SYY : NYSE : Services
$52.12 | %
Today's Range: 51.99 - 52.71
Avg. Daily Volume: 3,607,800
08/26/16 - 4:00 PM ET

Financial Analysis


SYSCO CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has increased 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 strong liquidity. Currently, the Quick Ratio is 1.65 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 33.85% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)13647.8912401.94
EBITDA ($mil)830.3624.68
EBIT ($mil)628.26507.55
Net Income ($mil)215.6773.03


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3919.35130.04
Total Assets ($mil)16721.817989.28
Total Debt ($mil)7435.47321.88
Equity ($mil)3479.615260.22


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin19.8218.85
EBITDA Margin6.085.03
Operating Margin4.64.09
Sales Turnover3.012.71
Return on Assets5.673.81
Return on Equity27.2913.05
Debt Q4 FY16 Q4 FY15
Current Ratio2.271.22
Debt/Capital0.680.58
Interest Expense0.035.79
Interest Coverage0.014.18


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)559.6594.32
Div / share0.310.3
EPS0.380.12
Book value / share6.228.85
Institutional Own % n/a n/a
Avg Daily Volume3603172.03612177.0

Valuation


BUY. SYSCO CORP's P/E ratio indicates a premium compared to an average of 22.11 for the Food & Staples Retailing industry and a premium compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 8.44 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 3.79. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. Upon assessment of 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 31.79 Peers 22.11   SYY 15.19 Peers 10.32

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 20.18 Peers 19.44   SYY 0.77 Peers 1.70

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 8.44 Peers 3.79   SYY 42.24 Peers -1.78

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.

 

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

SYY is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SYY 0.58 Peers 0.54   SYY 3.46 Peers 6.56

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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