Intrinsic value of Sysco - SYY

Previous Close

$53.66

  Intrinsic Value

$47.57

stock screener

  Rating & Target

hold

-11%

  Value-price divergence*

-53%

Previous close

$53.66

 
Intrinsic value

$47.57

 
Up/down potential

-11%

 
Rating

hold

 
Value-price divergence*

-53%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SYY stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 29.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.94
  9.90
  9.41
  8.97
  8.57
  8.21
  7.89
  7.60
  7.34
  7.11
  6.90
  6.71
  6.54
  6.38
  6.25
  6.12
  6.01
  5.91
  5.82
  5.74
  5.66
  5.60
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
Revenue, $m
  55,371
  60,853
  66,579
  72,550
  78,770
  85,240
  91,969
  98,962
  106,230
  113,782
  121,631
  129,790
  138,276
  147,103
  156,290
  165,857
  175,823
  186,211
  197,043
  208,344
  220,140
  232,459
  245,328
  258,778
  272,841
  287,549
  302,938
  319,044
  335,906
  353,562
  372,057
Variable operating expenses, $m
 
  58,380
  63,837
  69,528
  75,454
  81,621
  88,033
  94,697
  101,623
  108,820
  116,300
  123,687
  131,773
  140,185
  148,941
  158,057
  167,555
  177,454
  187,777
  198,547
  209,788
  221,527
  233,791
  246,609
  260,011
  274,027
  288,693
  304,041
  320,110
  336,936
  354,561
Fixed operating expenses, $m
 
  192
  196
  201
  206
  212
  217
  222
  228
  234
  239
  245
  251
  258
  264
  271
  278
  285
  292
  299
  306
  314
  322
  330
  338
  347
  355
  364
  373
  383
  392
Total operating expenses, $m
  53,318
  58,572
  64,033
  69,729
  75,660
  81,833
  88,250
  94,919
  101,851
  109,054
  116,539
  123,932
  132,024
  140,443
  149,205
  158,328
  167,833
  177,739
  188,069
  198,846
  210,094
  221,841
  234,113
  246,939
  260,349
  274,374
  289,048
  304,405
  320,483
  337,319
  354,953
Operating income, $m
  2,053
  2,281
  2,545
  2,821
  3,109
  3,408
  3,719
  4,042
  4,379
  4,728
  5,091
  5,858
  6,251
  6,660
  7,085
  7,529
  7,991
  8,472
  8,974
  9,499
  10,046
  10,617
  11,215
  11,839
  12,492
  13,175
  13,890
  14,639
  15,423
  16,244
  17,104
EBITDA, $m
  2,955
  3,131
  3,439
  3,760
  4,095
  4,443
  4,805
  5,182
  5,573
  5,980
  6,402
  6,842
  7,299
  7,775
  8,270
  8,786
  9,323
  9,884
  10,468
  11,078
  11,715
  12,380
  13,074
  13,801
  14,561
  15,355
  16,187
  17,057
  17,969
  18,924
  19,924
Interest expense (income), $m
  285
  276
  329
  384
  442
  502
  564
  629
  697
  767
  840
  915
  994
  1,076
  1,161
  1,250
  1,342
  1,439
  1,539
  1,643
  1,753
  1,866
  1,985
  2,110
  2,239
  2,375
  2,517
  2,666
  2,821
  2,984
  3,154
Earnings before tax, $m
  1,766
  2,005
  2,217
  2,437
  2,667
  2,906
  3,155
  3,413
  3,682
  3,961
  4,252
  4,943
  5,257
  5,584
  5,924
  6,279
  6,648
  7,033
  7,435
  7,855
  8,293
  8,751
  9,229
  9,730
  10,253
  10,800
  11,373
  11,973
  12,602
  13,260
  13,949
Tax expense, $m
  623
  541
  598
  658
  720
  785
  852
  922
  994
  1,070
  1,148
  1,334
  1,419
  1,508
  1,599
  1,695
  1,795
  1,899
  2,008
  2,121
  2,239
  2,363
  2,492
  2,627
  2,768
  2,916
  3,071
  3,233
  3,402
  3,580
  3,766
Net income, $m
  1,143
  1,464
  1,618
  1,779
  1,947
  2,121
  2,303
  2,492
  2,688
  2,892
  3,104
  3,608
  3,837
  4,076
  4,325
  4,583
  4,853
  5,134
  5,428
  5,734
  6,054
  6,388
  6,737
  7,103
  7,485
  7,884
  8,302
  8,740
  9,199
  9,680
  10,183

