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

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

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 7. It is a good or high score, which usually indicates a very healthy situation.

SYY' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 7

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 local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 272.399 + 217.136 + 215.667 + 323.887 = $1,029 Mil.
Cash Flow from Operations was 730.363 + 520.1 + 944.161 + 248.674 = $2,443 Mil.
Revenue was 12153.626 + 12002.791 + 13647.891 + 13968.654 = $51,773 Mil.
Gross Profit was 2156.814 + 2142.825 + 2502.838 + 2691.919 = $9,494 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(13371.551 + 13089.468 + 13351.094 + 16721.804 + 18024.81) / 5 = $14911.7454 Mil.
Total Assets at the begining of this year (Sep15) was $13,372 Mil.
Long-Term Debt was $7,844 Mil.
Total Current Assets was $8,135 Mil.
Total Current Liabilities was $5,367 Mil.
Net Income was 157.979 + 176.955 + 73.026 + 244.42 = $652 Mil.

Revenue was 12087.074 + 11746.659 + 12401.938 + 12562.611 = $48,798 Mil.
Gross Profit was 2085.137 + 2057.498 + 2220.164 + 2237.995 = $8,601 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(13594.033 + 17929.809 + 17944.145 + 17989.281 + 13371.551) / 5 = $16165.7638 Mil.
Total Assets at the begining of last year (Sep14) was $13,594 Mil.
Long-Term Debt was $3,005 Mil.
Total Current Assets was $7,028 Mil.
Total Current Liabilities was $3,971 Mil.

Profitability

Question 1. 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 1,029. ==> Positive ==> Score 1.

Question 2. 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 2,443. ==> Positive ==> Score 1.

Question 3. 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 (Sep15)
=1029.089/13371.551
=0.07696108

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=652.38/13594.033
=0.04799017

Sysco Corp's return on assets of this year was 0.07696108. Sysco Corp's return on assets of last year was 0.04799017. ==> This year is higher. ==> Score 1.

Question 4. 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 1,029. Sysco Corp's current cash flow from operations (TTM) was 2,443. ==> 2,443 > 1,029 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=7843.517/14911.7454
=0.5259959

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=3004.618/16165.7638
=0.18586304

Sysco Corp's gearing of this year was 0.5259959. Sysco Corp's gearing of last year was 0.18586304. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Sep16)=Total Current Assets/Total Current Liabilities
=8135.47/5366.55
=1.51595904

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=7027.96/3970.816
=1.76990321

Sysco Corp's current ratio of this year was 1.51595904. Sysco Corp's current ratio of last year was 1.76990321. ==> Last year's current ratio is higher ==> Score 0.

Question 7. 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 561. Sysco Corp's number of shares in issue last year was 600.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. 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
=9494.396/51772.962
=0.18338522

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=8600.794/48798.282
=0.17625198

Sysco Corp's gross margin of this year was 0.18338522. Sysco Corp's gross margin of last year was 0.17625198. ==> This year's gross margin is higher. ==> Score 1.

Question 9. 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 (Sep15)
=51772.962/13371.551
=3.8718741

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=48798.282/13594.033
=3.58968394

Sysco Corp's asset turnover of this year was 3.8718741. Sysco Corp's asset turnover of last year was 3.58968394. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+1+1
=7

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

Sysco Corp has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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 local exchange's currency.

Sysco Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Question 1 1111111111
Question 2 1111111111
Question 3 1101000001
Question 4 1110011111
Question 5 0001101110
Question 6 1110010001
Question 7 1111100101
Question 8 1001000001
Question 9 0101100110
F-score 7757544657

Sysco Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1111111111
Question 2 1111111111
Question 3 0000000011
Question 4 1111111111
Question 5 1100111100
Question 6 0011010010
Question 7 1000001111
Question 8 0000011111
Question 9 1111100001
F-score 6555566677
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)
FEEDBACK