ARAMARK (ARMK)
US03852U1060 - Common Stock
Taking everything into account, ARMK scores 3 out of 10 in our fundamental rating. ARMK was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. ARMK may be in some trouble as it scores bad on both profitability and health. ARMK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ARMK had positive earnings in the past year.
ARMK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ARMK reported negative net income in multiple years.
In the past 5 years ARMK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ARMK (2.07%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.64%, ARMK is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
With a Return On Invested Capital value of 6.31%, ARMK perfoms like the industry average, outperforming 55.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARMK is significantly below the industry average of 10.46%.
The 3 year average ROIC (4.83%) for ARMK is below the current ROIC(6.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 8.64% | ||
| ROIC | 6.31% |
ROA(3y)2.45%
ROA(5y)0.76%
ROE(3y)11.07%
ROE(5y)2.59%
ROIC(3y)4.83%
ROIC(5y)N/A
1.3 Margins
ARMK has a Profit Margin (1.51%) which is comparable to the rest of the industry.
ARMK's Profit Margin has declined in the last couple of years.
ARMK's Operating Margin of 4.06% is on the low side compared to the rest of the industry. ARMK is outperformed by 64.93% of its industry peers.
ARMK's Operating Margin has declined in the last couple of years.
The Gross Margin of ARMK (8.19%) is worse than 91.79% of its industry peers.
ARMK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.06% | ||
| PM (TTM) | 1.51% | ||
| GM | 8.19% |
OM growth 3Y38.22%
OM growth 5Y-2.16%
PM growth 3YN/A
PM growth 5Y-11.42%
GM growth 3Y-14.61%
GM growth 5Y-4.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARMK is destroying value.
Compared to 1 year ago, ARMK has more shares outstanding
Compared to 5 years ago, ARMK has more shares outstanding
The debt/assets ratio for ARMK has been reduced compared to a year ago.
2.2 Solvency
ARMK has a debt to FCF ratio of 16.32. This is a negative value and a sign of low solvency as ARMK would need 16.32 years to pay back of all of its debts.
ARMK has a Debt to FCF ratio (16.32) which is comparable to the rest of the industry.
ARMK has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
ARMK has a Debt to Equity ratio (1.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 16.32 | ||
| Altman-Z | N/A |
ROIC/WACC0.83
WACC7.6%
2.3 Liquidity
A Current Ratio of 0.81 indicates that ARMK may have some problems paying its short term obligations.
With a Current ratio value of 0.81, ARMK perfoms like the industry average, outperforming 41.79% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that ARMK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, ARMK is in line with its industry, outperforming 41.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for ARMK have decreased by -8.28% in the last year.
ARMK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.10% yearly.
The Revenue has been growing slightly by 3.67% in the past year.
The Revenue has been growing slightly by 1.41% on average over the past years.
EPS 1Y (TTM)-8.28%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%-15.62%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%-9.89%
3.2 Future
The Earnings Per Share is expected to grow by 17.02% on average over the next years. This is quite good.
ARMK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y26.71%
EPS Next 2Y22.69%
EPS Next 3Y22.01%
EPS Next 5Y17.02%
Revenue Next Year6.25%
Revenue Next 2Y6.07%
Revenue Next 3Y6.31%
Revenue Next 5Y5.86%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.36 indicates a quite expensive valuation of ARMK.
Compared to the rest of the industry, the Price/Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 61.19% of the companies listed in the same industry.
ARMK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.20.
A Price/Forward Earnings ratio of 20.80 indicates a rather expensive valuation of ARMK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 61.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, ARMK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 20.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARMK.
ARMK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARMK is cheaper than 60.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.32 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARMK's earnings are expected to grow with 22.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y22.69%
EPS Next 3Y22.01%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.04%.
ARMK's Dividend Yield is a higher than the industry average which is at 2.84.
With a Dividend Yield of 1.04, ARMK pays less dividend than the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of ARMK decreases each year by -2.79%.
ARMK has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARMK pays out 38.05% of its income as dividend. This is a sustainable payout ratio.
DP38.05%
EPS Next 2Y22.69%
EPS Next 3Y22.01%
ARAMARK
NYSE:ARMK (11/22/2024, 8:23:51 PM)
After market: 40.86 0 (0%)40.86
+0.44 (+1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 20.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 8.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.06% | ||
| PM (TTM) | 1.51% | ||
| GM | 8.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-8.28%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y26.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.67%
Revenue growth 3Y12.89%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y