Sysco Corporation

Texas (12/29/2013) – Sysco Corporation (NYSE: SYY) – No Immediate Investment Interest based on a recent price of $36.82 and a fair value estimate of $30-$36.

The company through its subsidiaries and divisions, is a distributor of food and related products to the food service or ‘food-away-from-home’ industry.

The stock is fairly valued at current pricing levels. Items of note are y-o-y earnings growth of (-36%) and y-o-y free cash flow growth of (-30%). It is also worth noting that while revenues increased 5% y-o-y, pre-tax income fell 13% during the same period. While not cause for alarm, it is curious how the company manages to earn between $2.60 and $2.65 per share each year for the prior three years.


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