ARAMARK (ARMK) Stock Fundamental Analysis
USA - NYSE:ARMK - US03852U1060 - Common Stock
39.99 USD
+0.1 (+0.25%)
39.99 USD
0 (0%)
Overall ARMK gets a fundamental rating of 4 out of 10. We evaluated ARMK against 134 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has an average financial health and profitability rating. ARMK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARMK was profitable.
ARMK had a positive operating cash flow in the past year.
In multiple years ARMK reported negative net income over the last 5 years.
Each year in the past 5 years ARMK had a positive operating cash flow.
1.2 Ratios
ARMK has a Return On Assets (2.72%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 11.73%, ARMK is in the better half of the industry, outperforming 70.15% of the companies in the same industry.
ARMK has a Return On Invested Capital of 5.68%. This is comparable to the rest of the industry: ARMK outperforms 53.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARMK is significantly below the industry average of 10.67%.
The 3 year average ROIC (4.93%) for ARMK is below the current ROIC(5.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROIC | 5.68% |
ROA(3y)2.45%
ROA(5y)0.76%
ROE(3y)11.07%
ROE(5y)2.59%
ROIC(3y)4.93%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.02%, ARMK is in line with its industry, outperforming 42.54% of the companies in the same industry.
In the last couple of years the Profit Margin of ARMK has declined.
ARMK's Operating Margin of 4.44% is on the low side compared to the rest of the industry. ARMK is outperformed by 65.67% of its industry peers.
ARMK's Operating Margin has been stable in the last couple of years.
ARMK's Gross Margin of 8.55% is on the low side compared to the rest of the industry. ARMK is outperformed by 90.30% of its industry peers.
In the last couple of years the Gross Margin of ARMK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% |
OM growth 3Y40.47%
OM growth 5Y-1.21%
PM growth 3YN/A
PM growth 5Y-11.42%
GM growth 3Y5.79%
GM growth 5Y8.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARMK is destroying value.
Compared to 1 year ago, ARMK has more shares outstanding
Compared to 5 years ago, ARMK has more shares outstanding
Compared to 1 year ago, ARMK has an improved debt to assets ratio.
2.2 Solvency
ARMK has an Altman-Z score of 2.27. This is not the best score and indicates that ARMK is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ARMK (2.27) is better than 60.45% of its industry peers.
The Debt to FCF ratio of ARMK is 22.42, which is on the high side as it means it would take ARMK, 22.42 years of fcf income to pay off all of its debts.
ARMK's Debt to FCF ratio of 22.42 is in line compared to the rest of the industry. ARMK outperforms 44.03% of its industry peers.
ARMK has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.03, ARMK is in line with its industry, outperforming 51.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.95
WACC6%
2.3 Liquidity
ARMK has a Current Ratio of 1.29. This is a normal value and indicates that ARMK is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.29, ARMK is doing good in the industry, outperforming 63.43% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK has a Quick ratio of 1.14. This is in the better half of the industry: ARMK outperforms 61.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.48% over the past year.
The Earnings Per Share has been decreasing by -7.10% on average over the past years.
Looking at the last year, ARMK shows a decrease in Revenue. The Revenue has decreased by -0.06% in the last year.
Measured over the past years, ARMK shows a small growth in Revenue. The Revenue has been growing by 1.41% on average per year.
EPS 1Y (TTM)8.48%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%29.03%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%5.72%
3.2 Future
ARMK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.62% yearly.
The Revenue is expected to grow by 6.12% on average over the next years.
EPS Next Y27.22%
EPS Next 2Y23.06%
EPS Next 3Y21.05%
EPS Next 5Y15.62%
Revenue Next Year6.8%
Revenue Next 2Y6.28%
Revenue Next 3Y6.16%
Revenue Next 5Y6.12%
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
The Price/Earnings ratio is 22.34, which indicates a rather expensive current valuation of ARMK.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ARMK to the average of the S&P500 Index (26.91), we can say ARMK is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.04, ARMK is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than the industry average as 67.16% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.92. ARMK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARMK is on the same level as its industry peers.
ARMK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.44 | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
ARMK's 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 21.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y23.06%
EPS Next 3Y21.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, ARMK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.83, ARMK pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.09, ARMK pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of ARMK decreases each year by -2.79%.
ARMK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-2.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
29.94% of the earnings are spent on dividend by ARMK. This is a low number and sustainable payout ratio.
