Intrinsic value of Sysco - SYY

Previous Close

$54.89

  Intrinsic Value

$46.62

stock screener

  Rating & Target

hold

-15%

Previous close

$54.89

 
Intrinsic value

$46.62

 
Up/down potential

-15%

 
Rating

hold

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 28.7

 

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
  69,527
  75,453
  81,620
  88,031
  94,695
  101,621
  108,817
  116,297
  123,681
  131,767
  140,179
  148,933
  158,050
  167,547
  177,445
  187,768
  198,537
  209,778
  221,516
  233,780
  246,597
  259,998
  274,014
  288,678
  304,026
  320,094
  336,919
  354,543
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
  69,728
  75,659
  81,832
  88,248
  94,917
  101,849
  109,051
  116,536
  123,926
  132,018
  140,437
  149,197
  158,321
  167,825
  177,730
  188,060
  198,836
  210,084
  221,830
  234,102
  246,927
  260,336
  274,361
  289,033
  304,390
  320,467
  337,302
  354,935
Operating income, $m
  2,053
  2,281
  2,546
  2,822
  3,110
  3,409
  3,721
  4,044
  4,381
  4,731
  5,094
  5,864
  6,257
  6,667
  7,093
  7,536
  7,999
  8,481
  8,984
  9,508
  10,056
  10,628
  11,226
  11,851
  12,505
  13,189
  13,905
  14,654
  15,439
  16,260
  17,121
EBITDA, $m
  2,955
  3,281
  3,603
  3,939
  4,289
  4,653
  5,032
  5,426
  5,835
  6,260
  6,702
  7,162
  7,640
  8,138
  8,656
  9,195
  9,757
  10,343
  10,954
  11,592
  12,257
  12,953
  13,680
  14,439
  15,233
  16,064
  16,934
  17,844
  18,798
  19,796
  20,842
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
  1,438
  1,539
  1,643
  1,752
  1,866
  1,985
  2,109
  2,239
  2,375
  2,517
  2,665
  2,820
  2,983
  3,154
Earnings before tax, $m
  1,766
  2,005
  2,217
  2,438
  2,668
  2,908
  3,157
  3,415
  3,684
  3,964
  4,255
  4,949
  5,263
  5,591
  5,932
  6,287
  6,657
  7,043
  7,445
  7,865
  8,304
  8,762
  9,241
  9,742
  10,266
  10,814
  11,388
  11,989
  12,618
  13,277
  13,968
Tax expense, $m
  623
  541
  599
  658
  720
  785
  852
  922
  995
  1,070
  1,149
  1,336
  1,421
  1,510
  1,602
  1,697
  1,797
  1,901
  2,010
  2,124
  2,242
  2,366
  2,495
  2,630
  2,772
  2,920
  3,075
  3,237
  3,407
  3,585
  3,771
Net income, $m
  1,143
  1,464
  1,619
  1,780
  1,948
  2,123
  2,304
  2,493
  2,690
  2,894
  3,106
  3,613
  3,842
  4,081
  4,330
  4,589
  4,859
  5,141
  5,435
  5,742
  6,062
  6,396
  6,746
  7,112
  7,494
  7,894
  8,313
  8,752
  9,211
  9,692
  10,196

