SYYNEUTRAL

SYY Gross Margin Analysis

18.6%

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying the direct costs of producing food and supplies, and SYY’s 18.6% is well below the sector median of 44.6%, placing it in the 12th percentile among peers.

Sector Performance

11th percentile

SYY

18.6%

Sector Median

46.6%

Sector Avg

47.6%

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Deep Analysis

The year-over-year change and quarter-over-quarter change are both N/A, so there is no observable trend from the provided data. This low level, combined with a missing trend, offers no signal of improving or deteriorating profitability, leaving the main risk that SYY structurally earns less per dollar of sales than most competitors. Since no recent movement is available, the valuation case rests on other factors. This metric does not support a bullish stance and contradicts the overall NEUTRAL verdict only in that it highlights a weak margin profile, yet the lack of trend data keeps the outlook unresolved. Overall, the 18.6% margin is a caution flag, but the N/A trend means it neither strengthens nor directly undermines the NEUTRAL call.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.