DP29.94%
EPS Next 2Y23.06%
EPS Next 3Y21.05%
39.99
+0.1 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change0.04%
Ins Owners0.54%
Ins Owner Change0.04%
Market Cap10.51B
Revenue(TTM)17.87B
Net Income(TTM)361.67M
Analysts83.81
Price Target46.55 (16.4%)
Short Float %2.98%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.38
Dividend Growth(5Y)-2.79%
DP29.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.09%
Min EPS beat(2)-1.76%
Max EPS beat(2)1.94%
EPS beat(4)2
Avg EPS beat(4)0.89%
Min EPS beat(4)-1.76%
Max EPS beat(4)4.17%
EPS beat(8)5
Avg EPS beat(8)2.51%
EPS beat(12)7
Avg EPS beat(12)1.72%
EPS beat(16)9
Avg EPS beat(16)1.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-2.56%
Revenue beat(4)0
Avg Revenue beat(4)-3.14%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-2.56%
Revenue beat(8)2
Avg Revenue beat(8)-1.84%
Revenue beat(12)5
Avg Revenue beat(12)-1.76%
Revenue beat(16)9
Avg Revenue beat(16)-0.45%
PT rev (1m)0%
PT rev (3m)1.11%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-3.95%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.34 | ||
| Fwd PE | 17.04 | ||
| P/S | 0.59 | ||
| P/FCF | 37.44 | ||
| P/OCF | 13.7 | ||
| P/B | 3.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.94 |
EPS(TTM)1.79
EY4.48%
EPS(NY)2.35
Fwd EY5.87%
FCF(TTM)1.07
FCFY2.67%
OCF(TTM)2.92
OCFY7.3%
SpS68
BVpS11.73
TBVpS-13.96
PEG (NY)0.82
PEG (5Y)N/A
Graham Number21.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROCE | 7.52% | ||
| ROIC | 5.68% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 18.2% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% | ||
| FCFM | 1.57% |
ROA(3y)2.45%
ROA(5y)0.76%
ROE(3y)11.07%
ROE(5y)2.59%
ROIC(3y)4.93%
ROIC(5y)N/A
ROICexc(3y)5.48%
ROICexc(5y)N/A
ROICexgc(3y)26.7%
ROICexgc(5y)N/A
ROCE(3y)6.53%
ROCE(5y)N/A
ROICexgc growth 3Y122.06%
ROICexgc growth 5Y20.87%
ROICexc growth 3Y78.16%
ROICexc growth 5Y7.03%
OM growth 3Y40.47%
OM growth 5Y-1.21%
PM growth 3YN/A
PM growth 5Y-11.42%
GM growth 3Y5.79%
GM growth 5Y8.33%
F-Score5
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Debt/EBITDA | 4.97 | ||
| Cap/Depr | 104.62% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 60.99% | ||
| Profit Quality | 77.63% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.27 |
F-Score5
WACC6%
ROIC/WACC0.95
Cap/Depr(3y)88.23%
Cap/Depr(5y)81.81%
Cap/Sales(3y)2.41%
Cap/Sales(5y)2.77%
Profit Quality(3y)109.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.48%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%29.03%
EPS Next Y27.22%
EPS Next 2Y23.06%
EPS Next 3Y21.05%
EPS Next 5Y15.62%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%5.72%
Revenue Next Year6.8%
Revenue Next 2Y6.28%
Revenue Next 3Y6.16%
Revenue Next 5Y6.12%
EBIT growth 1Y3.55%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year62.05%
EBIT Next 3Y24.61%
EBIT Next 5Y16.87%
FCF growth 1Y56.37%
FCF growth 3Y6.26%
FCF growth 5Y-9.07%
OCF growth 1Y35.43%
OCF growth 3Y3.4%
OCF growth 5Y-5.89%
ARAMARK / ARMK FAQ
What is the fundamental rating for ARMK stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARMK.
What is the valuation status for ARMK stock?
ChartMill assigns a valuation rating of 4 / 10 to ARAMARK (ARMK). This can be considered as Fairly Valued.
How profitable is ARAMARK (ARMK) stock?
ARAMARK (ARMK) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for ARMK stock?
The Earnings per Share (EPS) of ARAMARK (ARMK) is expected to grow by 27.22% in the next year.
Can you provide the dividend sustainability for ARMK stock?
The dividend rating of ARAMARK (ARMK) is 4 / 10 and the dividend payout ratio is 29.94%.