SyscoFRA:SYY +0.31%88 Net Margin % is 1.66% as of Mar. 2026, which is 23% below its 10-year median of 2.16. GuruFocus rates FRA:SYY with a GF Score™ of 88/100 and a GF Value™ of €73.46 (Fairly Valued). The stock has 2 warning signs investors should review. Among 310 Retail - Defensive companies, Sysco ranks worse than 50.65% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Sysco's Net Income for the
three
months ended in Mar. 2026 was €294 Mil. Sysco's Revenue for the
three
months ended in Mar. 2026 was €17,749 Mil. Therefore, Sysco's net margin for the quarter that ended in Mar. 2026 was 1.66%.
The historical rank and industry rank for Sysco's Net Margin % or its related term are showing as below:
FRA:SYY'
s Net Margin % Range Over the Past 10 Years
Min: 0.41 Med: 2.16 Max: 2.79
Current: 2.08
FRA:SYY's Net Margin % is ranked worse than 50.65% of 310
companies
in the Retail - Defensive industry
Industry Median: 2.155
vs FRA:SYY: 2.08
Sysco (FRA:SYY) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Sysco Net Margin % Related Terms
Sysco Net Margin % Historical Data
* Premium members only.
The historical data trend for Sysco's Net 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: Net Margin % Comparison
For the Food Distribution subindustry, Sysco's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sysco's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sysco's Net 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.
Sysco (FRA:SYY) has a Net Margin % of 1.66% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Sysco and its competitors. This is 23% below median its historical median of 2.16. Over the past decade, Sysco's Net Margin % has ranged from 0.41 to 2.79. According to the industry distribution chart, Sysco ranks #157 out of 310 companies in the Retail - Defensive industry, placing it in the top 50.6%.
Is Sysco's Net Margin % too high?
Sysco's current Net Margin % of 1.66% is 23% below median its 10-year median of 2.16. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 2.79. The Retail - Defensive industry median Net Margin % is 2.16. Sysco's value of 1.66% is 23% below this industry median. Based on the distribution chart, Sysco ranks #157 out of 310 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 Net Margin % compare to USFD and PFGC?
According to the Retail - Defensive industry distribution chart, Sysco ranks #157 out of 310 companies for Net Margin %. This places Sysco in the lower half of its industry. The industry median Net Margin % is 2.16. Sysco's value of 1.66% is 23% below this benchmark. Historically, Sysco's own Net Margin % has ranged from 0.41 to 2.79 over the past decade. While the company's 10-year median is 2.16 vs. the industry median of 2.16, 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 Net Margin % for a Retail - Defensive company?
The median Net Margin % among Retail - Defensive companies is 2.16, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sysco's current Net Margin % of 1.66% is 23% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Sysco and its competitors. For the Retail - Defensive industry, the median Net Margin % is 2.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sysco's current Net Margin % is 1.66%, which is 23% below median its own 10-year median of 2.16. 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 €73.46, compared to a current price of €70.96 — trading 3.4% below its estimated fair value. The current Net Margin % is 1.66%, which is 23% below median its 10-year median of 2.16 and 23% below the Retail - Defensive industry median of 2.16. Sysco's overall GF Score™ is 88/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Sysco (FRA:SYY), the current Net Margin % is 1.66% 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 €70.96 is trading 3.4% below its estimated GF Value™ of €73.46.
GuruFocus considers Sysco to be Fairly Valued.
Key valuation signals for FRA:SYY:
Net Margin %: 1.66% (23% below median its 10-year median of 2.16)
GF Value™: €73.46 vs. price of €70.96 (3.4% below fair value)
Industry Position: 23% below the Retail - Defensive median (#157 of 310)
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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