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  870
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  17,762
  18,564
  20,311
  22,133
  24,030
  26,004
  28,056
  30,190
  32,407
  34,711
  37,105
  39,594
  42,183
  44,876
  47,679
  50,597
  53,637
  56,806
  60,111
  63,558
  67,157
  70,915
  74,841
  78,944
  83,234
  87,721
  92,416
  97,329
  102,473
  107,859
  113,501
Adjusted assets (=assets-cash), $m
  16,892
  18,564
  20,311
  22,133
  24,030
  26,004
  28,056
  30,190
  32,407
  34,711
  37,105
  39,594
  42,183
  44,876
  47,679
  50,597
  53,637
  56,806
  60,111
  63,558
  67,157
  70,915
  74,841
  78,944
  83,234
  87,721
  92,416
  97,329
  102,473
  107,859
  113,501
Revenue / Adjusted assets
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
  3.278
Average production assets, $m
  2,578
  2,860
  3,129
  3,410
  3,702
  4,006
  4,323
  4,651
  4,993
  5,348
  5,717
  6,100
  6,499
  6,914
  7,346
  7,795
  8,264
  8,752
  9,261
  9,792
  10,347
  10,926
  11,530
  12,163
  12,824
  13,515
  14,238
  14,995
  15,788
  16,617
  17,487
Working capital, $m
  1,937
  1,765
  1,931
  2,104
  2,284
  2,472
  2,667
  2,870
  3,081
  3,300
  3,527
  3,764
  4,010
  4,266
  4,532
  4,810
  5,099
  5,400
  5,714
  6,042
  6,384
  6,741
  7,115
  7,505
  7,912
  8,339
  8,785
  9,252
  9,741
  10,253
  10,790
Total debt, $m
  8,195
  9,133
  10,668
  12,269
  13,937
  15,672
  17,477
  19,352
  21,301
  23,326
  25,430
  27,618
  29,894
  32,261
  34,724
  37,290
  39,962
  42,748
  45,652
  48,683
  51,846
  55,149
  58,600
  62,207
  65,978
  69,922
  74,048
  78,367
  82,889
  87,623
  92,582
Total liabilities, $m
  15,380
  16,318
  17,853
  19,454
  21,122
  22,857
  24,662
  26,537
  28,486
  30,511
  32,615
  34,803
  37,079
  39,446
  41,909
  44,475
  47,147
  49,933
  52,837
  55,868
  59,031
  62,334
  65,785
  69,392
  73,163
  77,107
  81,233
  85,552
  90,074
  94,808
  99,767
Total equity, $m
  2,382
  2,246
  2,458
  2,678
  2,908
  3,146
  3,395
  3,653
  3,921
  4,200
  4,490
  4,791
  5,104
  5,430
  5,769
  6,122
  6,490
  6,874
  7,273
  7,691
  8,126
  8,581
  9,056
  9,552
  10,071
  10,614
  11,182
  11,777
  12,399
  13,051
  13,734
Total liabilities and equity, $m
  17,762
  18,564
  20,311
  22,132
  24,030
  26,003
  28,057
  30,190
  32,407
  34,711
  37,105
  39,594
  42,183
  44,876
  47,678
  50,597
  53,637
  56,807
  60,110
  63,559
  67,157
  70,915
  74,841
  78,944
  83,234
  87,721
  92,415
  97,329
  102,473
  107,859
  113,501
Debt-to-equity ratio
  3.440
  4.070
  4.340
  4.580
  4.790
  4.980
  5.150
  5.300
  5.430
  5.550
  5.660
  5.760
  5.860
  5.940
  6.020
  6.090
  6.160
  6.220
  6.280
  6.330
  6.380
  6.430
  6.470
  6.510
  6.550
  6.590
  6.620
  6.650
  6.680
  6.710
  6.740
Adjusted equity ratio
  0.090
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121
  0.121

