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Chuck Carnevale
Chuck Carnevale
Articles (3)  | Author's Website |

Sysco - Building a Case for a Return to Growth

May 26, 2012 | About:

About the author:

Chuck Carnevale
Charles (Chuck) C. Carnevale – Co-Founder and Chief Investment Officer of EDMP, Inc. He has been working in the securities industry since 1970. Prior to forming EDMP, he was a partner in a 30-year-old established registered investment advisory in Tampa, Florida. Chuck holds a Bachelor of Science in Economics and Finance from the University of Tampa. Chuck is a sought-after public speaker who is very passionate about spreading the critical message of prudence in money management. Chuck is a Veteran of the Vietnam War and was awarded both the Bronze Star and the Vietnam Honor Medal.

Visit Chuck Carnevale's Website


Rating: 4.0/5 (16 votes)

Comments

Patience Investing, Inc.
Patience Investing, Inc. - 4 years ago    Report SPAM
concern about the negative operating and free cash flow margin growth over the last five years and my calculation does not show any margin of safety at the current price ($27.94), i may not be interested in this stock.
cdubey
Cdubey - 4 years ago    Report SPAM
I agree. The stock looks fairly valued to me i.e., no margin of safety at current prices. If something has been expensive for a long time and is now cheaper, that is no reason to buy.

Given that the company has a large stable and good shareholder oriented operating history, I would probably agree with a smaller margin of safety ... say 20%. But at the moment, there is none.
The Science of Hitting
The Science of Hitting - 4 years ago    Report SPAM
Although this isn't a screaming buy at the current valuation (in my view), the competitive position is unrivaled, with SYY growing at roughly 1.5 - 2x the market rate over the past 20 years and currently holding a 2x share lead on their next closest competitor in a highly fragmented market. I think management sees a clear path to expanding the breadth of their market (medical, lodging, etc) and continuing to grab share in food service, while the company receives little/no credit for the hundreds of millions invested in the business transformation, probably because it won't drive short term EPS increases (sorry Wall Street).

I thought SYY might be the company Warren was talking about in Omaha, though price tag seems a bit off from the figure mentioned (and potential for anti-trust issues due to McLane).

As usual, the Yacktman Funds stole another of my favorite holdings to add to their top 10! :)
kfh227
Kfh227 - 4 years ago    Report SPAM
havnt looked over the numbers but for someone retired it may make sense

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GuruFocus has detected 7 Warning Signs with Sysco Corp $SYY.
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