Sysco Valuation

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SYY -- USA Stock  

Report: 10th of August 2020  

Do you wonder what the value of Sysco is? Sysco Free Cash Flow is fairly stable at the moment as compared to the past year. Sysco reported Free Cash Flow of 565.08 Million in 2019. Net Cash Flow or Change in Cash and Cash Equivalents is likely to grow to about 45.4 M in 2020, whereas Cash and Equivalents Turnover is likely to drop 69.44 in 2020. Sysco has a current Real Value of $60.98 per share. The regular price of the company is $52.96. At this time, the company appears to be undervalued. Our model measures the value of Sysco from inspecting the company fundamentals such as operating margin of 5.08 %, shares outstanding of 507.62 M, and return on equity of 61.46 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.

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Sysco Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Sysco's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
52.96
15th of July 2020
60.98
Real Value
64.88
Upside
Sysco is very steady asset. Calculation of real value of Sysco is based on 3 months time horizon. Increasing Sysco time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Earnings
Estimates (4)
LowProjected EPSHigh
1.741.972.16
Details
Hype
Prediction
LowEstimated ValueHigh
47.6751.5755.47
Details
9 Analysts
Consensus
LowTarget PriceHigh
51.0068.1284.00
Details

  Sysco Investments

Sysco Valuation Drivers Correlation

Many accounts on the financial statements of Sysco are highly interrelated and sometimes correlated. Consequently, when conducting Sysco's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Sysco
Click cells to compare fundamentals   

Sysco Market Cap

Sysco is rated third in market capitalization category among related companies. Market capitalization of Food Distribution industry is at this time estimated at about 134.9 Billion. Sysco retains roughly 26.55 Billion in market capitalization claiming about 20% of equities under Food Distribution industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

Sysco Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Sysco's current stock value. Our valuation model uses many indicators to compare Sysco value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sysco competition to find correlations between indicators driving Sysco's intrinsic value. More Info.
Sysco is rated third in beta category among related companies. It is rated third in price to book category among related companies fabricating about  11.89  of Price to Book per Beta. . Sysco Price to Book Value is fairly stable at the moment as compared to the past year. Sysco reported Price to Book Value of 4.29 in 2019. Price to Earnings Ratio is likely to grow to 22.28 in 2020, whereas Book Value per Share is likely to drop 6.28 in 2020.

About Sysco Valuation

The Macroaxis Equity Valuation Mechanism determines the current worth of Sysco on a weekly bases. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sysco. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sysco based exclusively on its fundamental and basic technical indicators. By analyzing Sysco's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Sysco's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Sysco. We calculate exposure to Sysco's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sysco's related companies.
Last ReportedProjected for 2020
Gross ProfitB6.6 B
Profit Margin 2.44  2.65 
Sysco Corporation, through its subsidiaries, distributes food and related products for the restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers in the United States, Canada, the United Kingdom, France, and internationally. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas. Sysco operates under Food Distribution classification in the United States and is traded on BATS Exchange. It employs 69000 people.

Sysco Dividends Analysis For Valuation

Dividends per Basic Common Share is likely to grow to 0.73 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (772.8 M) in 2020. . Price to Earnings Ratio is likely to grow to 22.28 in 2020, whereas Accumulated Retained Earnings Deficit are likely to drop slightly above 6.5 B in 2020.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-716.3 M-772.8 M
Dividend Yield 0.0243  0.0229 
Dividends per Basic Common Share 0.72  0.73 
There are various types of dividends Sysco can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Sysco shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Sysco directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Sysco pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Sysco by the value of the dividends paid out.

Sysco Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Sysco does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.90
Revenue Growth-6.50%
Payout Ratio63.40%
Enterprise Value To Ebitda11.62
Enterprise Value To Revenue0.59

Sysco Current Valuation Indicators

Valuation refers to the process of determining the present value of Sysco and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sysco we look at many different elements of the entity such as Sysco's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Book Value per Share
Enterprise Value over EBIT
Enterprise Value over EBITDA
Price to Book Value
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