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) more
efficient inventory management,
(4) an up tick
in dining out and business expenditures.
Negatives:
(1) industry
pricing pressures,
(2) a loss of
momentum in market share expansion.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2002
Debt/ EPS Down Net Value Line
Equity ROE Since 2002 Margin Rating
Chart
Note:
SYY stock made decent progress off its March
2009 low, surpassing the downtrend off its September 2008 high (straight red
line) and the November 2008 trading high (green line). Long term, the stock is in a trading range
(blue line is lower boundary).
Intermediate term, it is in an uptrend (purple lines). The wiggly red line is the 50 day moving
average. The Aggressive Growth and High
Yield Portfolios own 50% positions in SYY . The upper boundary of its Buy
Value Range Sell
Half Range
12/12
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