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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:
With SYY's revenues expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.
Financial Ratios:
| currentRatio | 1.295000 |
|---|---|
| forwardPE | 15.121232 |
| debtToEquity | 640.248000 |
| earningsGrowth | -0.012000 |
| revenueGrowth | 0.030000 |
| grossMargins | 0.184630 |
| operatingMargins | 0.039880 |
| trailingEps | 3.710000 |
| forwardEps | 5.013480 |
SYY's current ratio of 1.295, indicating that the company can meet its short-term debt obligations with ease. This high liquidity level is a positive sign, as SYY has enough cash and current assets to handle its immediate liabilities comfortably.
SYY's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
SYY's high debt-to-equity ratio points to a heavily leveraged company. With more debt than equity, SYY may face increased financial risk, especially if its earnings or cash flow come under pressure.
SYY's low earnings and revenue growth indicate potential profit shrinkage. This suggests that the company's financial performance may be weakening, raising concerns about its future profitability and overall business outlook.
SYY's negative gross and operating margins suggest that the company is currently unprofitable, both in terms of production and overall operations. This could reflect rising costs or declining revenues, posing challenges for future profitability.
SYY's forward EPS is greater than its trailing EPS, indicating that the company is expected to deliver higher profitability this year. This suggests that SYY is projected to improve its earnings, reflecting positive growth compared to last year's financial performance.
Price projections:
SYY's price projections have been gradually revised upward, reflecting increased confidence in the company's future performance. This trend suggests analysts expect SYY to achieve greater success in the coming periods.
Insider Transactions:
9 transactions to sell SYY occurred, with market price at 80.17111206054688.During the period under review, no sell transactions were recorded.With more buying than selling around SYY's current price, investors could be expressing optimism. This trend may suggest that the market expects favorable outcomes for the stock, leading to an increased demand at these levels.
Recommendation changes over time:
Analysts have shown a buy bias for SYY, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to SYY, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.
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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