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Sysco Research

Dividends Per Share -
ever increasing
 Dividend History HERE

Earnings per share
Steady Gro
wth     EPS and Book Value Analysis HERE

Dividends as a percentage of net profits - consistent 
Dividend Growth Model Here

S.A.D. Investing

I don't believe that individual investors should abdicate responsibility, believing that the task of do it yourself investing is beyond their reach. By learning to use some Simple, well-tested yardsticks and Acting on them in a Disciplined manner, they should do very well. Go for long-term growth and top-quality and be a patient, long-term investor."

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Sysco     Symbol:  SYY

A company profile is available at Yahoo HERE     Scorecard

 Updates:

THE FINE PRINT:   April 2, 2009

Sysco Foods has a division currently taxed under SubChapter T i.e - it receive preferred tax treatment with special deferred tax liabilities. This is a special ruling that if changed would provide for immediate interest owing on deferred tax liabilities of 290 to 320 million dollars. This is part of the "fine print" in the Sysco annual report. The result of such a tax liability would be the cessation of share repurchases, or the issuance of more common stock.

Pension Plan - underfunded by up to $ 140 million - more fine print.

While we appreciate the returns provided over time by SYY, the risks involved with these unknown contingencies
must be brought into the open so that investors are aware of the inherent risks.

These risks will not bring down the company, but will have a material impact on the share price.

Share repurchases:  September 21, 2008: 

HOUSTON, Sep 22, 2008 (GlobeNewswire via COMTEX News Network) -- SYSCO Corporation (NYSE:SYY), the world's largest
foodservice marketer and distributor, announced today that its Board of Directors has approved a 20-million-share repurchase program.

The approved program is SYSCO's fifteenth share repurchase program since fiscal 1992. SYSCO's previously approved 20-million-share repurchase program from July 2007 has approximately 3.0 million shares remaining. These remaining shares will be repurchased prior to the initiation of the new program. Under the new repurchase program, shares will be acquired in the open market or in privately negotiated transactions at the Company's discretion, subject to market conditions and other factors, and in accordance with applicable laws, rules and regulations. The Company may use 10b5-1 plans from time to time in connection with its repurchases.

"Our share repurchase program is one important part, in addition to investing in our business and returning cash to shareholders through dividend payments, of utilizing cash flow from operations," said Bill DeLaney, SYSCO's executive vice president and chief financial officer. "For the last 16 years, we have returned a total of approximately $9.4 billion to shareholders, consisting of approximately $5.8 billion in share repurchases and approximately $3.6 billion in dividend payouts."

SYSCO 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 family of products also includes equipment and supplies for the foodservice and hospitality industries. The company operates 180 distribution facilities serving more than 400,000 customers. For the fiscal year 2008 that ended June 28, 2008, the company generated more than $37 billion in sales. For more information about SYSCO visit the company's Internet home page at www.sysco.com.

Some quick analysis reveals some predictable factors for Sysco:
 

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

 

22.88

26.42

29.12

32.75

35.73

40.61

46.09

48.18

52.72

57.27

Sales per sh  A

0.76

0.86

1.02

1.27

1.47

1.63

1.87

2.03

1.92

2.23

‘‘Cash Flow’’ per sh

0.48

0.54

0.68

0.90

1.01

1.18

1.37

1.47

1.36

1.60

Earnings per sh  B

0.17

0.19

0.23

0.28

0.36

0.40

0.48

0.56

0.66

0.72

Div’ds Decl’d per sh  C■

0.39

0.43

0.40

0.51

0.64

0.68

0.83

0.62

0.83

0.99

Cap’l Spending per sh

2.03

2.16

2.66

3.23

3.26

3.41

4.03

4.39

4.93

5.36

Book Value per sh E

670.02

659.34

662.97

665.14

653.54

643.66

636.54

628.57

618.90

611.84

Common Shs Outst’g  D

23.0

24.8

26.4

28.2

27.1

24.3

25.9

23.6

23.4

20.8

Avg Ann’l P/E Ratio

1.20

1.41

1.72

1.45

1.48

1.39

1.37

1.26

1.26

1.09

Relative P/E Ratio

 

 

 

 

 

 

 

 

 

 

 

1.50%

1.40%

1.30%

1.10%

1.30%

1.40%

1.40%

1.60%

2.10%

2.20%

Avg Ann’l Div’d Yield

15328

17423

19303

21784

23351

26140

29335

30282

32628

35042

Sales ($mill)  A

5.00%

5.00%

5.30%

5.90%

6.20%

6.10%

6.20%

6.30%

5.60%

5.90%

Operating Margin

181.2

205.0

220.7

248.2

278.3

273.1

283.6

316.7

345.1

362.6

Depreciation ($mill)

324.8

362.3

453.6

596.9

679.8

778.3

907.2

961.5

846.0

1001.1

Net Profit ($mill)

39.00%

39.00%

38.50%

38.30%

38.30%

38.30%

38.50%

37.00%

39.30%

38.30%

Income Tax Rate

2.10%

2.10%

2.40%

2.70%

2.90%

3.00%

3.10%

3.20%

2.60%

2.90%

Net Profit Margin

855.9

981.3

950.3

895.0

945.9

928.4

724.8

544.2

1173.3

1260.5

Working Cap’l ($mill)

867.0

997.7

1023.6

961.4

1176.3

1249.5

1231.5

956.2

1627.1

1758.2

Long-Term Debt ($mill)

1356.8

1427.2

1761.6

2147.5

2132.5

2197.5

2564.5

2758.8

3052.3

3278.4

Shr. Equity ($mill)

15.40%

16.30%

17.50%

20.20%

21.40%

23.50%

24.70%

26.60%

19.10%

20.80%

Return on Total Cap’l

23.90%

25.40%

25.80%

27.80%

31.90%

35.40%

35.40%

34.90%

27.70%

30.50%

Return on Shr. Equity

15.80%

16.50%

17.50%

19.70%

21.90%

23.50%

23.30%

21.90%

14.70%

16.90%

Retained to Com Eq

34%

35%

32%

29%

31%

34%

34%

37%

47%

44%

All Div’ds to Net Prof

Sales per share - ever increasing
Cash Flow per share - ever increasing
Earnings per share - Steady Growth     EPS Analysis HERE
Dividends Per Share - ever increasing Dividend History HERE
Capital spending per share - ever increasing
Book value - same  Book Value Analysis HERE
Sales/Share - ever increasing
Operating margins - consistent
Net profits - consistently increasing
Returns on Total Capital - consistently high
Returns on Shareholders Equity - consistently high
Dividends as a percentage of net profits - consistent  Dividend Growth Model Here

SYY Coverage Initiated: July 30 2008

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