📊 SYY Key Takeaways
Is Sysco Corp. (SYY) a Good Investment?
Sysco demonstrates stable cash generation (1.0B FCF) and exceptional debt servicing capacity (69.2x interest coverage), supporting its leverage position. However, the revenue growth data (13505% YoY) is highly suspicious and indicates data quality concerns that undermine analytical confidence. High leverage (5.58x D/E) combined with thin profitability margins (1.9% net, 3.4% operating) limits financial flexibility despite solid operational fundamentals.
Sysco shows solid core operating profitability for a low-margin distribution business, with healthy gross margin stability, strong interest coverage, and adequate liquidity. However, growth quality looks questionable given the extreme reported revenue jump, leverage is elevated with debt far exceeding equity, and free cash flow conversion is thin relative to sales. The fundamentals support resilience, but not enough balance-sheet strength or cash flow quality to justify a more aggressive rating.
Sysco Corp. Key Strengths (SYY)
- Exceptional interest coverage (69.2x) indicating strong debt servicing capacity
- Positive and consistent free cash flow generation (1.0B annually)
- Adequate liquidity position with 1.9B cash and 1.33x current ratio
- Strong ROE (52.5%) demonstrating efficient capital utilization
- Defensive operating profile with positive operating income and a 18.4% gross margin in a traditionally thin-margin sector
- Strong interest coverage of 48.9x suggests debt service is currently manageable despite high borrowings
- Liquidity appears adequate with a 1.30x current ratio and 1.08x quick ratio
SYY Stock Risks: Sysco Corp. Investment Risks
- Highly suspect revenue growth data (13505% YoY) suggests major data quality or accounting anomaly requiring clarification
- Excessive leverage at 5.58x debt-to-equity ratio constrains financial flexibility
- Thin profit margins (1.9% net, 3.4% operating) limit downside protection in economic slowdowns
- Low insider form 4 activity (6 in 90 days) provides minimal confidence signal
- Minimal quick ratio (1.12x) and moderate current ratio (1.33x) suggest potential liquidity constraints
- Debt-to-equity of 5.45x indicates heavy leverage and balance-sheet risk
- Free cash flow margin of just 0.7% limits financial flexibility and reduces cushion if conditions weaken
- Reported revenue growth of +13505.3% suggests distorted comparability or weak growth quality in the current dataset
Key Metrics to Watch
- Revenue trend normalized and validated for M&A activity
- Debt-to-equity progression and deleveraging pace
- Free cash flow sustainability and capital allocation
- Operating margin expansion or contraction relative to sector
- Free cash flow and operating cash flow conversion
- Debt levels relative to equity and sustained interest coverage
Sysco Corp. (SYY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility.
SYY Profit Margin, ROE & Profitability Analysis
SYY vs Market Sector: How Sysco Corp. Compares
How Sysco Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sysco Corp. Stock Overvalued? SYY Valuation Analysis 2026
Based on fundamental analysis, Sysco Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sysco Corp. Balance Sheet: SYY Debt, Cash & Liquidity
SYY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sysco Corp.'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.47 reflects profitable operations.
SYY Revenue Growth, EPS Growth & YoY Performance
SYY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $19.6B | $340.0M | $0.71 |
| Q2 2026 | $20.2B | $389.0M | $0.81 |
| Q1 2026 | $20.5B | $476.0M | $0.99 |
| Q3 2025 | $19.4B | $401.0M | $0.82 |
| Q2 2025 | $19.3B | $406.0M | $0.82 |
| Q1 2025 | $19.6B | $490.0M | $0.99 |
| Q3 2024 | $18.9B | $424.7M | $0.84 |
| Q2 2024 | $18.6B | $141.2M | $0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sysco Corp. Dividends, Buybacks & Capital Allocation
SYY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sysco Corp. (CIK: 0000096021)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SYY
What is the AI rating for SYY?
Sysco Corp. (SYY) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are SYY's key strengths?
Claude: Exceptional interest coverage (69.2x) indicating strong debt servicing capacity. Positive and consistent free cash flow generation (1.0B annually). ChatGPT: Defensive operating profile with positive operating income and a 18.4% gross margin in a traditionally thin-margin sector. Strong interest coverage of 48.9x suggests debt service is currently manageable despite high borrowings.
What are the risks of investing in SYY?
Claude: Highly suspect revenue growth data (13505% YoY) suggests major data quality or accounting anomaly requiring clarification. Excessive leverage at 5.58x debt-to-equity ratio constrains financial flexibility. ChatGPT: Debt-to-equity of 5.45x indicates heavy leverage and balance-sheet risk. Free cash flow margin of just 0.7% limits financial flexibility and reduces cushion if conditions weaken.
What is SYY's revenue and growth?
Sysco Corp. reported revenue of $62.4B.
Does SYY pay dividends?
Sysco Corp. pays dividends, with $778.0M distributed to shareholders in the trailing twelve months.
Where can I find SYY SEC filings?
Official SEC filings for Sysco Corp. (CIK: 0000096021) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SYY's EPS?
Sysco Corp. has a diluted EPS of $2.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SYY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Sysco Corp. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SYY stock overvalued or undervalued?
Valuation metrics for SYY: ROE of 52.5% (sector avg: 15%), net margin of 1.9% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is SYY's AI grade for 2026?
Our dual AI analysis gives Sysco Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SYY's free cash flow?
Sysco Corp.'s operating cash flow is $1.5B, with capital expenditures of $461.0M. FCF margin is 1.6%.
How does SYY compare to other Market stocks?
Vs Default sector averages: Net margin 1.9% (avg: 12%), ROE 52.5% (avg: 15%), current ratio 1.33 (avg: 1.8).
Is Sysco Corp. carrying too much debt?
SYY has a debt-to-equity ratio of 5.58x, which is above the Market sector average of 0.7x. However, the current ratio of 1.33 suggests adequate short-term liquidity.
Why is SYY's return on equity (ROE) so high?
Sysco Corp. has a return on equity of 52.5%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 1.9% net margin.