Sysco (SYY) AI Stock Analysis

• Market Cap: $40.54B
• Dividend Yield: 2.84%
• Average Volume (3M): 3.49M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.17
• 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: 4,915,480
• 30 Day Avg. Volume: 3,493,466
• 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: 1.37
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.64
• Enterprise Value/Ebitda: 13.66
• 1Y Price Target: $91.25
• Price Target Upside: 7.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $89.00 ▲(5.14% Upside)

The score is driven primarily by stable operating performance and cash generation, but capped by meaningful balance-sheet leverage and a thin equity cushion. Technicals are supportive (strong trend) yet somewhat overextended, while valuation is acceptable with a moderate dividend. The latest earnings call adds a positive tilt due to raised guidance and improving volume momentum, despite industry traffic headwinds and leverage remaining slightly above target.

Positive Factors

Scale & Distribution Network

Sysco's large, integrated distribution footprint and supplier relationships create durable scale advantages. Extensive DCs and logistics lower per-unit costs, support broad product assortment and sticky customer relationships across restaurants, healthcare and education, underpinning stable revenues and competitive defensibility over months.

Cash Generation & Free Cash Flow

Consistently strong operating cash flow and roughly $1.9B in free cash flow provide durable funding for dividends, planned buybacks and tuck-in M&A. Reliable cash conversion (65–72% of net income historically) supports capital allocation and gradual deleveraging even if near-term volumes fluctuate.

International Growth Engine

International segment is a structural growth driver and margin contributor, delivering outsized operating income expansion. Geographic diversification reduces reliance on U.S. restaurant trends, sustaining revenue and operating-leverage upside across the company over a multi-quarter horizon.

Negative Factors

High Leverage / Thin Equity

Very high leverage relative to a thin equity base materially constrains financial flexibility. Elevated debt amplifies interest-rate and cyclical risks, limits room for large strategic investments or prolonged buybacks, and makes the company more vulnerable if volumes or margins deteriorate over coming quarters.

Exposure to Weak Restaurant Traffic

A sizable portion of Sysco's revenue depends on restaurant and national chain volumes. Persistent or recurring weakness in restaurant traffic can compress order frequency, local drop size and sales mix, reducing top-line growth and pressuring already-thin margins for several quarters.

Thin Operating & Net Margins

Distribution economics are inherently low margin, leaving little buffer for cost inflation or pricing pressure. With slim EBIT and net margins, small adverse swings in fuel, labor, or procurement costs—or modest price competition—can materially erode profitability and limit reinvestment capacity over multiple 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 durable revenue growth, stable distributor-level margins, and solid free cash flow generation/conversion. The major offset is balance-sheet risk: debt has risen while equity remains thin, creating very high debt-to-equity and less flexibility if volumes, margins, or interest costs move against the company.

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

Sysco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 84.65 is above the 20-day moving average (MA) of 78.79, above the 50-day MA of 75.84, and above the 200-day MA of 75.85, indicating a bullish trend. The MACD of 2.61 indicates Negative momentum. The RSI at 71.15 is Negative, neither overbought nor oversold. The STOCH value of 85.99 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
USFD	74 Outperform	$19.58B	36.55	12.29%	―	4.80%	3.49%
ANDE	71 Outperform	$2.19B	30.48	5.85%	1.44%	2.19%	-39.07%
CHEF	64 Neutral	$2.59B	36.78	14.12%	―	8.88%	54.12%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SYY	62 Neutral	$40.54B	22.76	83.64%	2.84%	2.92%	-4.06%
PFGC	57 Neutral	$14.09B	40.87	7.75%	―	10.55%	-23.38%
UNFI	52 Neutral	$2.36B	-23.23	-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.

The most recent analyst rating on (SYY) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Sysco stock, see the SYY Stock Forecast page.

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.

The most recent analyst rating on (SYY) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Sysco stock, see the SYY Stock Forecast page.