Investment Thesis
Sysco exhibits severe data anomalies with a claimed 13,505% YoY revenue growth that is implausible for a mature food distributor, suggesting potential financial reporting errors or data corruption. Underlying fundamentals reveal concerning operational efficiency with razor-thin net margins (2.1%), weak free cash flow conversion (0.7% FCF margin), and dangerously high leverage (5.45x debt-to-equity) that leaves limited financial flexibility despite adequate interest coverage.
SYY Strengths
- Strong interest coverage ratio of 48.9x indicates ability to service debt obligations
- Positive free cash flow of $311M demonstrates core business generates cash despite low conversion efficiency
- Adequate current ratio of 1.30x suggests near-term liquidity to meet short-term obligations
SYY Risks
- Implausible revenue growth figure (+13,505% YoY) indicates potential data quality issues or financial reporting anomalies requiring verification
- Extremely high leverage at 5.45x debt-to-equity with $12.4B long-term debt against only $2.3B equity creates vulnerability to economic downturns
- Deteriorating profitability metrics with 2.1% net margin and 0.7% FCF margin in wholesale groceries suggest intense competitive pressure and margin compression
Key Metrics to Watch
- Revenue growth verification and underlying organic growth excluding any one-time items or accounting adjustments
- Operating margin trend and gross margin sustainability in competitive food distribution market
- Free cash flow generation and debt reduction capability given high leverage ratios
SYY Financial Metrics
SYY Profitability Ratios
SYY Balance Sheet & Liquidity
SYY 5-Year Financial Trend
5-Year Trend Summary: SYSCO CORP's revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.47 reflects profitable operations.
SYY Growth Metrics (YoY)
SYY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $20.2B | $389.0M | $0.81 |
| Q1 2026 | $20.5B | $476.0M | $0.99 |
| Q3 2025 | $19.4B | $401.0M | $0.82 |
| Q2 2025 | $19.3B | $406.0M | $0.82 |
| Q1 2025 | $19.6B | $490.0M | $0.99 |
| Q3 2024 | $18.9B | $424.7M | $0.84 |
| Q2 2024 | $18.6B | $141.2M | $0.28 |
| Q1 2024 | $19.1B | $465.6M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
SYY Capital Allocation
SYY SEC Filings
Access official SEC EDGAR filings for SYSCO CORP (CIK: 0000096021)