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,143
  1,464
  1,618
  1,779
  1,947
  2,121
  2,303
  2,492
  2,688
  2,892
  3,104
  3,608
  3,837
  4,076
  4,325
  4,583
  4,853
  5,134
  5,428
  5,734
  6,054
  6,388
  6,737
  7,103
  7,485
  7,884
  8,302
  8,740
  9,199
  9,680
  10,183
Depreciation, amort., depletion, $m
  902
  850
  894
  939
  986
  1,035
  1,086
  1,139
  1,194
  1,252
  1,311
  984
  1,048
  1,115
  1,185
  1,257
  1,333
  1,412
  1,494
  1,579
  1,669
  1,762
  1,860
  1,962
  2,068
  2,180
  2,296
  2,419
  2,546
  2,680
  2,820
Funds from operations, $m
  2,348
  2,314
  2,512
  2,718
  2,933
  3,157
  3,389
  3,631
  3,882
  4,143
  4,415
  4,592
  4,886
  5,191
  5,509
  5,841
  6,186
  6,546
  6,922
  7,314
  7,723
  8,150
  8,597
  9,064
  9,553
  10,064
  10,599
  11,159
  11,745
  12,360
  13,003
Change in working capital, $m
  106
  159
  166
  173
  180
  188
  195
  203
  211
  219
  228
  237
  246
  256
  266
  277
  289
  301
  314
  328
  342
  357
  373
  390
  408
  427
  446
  467
  489
  512
  536
Cash from operations, $m
  2,242
  2,155
  2,346
  2,545
  2,753
  2,969
  3,194
  3,428
  3,671
  3,924
  4,187
  4,355
  4,640
  4,935
  5,243
  5,563
  5,897
  6,245
  6,607
  6,986
  7,381
  7,793
  8,224
  8,674
  9,145
  9,637
  10,153
  10,692
  11,257
  11,848
  12,467
Maintenance CAPEX, $m
  0
  -416
  -461
  -505
  -550
  -597
  -646
  -697
  -750
  -805
  -863
  -922
  -984
  -1,048
  -1,115
  -1,185
  -1,257
  -1,333
  -1,412
  -1,494
  -1,579
  -1,669
  -1,762
  -1,860
  -1,962
  -2,068
  -2,180
  -2,296
  -2,419
  -2,546
  -2,680
New CAPEX, $m
  -686
  -282
  -269
  -281
  -292
  -304
  -316
  -329
  -342
  -355
  -369
  -384
  -399
  -415
  -432
  -450
  -468
  -488
  -509
  -531
  -554
  -579
  -605
  -632
  -661
  -691
  -723
  -757
  -792
  -830
  -869
Cash from investing activities, $m
  -3,584
  -698
  -730
  -786
  -842
  -901
  -962
  -1,026
  -1,092
  -1,160
  -1,232
  -1,306
  -1,383
  -1,463
  -1,547
  -1,635
  -1,725
  -1,821
  -1,921
  -2,025
  -2,133
  -2,248
  -2,367
  -2,492
  -2,623
  -2,759
  -2,903
  -3,053
  -3,211
  -3,376
  -3,549
Free cash flow, $m
  -1,342
  1,457
  1,615
  1,760
  1,910
  2,068
  2,232
  2,402
  2,580
  2,764
  2,956
  3,050
  3,257
  3,472
  3,696
  3,929
  4,171
  4,424
  4,687
  4,961
  5,247
  5,545
  5,857
  6,182
  6,522
  6,878
  7,250
  7,638
  8,045
  8,472
  8,918
Issuance/(repayment) of debt, $m
  743
  1,472
  1,535
  1,601
  1,668
  1,735
  1,804
  1,875
  1,949
  2,025
  2,105
  2,188
  2,275
  2,367
  2,464
  2,565
  2,672
  2,785
  2,905
  3,030
  3,163
  3,303
  3,451
  3,607
  3,771
  3,944
  4,127
  4,319
  4,521
  4,735
  4,959
Issuance/(repurchase) of shares, $m
  -1,681
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -907
  1,472
  1,535
  1,601
  1,668
  1,735
  1,804
  1,875
  1,949
  2,025
  2,105
  2,188
  2,275
  2,367
  2,464
  2,565
  2,672
  2,785
  2,905
  3,030
  3,163
  3,303
  3,451
  3,607
  3,771
  3,944
  4,127
  4,319
  4,521
  4,735
  4,959
Total cash flow (excl. dividends), $m
  -2,351
  2,929
  3,151
  3,361
  3,578
  3,803
  4,036
  4,277
  4,528
  4,789
  5,060
  5,238
  5,532
  5,839
  6,160
  6,494
  6,844
  7,209
  7,591
  7,991
  8,410
  8,849
  9,308
  9,789
  10,293
  10,822
  11,376
  11,957
  12,567
  13,206
  13,877
Retained Cash Flow (-), $m
  1,098
  -200
  -211
  -220
  -230
  -239
  -248
  -258
  -268
  -279
  -290
  -301
  -313
  -326
  -339
  -353
  -368
  -383
  -400
  -417
  -435
  -455
  -475
  -496
  -519
  -543
  -568
  -595
  -622
  -652
  -683
Prev. year cash balance distribution, $m
 
