SYY : NYSE : Services
$51.96 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 3,850,800
07/26/16 - 4:02 PM ET

Financial Analysis


SYSCO CORP's gross profit margin for the third 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 1.00 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 25.28% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)12002.7911746.66
EBITDA ($mil)616.91514.11
EBIT ($mil)437.65376.92
Net Income ($mil)217.14176.96


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)610.845084.7
Total Assets ($mil)13351.0917983.59
Total Debt ($mil)4361.97668.93
Equity ($mil)3969.435312.88


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin19.3518.68
EBITDA Margin5.134.37
Operating Margin3.653.21
Sales Turnover3.682.7
Return on Assets6.044.82
Return on Equity20.3216.33
Debt Q3 FY16 Q3 FY15
Current Ratio1.692.65
Debt/Capital0.520.59
Interest Expense48.4728.33
Interest Coverage9.0313.31


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)564.95593.31
Div / share0.620.3
EPS0.380.3
Book value / share7.038.95
Institutional Own % n/a n/a
Avg Daily Volume3827833.04791412.0

Valuation


BUY. SYSCO CORP's P/E ratio indicates a significant premium compared to an average of 22.61 for the Food & Staples Retailing industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 7.36 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 3.83. 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 37.22 Peers 22.61   SYY 17.73 Peers 10.98

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 22.64 Peers 19.78   SYY 0.48 Peers 2.43

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 significant 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 7.36 Peers 3.83   SYY -5.45 Peers -2.76

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 0.60 Peers 0.56   SYY 1.14 Peers 6.26

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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