Switch to:
Sysco Corp (NYSE:SYY)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Sysco Corp has an F-score of 5 indicating the company's financial situation is typical for a stable company.

SYY' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 5

4
8

During the past 13 years, the highest Piotroski F-Score of Sysco Corp was 8. The lowest was 4. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 210.835 + 180.937 + 254.171 + 278.813 = $925 Mil.
Cash Flow from Operations was 288.935 + 389.9 + 644.751 + 62.618 = $1,386 Mil.
Revenue was 11237.969 + 11277.484 + 12286.992 + 12445.081 = $47,248 Mil.
Gross Profit was 1964.951 + 1994.741 + 2155.856 + 2188.717 = $8,304 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(13025.395 + 13013.025 + 13138.264 + 13167.95 + 13617.913) / 5 = $13192.5094 Mil.
Total Assets at the begining of this year (Sep13) was $13,025 Mil.
Long-Term Debt was $2,650 Mil.
Total Current Assets was $7,108 Mil.
Total Current Liabilities was $4,536 Mil.
Net Income was 221.369 + 201.417 + 283.043 + 285.59 = $991 Mil.

Revenue was 10796.89 + 10926.371 + 11601.056 + 11714.267 = $45,039 Mil.
Gross Profit was 1917.566 + 1910.319 + 2036.162 + 2065.487 = $7,930 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(12487.833 + 12428.067 + 12657.21 + 12663.947 + 13025.395) / 5 = $12652.4904 Mil.
Total Assets at the begining of last year (Sep12) was $12,488 Mil.
Long-Term Debt was $2,878 Mil.
Total Current Assets was $6,534 Mil.
Total Current Liabilities was $3,884 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Sysco Corp's current net income (TTM) was 925. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Sysco Corp's current cash flow from operations (TTM) was 1,386. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Sep13)
=924.756/13025.395
=0.07099639

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=991.419/12487.833
=0.0793908

Sysco Corp's return on assets of this year was 0.07099639. Sysco Corp's return on assets of last year was 0.0793908. ==> Last year is higher ==> Score 0.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Sysco Corp's current net income (TTM) was 925. Sysco Corp's current cash flow from operations (TTM) was 1,386. ==> 1,386 > 925 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=2650.49/13192.5094
=0.20090871

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=2878.391/12652.4904
=0.227496

Sysco Corp's gearing of this year was 0.20090871. Sysco Corp's gearing of last year was 0.227496. ==> This year is lower or equal to last year. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Sep14)=Total Current Assets/Total Current Liabilities
=7108.403/4536.489
=1.56693932

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=6534.262/3883.694
=1.68248631

Sysco Corp's current ratio of this year was 1.56693932. Sysco Corp's current ratio of last year was 1.68248631. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Sysco Corp's number of shares in issue this year was 593.3. Sysco Corp's number of shares in issue last year was 591.5. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=8304.265/47247.526
=0.17576084

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7929.534/45038.584
=0.17606091

Sysco Corp's gross margin of this year was 0.17576084. Sysco Corp's gross margin of last year was 0.17606091. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Sep13)
=47247.526/13025.395
=3.62733921

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=45038.584/12487.833
=3.60659724

Sysco Corp's asset turnover of this year was 3.62733921. Sysco Corp's asset turnover of last year was 3.60659724. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+0+0+0+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Sysco Corp has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Sysco Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Q1 1111111111
Q2 1111111111
Q3 0011010000
Q4 1111100111
Q5 1000011011
Q6 0111110100
Q7 1111111001
Q8 0110010000
Q9 0101001001
F-score 5777575446

Sysco Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 111111111
Q2 111111111
Q3 000000000
Q4 111111111
Q5 011111011
Q6 111000000
Q7 100001110
Q8 000000000
Q9 000000011
F-score 5555445465
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK