SYYNEUTRAL

Gross Margin

18.6%

Updated 268h ago

Sector Performance

12th percentile

SYY

18.6%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the cost of goods sold, currently stands at 18.6%.

That is well below the sector median of 43.9%, placing SYY in the 13th percentile among its peers, meaning 87% of sector companies have a higher gross margin. The trend direction for the last eight quarters is not available, and both the year-over-year and quarter-over-quarter changes are listed as N/A, so no recent movement can be assessed. Without a trend, the investment risk is tied to the persistently low level of gross margin, which leaves limited cushion for cost increases or pricing pressure. This weak margin position, combined with the absence of trend data, suggests a structural disadvantage that could weigh on profitability. The NEUTRAL overall verdict is supported, as the low gross margin and lack of improvement signal a risk that offsets any other positive factors in the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about SYY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are SYY's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.