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Sysco
(NYSE:SYY)
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Rating:61Neutral
Price Target:
$87.00
▲(14.07% Upside)
Action:Reiterated
Date:05/19/26
The score is primarily constrained by balance-sheet leverage and weakening technical momentum. Reiterated high-end FY26 EPS guidance, improving volumes/cash flow, and a solid dividend provide support, but valuation is not especially cheap and the Restaurant Depot acquisition adds near-term leverage and execution risk.
Positive Factors
Large-scale distribution network
Sysco’s enormous revenue base and nationwide distribution infrastructure create durable procurement leverage, broad customer diversification, and high fixed-cost absorption. This scale supports stable volumes, bargaining power with suppliers, and resilience across economic cycles, sustaining long-term cash flow generation.
Negative Factors
High balance-sheet leverage
Elevated debt relative to a modest equity base reduces financial flexibility and heightens vulnerability to rising interest costs or profit shocks. Deleveraging depends on sustained FCF and successful deal integration; failure to meet targets could constrain investment, ratings, and capital allocation for years.
Read all positive and negative factors
Positive Factors
Negative Factors
Large-scale distribution network
Sysco’s enormous revenue base and nationwide distribution infrastructure create durable procurement leverage, broad customer diversification, and high fixed-cost absorption. This scale supports stable volumes, bargaining power with suppliers, and resilience across economic cycles, sustaining long-term cash flow generation.
Read all positive factors
Sysco Key Performance Indicators (KPIs)
Any
Revenue by Product
Details sales generated from different products, offering insight into consumer preferences and the company's product strategy effectiveness.
Details sales generated from different products, offering insight into consumer preferences and the company's product strategy effectiveness.
Data provided by:
The Fly
The FlySysco (SYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.62B
Dividend Yield2.84%
Average Volume (3M)3.28M
Price to Earnings (P/E)22.4
Beta (1Y)0.11
Revenue Growth3.44%
EPS Growth-6.81%
CountryUS
Employees75,000
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)3.61
Shares Outstanding478,182,620
10 Day Avg. Volume3,003,971
30 Day Avg. Volume3,281,939
Financial Highlights & Ratios
PEG Ratio-4.89
Price to Book (P/B)20.01
Price to Sales (P/S)0.45
P/FCF Ratio20.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$88.40Price Target Upside15.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)4.95
Revenue Forecast (FY)$88.08B
Sysco Business Overview & Revenue Model
Company Description
Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internatio...
How the Company Makes Money
Sysco primarily makes money by purchasing food and related supplies from manufacturers and growers and reselling them to foodservice customers at a markup. Revenue is generated mainly from product sales delivered through its distribution network (...
Sysco Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlighted solid underlying organic performance: revenue growth (4.7%), strong U.S. local volume momentum (3.3%), international outperformance (12.4% sales growth and double-digit operating income growth), gross margin expansion, and improved free cash flow (+19% YTD). Management reiterated FY'26 guidance and presented a strategic, cash-and-carry acquisition (Restaurant Depot) that offers substantial pro forma scale, $250M of targeted synergies and multi-year free cash flow upside. Offsetting these positives are investor caution about the acquisition price and near-term leverage, a nearly flat adjusted EBITDA (+0.1%), expense impacts from lapping incentive compensation, softness in national chain restaurants, and suspended buybacks reducing near-term shareholder returns. On balance, the operational momentum and articulated synergies and deleveraging plans are viewed as outweighing the near-term financial and execution risks.Positive Updates
Top-line Growth
Total revenue of nearly $21 billion, up 4.7% year-over-year, driven by improving case volume trends across local, specialty, national and international businesses.
Negative Updates
Softness in National Chain Restaurants and Traffic
Overall restaurant foot traffic per Black Box down ~1.9% in the quarter; national chain restaurant volumes were down year-over-year, offsetting strength in local customers and contributing to mixed performance in the national contract business (national case growth 1.4%).
Read all updates
Q3-2026 Updates
Positive
Negative
Top-line Growth
Total revenue of nearly $21 billion, up 4.7% year-over-year, driven by improving case volume trends across local, specialty, national and international businesses.
