SyscoFRA:SYY +0.44%88 Gross Margin % is 18.58% as of Mar. 2026, which is 1% above its 10-year median of 18.47. GuruFocus rates FRA:SYY with a GF Score™ of 88/100 and a GF Value™ of €72.80 (Fairly Valued). The stock has 4 warning signs investors should review. Among 303 Retail - Defensive companies, Sysco ranks worse than 66.67% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Sysco's Gross Profit for the
three
months ended in Mar. 2026 was €3,297 Mil. Sysco's Revenue for the
three
months ended in Mar. 2026 was €17,749 Mil. Therefore, Sysco's Gross Margin % for the quarter that ended in Mar. 2026 was 18.58%.
The historical rank and industry rank for Sysco's Gross Margin % or its related term are showing as below:
FRA:SYY'
s Gross Margin % Range Over the Past 10 Years
Min: 17.95 Med: 18.47 Max: 19.07
Current: 18.54
During the past 13 years, the highestGross Margin % of Sysco was 19.07%. The lowest was 17.95%. And the median was 18.47%.
FRA:SYY's Gross Margin % is ranked worse than 66.67% of 303
companies
in the Retail - Defensive industry
Industry Median: 24.08
vs FRA:SYY: 18.54
Sysco had a gross margin of 18.58% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sysco was -0.10% per year.
Sysco (FRA:SYY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Sysco had a gross margin of 18.58% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Sysco Gross Margin % Related Terms
Sysco Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sysco's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:SYY vs USFD, PFGC, CHEF: Gross Margin % Comparison
For the Food Distribution subindustry, Sysco's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sysco Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sysco's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sysco's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Sysco (FRA:SYY) has a Gross Margin % of 18.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sysco and its competitors. This is near median its historical median of 18.47. Over the past decade, Sysco's Gross Margin % has ranged from 17.95 to 19.07. According to the industry distribution chart, Sysco ranks #202 out of 303 companies in the Retail - Defensive industry, placing it in the top 66.7%.
Is Sysco's Gross Margin % too high?
Sysco's current Gross Margin % of 18.58% is near median its 10-year median of 18.47. Over the past 10 years, this metric has ranged from a low of 17.95 to a high of 19.07. The Retail - Defensive industry median Gross Margin % is 24.08. Sysco's value of 18.58% is 22.8% below this industry median. Based on the distribution chart, Sysco ranks #202 out of 303 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Sysco has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sysco's Gross Margin % compare to USFD and PFGC?
According to the Retail - Defensive industry distribution chart, Sysco ranks #202 out of 303 companies for Gross Margin %. This places Sysco in the lower half of its industry. The industry median Gross Margin % is 24.08. Sysco's value of 18.58% is 22.8% below this benchmark. Historically, Sysco's own Gross Margin % has ranged from 17.95 to 19.07 over the past decade. While the company's 10-year median is 18.47 vs. the industry median of 24.08, Sysco has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 303 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sysco's current Gross Margin % of 18.58% is 22.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Sysco and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sysco's current Gross Margin % is 18.58%, which is near median its own 10-year median of 18.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sysco stock overvalued right now?
Based on GuruFocus' analysis, Sysco (FRA:SYY) is currently considered Fairly Valued. The stock's GF Value™ is €72.80, compared to a current price of €72.54 — trading 0.4% below its estimated fair value. The current Gross Margin % is 18.58%, which is near median its 10-year median of 18.47 and 22.8% below the Retail - Defensive industry median of 24.08. Sysco's overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Sysco (FRA:SYY), the current Gross Margin % is 18.58% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sysco (FRA:SYY) Overvalued in 2026?
Based on GuruFocus' analysis, Sysco stock appears to be undervalued.
The current stock price of €72.54 is trading 0.4% below its estimated GF Value™ of €72.80.
GuruFocus considers Sysco to be Fairly Valued.
Key valuation signals for FRA:SYY:
Gross Margin %: 18.58% (near median its 10-year median of 18.47)
GF Value™: €72.80 vs. price of €72.54 (0.4% below fair value)
Industry Position: 22.8% below the Retail - Defensive median (#202 of 303)
No single metric tells the full story. See the FRA:SYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sysco is the largest US foodservice distributor with 18% share of the highly fragmented $377 billion domestic market. It distributes roughly 500,000 food and nonfood products to restaurants (60% of fiscal 2025 revenue), education and government buildings (8%), healthcare facilities (8%), travel and leisure (7%), and other locations (17%) where individuals consume away-from-home meals. In fiscal 2025, 70% of the firm's revenue was derived from its US foodservice operations, while its international (18%), quick-service logistics (10%), and other (2%) segments contributed the rest.
88GF Score
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