There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

February 9, 2009 - Sysco Corp. (SYY-NYSE) through its subsidiaries, markets and distributes a range of food and related products primarily for the foodservice industry. It distributes a line of frozen foods, such as meats, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats; dairy products; beverage products; imported specialties; and fresh produce.

SYSCO Corporation serves restaurants, hospitals and nursing homes, schools and colleges, and hotels and motels. As of June 28, 2008, it operated 180 distribution facilities throughout the United States and Canada. The company was founded in 1969 and is headquartered in Houston, Texas.

Sysco's stock price is near it's 52-week low which is also the lowest it's been in 6 years (price adjusted for 2 for 1 split in 2000). When stocks with decent earnings trade at lower levels, and they have strong financials, investors should take a moment to look at, maybe even dig into, them. Here's how Sysco looks now.

Earnings for 2008 were $1.81, up from $1.60 in 2007 (fiscal year ended in June). For 2009, analysts predict a small increase to $1.88, with some of the 9 analysts expecting as much as $2.00. For the last 5 years, average annual earnings growth has been 12%. For the next 5, the prediction is for 13.86% a year, on average. The next quarterly earnings are due in April with expectations of 38 cents a share, a little lower than the 40 cents a share in the same quarter last year. For the final quarter of the fiscal year, look for 53 cents, down from 55 cents in the same quarter last year.

Revenues have grown, on average, by 9.5% a year over the last 5 years with analysts stating the next 5 years should be in the 7% range. Total sales for 2005 were $3.028 billion. For 2008, they hit $3.7522 billion. This year, look for $3.8 billion.

There's no doubt the economy is affecting SYY's sales and profits. With restaurants as one revenue source, the company is seeing lower demand as customers worry about mortgages, paying off credit cards and terrified of losing jobs. They're staying home to eat.

As the company looks to tighten its expenses, boost sales and widen margins, it's doing business reviews with larger customers which usually results in higher sales. It's also opening regional distribution centers which hold slower moving items which are then redistributed to local facilities on demand. That decreases the need for inventory and storage space at the local level. The company is also centralizing purchasing of certain goods which should bring better pricing.

More numbers: Very commendable Return on Equity at 32.9% for the last 12 months. Trailing P/E is 13.2 while the Forward P/E is 12.93. Price to Sales is .38, and Price to Book is 4.43. Operating margin was 5.02% in the last year with a Profit margin of 2.87%. There's $373 million in cash. Total debt is $1.98 billion. Current ratio is 1.49. Book Value is $5.57. There are 591.43 million shares outstanding and float of 587.35 million. Insiders own .26% of the stock. Institutions have 74.4%. The annual dividend is 96 cents for a yield of 3.9%. The dividend takes 49% of profits. Value Line rates the company's Financial Strength at A++.

Sysco is the leading U.S. marketer and distributor of food, equipment, supplies and related products to the foodservice industry. While restaurants won't have the same traffic during this economic slowdown, other establishments such as hospitals, nursing homes, schools, etc. will continue to serve breakfast, lunch and dinner. And when the economy begins to heal, look for Sysco, with its focus on efficiency and marketing, to show increasing profits again.

Company Web site: www.sysco.com

- Ted Allrich