Sysco (SYY) AI Stock Analysis

• Market Cap: $39.46B
• Dividend Yield: 2.51%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.23
• Revenue Growth: 3.21%
• EPS Growth: -4.03%
• Country: US
• Employees: 76,000
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Food Distribution
• EPS (TTM): 1.48
• Shares Outstanding: 478,212,370
• 10 Day Avg. Volume: 2,658,934
• 30 Day Avg. Volume: 3,202,408
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 12.23
• 1Y Price Target: $87.00
• Price Target Upside: 5.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 73 Outperform
• Price Target: $91.00 ▲(10.37% Upside)

Sysco's overall stock score is driven by strong financial performance and positive earnings call sentiment, particularly in international growth and strategic initiatives. Technical indicators support a positive trend, although valuation concerns slightly temper the outlook.

Positive Factors

Competitive Advantages

Sysco is viewed as having competitive advantages due to its size and scale, allowing it to make significant investments in technology, supply chain, workforce, and procurement.

International Operations

International operations have shown six consecutive quarters of double-digit growth in operating profit, demonstrating the effectiveness of the Sysco Playbook.

Market Share and Growth Initiatives

SYY's local case growth and market share momentum is improving, which along with multi-year Salesforce investments and other initiatives, could put SYY back on a path to reach its targeted EPS algorithm.

Negative Factors

Earnings and Guidance

Despite better-than-expected earnings, the fundamental performance was still soft and guidance was disappointing.

Local Case Growth Concerns

Local case growth has been lagging, and investor concerns remain about recent underperformance, linked to changes in the compensation model and sales force turnover.

Mexico Divestiture

The Mexico divestiture is expected to create a revenue headwind over four quarters, impacting the international segment.

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 primarily through the sale of food and non-food products to its customers in the foodservice sector. The company operates on a wholesale model, purchasing products from manufacturers and distributing them to various clients, including restaurants, schools, and hospitals. Key revenue streams include the sale of perishable goods (such as meat, seafood, and produce), dry goods (such as canned and packaged items), and non-food supplies (such as kitchen equipment and cleaning products). Additionally, Sysco benefits from its extensive distribution network and logistics capabilities, which enable it to serve a diverse customer base efficiently. Strategic partnerships with manufacturers and suppliers also enhance its product offerings, allowing for competitive pricing and a broad selection of goods. Seasonal demand fluctuations, restaurant openings, and changes in consumer dining habits further influence the company's revenue potential.

Sysco Financial Statement Overview

Summary

Sysco demonstrates strong revenue growth and operational efficiency, but faces challenges with high leverage and declining free cash flow growth. The company maintains a solid return on equity, yet the high debt levels could pose risks if not managed carefully.

Income Statement

Sysco has demonstrated consistent revenue growth over the years, with a notable increase in the latest period. The gross profit margin has remained stable, indicating effective cost management. However, the net profit margin has slightly decreased, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio, which poses a risk in terms of financial leverage. However, the return on equity is impressive, indicating that the company is generating good returns on its equity base. The equity ratio is relatively low, which could be a concern for long-term financial stability.

Cash Flow

Sysco's operating cash flow has shown resilience, although there is a decline in free cash flow growth in the latest period. The operating cash flow to net income ratio is moderate, suggesting that the company is converting its earnings into cash effectively. The free cash flow to net income ratio is strong, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	81.37B	81.37B	78.84B	76.33B	68.64B	51.30B
Gross Profit	14.97B	14.97B	14.61B	13.95B	12.32B	9.36B
EBITDA	4.06B	4.14B	4.17B	3.70B	3.25B	2.32B
Net Income	1.83B	1.83B	1.96B	1.77B	1.36B	524.21M
Balance Sheet
Total Assets	26.77B	26.77B	24.92B	22.82B	22.09B	21.41B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.07B	696.00M	745.00M	867.09M	3.01B
Total Debt	14.49B	14.49B	12.95B	11.17B	11.39B	11.82B
Total Liabilities	24.92B	24.92B	23.03B	20.78B	20.67B	19.83B
Stockholders Equity	1.83B	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	2.69B	2.69B	2.99B	2.87B	1.79B	1.90B
Investing Cash Flow	-717.00M	-717.00M	-1.96B	-785.00M	-1.88B	-428.70M
Financing Cash Flow	-1.59B	-1.59B	-1.04B	-2.06B	-1.99B	-4.63B

Sysco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.45
• 50DMA: Positive
• 100DMA: Positive
• 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 82.45 is above the 20-day moving average (MA) of 80.49, above the 50-day MA of 79.10, and above the 200-day MA of 74.48, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 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
PFGC	78 Outperform	$16.47B	48.47	7.91%	―	8.61%	-22.16%
SYY	73 Outperform	$39.46B	22.11	99.08%	2.51%	3.21%	-4.03%
CHEF	73 Outperform	$2.66B	40.27	13.64%	―	7.90%	68.05%
USFD	71 Outperform	$17.56B	33.30	11.48%	―	5.32%	11.65%
UNFI	66 Neutral	$1.75B	―	-4.11%	―	6.62%	53.12%
Sector *	63 Neutral	$20.50B	14.76	-2.72%	3.09%	1.90%	-4.74%
SPTN	58 Neutral	$908.07M	2,245.98	-2.08%	3.26%	1.54%	-134.75%

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.