Sysco Corp
markets and distributes fresh, frozen and specialty meats, seafood, poultry,
fruits and vegetables, bakery products, canned and dry foods, dairy foods,
beverages, kitchen and tabletop equipment, paper and disposable products,
sanitation items and hotel operating supplies to more than 400,000 restaurants,
healthcare and educational facilities, lodging establishments and other food
service customers. It achieved a 9-13%
growth in profits and dividends over the last 10 years earning an almost 25%+
return on equity. The current period of
slow economic growth has impacted Sysco’s profitability as restaurant sales
declined and bad debt expenses increased.
The company is working to return to an above average growth rate by:
(1) stringent
cost controls,
(2) the
conversion to new state of the art plants improves operations [margins],
(3) acquisitions,
(4) share
buybacks.
Negatives:
(1) industry
pricing pressures,
(2) economic
headwinds.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note:
SYY stock made good progress off its March
2009 low, quickly surpassing the downtrend off its September 2008 high (red
line) and the November 2008 trading high (green line). Long term SYY
is in an uptrend (blue lines).
Intermediate term, it is in an uptrend (purple lines). The wiggly blue line is on balance
volume. The High Yield Portfolio owns a
50% position in SYY . The upper boundary of its Buy
Value Range Sell
Half Range
12/13
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