Sysco Corp. (NYSE:SYY)

The financial ratios demonstrate varying trends over the covered periods, highlighting shifts in market valuation and investor sentiment.

Price to Earnings (P/E) Ratio

The P/E ratio exhibits significant volatility, peaking sharply at 135.7 in 2020, which likely reflects an abnormal earnings impact or market conditions during that year. After this peak, the ratio declines steadily over the subsequent years, dropping to 19.28 by 2024. This indicates a normalization of earnings or adjustments by the market in valuation relative to earnings.

Price to Operating Profit (P/OP) Ratio

This ratio follows a similar pattern to the P/E ratio, with a notable surge to 39.01 in 2020 from 16.15 in 2019. It then declines progressively, reaching a low of approximately 11.59 in 2023, with a slight increase to 11.77 in 2024. The decline suggests either improving operating profits, a correction in market valuation, or both.

Price to Sales (P/S) Ratio

The P/S ratio shows less dramatic fluctuations compared to P/E and P/OP ratios. It starts at 0.63 in 2019, dips to 0.55 in 2020, rises to 0.79 in 2021, and then falls again to stabilize near 0.46–0.48 in 2023 and 2024. These changes indicate some variability in sales valuation but overall suggest a relatively stable valuation relative to revenue in recent years.

Price to Book Value (P/BV) Ratio

The P/BV ratio increases from 15.04 in 2019 to a peak of 30.62 in 2022, indicating a significant market premium over book value during this period. However, this premium retracts substantially to 17.54 in 2023, with a moderate recovery to 20.26 in 2024. This pattern reflects changing market confidence in the company’s net asset value and could signify reassessments of asset quality or growth prospects.

Overall, the data depicts a period of heightened valuation multiples around 2020 to 2022, followed by a general normalization or correction in ratios by 2023 and 2024. The extreme values in 2020 notably suggest extraordinary circumstances affecting earnings and operating profit metrics during that time. Subsequent years show more stabilized valuation metrics, indicative of a return to more typical market conditions.

Share Price

The share price exhibited volatility over the six-year period. It started at $73.35 in mid-2019, declined sharply to $57.50 in mid-2020, likely reflecting external or market-wide disruptions. Subsequently, the price rebounded to $78.99 in mid-2021 and continued a moderate rise, peaking at $83.63 in mid-2022. However, there was a notable dip to $69.76 by mid-2023, followed by a recovery to $76.67 by mid-2024. Overall, the share price remained below the 2019 and 2022 highs during most recent years, indicating some fluctuations in market valuation.

Earnings per Share (EPS)

EPS followed a disruptive cycle, initially recorded at $3.26 in 2019, but sharply decreased to $0.42 in 2020, indicating a significant decline in profitability. This was followed by a gradual recovery: EPS increased to $1.02 in 2021, then doubled to $2.68 in 2022. The upward trend persisted, reaching $3.51 in 2023 and further to $3.98 in 2024, surpassing the EPS level observed in 2019. This trajectory suggests a robust recovery in earnings performance after the 2020 downturn.

Price-to-Earnings (P/E) Ratio

The P/E ratio exhibited considerable fluctuation, inversely reflecting the swings in EPS relative to share price. It was relatively moderate at 22.48 in 2019, surged dramatically to 135.7 in 2020 due to depressed earnings and a lowered denominator effect. The ratio declined to 77.16 in 2021, then dropped sharply to 31.15 in 2022 as earnings improved. By 2023 and 2024, the P/E ratio decreased further to approximately 20, indicating a return to more normalized valuation multiples in line with improving earnings and somewhat stabilized share price.

Share Price

The share price exhibited volatility over the observed periods. Initially, there was a decline from $73.35 in June 2019 to $57.50 in June 2020. Subsequently, the price increased to $78.99 in July 2021, peaked at $83.63 in July 2022, then declined to $69.76 in July 2023 before rising again to $76.67 in June 2024. Overall, the share price showed a partial recovery following the initial downturn but did not surpass the highest level seen in 2022.