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
  17,757
  18,558
  20,305
  22,126
  24,022
  25,996
  28,048
  30,181
  32,397
  34,700
  37,094
  39,582
  42,170
  44,862
  47,664
  50,582
  53,621
  56,789
  60,092
  63,539
  67,136
  70,893
  74,818
  78,920
  83,209
  87,694
  92,387
  97,299
  102,442
  107,826
  113,466
Adjusted assets (=assets-cash), $m
  16,887
  18,558
  20,305
  22,126
  24,022
  25,996
  28,048
  30,181
  32,397
  34,700
  37,094
  39,582
  42,170
  44,862
  47,664
  50,582
  53,621
  56,789
  60,092
  63,539
  67,136
  70,893
  74,818
  78,920
  83,209
  87,694
  92,387
  97,299
  102,442
  107,826
  113,466
Revenue / Adjusted assets
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
  3.279
Average production assets, $m
  4,751
  5,233
  5,726
  6,239
  6,774
  7,331
  7,909
  8,511
  9,136
  9,785
  10,460
  11,162
  11,892
  12,651
  13,441
  14,264
  15,121
  16,014
  16,946
  17,918
  18,932
  19,991
  21,098
  22,255
  23,464
  24,729
  26,053
  27,438
  28,888
  30,406
  31,997
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
  13,936
  15,670
  17,474
  19,349
  21,297
  23,321
  25,426
  27,613
  29,887
  32,254
  34,717
  37,281
  39,953
  42,737
  45,641
  48,671
  51,833
  55,135
  58,585
  62,191
  65,960
  69,903
  74,029
  78,346
  82,866
  87,599
  92,557
Total liabilities, $m
  15,375
  16,313
  17,848
  19,449
  21,116
  22,850
  24,654
  26,529
  28,477
  30,501
  32,606
  34,793
  37,067
  39,434
  41,897
  44,461
  47,133
  49,917
  52,821
  55,851
  59,013
  62,315
  65,765
  69,371
  73,140
  77,083
  81,209
  85,526
  90,046
  94,779
  99,737
Total equity, $m
  2,382
  2,246
  2,457
  2,677
  2,907
  3,145
  3,394
  3,652
  3,920
  4,199
  4,488
  4,789
  5,103
  5,428
  5,767
  6,120
  6,488
  6,871
  7,271
  7,688
  8,124
  8,578
  9,053
  9,549
  10,068
  10,611
  11,179
  11,773
  12,395
  13,047
  13,729
Total liabilities and equity, $m
  17,757
  18,559
  20,305
  22,126
  24,023
  25,995
  28,048
  30,181
  32,397
  34,700
  37,094
  39,582
  42,170
  44,862
  47,664
  50,581
  53,621
  56,788
  60,092
  63,539
  67,137
  70,893
  74,818
  78,920
  83,208
  87,694
  92,388
  97,299
  102,441
  107,826
  113,466
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
  5.770
  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
  6.690
  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
  1,619
  1,780
  1,948
  2,123
  2,304
  2,493
  2,690
  2,894
  3,106
  3,613
  3,842
  4,081
  4,330
  4,589
  4,859
  5,141
  5,435
  5,742
  6,062
  6,396
  6,746
  7,112
  7,494
  7,894
  8,313
  8,752
  9,211
  9,692
  10,196
Depreciation, amort., depletion, $m
  902
  1,000
  1,057
  1,117
  1,179
  1,244
  1,311
  1,381
  1,454
  1,529
  1,608
  1,298
  1,383
  1,471
  1,563
  1,659
  1,758
  1,862
  1,970
  2,083
  2,201
  2,325
  2,453
  2,588
  2,728
  2,875
  3,029
  3,190
  3,359
  3,536
  3,721
Funds from operations, $m
  2,217
  2,464
  2,676
  2,897
  3,127
  3,367
  3,616
  3,874
  4,144
  4,423
  4,714
  4,911
  5,225
  5,552
  5,893
  6,248
  6,618
  7,003
  7,405
  7,825
  8,263
  8,721
  9,199
  9,700
  10,223
  10,770
  11,343
  11,942
  12,570
  13,228
  13,917
Change in working capital, $m
  41
  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
  2,176
  2,305
  2,510
  2,724
  2,947
  3,179
  3,420
  3,672
  3,933
  4,204
  4,486
  4,674
  4,979
  5,296
  5,627
  5,970
  6,329
  6,702
  7,091
  7,497
  7,921
  8,364
  8,826
  9,310
  9,815
  10,343
  10,896
  11,475
  12,081
  12,716
  13,381
Maintenance CAPEX, $m
  0
  -552
  -609
  -666
  -726
  -788
  -852
  -920
  -990
  -1,062
  -1,138
  -1,216
  -1,298
  -1,383
  -1,471
  -1,563
  -1,659
  -1,758
  -1,862
  -1,970
  -2,083
  -2,201
  -2,325
  -2,453
  -2,588
  -2,728
  -2,875
  -3,029
  -3,190
  -3,359
  -3,536
New CAPEX, $m
  -686
  -482
  -492
  -514
  -535
  -556
  -579
  -601
  -625
  -649
  -675
  -702
  -730
  -759
  -790
  -823
  -857
  -893
  -932
  -972
  -1,014
  -1,059
  -1,107
  -1,157
  -1,209
  -1,265
  -1,323
  -1,385
  -1,450
  -1,518
  -1,590
Cash from investing activities, $m
  -3,584
  -1,034
  -1,101
  -1,180
  -1,261
  -1,344
  -1,431
  -1,521
  -1,615
  -1,711
  -1,813
  -1,918
  -2,028
  -2,142
  -2,261
  -2,386
  -2,516
  -2,651
  -2,794
  -2,942
  -3,097
  -3,260
  -3,432
  -3,610
  -3,797
  -3,993
  -4,198
  -4,414
  -4,640
  -4,877
  -5,126
Free cash flow, $m
  -1,408
  1,270
  1,409
  1,544
  1,686
  1,835
  1,989
  2,151
  2,318
  2,492
  2,674
  2,756
  2,951
  3,154
  3,365
  3,585
  3,813
  4,050
  4,298
  4,555
  4,823
  5,103
  5,395
  5,700
  6,018
  6,350
  6,697
  7,061
  7,441
  7,838
  8,255
Issuance/(repayment) of debt, $m
  730
  1,472
  1,535
  1,601
  1,667
  1,735
  1,804
  1,875
  1,948
  2,025
  2,104
  2,187
  2,275
  2,366
  2,463
  2,564
  2,672
  2,785
  2,904
  3,030
  3,162
  3,302
  3,450
  3,606
  3,770
  3,943
  4,125
  4,318
  4,520
  4,733
  4,958
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  
  -921
  1,472
  1,535
  1,601
  1,667
  1,735
  1,804
  1,875
  1,948
  2,025
  2,104
  2,187
  2,275
  2,366
  2,463
  2,564
  2,672
  2,785
  2,904
  3,030
  3,162
  3,302
  3,450
  3,606
  3,770
  3,943
  4,125
  4,318
  4,520
  4,733
  4,958
Total cash flow (excl. dividends), $m
  -2,351
  2,742
  2,944
  3,145
  3,354
  3,569
  3,793
  4,025
  4,266
  4,517
  4,778
  4,943
  5,226
  5,521
  5,828
  6,149
  6,485
  6,835
  7,201
  7,584
  7,985
  8,405
  8,845
  9,305
  9,788
  10,293
  10,823
  11,378
  11,961
  12,572
  13,212
Retained Cash Flow (-), $m
  1,098
  -200
  -211
  -220
  -229
  -239
  -248
  -258
  -268
  -279
  -290
  -301
  -313
  -326
  -339
  -353
  -368
  -383
  -400
  -417
  -435
  -455
  -475
  -496
  -519
  -543
  -568
  -594
  -622
  -652
  -682
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
 
