Sysco Corp (SYY, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $78.98 per share, Sysco Corp has enjoyed a daily increase of 1.3% and an impressive three-month growth of 8.51%. A detailed analysis based on the GF Score indicates that Sysco Corp is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. Stocks with higher GF Scores typically yield better long-term returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Sysco Corp boasts a GF Score of 93, reflecting its strong potential in the market.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 9/10
- Momentum rank: 7/10
Understanding Sysco Corp's Business
Sysco Corp, with a market cap of $38.82 billion and annual sales of $78.84 billion, is the largest U.S. foodservice distributor, holding a 17% share of the $370 billion domestic market. The company distributes approximately 500,000 food and nonfood products across various sectors, with 70% of its revenue derived from U.S. foodservice operations in fiscal 2023. Sysco's diverse customer base and broad product offerings underscore its dominant position in the market.
Financial Strength Breakdown
Sysco Corp's financial resilience is evident in its robust balance sheet and strategic debt management, with a Debt-to-Revenue ratio of 0.16. The company's Interest Coverage ratio stands at 5.28, showcasing its ability to comfortably meet interest obligations. Furthermore, an Altman Z-Score of 5.36 indicates a low probability of financial distress, highlighting its financial stability.
Profitability and Growth Metrics
Sysco Corp's profitability is impressive, with an Operating Margin that has consistently improved over the past five years, reaching 4.06% in 2024. The company's 3-Year Revenue Growth Rate of 16.2% outperforms 78.64% of its peers in the Retail - Defensive industry. Additionally, Sysco has demonstrated robust EBITDA growth, further affirming its effective growth strategies.
Conclusion
Considering Sysco Corp's strong financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
