Sysco Corp. (NYSE:SYY)

The financial ratios reflect notable fluctuations and evolving trends over the observed periods.

Price to Earnings (P/E) Ratio

The P/E ratio initially appears in late 2018, starting at 22.48 and rising slightly to 24.08 by the end of 2018, then declining to 19.23 by mid-2019. A significant spike is observed in late 2020, reaching 135.7, which indicates an unusually high market valuation compared to earnings during that period. Subsequently, the ratio decreases but remains elevated relative to earlier values, settling between 17.51 and 19.28 by mid-2024. The fluctuations suggest variability in earnings or market expectations, with the pronounced peak possibly linked to temporary earnings declines or market optimism.

Price to Operating Profit (P/OP) Ratio

This ratio follows a somewhat similar pattern to the P/E ratio. From mid-2019 values around 13 to 17, it surges dramatically towards the end of 2020, peaking at 243.21, indicating a significant premium on operating profit valuation at that time. Following this, the ratio declines toward lower levels, stabilizing in a range between approximately 10.65 and 12.72 in mid-2024. The large spike may have resulted from reduced operating profits or exceptional market factors influencing valuation.

Price to Sales (P/S) Ratio

The P/S ratio shows more moderate variability compared to earnings and operating profit multiples. Starting at 0.63 in early periods, it peaks at 0.96 around late 2020, reflecting higher market valuation per sales dollar. After this peak, a general downward trend is evident, with values gradually declining to roughly the 0.46 to 0.52 range by mid-2024. This decline suggests a relative decrease in valuation relative to sales, possibly due to normalization following the prior peak or evolving revenue and market dynamics.

Price to Book Value (P/BV) Ratio

The P/BV ratio begins at 12.7 in late 2018 and moves generally upward with fluctuations, reaching a high of 37.01 in late 2022. This represents an increasing market valuation relative to book value during this period. After this peak, there is a notable reduction to levels near 15.58 to 17.31 within the first half of 2024, indicating a correction or reassessment in the valuation relative to the company's net asset base. The trend highlights periods of investor optimism followed by more conservative valuation.

Overall, the financial ratios demonstrate periods of significant market revaluation, with peaks around late 2020 and late 2022, followed by gradual normalization across subsequent quarters. The extreme spikes in P/E and P/OP ratios point to transient causes impacting earnings and operating profits, while the P/S and P/BV ratios reflect a more stable yet still dynamic pattern of valuation adjustments over time.

The share price exhibited a generally upward trend from late 2018 through early 2021, rising from approximately $64.45 to peaks above $80. During the first half of 2020, a notable decline occurred, with the price dropping to a low near $51.88 amidst a broader market context. Recovery was observed beginning mid-2020, reaching highs over $83 in early 2021. Subsequent periods show some volatility with a gradual decline through the end of 2022 and into mid-2023, reaching a low near $65.65 before rebounding toward $76.67 by mid-2024.

Earnings per share (EPS) data, available from early 2019, demonstrate growth until early 2020, with EPS rising from approximately $3.26 to $3.57. A sharp decrease followed in mid-2020, including several quarters of negative EPS values indicative of losses, reaching a trough near -$0.66. From early 2021 onward, EPS showed a consistent recovery and growth trend, surpassing pre-pandemic levels and reaching a peak above $4 by mid-2024, illustrating a significant return to profitability and expansion.

The price-to-earnings (P/E) ratio reflects these underlying earnings and share price trends. Initial values around 22-24 declined to approximately 19 in early 2020, but spiked extraordinarily to above 135 during mid-2020, coinciding with very low or negative earnings which inflated this ratio abnormally. Subsequent periods showed normalization with P/E ratios declining to a range between 17 and 31 through 2022 and 2023, consistent with the recovery in earnings. By mid-2024, the P/E ratio settled near 19, indicative of improved earnings stability relative to the share price.

Overall, the financial data reveal a period of volatility and disruption centered around mid-2020, coinciding with economic challenges. However, a resilient recovery is evident in both earnings and share price performance, with earnings growth outpacing share price increases in the latest periods, leading to a more moderate valuation reflected in the P/E ratio. This indicates improved operational performance and investor confidence over the analyzed time frame.

Share Price Trends

The share price demonstrated variability over the analyzed period. Starting at $64.45 in late September 2018, there was a general upward trend reaching a peak of $83.04 by March 2021. Subsequently, a gradual decline occurred, with the price falling to $65.65 in late September 2023. Toward the end of the period, a moderate recovery was observed with the price increasing to $76.67 by late June 2024. Notably, there was a sharp decrease during early 2020, corresponding with a drop from $75.70 in December 2019 to $51.88 in March 2020, likely reflective of broader market conditions.

