You're curious about the financial might of Sysco Food Service, aren't you? It's a fascinating company, being a giant in the foodservice distribution industry. Understanding its "worth" isn't as simple as a single number; it involves looking at various financial metrics that paint a comprehensive picture. Let's embark on this journey together to uncover Sysco's financial standing!
How Much Is Sysco Food Service Worth? A Comprehensive Guide
Sysco Corporation (NYSE: SYY) is the global leader in selling, marketing, and distributing food products to restaurants, healthcare and educational facilities, lodging establishments, and other customers who prepare meals away from home. Its sheer scale makes its financial "worth" a subject of continuous interest for investors, analysts, and even curious consumers.
When people ask "how much is Sysco Food Service worth," they are typically referring to its market capitalization, which is the most common and easily accessible measure of a publicly traded company's size and value. However, a deeper dive also involves looking at other metrics like enterprise value, revenue, and net assets.
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| How Much Is Sysco Food Service Worth |
Step 1: Understanding "Worth" in the Financial World – Let's Get Started!
Before we jump into the numbers, let's clarify what "worth" means in the context of a large corporation like Sysco. Are you thinking about how much it would cost to buy the whole company? Or are you interested in its financial health and performance?
If you're looking for a quick answer, the most common interpretation of "worth" for a public company is its market capitalization. This figure constantly fluctuates with the stock price.
Let's break down how we measure Sysco's financial standing.
Step 2: The Cornerstone – Market Capitalization
Market capitalization (Market Cap) is the total value of all of a company's outstanding shares. It's calculated by multiplying the current stock price by the total number of shares outstanding. This is often the first metric people look at to gauge a company's size.
QuickTip: Slow scrolling helps comprehension.
How to Calculate Market Capitalization:
Sub-heading 2.1: The Simple Formula The formula is straightforward:
Sub-heading 2.2: Sysco's Current Market Cap As of early July 2025, Sysco (SYY) has a market capitalization that hovers around $37 to $38 billion USD. For instance, recent data indicates figures like:
$37.42 billion as of July 3, 2025
$37.19 billion as of July 7, 2025
$38.42 billion reported in July 2025
It's crucial to remember that this number is dynamic and changes second-by-second during trading hours based on supply and demand for the company's stock. This makes it a real-time reflection of how the market values the company.
Sub-heading 2.3: Historical Trends of Sysco's Market Cap Sysco's market cap has seen fluctuations over the years. For example:
In 2024, it increased by 1.83%.
In 2023, it saw a decrease of -4.79%.
Over the past five years, its compound annual growth rate (CAGR) in market capitalization has been around -0.14%, indicating a relatively stable but slightly shrinking market valuation over that period.
Since December 1, 1998, Sysco's market cap has increased by approximately 299.22%, with a compound annual growth rate of 5.34%.
These trends offer valuable insights into how the market has perceived Sysco's growth and stability over time.
Step 3: A Deeper Dive – Enterprise Value
While market capitalization gives us a quick snapshot, Enterprise Value (EV) provides a more comprehensive measure of a company's total value. This is because EV accounts for not only the market value of its equity (market cap) but also its debt and cash. It's often considered the theoretical takeover price of a company.
How to Calculate Enterprise Value:
Sub-heading 3.1: The Formula for a More Complete Picture The formula for Enterprise Value is:
$$\text{EV} = \text{Market Cap} + \text{Total Debt} - \text{Cash & Cash Equivalents}$$Why do we add debt and subtract cash? Because if you were to buy the entire company, you'd be responsible for its debt, but you'd also get its cash reserves.
Sub-heading 3.2: Sysco's Enterprise Value As of early July 2025, Sysco's enterprise value is typically in the range of $48 billion to $50 billion USD. For example:
$50.18 billion as of July 8, 2025
$49.28 billion as of July 5, 2025
This figure often tells a different story than just market cap, especially for companies with significant debt or large cash holdings.
Step 4: Beyond Valuation – Financial Health Indicators
"Worth" can also be interpreted in terms of a company's underlying financial strength and performance. Here are some key metrics that contribute to Sysco's overall financial picture:
Sub-heading 4.1: Revenue – The Top Line Revenue represents the total sales generated by the company. Sysco, as a leading food service distributor, generates massive annual revenues.
In fiscal year 2024, Sysco's revenue was approximately $78.84 billion USD.
Its U.S. Foodservice Operations contribute the largest share, followed by International Foodservice Operations.
Consistent and growing revenue indicates a strong market presence and demand for its services.
Sub-heading 4.2: Net Income – The Bottom Line Net income (or profit) is what's left after all expenses, including taxes, have been deducted from revenue.
In fiscal year 2024, Sysco's net income was around $1.96 billion USD.
Healthy net income is crucial for a company's profitability and ability to reinvest in its business or distribute profits to shareholders.
Sub-heading 4.3: Total Assets & Liabilities – What it Owns and Owes
Total Assets: These are everything the company owns, from cash and inventory to property and equipment. As of 2024, Sysco's total assets were approximately $24.92 billion USD.
