Source: sysco.com
Sysco is the global leader in selling, marketing, and distributing food equipment and suppliers to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. The mission of the corporation is to market and deliver great products to its customers with exceptional service. Sysco is serving its customers through following operating segments: Broadline, SYGMA, Other. Broadline is the major portion of the overall sales. Sysco Corp, as the industry leader, is serving approximately 425,000 customers and producing around 400,000 products every year. There are major three customer types which are restaurants, travel, leisure, and retail, and healthcare, education, …show more content…
Based on the research, there is 54.20 percent probability of being undervalued. What’s more, the following estimations were defined for the Crystal Ball simulation.
Sales
The growth rate of Sales over five years, 8.51 percent, was based on the analyst from Yahoo Finance estimate of the five-year growth rate for Sysco. Corp. Sysco can reach the percentage growth each year because it has expanded its business to Europe by acquiring Brakes Group and utilized new technology.
Costs of Goods Sold
Sysco Corp.’s Costs of Goods Sold is estimated to stay at 82.08 percent over the following five years. The estimation came from taking the average portion of the previous five years of sales. However, actual Costs of Goods Sold might be lower than the estimated amount because the corporation is planning to operate its business more efficiently by cutting its employment opportunity. (Sysco Corp. Annual Report, 2015)
Operating Expenses
The operating expenses will be increased by 14.11 percent in the next five years based on the historical average previous
Sysco is the global leader in selling, marketing, and distributing food equipment and suppliers to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. The mission of the corporation is to market and deliver great products to its customers with exceptional service. Sysco is serving its customers through following operating segments: Broadline, SYGMA, Other. Broadline is the major portion of the overall sales. Sysco Corp, as the industry leader, is serving approximately 425,000 customers and producing around 400,000 products every year. There are major three customer types which are restaurants, travel, leisure, and retail, and healthcare, education, …show more content…
Based on the research, there is 54.20 percent probability of being undervalued. What’s more, the following estimations were defined for the Crystal Ball simulation.
Sales
The growth rate of Sales over five years, 8.51 percent, was based on the analyst from Yahoo Finance estimate of the five-year growth rate for Sysco. Corp. Sysco can reach the percentage growth each year because it has expanded its business to Europe by acquiring Brakes Group and utilized new technology.
Costs of Goods Sold
Sysco Corp.’s Costs of Goods Sold is estimated to stay at 82.08 percent over the following five years. The estimation came from taking the average portion of the previous five years of sales. However, actual Costs of Goods Sold might be lower than the estimated amount because the corporation is planning to operate its business more efficiently by cutting its employment opportunity. (Sysco Corp. Annual Report, 2015)
Operating Expenses
The operating expenses will be increased by 14.11 percent in the next five years based on the historical average previous