Operating Profit Per Share

Operating profit per share underwent fluctuations with a notable dip from $4.54 in June 2019 to $1.47 in June 2020. This was followed by a recovery phase, reaching $2.81 in July 2021 and increasing steadily thereafter to $4.62 in July 2022, $6.02 in July 2023, and $6.51 in June 2024. The overall trend indicates sustained improvement in operating profitability per share from mid-2020 onwards.

Price to Operating Profit Ratio (P/OP)

The price-to-operating profit ratio displayed a significant variation across the periods. It started at 16.15 in June 2019, increased sharply to 39.01 in June 2020, then gradually declined over the following years to 28.14 in July 2021, 18.10 in July 2022, further to 11.59 in July 2023, and slightly rose to 11.77 in June 2024. This progression points to a valuation adjustment, with the ratio peaking during the lowest operating profit period and decreasing as operating profit per share improved, suggesting a normalization of market valuation relative to operating profitability.

Share Price

The share price shows notable fluctuations over the observed period. Initially, there is a decline from $73.35 in June 2019 to $57.50 in June 2020. Subsequently, a recovery and upward trend is observed, with the price rising to $78.99 in July 2021 and further to $83.63 in July 2022. However, a decrease occurs in July 2023, bringing the price down to $69.76, followed by a moderate rebound to $76.67 by June 2024.

Sales Per Share

Sales per share exhibit a consistent upward trajectory throughout the period. Starting at $117.14 in June 2019, the figure initially drops to $104.01 in June 2020 and $100.18 in July 2021, indicating some contraction in sales efficiency. After this dip, a strong recovery is evident, with a significant increase to $135.61 in July 2022, followed by continued growth to $151.16 in July 2023, and reaching $160.41 in June 2024. This trend suggests improving sales performance on a per-share basis over time.

Price-to-Sales (P/S) Ratio

The P/S ratio varies throughout the years, reflecting the interplay between share price and sales per share. The ratio starts at 0.63 in June 2019, declines to a low of 0.46 in July 2023, and slightly recovers to 0.48 in June 2024. The decreasing trend in the P/S ratio over most of the period indicates that share prices have generally not kept pace with the growth in sales per share, suggesting a potential undervaluation or increased market skepticism despite improving sales performance.

Summary of Trends

Overall, the data reveals that while the share price has experienced volatility, sales per share have demonstrated steady growth since mid-2021. The P/S ratio trend further highlights that the market valuation relative to sales has declined over time. This combination may warrant closer scrutiny of underlying market factors or investor sentiment as sales strength improves but market pricing remains cautious.

Share Price

The share price exhibited notable fluctuations over the analyzed period. Initially, it decreased from $73.35 in June 2019 to a low of $57.50 in June 2020. Afterward, the price showed a recovery trend, peaking at $83.63 in July 2022. Subsequently, the share price declined again to $69.76 in July 2023, before rising to $76.67 by June 2024. Overall, the share price reflects a pattern of volatility with periods of both decline and recovery.

Book Value Per Share (BVPS)

The BVPS experienced a sharp decrease from $4.88 in June 2019 to $2.28 in June 2020, indicating a significant reduction in the company's net asset value on a per-share basis. Following this decline, BVPS gradually improved to $3.03 by July 2021 but remained below the initial 2019 level. A slight dip occurred in July 2022 to $2.73, before a more substantial increase to $3.98 in July 2023. The most recent value in June 2024 was slightly lower at $3.78. This suggests some recovery in book value, though it remains below the initial 2019 figure, implying moderate volatility and possible challenges in asset accumulation or valuation.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio showed a significant increase from 15.04 in June 2019 to a peak of 30.62 in July 2022, reflecting a growing market valuation relative to the book value. This increase was driven by a combination of fluctuating share prices and changes in BVPS. Following this peak, the ratio decreased sharply to 17.54 in July 2023, and then rose again to 20.26 in June 2024. The elevated P/BV ratios throughout the period suggest that the market consistently valued the company at a substantial premium over its book value, although this premium experienced considerable variation. The fluctuation indicates changing market perceptions of the company's growth prospects or asset quality.