Total Liabilities: These are the company's financial obligations, such as debt and accounts payable. As of 2024, Sysco's total liabilities were around $23.03 billion USD.
Understanding the balance between assets and liabilities gives insight into a company's financial structure and its ability to meet its obligations.
Sub-heading 4.4: Net Assets (Shareholders' Equity) Net assets, also known as shareholders' equity, represent the residual value of assets after liabilities are deducted. It's essentially the book value of the company belonging to its owners.
As of March 2025, Sysco reported $1.94 billion USD in net assets on its balance sheet.
In fiscal year 2024, total equity was approximately $1.86 billion USD.
This figure can sometimes differ significantly from market capitalization, as market cap reflects market sentiment and future expectations, while net assets are based on historical accounting values.
Step 5: Valuation Ratios and Analyst Outlook
Beyond the raw numbers, valuation ratios provide context by comparing different financial metrics. They help determine if a company is overvalued, undervalued, or fairly valued by the market.
Sub-heading 5.1: Key Valuation Ratios
P/E Ratio (Price-to-Earnings Ratio): Compares a company's share price to its earnings per share. Sysco's P/E ratio is typically around 19-20x.
P/S Ratio (Price-to-Sales Ratio): Compares share price to revenue per share. Sysco's P/S ratio is often around 0.47-0.48x.
EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization): A common valuation multiple, often around 11-12x for Sysco.
These ratios, when compared to industry averages and historical trends, help analysts assess a stock's attractiveness.
Sub-heading 5.2: Analyst Consensus Financial analysts regularly evaluate Sysco. As of early July 2025, the average price target for Sysco is often around $82 USD, with a general consensus of "Strong Buy" from many analysts.
Analyst ratings and price targets are forward-looking and reflect expert opinions on the company's future performance.
Tip: Reread sections you didn’t fully grasp.
Conclusion: Sysco's Worth in Perspective
In summary, when we talk about "how much Sysco Food Service is worth," we're primarily looking at its market capitalization, which is currently in the range of $37-$38 billion USD. However, for a more complete financial assessment, the enterprise value (around $48-$50 billion USD) offers a broader picture by including debt and cash.
Sysco's substantial annual revenues (nearly $79 billion in FY2024), consistent net income, and vast operational infrastructure solidify its position as a dominant force in the global foodservice distribution industry. Its worth is not just in its stock price, but in its established market leadership, extensive supply chain, and critical role in feeding millions of people every day.
10 Related FAQ Questions
Here are 10 frequently asked questions about Sysco's worth and financial standing:
How to determine a company's market capitalization?
To determine a company's market capitalization, you simply multiply its current share price by the total number of outstanding shares. This figure is readily available on financial news websites and stock market platforms.
How to calculate enterprise value?
Enterprise value (EV) is calculated as: Market Capitalization + Total Debt - Cash & Cash Equivalents. This provides a more comprehensive valuation than market cap alone.
Tip: The middle often holds the main point.
How to understand if Sysco's stock is undervalued or overvalued?
You can assess this by comparing Sysco's valuation ratios (like P/E, P/S, EV/EBITDA) to its historical averages, industry benchmarks, and analyst price targets. If its ratios are significantly lower than its peers or historical trends, it might be considered undervalued, and vice-versa.
How to find Sysco's latest revenue figures?
Sysco's latest revenue figures can be found in its annual reports (10-K filings with the SEC), quarterly earnings reports, and on financial data websites like Yahoo Finance, Google Finance, or Bloomberg.
How to interpret Sysco's net assets?
Net assets (shareholders' equity) represent the company's assets minus its liabilities. It signifies the residual value belonging to shareholders if all assets were sold and all debts paid off. It's an accounting measure of value.
How to assess Sysco's financial health beyond market value?
Beyond market value, assess financial health by looking at revenue growth, net income trends, profit margins, debt-to-equity ratio, current ratio, and free cash flow. These metrics indicate operational efficiency and solvency.
QuickTip: Repeat difficult lines until they’re clear.
How to track Sysco's stock performance?
You can track Sysco's stock performance using its ticker symbol (SYY) on any major financial website or trading platform. You can view real-time prices, historical charts, and performance metrics over various periods.
How to compare Sysco's worth to its competitors?
To compare Sysco's worth to competitors, look at their respective market capitalizations and enterprise values. Also, compare their revenue, net income, and valuation ratios to see who is performing better relative to their size.
How to find information on Sysco's dividend payments?
Information on Sysco's dividend payments, including dividend yield, payout ratio, and dividend growth history, can be found on financial websites under the "Dividends" or "Key Statistics" section for the SYY ticker.
How to identify factors influencing Sysco's market worth?
Sysco's market worth is influenced by factors like its financial performance (revenue, profit), industry trends (restaurant demand, food prices), economic conditions (inflation, consumer spending), competitive landscape, and investor sentiment.
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