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Sysco Corporation (0LC6.L)

Company Dividend Discount ModelIndustry: Food DistributionSector: Consumer Defensive

Valuation Snapshot

Stable Growth$53.04 - $95.34$70.75
Multi-Stage$56.42 - $61.63$58.98
Blended Fair Value$64.87
Current Price$81.96
Upside-20.86%
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 Rate9.08%9.08%9.08%
Growth Rate3.27%4.27%5.27%
Fair Value$53.04$70.75$95.34
Upside / Downside-35.29%-13.67%16.33%

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 Rate9.08%9.08%9.08%
Growth Rate3.27%4.27%5.27%
Year 1 PV (M)1,072.591,082.981,093.36
Year 2 PV (M)1,127.451,149.391,171.54
Year 3 PV (M)1,173.421,207.841,242.92
Year 4 PV (M)1,211.301,258.901,307.89
Year 5 PV (M)1,241.811,303.111,366.81
PV of Terminal Value (M)21,621.6522,688.9623,798.00
Equity Value (M)27,448.2228,691.1729,980.53
Shares Outstanding (M)486.47486.47486.47
Fair Value$56.42$58.98$61.63
Upside / Downside-31.16%-28.04%-24.81%

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