Operating Profit Per Share (OPPS)

Operating profit per share data is available from March 2019 onward. It started at 4.54 USD in March 2019 and experienced a decline during 2020, reaching a low of 0.31 USD in December 2020. After this dip, OPPS exhibited a strong recovery trend, increasing steadily through 2021 and 2022, reaching 6.16 USD by March 2024 and slightly increasing further to 6.51 USD in June 2024. This indicates improved operational profitability after the sharp downturn in 2020.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio reflects the valuation of the share price relative to operating profit per share. Initially available from March 2019 at 16.15, the ratio increased substantially during 2020, peaking at 243.21 in December 2020. This spike corresponds to the aforementioned sharp decline in operating profits juxtaposed with share prices not falling proportionally as much. Following this extreme, the ratio steadily decreased, reaching a low of 10.65 by March 2024, indicating a more balanced alignment between share price and operating profit. The slight rise toward June 2024 suggests a modest increase in share price valuation relative to operating profit.

Overall Insights

The financial data reflects a significant operational and market impact during 2020, characterized by lowered operating profit per share and heightened valuation multiples. The recovery in operating profits from 2021 onward aligns with improved market confidence, as indicated by the reduction in the P/OP ratio and a partial rebound in share price. Despite fluctuations, the company demonstrated resilience by regaining profitability while share prices stabilized, ultimately resulting in a more favorable valuation metric by mid-2024 compared to the COVID-19 impacted period.

The analysis of the quarterly financial data reveals several notable trends related to share price, sales per share, and the price-to-sales (P/S) ratio over the time period under review.

Share Price

The share price exhibited variability across the quarters, starting at $64.45 in late September 2018 and reaching a peak of $84.06 in early April 2022. The price experienced a significant decline during the period from March 2020 to September 2020, likely reflecting broader market conditions impacting the company. After this low point, the share price recovered steadily to a high in early 2022 before gradually declining again towards the end of 2023. The most recent data points show some volatility, with prices fluctuating between approximately $65.65 and $80.93.

Sales per Share

Sales per share displayed a consistent upward trajectory throughout the observed quarters. Beginning from around $117 in September 2019, sales per share increased progressively to $160.41 by June 2024. This steady rise suggests an overall growth in the company's sales performance on a per-share basis, indicating successful revenue generation relative to the number of shares outstanding.

Price-to-Sales (P/S) Ratio

The P/S ratio presented a downward trend over the majority of the period, beginning at 0.63 in September 2019, peaking briefly at 0.96 in December 2020, and then declining steadily to 0.43 by December 2023. This decline indicates that the market valuation of the company relative to its sales has decreased, despite increasing sales per share. The temporary increase in the P/S ratio during late 2020 may be associated with the rebound in share price concurrent with market recovery phases.

Overall Insights

The data illustrates that while sales per share grew consistently, the share price did not sustain equivalent growth, resulting in a decreasing P/S ratio over the long term. This divergence suggests market factors or investor sentiment might be influencing valuation separately from operational sales performance. Periods of share price volatility, particularly surrounding early 2020, coincide with broader market disruptions, affecting valuation multiples. The steady increase in sales per share indicates a solid underlying business performance, though the compressed P/S ratio may signal caution from the market regarding future growth prospects or risk factors.

The share price of the company exhibited considerable variability over the analyzed periods. Initially, there was an upward trend from $64.45 in late September 2018 to a peak near $83.04 in late March 2021. This was followed by a gradual decline, reaching a low of approximately $65.65 by late September 2023. Towards the last recorded periods, the share price experienced a moderate recovery, closing at $76.67 by late June 2024.

Book value per share (BVPS) demonstrated fluctuations with a downward trend in certain periods. Starting from $5.08 in late September 2018, the BVPS declined steadily through mid-2020, hitting a low around $2.20 in early October 2022. Subsequently, it showed a recovery trend, rising again to $4.22 in late March 2024, before slightly decreasing to $3.78 by the most recent date in June 2024. These movements suggest variability in the company’s net asset value per share over time.

The price-to-book value ratio (P/BV) revealed significant volatility, indicating market valuation relative to book value fluctuations. Initially, the ratio hovered in the range of approximately 12.7 to 16.64 between late 2018 and late 2019. The ratio then surged substantially, peaking at 37.01 in early October 2022, corresponding with the periods of lower book value per share and relatively high share prices. Following this peak, the P/BV ratio declined to approximately 15.58 by late September 2023 before rising again to 20.26 by late June 2024. This variation underscores changing investor perceptions and market expectations relative to the company’s intrinsic book value.

Overall, the data reflect periods of market optimism and concern, with share prices and valuation multiples reacting to shifts in book value per share. The pronounced spikes in the P/BV ratio during mid to late 2022 point to a divergence between market price and the underlying book value, signaling potentially heightened market speculation or adjustments in perceived future performance or risk. The recent partial recovery in share price and BVPS suggests some stabilization in the company’s financial fundamentals or investor confidence.