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Sysco Corporation(SYY)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$77.49
10/02/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for SYY

10/02/2026: SYY (1-star) is currently NOT-A-BUY. Pass it for now.

Sysco Corporation is the world's leading foodservice distributor, providing a critical supply chain for restaurants and institutions. The company maintains a strong position through its massive distribution network and consistent operational scale, supported by a long history of reliable dividend growth. Its primary investment opportunity lies in digital transformation and international market penetration. Key risks include exposure to cyclical restaurant demand, food commodity inflation, and the thin-margin nature of the wholesale distribution business. Sysco is generally a suitable candidate for income-focused and defensive-minded investors who prioritize stability over rapid growth, though investors should monitor margins and integration outcomes closely.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitSysco offers steady, predictable growth rather than high-octane exponential expansion.
Momentum investorWeak fitThe stock tends to trade based on long-term fundamentals and industry cycles rather than short-term price momentum.
Value investorStrong fitIts stable business model and long history of profitability often attract value-oriented investors.
Dividend investorStrong fitSysco's status as a long-term dividend grower makes it highly suitable for income-focused portfolios.
Low-risk investorStrong fitThe company's scale and essential nature of the food supply chain provide defensive characteristics.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityLowThe stock is generally less volatile than the broader market due to its defensive industry status.
Valuation riskMediumInvestors should monitor P/E ratios to ensure the price reflects normalized growth expectations.
Competition risk (Foodservice Distribution)MediumAggressive pricing by competitors like USFD can impact margins in a low-margin environment.
Business qualityStrongSysco's entrenched market position and scale create a durable competitive advantage.
Dividend incomeStrongThe company's history of dividend increases makes it a reliable income source.
Execution riskMediumManaging a massive global supply chain requires consistent operational excellence.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -7.14%
Avg. Invested days 39
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/02/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
SYY receives a 3-star rating, supported by solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
SYY has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2026 versus FY2025, growth and ownership metrics are mixed: slightly negative earnings growth (-3.9%), soft cash generation (FCF margin 2.3%), moderate revenue growth (+3.9%).

Financial Health Rating

★★★★★
SYY's financial health is supported by strong cash strength, including free-cash-flow generation of $1.9B (2.3% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is SYY's strongest growth driver at +20.8% FY2026 versus FY2025 (solid, 4 stars). By comparison, while earnings growth (-3.9%, slightly negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 88.6% and approximately 99.6% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.17%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 8.75%
Vanguard Capital Management, LLC 6.35%
State Street Corp 5.51%
Vanguard Portfolio Management, LLC 5.48%
Harris Associates L.P. 3.31%

Unit Economics (Per $1K Revenue)

★★★★★
SYY generates approximately $185 of gross profit, $37 of operating income, and $23 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Weak margins explain the 2-star rating, with moderate cash conversion and solid capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 22.80%

Quantitative Style Profile

★★★★★
SYY has a high-quality, large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltLow VolatilityLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 37.30B USD
Price to earnings Ratio 21.25
1Y Target Price 90.83
Price to earnings Ratio 21.25
1Y Target Price 90.83
Volume (30-day avg) 4.0M shares
Beta 0.63
52 Weeks Range 66.76 - 89.92
Updated Date 10/02/2026
52 Weeks Range 66.76 - 89.92
Updated Date 10/02/2026
Dividends yield (FY) 2.78%
Basic EPS (TTM) 3.66

How Company Makes Money

Business areaWhat it includesRetail investor read
Broadline FoodserviceDistribution of food and supplies to restaurants and institutions.The primary engine of Sysco, earning money through the reliable volume of food sales to professional kitchens.
International MarketsOperations in Canada, Europe, and elsewhere.Provides a secondary growth lever by taking the U.S. distribution model to global markets.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 21.25
Forward PE 15.22
Enterprise Value 50.17B
Price to Sales(TTM) 0.44
Enterprise Value 50.17B
Price to Sales(TTM) 0.44
Enterprise Value to Revenue 0.59
Enterprise Value to EBITDA 12.17
Shares Outstanding 479.57M
Shares Floating 477.69M
Shares Outstanding 479.57M
Shares Floating 477.69M
Percent Insiders 0.17
Percent Institutions 88.55

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Sysco Corporation

Exchange NYSE
Headquarters Houston, TX, United States
IPO Launch date 1973-05-08
CEO & Chairman Mr. Kevin P. Hourican
Sector Consumer Defensive
Industry Food Distribution
Full time employees 75000
Full time employees 75000

Sysco Corporation, through its subsidiaries, engages in the sale, marketing, and distribution of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meats, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food; fresh meats and seafood; dairy and beverage products; imported specialties; and fresh produce. It also supplies paper products, including disposable napkins, plates, and cups; tableware comprising glassware and silverware; cookware consisting of pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company operates in the United States, Canada, the United Kingdom, France, Sweden, and internationally. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.