Sysco Corporation SYY
Sysco remains a hold as FY2026 results (period ended 2026-06-27) show revenue growing 3.9% to $84.6B but net income falling for a second consecutive year — down 3.9% to $1.76B with EPS at $3.66 — as operating margin compressed to 3.66% from 3.80%. The stock trades at a discount to peers (22.5x P/E vs 28.3x median; 13.7x EV/EBITDA vs 15.2x) and free cash flow improved to $1.94B, while smart money scores turned modestly positive at 0.061 as of Q2 2026, but the planned $29B Jetro/Restaurant Depot acquisition layered on top of $14.97B in existing debt against just $2.67B in equity creates substantial execution and leverage risk that offsets the attractive valuation and FY2027 guidance for 9–11% adjusted EPS growth.
What could go wrong
- Acquisition leverage risk. The planned $29B Jetro/Restaurant Depot acquisition, on top of existing total debt of $14.97B against $2.67B equity as of FY2026, could materially strain the balance sheet and delay deleveraging.
- Persistent margin compression. Operating margin has declined for two consecutive years from 4.06% in FY2024 to 3.66% in FY2026, and net margin fell to 2.08%, eroding profitability despite top-line growth.
- Earnings trajectory. Net income has declined two years in a row (-6.5% in FY2025, -3.9% in FY2026) and EPS fell 1.9% to $3.66, raising questions about whether AI-driven efficiency initiatives can reverse the trend.
- Macro and foodservice demand. As a foodservice distributor, Sysco is exposed to discretionary away-from-home dining trends; any slowdown in restaurant traffic could pressure volumes and complicate integration of the Jetro acquisition.
What would change my mind
Where this comes from: FMP annual fundamentals, fiscal year ended 2026-06-27 · derived_metrics, FY2026 and FY2025 · FMP annual fundamentals, fiscal years 2026 and 2025 · FMP annual fundamentals, fiscal year ended 2026-06-27. Orin's read on SYY; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All SYY filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $2.6B | 0.1% of fund |
| State Street | $2.3B | 0.1% of fund |
| Vanguard Portfolio Management | $2.3B | 0.1% of fund |
| Harris Associates L P | $1.4B | 1.8% of fund |
| Geode Capital Management | $1.1B | 0.1% of fund |
| Goldman Sachs Group | $855.8M | 0.1% of fund |
120 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 174 Form 4 filings, net $19.3M. Of the 50 on hand, 0 were open-market purchases and 7 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about SYY
Orin answers questions about SYY from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 21.3× | 21.3× | 38.3× |
| EV/EBITDA | 13.2× | 13.0× | — |
| P/S | 0.44× | 0.49× | — |
| P/B | 14.1× | 20.0× | — |
Its P/E sits 60th percentile of its own last 5 years (−0.57σ from its own mean).
7.2%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.9B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$86
$84 – $90 · +10% against today's price
- 18 buy or overweight
- 9 hold
- 3 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| SYYSysco Corporation | $37B | 21.3× | 13.2× | 18.5% | 2.1% | 75% |
| ELThe Estée Lauder Companies Inc. | $34B | 190.7× | 47.3× | 75.5% | 1.2% | 5% |
| HSYThe Hershey Company | $34B | 22.6× | 14.8× | 38.1% | 12.2% | 32% |
| KDPKeurig Dr Pepper Inc. | $42B | 31.1× | 20.6× | 49.4% | 7.1% | 6% |
| KMBKimberly-Clark Corporation | $32B | 16.5× | 12.4× | 36.7% | 11.8% | 123% |
| KRThe Kroger Co. | $36B | 31.5× | 10.9× | 23.1% | 0.7% | 17% |
| KVUEKenvue Inc. | $34B | 20.2× | 13.0× | 58.2% | 10.8% | 16% |
The median is of the 6 peers listed above and nothing else — check it against the column. This company trades 20.6% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $125 | $78.81 · +59% | 2026-06-10 |
| Levered DCF | $63 | $78.81 · −20% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.