SyscoFRA:SYY +0.22%88 Pretax Margin % is 2.17% as of Mar. 2026, which is 27% below its 10-year median of 2.98. GuruFocus rates FRA:SYY with a GF Score™ of 88/100 and a GF Value™ of €72.85 (Fairly Valued). The stock has 3 warning signs investors should review. Among 308 Retail - Defensive companies, Sysco ranks worse than 52.92% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Sysco's Pre-Tax Income for the
three
months ended in Mar. 2026 was €385 Mil. Sysco's Revenue for the
three
months ended in Mar. 2026 was €17,749 Mil. Therefore, Sysco's pretax margin for the quarter that ended in Mar. 2026 was 2.17%.
The historical rank and industry rank for Sysco's Pretax Margin % or its related term are showing as below:
FRA:SYY'
s Pretax Margin % Range Over the Past 10 Years
Min: 0.55 Med: 2.98 Max: 3.34
Current: 2.72
FRA:SYY's Pretax Margin % is ranked worse than 52.92% of 308
companies
in the Retail - Defensive industry
Industry Median: 3.015
vs FRA:SYY: 2.72
Sysco (FRA:SYY) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Sysco Pretax Margin % Related Terms
Sysco Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Sysco's Pretax 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: Pretax Margin % Comparison
For the Food Distribution subindustry, Sysco's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sysco's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Sysco's Pretax 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 Pretax Margin % of 2.17% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sysco and its competitors. This is 27% below median its historical median of 2.98. Over the past decade, Sysco's Pretax Margin % has ranged from 0.55 to 3.34. According to the industry distribution chart, Sysco ranks #163 out of 308 companies in the Retail - Defensive industry, placing it in the top 52.9%.
Is Sysco's Pretax Margin % too high?
Sysco's current Pretax Margin % of 2.17% is 27% below median its 10-year median of 2.98. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 3.34. The Retail - Defensive industry median Pretax Margin % is 3.02. Sysco's value of 2.17% is 28% below this industry median. Based on the distribution chart, Sysco ranks #163 out of 308 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 Pretax Margin % compare to USFD and PFGC?
According to the Retail - Defensive industry distribution chart, Sysco ranks #163 out of 308 companies for Pretax Margin %. This places Sysco in the lower half of its industry. The industry median Pretax Margin % is 3.02. Sysco's value of 2.17% is 28% below this benchmark. Historically, Sysco's own Pretax Margin % has ranged from 0.55 to 3.34 over the past decade. While the company's 10-year median is 2.98 vs. the industry median of 3.02, 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 Pretax Margin % for a Retail - Defensive company?
The median Pretax Margin % among Retail - Defensive companies is 3.02, based on 308 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sysco's current Pretax Margin % of 2.17% is 28% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Sysco and its competitors. For the Retail - Defensive industry, the median Pretax Margin % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sysco's current Pretax Margin % is 2.17%, which is 27% below median its own 10-year median of 2.98. 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 €72.85, compared to a current price of €72.70 — trading 0.2% below its estimated fair value. The current Pretax Margin % is 2.17%, which is 27% below median its 10-year median of 2.98 and 28% below the Retail - Defensive industry median of 3.02. Sysco's overall GF Score™ is 88/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Sysco (FRA:SYY), the current Pretax Margin % is 2.17% 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 €72.70 is trading 0.2% below its estimated GF Value™ of €72.85.
GuruFocus considers Sysco to be Fairly Valued.
Key valuation signals for FRA:SYY:
Pretax Margin %: 2.17% (27% below median its 10-year median of 2.98)
GF Value™: €72.85 vs. price of €72.70 (0.2% below fair value)
Industry Position: 28% below the Retail - Defensive median (#163 of 308)
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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