Sysco SYY
Sysco is the largest food distributor in North America, supplying products to restaurants, hospitals, and other institutions, with a business model based on scale and distribution logistics. Sysco shows exceptional return on equity (ROE 77.69%) and solid cash generation (FCF yield 5.09%), but its high leverage (net debt 2.95x EBITDA) and the recent $1 billion share offering add pressure in a rising rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Sysco is the largest food distributor in North America, supplying products to restaurants, hospitals, and other institutions, with a business model based on scale and distribution logistics. Sysco shows exceptional return on equity (ROE 77.69%) and solid cash generation (FCF yield 5.09%), but its high leverage (net debt 2.95x EBITDA) and the recent $1 billion share offering add pressure in a rising rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.6 |
| Quality / Moat | 6.6 |
| Valuation | 6.4 |
| Growth | 5.5 |
| Dividend | 7.2 |
| Momentum | 5.2 |
| Risk & Context | 7.5 |
OVERALL SCORE: 6.1/10
Context and risks
Rising interest rates make refinancing more expensive given net debt of 2.95x EBITDA, though the impact is moderated by its defensive consumer business with stable cash flows. The $1 billion share offering suggests management is seeking to strengthen the balance sheet in this environment.
News considered in the analysis
- Sysco (SYY) Plans $1 Billion Common Stock Offering — Una emisión de acciones de 1.000 millones de dólares diluye a los accionistas existentes y puede indicar que la dirección considera las acciones sobrevaloradas o necesita capital para reducir deuda.
- Consumer Discretionary Stocks Q2 Recap: Benchmarking Sysco (NYSE:SYY) — Análisis genérico del sector sin información nueva específica sobre la empresa.
- Sysco (SYY): Buy, Sell, or Hold Post Q2 Earnings? — Artículo de opinión sin datos concretos que no aporta información nueva.
- The World Food Championships Announces Partnership with Sysco — Acuerdo de patrocinio y suministro que refuerza la marca y la relación con el canal de restauración, aunque su impacto financiero directo es limitado.
- 3 Defensive-Styled Stocks to Help Weather Volatility — Listículo genérico sin información nueva sobre la empresa.
Verdict: Hold; business quality is high, but leverage and recent dilution limit attractiveness at current levels.
Main risk: High leverage (net debt 2.95x EBITDA) in a rising interest rate environment, which increases the cost of debt service and could compress margins if growth decelerates.
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