  336
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,065
  2,939
  3,140
  3,349
  3,564
  3,788
  4,019
  4,260
  4,510
  4,771
  4,937
  5,219
  5,513
  5,820
  6,141
  6,476
  6,826
  7,192
  7,574
  7,975
  8,394
  8,833
  9,293
  9,774
  10,279
  10,808
  11,363
  11,944
  12,554
  13,194
Discount rate, %
 
  8.90
  9.35
  9.81
  10.30
  10.82
  11.36
  11.93
  12.52
  13.15
  13.81
  14.50
  15.22
  15.98
  16.78
  17.62
  18.50
  19.43
  20.40
  21.42
  22.49
  23.61
  24.80
  26.03
  27.34
  28.70
  30.14
  31.65
  33.23
  34.89
  36.63
PV of cash for distribution, $m
 
  2,814
  2,459
  2,372
  2,262
  2,133
  1,986
  1,826
  1,658
  1,484
  1,309
  1,113
  953
  802
  663
  538
  428
  334
  254
  190
  138
  98
  68
  45
  30
  19
  11
  7
  4
  2
  1
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company's segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company's specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.

FINANCIAL RATIOS  of  Sysco (SYY)

Valuation Ratios
P/E Ratio 24.9
Price to Sales 0.5
Price to Book 11.9
Price to Tangible Book
Price to Cash Flow 12.7
Price to Free Cash Flow 18.3
Growth Rates
Sales Growth Rate 9.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 30.2%
Cap. Spend. - 3 Yr. Gr. Rate 5.6%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 321.6%
Total Debt to Equity 344%
Interest Coverage 7
Management Effectiveness
Return On Assets 7.7%
Ret/ On Assets - 3 Yr. Avg. 6.4%
Return On Total Capital 10.6%
Ret/ On T. Cap. - 3 Yr. Avg. 8.5%
Return On Equity 39%
Return On Equity - 3 Yr. Avg. 24.6%
Asset Turnover 3.2
Profitability Ratios
Gross Margin 19.1%
Gross Margin - 3 Yr. Avg. 18.2%
EBITDA Margin 5.3%
EBITDA Margin - 3 Yr. Avg. 4.5%
Operating Margin 3.7%
Oper. Margin - 3 Yr. Avg. 3.3%
Pre-Tax Margin 3.2%
Pre-Tax Margin - 3 Yr. Avg. 2.7%
Net Profit Margin 2.1%
Net Profit Margin - 3 Yr. Avg. 1.8%
Effective Tax Rate 35.3%
Eff/ Tax Rate - 3 Yr. Avg. 33.6%
Payout Ratio 61.2%

SYY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SYY stock intrinsic value calculation we used $55371 million for the last fiscal year's total revenue generated by Sysco. The default revenue input number comes from 2017 income statement of Sysco. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SYY stock valuation model: a) initial revenue growth rate of 9.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.9%, whose default value for SYY is calculated based on our internal credit rating of Sysco, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Sysco.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SYY stock the variable cost ratio is equal to 96%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $187 million in the base year in the intrinsic value calculation for SYY stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.6% for Sysco.

Corporate tax rate of 27% is the nominal tax rate for Sysco. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SYY stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SYY are equal to 4.7%.

Life of production assets of 6.2 years is the average useful life of capital assets used in Sysco operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SYY is equal to 2.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2382 million for Sysco - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 546.636 million for Sysco is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Sysco at the current share price and the inputted number of shares is $29.3 billion.

