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Sysco Corp
SYY : NYSE : Services
$42.71 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 4,986,000
02/10/16 - 4:01 PM ET

Financial Analysis


SYSCO CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SYSCO CORP has average liquidity. Currently, the Quick Ratio is 1.02 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 26.23% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)12153.6312087.07
EBITDA ($mil)582.3535.18
EBIT ($mil)436.86394.52
Net Income ($mil)272.4157.98


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)595.64907.68
Total Assets ($mil)13089.4717970.47
Total Debt ($mil)4355.977636.68
Equity ($mil)3941.435342.96


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin18.9418.41
EBITDA Margin4.794.42
Operating Margin3.593.26
Sales Turnover3.732.68
Return on Assets5.854.85
Return on Equity19.4516.31
Debt Q2 FY16 Q2 FY15
Current Ratio1.752.67
Debt/Capital0.530.59
Interest Expense47.4725.56
Interest Coverage9.215.44


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)566.62591.07
Div / share0.00.59
EPS0.480.27
Book value / share6.969.04
Institutional Own % n/a n/a
Avg Daily Volume4845613.06313569.0

Valuation


BUY. SYSCO CORP's P/E ratio indicates a significant premium compared to an average of 19.17 for the Food & Staples Retailing industry and a significant premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 6.24 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 3.63. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, SYSCO CORP proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SYY 33.16 Peers 19.17   SYY 16.21 Peers 11.35

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

SYY is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SYY is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SYY 20.06 Peers 18.42   SYY 0.47 Peers 3.27

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

SYY is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SYY trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SYY 6.24 Peers 3.63   SYY -11.49 Peers 25.34

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SYY is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SYY is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SYY 0.50 Peers 0.54   SYY 1.59 Peers 9.65

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SYY is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SYY significantly trails its peers on the basis of sales growth

 

 

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