Definitive Analysis
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Sysco Corporation (0LC6.L)

Company Dividend Discount ModelIndustry: Food DistributionSector: Consumer Defensive

Valuation Snapshot

Stable Growth$52.87 - $94.89$70.49
Multi-Stage$56.25 - $61.44$58.80
Blended Fair Value$64.64
Current Price$81.96
Upside-21.13%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS3.15%3.70%2.062.072.051.971.891.761.591.481.441.44
YoY Growth---0.79%1.21%3.86%4.51%7.15%10.43%7.38%3.37%-0.03%0.52%
Dividend Yield--2.51%2.67%3.10%2.72%2.40%2.87%2.02%2.02%2.84%2.84%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,814.00
(-) Cash Dividends Paid (M)1,008.00
(=) Cash Retained (M)806.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)362.80226.75136.05
Cash Retained (M)806.00806.00806.00
(-) Cash Required (M)-362.80-226.75-136.05
(=) Excess Retained (M)443.20579.25669.95
(/) Shares Outstanding (M)486.47486.47486.47
(=) Excess Retained per Share0.911.191.38
LTM Dividend per Share2.072.072.07
(+) Excess Retained per Share0.911.191.38
(=) Adjusted Dividend2.983.263.45
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.27%4.27%5.27%
Fair Value$52.87$70.49$94.89
Upside / Downside-35.49%-14.00%15.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,814.001,891.481,972.282,056.522,144.372,235.962,303.04
Payout Ratio55.57%62.45%69.34%76.23%83.11%90.00%92.50%
Projected Dividends (M)1,008.001,181.311,367.591,567.631,782.262,012.372,130.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.27%4.27%5.27%
Year 1 PV (M)1,072.411,082.801,093.18
Year 2 PV (M)1,127.071,149.011,171.15
Year 3 PV (M)1,172.841,207.241,242.31
Year 4 PV (M)1,210.501,258.071,307.03
Year 5 PV (M)1,240.791,302.041,365.68
PV of Terminal Value (M)21,540.0522,603.3323,708.19
Equity Value (M)27,363.6628,602.4829,887.54
Shares Outstanding (M)486.47486.47486.47
Fair Value$56.25$58.80$61.44
Upside / Downside-31.37%-28.26%-25.04%

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