Read all positive updates
Company Guidance
Sysco reiterated FY26 adjusted EPS at the high end of $4.50–$4.60 (Q3 was $0.94) and expects Q4 adjusted EPS of about $1.51, noting an approximate $100M headwind from lapping lower incentive compensation (~$0.16/sh) and the suspension of roughly $800M of share repurchases (≈$0.10 EPS annualized); management also identified ~$60M of run‑rate cost savings beginning in Q4. They forecast net sales growth of ~3%–5% to about $84B–$85B (with ~2% inflation), at least 2.5% local case growth in Q4 (a ~120 bp two‑year‑stack acceleration vs Q3) and improving national contract volumes, and reiterated confidence in FY26 adjusted EPS growth of roughly 5%–7% excluding the incentive comp headwind. Balance‑sheet and cash‑flow targets include Q3 net debt leverage of 2.80x, YTD free cash flow of $1.1B (up 19%), Q4 adjusted interest of ~$175–180M (FY ~$690M), adj other expense Q4 ~$10M (FY ~$55M), tax ~24% (FY ~23–23.5%), and adj D&A Q4 ~$210M (FY ~$820M). On the planned $29.1B Restaurant Depot transaction (close ~Q3 FY27) management expects day‑1 pro forma revenue +~20%, adj EBITDA +~45%, FCF +~55%, combined EBITDA margin +~150 bp to ~6.7%, mid‑to‑high single‑digit EPS accretion in year 1 (low‑to‑mid‑teens in year 2), $250M of annual net cost synergies (full ramp by year 3) and a deleveraging path from ~4.5x pro forma to ~3.5x within 24 months (ultimately toward ~2.75x).Sysco Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.57B | 81.37B | 78.84B | 76.33B | 68.64B | 51.30B |
| Gross Profit | 15.49B | 14.97B | 14.61B | 13.96B | 12.32B | 9.36B |
| EBITDA | 3.95B | 4.14B | 4.17B | 3.70B | 3.25B | 2.32B |
| Net Income | 1.74B | 1.83B | 1.96B | 1.77B | 1.36B | 524.21M |
Balance Sheet | ||||||
| Total Assets | 27.98B | 26.77B | 24.92B | 22.82B | 22.09B | 21.41B |
| Cash, Cash Equivalents and Short-Term Investments | 1.90B | 1.07B | 696.00M | 745.00M | 867.09M | 3.01B |
| Total Debt | 15.53B | 14.49B | 12.95B | 11.17B | 11.39B | 11.82B |
| Total Liabilities | 25.69B | 24.92B | 23.03B | 20.78B | 20.67B | 19.83B |
| Stockholders Equity | 2.30B | 1.83B | 1.86B | 2.01B | 1.38B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | 2.00B | 1.78B | 2.16B | 2.08B | 1.16B | 1.43B |
| Operating Cash Flow | 2.83B | 2.69B | 2.99B | 2.87B | 1.79B | 1.90B |
| Investing Cash Flow | -814.00M | -717.00M | -1.96B | -785.00M | -1.88B | -428.70M |
| Financing Cash Flow | -1.55B | -1.59B | -1.04B | -2.06B | -1.99B | -4.63B |
Sysco Technical Analysis
Neutral
76.27
Price Trends
77.42
Positive
78.28
Positive
77.35
Positive
Market Momentum
1.51
Positive
49.86
Neutral
28.77
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 76.27 is below the 20-day moving average (MA) of 81.65, below the 50-day MA of 77.42, and below the 200-day MA of 77.35, indicating a neutral trend. The MACD of 1.51 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 28.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYY.
Sysco Risk Analysis
Sysco disclosed 28 risk factors in its most recent earnings report. Sysco reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sysco Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.03B | 47.43 | 13.54% | ― | 10.01% | 22.30% | |
66 Neutral | $17.75B | 52.08 | 7.13% | ― | 8.45% | -12.95% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $22.24B | 32.24 | 15.27% | ― | 3.67% | 36.66% | |
61 Neutral | $39.62B | 22.36 | 81.92% | 2.84% | 3.44% | -6.81% | |
53 Neutral | $2.55B | 19.89 | 10.17% | 1.44% | -1.98% | 18.34% | |
50 Neutral | $3.00B | -77.52 | -2.43% | ― | -3.22% | 44.69% |
* Consumer Defensive Sector Average
SYY
Sysco
82.25
6.49
8.57%
ANDE
The Andersons
76.20
40.27
112.09%
CHEF
The Chefs' Warehouse
102.36
36.05
54.37%
UNFI
United Natural Foods
50.19
22.82
83.38%
PFGC
Performance Food Group
113.17
14.04
14.16%
USFD
US Foods Holding
99.13
15.36
18.34%
Sysco Corporate Events
Business Operations and StrategyM&A Transactions
Sysco Unveils Transformative Jetro Restaurant Depot Acquisition Plan
Positive
May 18, 2026
On May 18, 2026, Sysco presented details of its planned acquisition of JRD Unico, Inc. and Warehouse Realty, LLC, the parent entities of Jetro Restaurant Depot, to a group of investors, highlighting leadership roles from both organizations. The in...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Sysco Expands Credit Facilities to Support Jetro Acquisition
Positive
Apr 20, 2026
On April 16, 2026, Sysco replaced its existing $3.0 billion senior revolving credit facility with a new revolving credit agreement of the same size that can expand to $4.0 billion upon closing its planned acquisition of Jetro Restaurant Depot, wit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.