66%	8.18%
UNFI	48 Neutral	$1.41B	―	-4.11%	―	6.62%	53.12%

Sysco Corporate Events

Sysco Amends Credit Agreement for Financial Flexibility

On June 4, 2025, Sysco Corporation and its affiliates entered into an amendment to their existing Credit Agreement, allowing Sysco Global Holdings B.V. to become a Subsidiary Borrower. This amendment enables the new borrower to request and accept credit extensions, potentially enhancing Sysco’s financial flexibility and operational capacity.

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.