Sysco Corporation (SYY) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Consumer Defensive · Food Distribution
Is Sysco Corporation a safe investment right now?
Sysco Corporation's Altman Z-Score of 5.06 places it in the safe zone. Our fair value estimate is $66.43 (Fairly Valued). Moat rating: 3.4/5 stars.
Could Sysco Corporation go bankrupt? Altman Z-Score analysis
Z-Score of 5.06 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives SYY's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0766 | 1.2 | 0.09 |
| B · Retained Earnings / Total Assets | RE / TA | 0.4878 | 1.4 | 0.68 |
| C · EBIT / Total Assets | EBIT / TA | 0.1139 | 3.3 | 0.38 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.4518 | 0.6 | 0.87 |
| E · Revenue / Total Assets | Rev / TA | 3.0391 | 1.0 | 3.04 |
How has SYY's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 5.27 | Safe |
| 2023 | 5.6 | Safe |
| 2024 | 5.3 | Safe |
| 2025 | 5.06 | Safe |
Source: Calculated from SYY's latest 10-K filing on SEC EDGAR.
What is Sysco Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $3.84 | Proprietary blend of reported actuals (2Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $3.73 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $4.59 | 15 analysts consensus |
| Trailing P/E | 20.4x | Current market pricing |
| Fair P/E (β discount) | 17.3x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $88.07 (15 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Sysco Corporation have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up SYY's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is SYY's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 17.3% | — |
| 2023 | 18.4% | Rising |
| 2024 | 20.1% | Rising |
| 2025 | 18.7% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Sysco Corporation's dividend safe?
Can Sysco Corporation afford its dividend?
Payout ratio is 57.4%. FCF covers the dividend 1.2x. 40 consecutive years of payments.
Sysco Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $81.4B | $78.8B | $68.6B | Rising |
| Net Income | $1.8B | $2.0B | $1.4B | Rising |
| Free Cash Flow | $1.6B | $2.2B | $1.2B | Rising |
| Gross Margin | 18.4% | 18.5% | 17.9% | Stable |
Recent events that affect our SYY analysis
SYY earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.94. Revenue estimate: $20.55B. Our current Fair Value: $66.43 — a significant beat or miss could shift this estimate.
SYY analyst consensus: 59% bullish (10 of 17 analysts)
3 Strong Buy, 7 Buy, 7 Hold, 0 Sell, 0 Strong Sell. Consensus target: $88.07 (16.6% upside). Compare with our independent Fair Value: $66.43.
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY paid $0.5400/share dividend
Dividend Safety Grade: A. Payout ratio: 57.4%.
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SYY beat EPS estimates by 1.4%
Reported EPS: $0.99 vs estimate $0.98. Earnings strength supports our Fair Value of $66.43 (12.0% below current price).
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY paid $0.5400/share dividend
Dividend Safety Grade: A. Payout ratio: 57.4%.
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SYY beat EPS estimates by 2.6%
Reported EPS: $1.15 vs estimate $1.12. Earnings strength supports our Fair Value of $66.43 (12.0% below current price).
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY paid $0.5400/share dividend
Dividend Safety Grade: A. Payout ratio: 57.4%.
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SYY beat EPS estimates by 6.5%
Reported EPS: $1.48 vs estimate $1.39. Earnings strength supports our Fair Value of $66.43 (12.0% below current price).
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY paid $0.5400/share dividend
Dividend Safety Grade: A. Payout ratio: 57.4%.
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SYY missed EPS estimates by 6.2%
Reported EPS: $0.96 vs estimate $1.02. Our Fair Value of $66.43 may face downward pressure if the trend continues.
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY paid $0.5100/share dividend
Dividend Safety Grade: A. Payout ratio: 57.4%.
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SYY beat EPS estimates by 0.8%
Reported EPS: $0.93 vs estimate $0.92. Earnings strength supports our Fair Value of $66.43 (12.0% below current price).
SYY filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SYY paid $0.5100/share dividend
Dividend Safety Grade: A. Payout ratio: 57.4%.
Common questions about Sysco Corporation
What is Sysco Corporation stock price today?
Sysco Corporation (SYY) stock price is $75.53 as of the latest market close, traded on the NYSE exchange.
What does Sysco Corporation do?
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.
What is Sysco Corporation market cap?
Sysco Corporation has a market capitalization of $36.17B, classifying it as a large-cap stock in the Consumer Defensive sector.
What sector and industry is SYY in?
Sysco Corporation operates in the Consumer Defensive sector, specifically within the Food Distribution industry. It trades on the NYSE under the ticker symbol SYY.
Is SYY stock overvalued or undervalued?
Based on our valuation model, Sysco Corporation trades 13.7% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $66.43
- Current Price: $75.53
- Valuation Zone: Fairly Valued
What is SYY stock forecast and analyst target price?
Based on 15 Wall Street analysts, the consensus price target for Sysco Corporation is $88.07, implying upside of 16.6% from the current price.
- Analyst High Target: $102.00
- Analyst Low Target: $70.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Sysco Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for Sysco Corporation:
- Revenue growth (current year est.): 3.8%
- EPS growth (current year est.): 2.9%
- Revenue growth (next year est.): 4.9%
- EPS growth (next year est.): 9.2%
What are Sysco Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $81.4B | Rising |
| Net Income | $1.8B | Rising |
| Free Cash Flow | $1.6B | Rising |
| Gross Margin | 18.4% | Stable |
What is SYY's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 20.4x
- Forward P/E (next 12 months est.): 15.1x
- FairValueLabs Fair P/E: 17.3x
How volatile is SYY stock?
Sysco Corporation has a beta of 0.69, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Sysco Corporation have?
Sysco Corporation's balance sheet shows:
- Total Cash: $1.23B
- Total Debt: $14.97B
- Net Cash Position: $-13.74B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Sysco Corporation's free cash flow?
Sysco Corporation generated $1.75B in trailing twelve-month free cash flow (from $2.62B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Sysco Corporation pay a dividend, and is it safe?
Yes, Sysco Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.9%
- Payout Ratio: 57.4%
- Consecutive Years Paid: 40
- 5-Year Dividend Growth: -10.1%
- FairValueLabs Safety Grade: A
Is Sysco Corporation at risk of going bankrupt?
Sysco Corporation's Altman Z-Score is 5.06, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Sysco Corporation have a durable competitive advantage?
Sysco Corporation scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is SYY's return on equity (ROE)?
Sysco Corporation's return on equity is 82.3%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy SYY stock?
SYY shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol SYY
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is SYY a value stock or speculative?
FairValueLabs classifies Sysco Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Sysco Corporation?
The current CEO of Sysco Corporation is Mr. Kevin P. Hourican.
What is SYY's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $3.71
- Forward EPS (next 12 months est.): $5.01
- Analyst consensus EPS (this year): $4.59
- Analyst consensus EPS (next year): $5.01
Other Consumer Defensive companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
SYY analysis methodology: How we calculate fair value, Z-Scores, and moat ratings