Assessing Sysco (SYY) Valuation After Recent Results And Softer Share Price Momentum
Sysco (SYY) is back on many investors’ screens after its latest financial figures, with revenue of US$82.0b and net income of US$1.8b. This has prompted fresh questions about how the stock’s current valuation lines up with its fundamentals.
See our latest analysis for Sysco.
The share price has softened in recent months, with a 90 day share price return of 7.58% and a modest year to date share price gain of 0.23%. The 1 year total shareholder return is 0.37%, which suggests momentum has been fading despite the latest results.
If Sysco’s numbers have you reassessing the foodservice space, it can be worth widening the lens to other consumer names and even beyond. To see what else is moving, check out fast growing stocks with high insider ownership.
With Sysco trading around US$72.79 and metrics like value score, price targets and intrinsic estimates pointing in different directions, the real question is whether you are seeing an overlooked opportunity or a market that is already pricing in future growth.
Most Popular Narrative Narrative: 16.2% Undervalued
With Sysco last closing at US$72.79 against a fair value narrative of about US$86.88, the gap comes down to a few key operating levers.
Sysco is focused on improving its sales consultant workforce, with new hires becoming more productive and a compensation model shift, which is expected to enhance revenue and earnings starting in fiscal 2026.
The company is expanding its fulfillment capacity with new facilities in Florida and internationally in Sweden and Ireland, boosting its storage and distribution ability to capture profitable revenue growth in key markets.
Want to see what sits behind that valuation gap? The narrative focuses on steady top line progress, firmer margins, and a future earnings multiple that needs to fall, not rise, to make the numbers add up. Curious how those moving parts fit together across the next few years? The full narrative lays out the earnings path and share count assumptions that support that fair value line.
Result: Fair Value of $86.88 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to weigh execution risks, such as sales consultant turnover and weaker restaurant traffic, which could pressure Sysco’s revenue and margins if they persist.
Find out about the key risks to this Sysco narrative.
Build Your Own Sysco Narrative
If you see the story differently, or prefer to work from the raw numbers yourself, you can build a custom Sysco view in minutes with Do it your way.
A great starting point for your Sysco research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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