Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, food distributor SYSCO (NYSE:SYY) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at SYSCO's business and see what CAPS investors are saying about the stock right now.
SYSCO facts
|
Headquarters (Founded) |
Houston (1969) |
|
Market Cap |
$16.62 billion |
|
Industry |
Food distribution |
|
Trailing-12-Month Revenue |
$36.06 billion |
|
Management |
CEO William DeLaney III (since 2009) |
|
Return on Equity (Average, Past 3 Years) |
31.8% |
|
Cash/Debt |
$878.47 million / $2.92 billion |
|
Dividend Yield |
3.4% |
|
Competitors |
CVS Caremark (NYSE:CVS) |
|
CAPS Members Bullish on SYY Also Bullish on |
Procter & Gamble (NYSE:PG) |
|
CAPS Members Bearish on SYY Also Bearish on |
Microsoft (NASDAQ:MSFT) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 1,062 members who have rated SYSCO believe the stock will outperform the S&P 500 going forward. These bulls include go4buffs and tekennedy.
Late last year, go4buffs reminded Fools that SYSCO "is the outright leader in its industry as a food supplier to everything from small to large kitchens." Our CAPS member concludes: "As the economy tries to pinch pennies out of restaurants, cafeterias, and delis, SYSCO's portfolio of low to high end food brands will help meet the need."
In an earlier pitch, tekennedy expands on the appetizing opportunity. Here's an excerpt:
SYSCO is an amazingly run company which is by far the market (there is no company close to it and they only have roughly 17% market share) leader in a highly fragmented market with strong competitive advantages. The company earns spectacular returns on capital with a highly scalable operating structure, leading to the ability to profitably grow for some time. …
The company has taken steps to help improve performance (by reducing invested capital and slightly reducing cap.ex.) and reduce risk which should help through the lean times. Even though this company won't trounce the market (don't expect more than a double unless you plan on holding for a considerable time) it should outperform the market over time.
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