EPS TTM Growth: −2.12% YoY | Revenue Growth: +3.91% YoY | Forward P/E: 17.17x
| Metric | TTM / Current | YoY Change | Trend |
|---|---|---|---|
| EPS | $3.65 | −2.12% | Declining |
| Revenue | Limited visibility | +3.91% | Growing |
| Forward P/E | 17.17x | — | Moderate |
| Trailing P/E | 22.97x | — | Premium |
Analysis: Sysco faces earnings headwinds with −2.12% EPS decline YoY despite modest 3.91% revenue growth. This margin compression signals operational pressure or cost inflation in foodservice distribution. Forward P/E of 17.17x suggests market expects recovery, but current premium valuation on negative earnings growth requires vigilance.
Note: Detailed financial statement data (margins, ROE, ROIC, FCF) not currently disclosed in real-time feeds. Assessment based on available metrics.
| Metric | Status | Signal |
|---|---|---|
| Dividend Per Share | $2.17 | Strong |
| Dividend Yield | 2.63% | Attractive |
| Beta | 0.64 | Low Volatility |
| EPS Growth YoY | −2.12% | Weakness |
| Revenue Growth | +3.91% | Modest Growth |
Analysis: Sysco maintains a robust dividend (2.63% yield, $2.17/share) and exhibits low-beta defensive characteristics. However, negative EPS growth despite positive revenue growth indicates margin compression—likely from labor inflation, supply chain costs, or pricing pressure in foodservice. Quality score constrained by profitability weakness.
Note: Detailed balance sheet line items (cash, debt, current ratio) not currently available. Institutional-grade assessment based on market-implied metrics.
| Item | Status | Implication |
|---|---|---|
| Enterprise Value | $40.36B | Mature Large-Cap |
| Market Cap / EV Ratio | ~1.0x (approx) | Moderate Leverage |
| Share Dilution | Limited visibility | — |
| Dividend Coverage | Likely adequate | Sustainable |
Analysis: As a $40B+ mature foodservice distributor, Sysco likely carries moderate leverage typical of the sector. Dividend sustainability appears sound given consistent payout. However, with EPS declining and revenue growth moderate, debt servicing capacity may tighten if operational momentum doesn't recover.
| Valuation Metric | Current | Assessment |
|---|---|---|
| Trailing P/E | 22.97x | Above Average |
| Forward P/E | 17.17x | Fair Value |
| PEG Ratio | −10.83 | Distorted (Negative EPS Growth) |
| 52-Week Performance | +1.65% | Flat Momentum |
| Distance to 52W High | −9.2% | Below Peak |
Analysis: Trailing P/E of 22.97x is elevated relative to negative EPS growth, suggesting the market is pricing in a near-term earnings recovery (supported by forward P/E of 17.17x). Price sits −9.2% below 52-week highs, indicating modest weakness but no distress. PEG ratio is uninformative due to negative earnings growth. Valuation is fair on forward basis but requires earnings stabilization to justify.
Note: Target price consensus and detailed analyst ratings not available in current data feed. Assessment inferred from valuation multiples and market positioning.
| Item | Status | Implication |
|---|---|---|
| Current Price | $83.41 | — |
| 52W High | $91.85 | Implied Upside: +10.1% |
| Implied Price Target Range | $82–$95 | Limited Consensus |
| Analyst Dispersion | Limited visibility | — |
Analysis: Without explicit consensus targets, implied upside to 52-week high (~+10%) suggests modest positive sentiment. However, lack of visible upward revisions alongside negative earnings growth indicates caution in Street positioning. Investors should monitor Q3/Q4 earnings guides for signs of recovery.
| Risk Factor | Status | Severity |
|---|---|---|
| Earnings Momentum | Negative (−2.12% YoY) | HIGH |
| Valuation Premium | 22.97x trailing P/E | MEDIUM |
| Beta Risk (Volatility) | 0.64 (Low) | LOW |
| Dividend Sustainability | Assessed as sound | LOW |
| Sector Cyclicality | Foodservice exposure to economic cycles | MEDIUM |
| Data Gaps | Financials, balance sheet detail, earnings dates not disclosed | MEDIUM |
Key Risk Summary: Primary risk is earnings deterioration amid margin pressure in foodservice distribution. Secondary risk is valuation multiple compression if recovery narrative weakens. Mitigating factors: low beta defensiveness and sustainable dividend. Data transparency gaps (missing earnings dates, detailed financials) limit institutional-grade precision.
Sysco presents a classic "show-me" story. The company maintains attractive dividend income (2.63% yield) and low-volatility characteristics typical of defensive large-cap foodservice distributors. However, −2.12% EPS growth YoY contradicts +3.91% revenue growth, signaling material margin compression. Forward P/E of 17.17x implies market consensus expects stabilization, but current trailing 22.97x premium provides limited margin of safety. Recommendation: Hold for income, but await tangible evidence of margin recovery (earnings guidance, cost commentary) before adding.
- Earnings Pressure is Primary Risk: Negative EPS growth YoY requires urgent operational improvement. Monitor Q3/Q4 earnings for margin stabilization signals.
- Valuation Fair on Forward Basis: 17.17x forward P/E is reasonable if company executes recovery. Trailing 22.97x offers limited upside cushion.
- Dividend Income is Core Holding Rationale: 2.63% yield with low-volatility beta (0.64) appeals to income-focused strategies. Sustainability appears intact.
- Sector Cyclicality Risk: Foodservice distribution is sensitive to restaurant traffic, labor inflation, and discretionary spending. Macroeconomic headwinds could intensify margin pressure.
- Data Transparency Gap: Absence of real-time detailed financials, earnings dates, and cash flow metrics limits precision. Await next earnings release for deep-dive clarity.
SYY Systematic Research
Sysco Corp presents a distinctive financial profile characterized by an exceptionally high ROE of 81.92% alongside substantial leverage, with a debt-to-equity ratio of 7.27. This combination indicates the company generates significant returns on shareholder equity through aggressive use of borrowed capital, a strategic choice common among mature foodservice distributors with predictable cash flows. The current price of $85.24 sits within the middle range of its 52-week band ($68.19–$91.85), while the beta of 0.64 signals below-market volatility, reflecting the defensive nature of wholesale food distribution.
Several fundamental strengths emerge from systematic screening:
- The price-to-sales ratio of 0.49 suggests operational efficiency relative to revenue generation, typical for high-volume, lower-margin distribution businesses
- Operating margin of 3.59% and net margin of 2.08% align with industry economics where scale drives profitability
- Revenue growth of 3.44% year-over-year demonstrates steady demand despite post-pandemic normalization in foodservice channels
Risk factors warrant attention. The elevated P/E ratio of 23.43 appears stretched relative to the negative EPS growth of -6.71%, indicating potential earnings compression. The debt-to-equity of 7.27 creates refinancing risk in higher interest rate environments, though the current ratio of 1.21 provides adequate short-term liquidity coverage.
Positioning against peers USFD, PFGC, and CHEF, Sysco's $40.8 billion market capitalization reflects its position as the dominant broad-line distributor. The price-to-book ratio of 19.76 substantially exceeds the book value per share of $3.83, suggesting the market assigns considerable premium to intangible assets including customer relationships and distribution network density that smaller competitors lack.
Analysis updated monthly based on systematic screening of fundamentals, profitability, growth, and peer positioning.