Sysco Corporation markets and distributes a range of food and related products primarily to the foodservice industry. The company was founded in 1969 and is based in Houston, Texas.
SYY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sysco Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sysco Corp ranked in the 17th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Sysco Corp ended up being:
The business' balance sheet reveals debt to be 30% of the company's capital (with equity being the remaining amount). Approximately 52.92% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 59.03% of stocks in its sector (Consumer Defensive).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Sysco Corp? See BF.B, PEP, SAM, EL, and CVGW.
(Bloomberg Opinion) -- Billionaire Daniel Kretinsky made a blatant attempt to take control over German wholesaler Metro AG without paying investors a decent premium last year. Now the shares have almost halved in value, he’s at it again.The hospitality sector accounted for 48% of Metro’s revenue in 2019, according to Bloomberg Intelligence. The pandemic has exacerbated its existing woes. Kretinsky succeeded in amassing an almost 30% stake after 2019’s 16-euros-a-share ($19-a-share) offer. Since then, he’s sat on the sidelines while a turnaround has failed to materialize for Chief Executive Officer Olaf Koch.With hindsight, shareholders must wish they’d sold to Kretinsky last year. Now, with investment parter Patrik Tkac, he intends to offer 8.48 euros per share. That’s just 2% more than...
I already covered Sysco (SYY) back in August 2019 and used the company as an example of how to screen for wide moat companies. Back then, I assumed that Sysco was rather overvalued as it was trading at around $70. And in retrospect, Sysco would not have been a good...
Daniel Schönberger on Seeking Alpha | September 14, 2020
Although the pandemic has adversely impacted food distributor Sysco Corporation’s (NYSE: SYY ) business, the recent pressure on its shares presents a buying opportunity, according to Edward Jones. The Sysco Analyst: John Boylan upgraded Sysco from Hold to Buy. The Sysco Thesis: While the stock is trading significantly below its 52-week high, Sysco is likely to “emerge from the pandemic a much stronger company,” Boylan said in the upgrade note. The analyst said he expects Sysco to take meaningful market … Full story available on Benzinga.com