RELATED COMPANIES Price Int.Val. Rating
CHEF Chefs' War 17.55 16.95  hold
CORE Core-Mark Hold 29.43 15.68  sell
PFGC Performance Fo 28.45 16.07  sell
SPTN SpartanNash 25.39 27.63  hold
SVU Supervalu 20.71 76.67  str.buy
USFD US Foods Holdi 27.19 83.79  str.buy
WILC G. Willi-Food 6.01 2.82  str.sell
UNFI United Natural 39.74 21.91  sell

COMPANY NEWS

▶ ETFs with exposure to Sysco Corp. : September 18, 2017   [Sep-18-17 06:49PM  Capital Cube]
▶ Sysco Announces Election of New Director   [Sep-15-17 05:00PM  GlobeNewswire]
▶ Markets fall as Irma approaches Florida   [Sep-08-17 09:04AM  Yahoo Finance]
▶ ETFs with exposure to Sysco Corp. : September 6, 2017   [Sep-05-17 10:07PM  Capital Cube]
▶ VMware Gets Closer To The Cloud At VMworld 2017   [Sep-04-17 04:59PM  Forbes]
▶ Stock Market News For August 15, 2017   [Aug-15-17 10:08AM  Zacks]
▶ Sysco tops Street 4Q forecasts   [Aug-14-17 11:22PM  Associated Press]
▶ Why Sysco is Sinking   [01:05PM  Barrons.com]
▶ Sysco's Sales and Profits Keep Trucking   [12:00PM  Morningstar]
▶ Sysco Corp. Value Analysis (NYSE:SYY) : August 12, 2017   [Aug-11-17 08:46PM  Capital Cube]
▶ 3 Dividend Stocks for Retirement   [Aug-08-17 04:00PM  Motley Fool]
▶ Sysco Declares Quarterly Dividend Payment   [Jul-28-17 05:00PM  GlobeNewswire]
▶ 3 Top Dividend Aristocrats for the Long Term   [Jul-27-17 09:15AM  Motley Fool]
▶ ETFs with exposure to Sysco Corp. : July 25, 2017   [Jul-25-17 01:29PM  Capital Cube]
▶ Houston's second-largest public company names new CEO   [Jul-18-17 09:52AM  American City Business Journals]
▶ Sysco Promotes Tom Bene to Top Job   [09:23AM  TheStreet.com]
▶ Sysco Announces CEO Succession Plan   [04:30PM  GlobeNewswire]
▶ ETFs with exposure to Sysco Corp. : July 14, 2017   [Jul-14-17 05:02PM  Capital Cube]
▶ Sysco Has Upside, According to Analysts   [Jul-07-17 12:28PM  GuruFocus.com]
▶ Sysco Releases Corporate Social Responsibility Report   [Jul-05-17 05:00PM  GlobeNewswire]
▶ Sysco (Not Cisco) Looks Vulnerable to Further Declines   [Jun-28-17 03:49PM  TheStreet.com]
▶ Why BlackBerry, Sysco, and bluebird bio Slumped Today   [Jun-23-17 05:01PM  Motley Fool]
▶ Stocks dip as Amazon-Whole Foods deal hammers grocery stores   [Jun-16-17 03:27PM  Associated Press]
▶ 3 Stocks to Hold for the Next 50 Years   [Jun-01-17 07:50AM  Motley Fool]
▶ Sysco Declares Quarterly Dividend Payment   [May-25-17 05:00PM  GlobeNewswire]
▶ Top Defensive Consumer Stocks for 2017   [06:00AM  Investopedia]
▶ ETFs with exposure to Sysco Corp. : May 23, 2017   [May-23-17 01:07PM  Capital Cube]
▶ Even in faraway US, Indonesian seafood enforcer wins acclaim   [May-13-17 01:26PM  Associated Press]
▶ Story Stocks from Briefing.com   [May-08-17 11:11AM  Briefing.com]
▶ Sysco meets 3Q profit forecasts   [08:28AM  Associated Press]
▶ Sysco Reports Third Quarter Earnings   [08:00AM  GlobeNewswire]
▶ Yacktman Asset Management Comments on Sysco   [May-03-17 12:43PM  GuruFocus.com]
▶ Sysco Corp. Value Analysis (NYSE:SYY) : April 20, 2017   [Apr-20-17 03:19PM  Capital Cube]
▶ Top Insider Buys Highlight for the Week of April 7   [Apr-09-17 03:36PM  GuruFocus.com]
Financial statements of SYY
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.