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Fundamentals for Sysco Corporation
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Fundamentals for Sysco Corporation
Business Operations:
Sector: Consumer DefensiveIndustry: Food Distribution
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 internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. It serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.
Revenue projections:
Investors may react cautiously to news that SYY's revenues are forecasted to be lower than last year's. Such declines are likely to have a negative effect on the company's bottom line, which can lead to concerns about profitability and hinder investor confidence in the company's future performance.
Financial Ratios:
| currentRatio | 1.29500 |
|---|---|
| forwardPE | 16.90706 |
| debtToEquity | 640.24800 |
| earningsGrowth | -0.01200 |
| revenueGrowth | 0.03000 |
| grossMargins | 0.18463 |
| operatingMargins | 0.03988 |
| trailingEps | 3.71000 |
| forwardEps | 5.07362 |
SYY's current ratio of 1.295 highlights the company's solid liquidity, indicating that it can easily service its short-term debt. SYY's ample cash reserves and current assets ensure that the company is well-positioned to meet its immediate financial liabilities.
With SYY's Forward PE in a favorable range, the stock appears reasonably priced compared to its earnings. This suggests that it's not overpriced and there is room for growth, providing an encouraging opportunity for investors seeking future value increases.
Sysco Corporation's high debt-to-equity ratio signals significant reliance on debt to finance its operations. This heavy leverage can increase financial risk, especially if the company faces a decline in revenue or struggles to meet its debt obligations.
SYY's low growth in earnings and revenue indicates a potential decline in profits. This suggests that the company could be facing financial challenges, making it harder to sustain its current profit margins.
SYY's negative gross and operating margins suggest that the company is currently losing money, unable to generate profit from production or operations. This could signal inefficiencies in cost control or a drop in sales.
SYY's forward EPS surpasses its trailing EPS, reflecting expectations of higher profitability in the current year. This suggests that SYY is projected to generate stronger earnings, indicating an optimistic financial outlook compared to the prior year's results.
Price projections:
Price projections for Sysco Corporation have consistently been revised upward, indicating positive sentiment toward the company. This gradual adjustment reflects growing confidence in Sysco Corporation's future potential and financial outlook among analysts.
Insider Transactions:
10 SYY stock sales were completed, with market price of 79.72500076293946.No sell transactions occurred during the period under consideration.The higher volume of buys compared to sells near current SYY price levels may suggest optimism among investors. This could point to a favorable market outlook, as more people are willing to invest at these prices, anticipating potential future growth or strong performance.
Recommendation changes over time:
Analysts' buy bias for SYY signals that the stock is considered a favorable investment. This outlook might prompt investors to allocate funds to SYY, seeing it as a solid and profitable choice to park their money and potentially benefit from the company's long-term growth.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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