Sysco Corporation (SYY) is a publicly traded company in the Consumer Defensive — Food Distribution industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.
Is Sysco Corporation stock overvalued or undervalued in 2026?
As of October 5, 2026, Sysco Corporation (SYY) trades at 21.2× earnings (P/E), against a median of 20.6× across the 97 consumer staples companies above $2bn in Kaplio's universe. Kaplio's verdict: cheap. At the decade median (24.9×) $91 (+18 %); at its sector median (20.6×) $75 (-3 %).
Kaplio overview: Sysco Corporation
Market cap $37B · 52 weeks $69 – $91 (13 % below the high) · P/E 21.2× · 2027 expected P/E 15.2× · Dividend 2.8 % · 11 years rising · Next earnings November 3, 2026 · expected EPS $1.16 · Price as of Oct 5 · accounts published Aug 4.
- Valuation: P/E 21.2× (cheap).
- Business: ROIC 12 % (fair).
- Balance sheet: Net debt/EBITDA 4.4× (fragile).
- Earnings: 4 of 8 (uneven).
What would it be worth at its usual multiples?
At the decade median (24.9×) $91 (+18 %); at its sector median (20.6×) $75 (-3 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in consumer staples: 5 of 8 pass
- Gross margin (stable 5y) 18.5 %, fails.
- Net debt / EBITDA 4.4×, fails.
- 10y dividend growth 5.9 %, borderline.
- Stable ROE / ROIC 65.9 %, passes.
- FCF / Net Income 110.3 %, passes.
- 10y EPS growth 8.3 %, passes.
- Payout Ratio 59.0 %, passes.
- P/E vs own 10y history 21.2×, passes.
Against its peers (reference peers) — Sysco Corporation: P/E 21.2×; EV/EBITDA 17.7×; ROIC 12.4 %; $37.1B. US Foods Holding Corp. (P/E 29.4×; EV/EBITDA 13.8×; ROIC 8.7 %; $20.6B), The Kroger Co. (P/E 31.9×; EV/EBITDA 10.9×; ROIC 5.0 %; $36.2B), The Estée Lauder Companies Inc. (P/E 188×; EV/EBITDA 20.9×; ROIC 4.1 %; $33.3B).
Expensive or cheap against its last ten years?
P/E at each close: today 21.2× · median 24.9× · minimum 18.0× · maximum 36.0× · cheap below 21.5× · expensive above 29.9×. It has been cheaper than today only 29% of the time over its last ten years.
Dividend
solid · Yield 2.81 % ($2.16 per share in 2026) · Years raising it ≥ 11 · 5-year growth +4 % a year · Free cash flow coverage 1.9× · With $1,000 invested today you'd collect $28.10 a year ($2.34 a month).
Kaplio's reading: Sysco Corporation
Updated on September 29, 2026 · accounts published on August 4, 2026
Reading of September 29, 2026: A high-return, thin-margin business
Sys trades at a P/E of 21.5 over the last 12 months, 15 % below its ten-year median, with net debt at 4.4× EBITDA as its main weakness.
- Is Sys expensive or cheap? At a P/E of 21.5 over the last 12 months, Sys trades 15 % below its ten-year median and 4 % above its sector median.
- How is the business doing? Revenue grew 4 % over the last 12 months while EPS fell 2 %, with a 3.7 % operating margin above its 3.4 % average.
- How strong is the balance sheet? Net debt stands at 4.4× EBITDA in fiscal 2026, well above the 2.5× that counts as healthy for consumer staples.
- What to expect from the next earnings? Analysts expect EPS of $1.16 in the results due November 3, 2026, with the 2027 EPS consensus flat at $5.07.
- Is it as stable as the sector promises? Sys passes 5 of 8 consumer staples tests but fails on its 18.5 % gross margin and its 4.4× net debt to EBITDA.
Is Sys expensive or cheap?
Sys trades at a P/E of 21.5 over the last 12 months, 15 % below its ten-year median of 25.1. Over the last decade it has traded at a lower P/E only 30 % of the time, within a range of 18.0 to 36.0. Against its peers the discount disappears: the consumer staples median P/E is 20.7, so Sys carries a 4 % premium. A free cash flow yield of 6.4 % and an earnings yield of 5.9 % describe a stock that is cheap relative to its own history, not in absolute terms. The share price is 13 % below its 52-week high and down 1 % over the last 12 months.
