Sysco Corporation (SYY) Stock

Sysco Corporation trades at a P/E ratio of 22.00, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.89 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.25 indicates reasonable value when growth is considered.

With a beta of 0.81, Sysco Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 21.41 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Sysco Corporation achieves a profit margin of 2.25%, meaning it retains $2.25 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 5.55% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 97.60% and ROA at 8.39%, the company generates strong returns on invested capital.

Sysco Corporation's revenue grew by 2.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 11.40% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against FOOD DISTRIBUTION industry averages for proper context.

Sysco Corporation offers a dividend yield of 2.53%, paying $2.07 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 3, 2025.

The dividend sustainability can be assessed through the payout ratio - Sysco Corporation pays $2.07 per share in dividends against earnings of $3.72 per share, resulting in a payout ratio of 55.65%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Oct 24, 2025.

Sysco Corporation has a market capitalization of $39.2B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 478.21M shares outstanding, the company's ownership is relatively concentrated. As a participant in the FOOD DISTRIBUTION industry, it competes with other firms in this sector.

Sysco Corporation's book value per share is $3.83, while the current stock price is $74.29, resulting in a price-to-book (P/B) ratio of 19.39. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

17 analysts cover SYY with 59% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $85.60 implies 15.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 8 Buy, 7 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.