Sysco Corp (SYY, Financial), a leading player in the Retail - Defensive industry, is currently trading at $73.28 with a market capitalization of $37.06 billion. The stock has seen a gain of 2.91% today and a slight increase of 0.26% over the past four weeks. In this article, we will delve into Sysco Corp's GF Score and its implications for the company's stock performance.
Understanding Sysco Corp's GF Score
Sysco Corp's GF Score stands at 89 out of 100, indicating good outperformance potential. The GF Score is a stock performance ranking system developed by GuruFocus, which is closely correlated to the long-term performances of stocks. It takes into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. A higher GF Score generally translates to higher returns, making Sysco Corp an attractive investment option.
Financial Strength Analysis
Sysco Corp's Financial Strength Rank is 6/10, indicating a relatively strong financial situation. This rank is determined by factors such as interest coverage (5.77), debt to revenue ratio (0.15), and Altman Z score (5.60). These figures suggest that Sysco Corp is capable of managing its debt effectively and maintaining financial stability.
Profitability Rank Analysis
The company's Profitability Rank is 8/10, reflecting a high level of profitability. This rank is based on factors such as Operating Margin (3.98%), Piotroski F-Score (8), and a consistent profitability trend over the past 10 years. This suggests that Sysco Corp has a strong track record of profitability, which is likely to continue.
Growth Rank Analysis
Sysco Corp's Growth Rank is 8/10, indicating a strong growth potential. This rank is determined by the 5-year revenue growth rate (5.60%), 3-year revenue growth rate (13.30%), and 5-year EBITDA growth rate (4.60%). These figures suggest that Sysco Corp has consistently grown its revenue and profitability over the years, which is a positive sign for potential investors.
GF Value Rank Analysis
The company's GF Value Rank is 10/10, indicating that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.
Momentum Rank Analysis
Sysco Corp's Momentum Rank is 7/10, suggesting a positive momentum in the stock's price. This rank is determined using the standardized momentum ratio and other momentum indicators, reflecting the stock's performance over the past 12 months.
Competitive Analysis
When compared to its main competitors in the same industry, Sysco Corp holds a competitive edge. US Foods Holding Corp (USFD, Financial) has a GF Score of 77, Performance Food Group Co (PFGC, Financial) has a GF Score of 89, and Andersons Inc (ANDE, Financial) has a GF Score of 86. This comparative analysis suggests that Sysco Corp is well-positioned in the market with a strong GF Score.
Conclusion
In conclusion, Sysco Corp's high GF Score of 89, coupled with its strong financial strength, profitability, growth potential, fair valuation, and positive momentum, make it a promising investment option. The company's strong performance relative to its competitors further strengthens its position in the market. However, as with any investment, potential investors should conduct their own due diligence before making a decision.