  2,879
  2,733
  2,925
  3,124
  3,331
  3,545
  3,767
  3,998
  4,238
  4,488
  4,642
  4,913
  5,195
  5,489
  5,796
  6,117
  6,452
  6,802
  7,167
  7,550
  7,951
  8,370
  8,809
  9,269
  9,750
  10,255
  10,784
  11,339
  11,920
  12,530
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
 
  2,643
  2,285
  2,209
  2,110
  1,993
  1,859
  1,712
  1,556
  1,394
  1,231
  1,047
  897
  756
  626
  508
  404
  315
  241
  179
  131
  93
  64
  43
  28
  18
  11
  6
  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 25.5
Price to Sales 0.5
Price to Book 12.2
Price to Tangible Book
Price to Cash Flow 13.4
Price to Free Cash Flow 19.5
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 8.6%.

Life of production assets of 8.6 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 522.682 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 $28.7 billion.

RELATED COMPANIES Price Int.Val. Rating
UNFI United Natural 42.15 27.47  sell
CORE Core-Mark Hold 30.88 15.38  str.sell
CHEF Chefs' War 18.60 17.84  hold
PFGC Performance Fo 28.80 15.10  sell
SPTN SpartanNash 22.82 28.05  hold
WILC G. Willi-Food 5.81 3.41  sell
SVU Supervalu 16.32 2,390.86  str.buy
USFD US Foods Holdi 27.45 84.45  str.buy

COMPANY NEWS

▶ ETFs with exposure to Sysco Corp. : November 17, 2017   [Nov-17-17 12:59PM  Capital Cube]
▶ Sysco Declares 49th Dividend Increase   [08:00AM  GlobeNewswire]
▶ Sysco Corp. Value Analysis (NYSE:SYY) : November 14, 2017   [Nov-14-17 03:40PM  Capital Cube]
▶ Top Losers in the Consumer Sector: November 610, 2017   [Nov-13-17 10:09AM  Market Realist]
▶ Sysco beats Street 1Q forecasts   [08:11AM  Associated Press]
▶ Sysco scoops up another foodservice distributor   [Oct-19-17 09:45AM  American City Business Journals]
▶ Sysco Agrees to Acquire Hawaii-Based HFM FoodService   [Oct-17-17 04:30PM  GlobeNewswire]
▶ Walmart is beefing up Jet.com   [Sep-29-17 01:03PM  Yahoo Finance Video]
▶ Nelson Peltz Builds Up Stake In Sysco   [Sep-21-17 08:38AM  Benzinga]
▶ 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]
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.