Home Sectors Consumer Defensive Current Valuation: Sysco Corporation (NYSE: SYY)

Current Valuation: Sysco Corporation (NYSE: SYY)


Sysco Corporation trades as part of the consumer defensive sector and trades as part of the retail defensive industry. The company CEO is Thomas L. Bene. Sysco Corp is in the business of food distribution. Its primary business involves the distribution of food and related products to the foodservice or food-away-from-home industry.

Previous Intraday Trading Performance:

The SYY stock showed a previous change of 0.14% with an open at 66.33 and a close of 66.29. It reached an intraday high of 66.51 and a low of 66.02.

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The stock has a market cap of $34.0b with 513.5m shares outstanding, of which the float is 508.2m shares. Trading volume reached 2,883,845 shares compared to its average volume of 3,736,133 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Sysco Corporation shares returned 1.44% and in the past 30 trading days it returned 7.11%. Over three months, it changed -0.98%. In one year it has changed 16.63% and within that year its 52-week high was 75.98 and its 52-week low was 57.92. SYY stock is 14.45% above its 52 Week Low.

Our calculations show a 200 day moving average of 67.06 and a 50 day moving average of 63.66. Currently SYY stock is trading -1.15% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

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The last annual fiscal EPS for the company was reported at 2.71 that ended on 30th of June 2018, which according to the previous close, that is a PE of 24.46. Based on 5 analyst estimates, the consensus EPS for the next quarter is 0.94. The TTM EPS is 3.01, which comes to a TTM PE of 22.02. Historically, the PE high was 43.80 and the PE low was 18.50. If the stock reached its PE low, that would represent a price of 55.69, which is a decrease of -15.99%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.75
09-30-2018:  0.91
06-30-2018:  0.94
03-31-2018:  0.67

The dividend per share is currently 1.56, which is a dividend yield of 2.35%. Also, the payout ratio is 51.83%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 70.63, which means it is possibly undervalued and has a margin of safety of 6.15%

Indicators to Watch:

Based on the latest filings, there is 1.00% of insider ownership and 113.20% of institutional ownership. Short-interest is 13,743,199, which is 2.68% of shares outstanding. The short-interest ratio or days-to-cover ratio is 4.30. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.53

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 66.61%, return on assets is 8.11%, profit margin is 2.48%, price-to-sales is 0.57 and price-to-book is 15.68.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 5  :Past Performance Score
 3  :Financial Strength Score
 2  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.