Sysco Corporation [NYSE:SYY]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Sysco Corporation [SYY], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in June. On average, stock market experts give SYY an Outperform rating. Its stock price has been found in the range of 59.44 to 75.98. This is compared to its latest closing price of $69.97.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Sysco Corporation [SYY] is sitting at 2.40. This is compared to 1 month ago, when its average rating was 2.40.
For the quarter ending in Dec-18 Sysco Corporation [SYY] generated $14.77 billion in sales. That’s 0.10% lower than the average estimate of $14.78 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Mon 6 May (In 4 Days).
Fundamental Analysis of Sysco Corporation [SYY]
Now let’s turn to look at profitability: with a current Operating Margin for Sysco Corporation [SYY] sitting at +4.09 and its Gross Margin at +17.83, this company’s Net Margin is now 2.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 22.33, and its Return on Invested Capital has reached 16.90%. Its Return on Equity is 58.54, and its Return on Assets is 7.99. These metrics all suggest that Sysco Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Sysco Corporation [SYY] has generated a Total Debt to Total Equity ratio of 332.17. Similarly, its Total Debt to Total Capital is 76.86, while its Total Debt to Total Assets stands at 46.08. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 300.79, and its Long-Term Debt to Total Capital is 69.60. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 13.80 and its Total Debt to EBITDA Value is 2.66. The Enterprise Value to Sales for this firm is now 0.73, and its Total Debt to Enterprise Value stands at 0.19. Sysco Corporation [SYY] has a Price to Book Ratio of 14.18, a Price to Cash Flow Ratio of 16.74 and P/E Ratio of 25.30. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Sysco Corporation [SYY] earns $876,527 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 14.38 and its Total Asset Turnover is 3.28. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.74 and its Current Ratio is 1.21. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Sysco Corporation [SYY] has 515.47M shares outstanding, amounting to a total market cap of $36.51B. Its stock price has been found in the range of 59.44 to 75.98. At its current price, it has moved by -6.78% from its 52-week high, and it has moved 19.16% from its 52-week low.
This stock’s Beta value is currently 0.55, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 65.66. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Sysco Corporation [SYY] a Reliable Buy?
Shares of Sysco Corporation [SYY], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.