SYY Value Scorecard - Sysco

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

30/60

low-moderate value score

Earnings & returns

EPS Trend

3/5

Diluted EPS: $3.47 (2023), $3.89 (2024), $3.73 (2025), $3.66 (2026). It ended above 2023 but did not rise in 2 of 3 years; the framework scores that as 3.

ROE Trend

5/5

ROE (net income / common equity): 88.1% (2023), 105.1% (2024), 99.9% (2025), 65.9% (2026). Median 94.0%, lowest 65.9%; the framework scores a median above 20% as 5.

ROIC

4/5

ROIC of 17.3%: operating income of $3.10B divided by $17.87B of capital (total assets $28.40B minus current liabilities $10.52B), fiscal year to Jun 27, 2026, as filed in the 10-K (SEC EDGAR). The framework scores 15-20% as 4.

Profit Margins

2/5

Net margin of 2.1%; the framework scores 0-5% as 2; gross margin 18.5%, operating margin 4.8%.

Balance sheet & cash

Debt-to-Equity

1/5

Debt-to-equity of 5.65; the framework scores above 2.5 as 1 (total debt $15.05B, total cash $1.79B).

Free Cash Flow

2/5

Free cash flow (operating cash flow minus capital expenditure): $2.08B (2023), $2.16B (2024), $1.60B (2025), $1.94B (2026). It ended at or below 2023; the framework scores that as 2.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $11.31B (2023), $12.26B (2024), $13.06B (2025), $13.75B (2026). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $3.66 x (8.5 + 2 x 0.0) x (4.4 / 4.5) = $30.42 (EPS CAGR -3.0% floored at 0%; the formula returns a negative value below -4.25% growth). Current price $82.22; price is 170.3% above the model value.

DCF Value

1/5

FCF/share = $3.891, stage 1 growth = 3.6% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $16.31, PV of terminal value = $42.43, DCF value = $58.74. Current price $82.22; price is 40.0% above the model value.

Margin of Safety

1/5

Graham value $30.42 (price is 170.3% above the model value); DCF value $58.74 (price is 40.0% above the model value).

Price-to-Book

1/5

P/B of 14.76; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 8 of 10 years (2017-2026); lowest 4.7%, highest 21.3%.

Gross margin, each year

Between 17.9% and 19.1% over 10 years (a range of 1.2 points).

Competition, in the company’s own words · 10-K filed Aug 21, 2026

A large number of companies are engaged in the distribution of food and non-food products to the foodservice industry. Our customers may choose to purchase products directly from wholesale or retail outlets, including club, cash and carry and grocery stores, online retailers, or negotiate prices directly with our suppliers. We compete with local and regional distributors and some organizations that operate on a

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

4/5

Capital allocation, 2023-2026: dividends or buybacks paid in every year (pass); $7.22B paid out against $7.77B of free cash flow (pass); total debt $11.17B to $14.97B, up 34.0%, 3.6x EBITDA (fail: up more than 10% and above 2x EBITDA); shares outstanding 0.51B to 0.48B, down 5.3% (pass). 3 of 4 tests passed; the framework scores that as 4.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $3.66, g = 0.0%, Y = 4.5
    g floored at 0.0% (3-year EPS CAGR was -3.0%; below -4.25% the formula returns a negative value)
    IV = $30.42
    Current price $82.22 vs Graham value $30.42 — price is 170.3% above the model value.

  DCF:
    FCF/share = $3.891
    Stage 1 growth = 3.6% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $4.031 → PV $3.665
      Y2: $4.176 → PV $3.451
      Y3: $4.326 → PV $3.251
      Y4: $4.482 → PV $3.061
      Y5: $4.644 → PV $2.883
    Stage 1 PV sum = $16.31
    Terminal value at end of Y5 = $68.33
    PV of terminal value = $42.43
    DCF value = $58.74
    Current price $82.22 vs DCF value $58.74 — price is 40.0% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $82.22. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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