How is the business doing?
Sys runs on thin margins: 3.7 % operating and 2.1 % net over the last 12 months. That operating margin is slightly above its 3.4 % average for fiscal 2015-2026, so profitability is holding up. Growth is modest, with revenue up 3.9 % and EPS down 1.9 % over the last 12 months. Returns make up for the thin margins: a ROIC of 12.4 % sits 3.5 points above the sector median of 8.9 %, and it stayed above 10 % in 8 of the last 10 fiscal years, with 2020 the weak year at 3.1 %. The 75.5 % ROE is inflated by a small equity base, as the 14.1× P/B shows.
How strong is the balance sheet?
Leverage is the weak spot. Net debt of $29.01 per share in fiscal 2026 equals 36.9 % of the current share price, and debt to equity stands at 5.61 over the last 12 months. Net debt of 4.4× EBITDA is well above the 2.5× ceiling the sector treats as healthy. The scores are more reassuring: an Altman Z of 5.1 is in the safe zone, the Piotroski score is 8 of 9 and the current ratio is 1.28. The dividend yields 2.8 %, has risen for 11 consecutive fiscal years and took 59 % of fiscal 2026 earnings, comfortably under the 75 % limit.
What to expect from the next earnings?
Sys reports on November 3, 2026, and analysts expect EPS of $1.16 for the quarter. The previous report, on August 4, 2026, came in at $1.53 against $1.51 expected, a 1.3 % beat, but the track record is mixed: Sys has beaten EPS estimates in only 4 of the last 8 quarters. Expectations are steady, with the 2027 EPS consensus unchanged at $5.07 over the last 14 days among 7 analysts, and revenue forecasts also flat. Of the 30 analysts covering the stock, 18 rate it a buy, 9 a hold and 3 a sell.
Is it as stable as the sector promises?
Consumer staples are the boring businesses Buffett favours: investors want stability and a growing dividend, not explosive growth. That is why the sector looks at gross margin, cash conversion, payout and dividend growth. Sys meets much of it: ROE of 75.5 % against a 15 % bar, free cash flow at 110 % of net income in fiscal 2026 against 90 %, and EPS growth of 8.3 % a year over 2016-2026 against 6 %. Dividend growth of 5.9 % a year is borderline. The misses matter: an 18.5 % gross margin in fiscal 2026, far below the 35 % the sector treats as stable, leaves little cushion alongside heavy debt.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve Sysco today?
The Buffett Method would not approve Sysco today: it fails its quality rules. Business quality: 67 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-05; not investment advice.
Would Peter Lynch approve Sysco today?
The Lynch Method would wait for a better price for Sysco: P/E 21.4 with 29% growth; it asks that the P/E not exceed growth. Business quality: 42 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of 2026-10-05; not investment advice.
Profitability
| Return on Equity | 65.90% |
| Return on Invested Capital | 12.42% |
| Return on Assets | 6.19% |
| Gross Margin | 18.50% |
| Operating Margin | 3.66% |
| Net Margin | 2.08% |
Financial Health
| Debt / Equity | 5.61 |
| Current Ratio | 1.28 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 5.06 |
Price Performance
| 1 month | -4.58% |
| 3 months | -8.16% |
| Year-to-date | +3.65% |
| 1 year | -5.51% |
| 3 years | +21.33% |
| 5 years | -7.83% |
Dividend History
Paid in the last 12 months: $2.1800 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-10-02 | $0.5500 |
| 2026-07-02 | $0.5500 |
| 2026-04-02 | $0.5400 |
| 2026-01-02 | $0.5400 |
| 2025-10-03 | $0.5400 |
| 2025-07-03 | $0.5400 |
| 2025-04-04 | $0.5100 |
| 2025-01-03 | $0.5100 |
| 2024-10-04 | $0.5100 |
| 2024-07-05 | $0.5100 |
Amounts adjusted for stock splits.
Related companies: ABEV · CCEP · EL · HSY · K · KDP · KMB
Explore sector: Consumer Defensive · Food Distribution
More sections of SYY: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Investment Academy — learn to analyze stocks