ARAMARK (ARMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARMK - US03852U1060 - Common Stock
37.07 USD
+0.15 (+0.41%)
We assign a fundamental rating of 4 out of 10 to ARMK. ARMK was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of ARMK while its profitability can be described as average. ARMK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARMK was profitable.
In the past year ARMK had a positive cash flow from operations.
Of the past 5 years ARMK 4 years were profitable.
Each year in the past 5 years ARMK had a positive operating cash flow.
1.2 Ratios
ARMK's Return On Assets of 2.45% is in line compared to the rest of the industry. ARMK outperforms 50.38% of its industry peers.
ARMK has a better Return On Equity (10.37%) than 69.47% of its industry peers.
With a Return On Invested Capital value of 5.99%, ARMK perfoms like the industry average, outperforming 54.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARMK is below the industry average of 10.43%.
The last Return On Invested Capital (5.99%) for ARMK is above the 3 year average (5.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.37% | ||
| ROIC | 5.99% |
ROA(3y)2.84%
ROA(5y)1.83%
ROE(3y)12.39%
ROE(5y)8.04%
ROIC(3y)5.54%
ROIC(5y)4.33%
1.3 Margins
With a Profit Margin value of 1.76%, ARMK perfoms like the industry average, outperforming 43.51% of the companies in the same industry.
In the last couple of years the Profit Margin of ARMK has grown nicely.
ARMK has a Operating Margin of 4.28%. This is in the lower half of the industry: ARMK underperforms 64.89% of its industry peers.
ARMK's Operating Margin has improved in the last couple of years.
ARMK's Gross Margin of 8.36% is on the low side compared to the rest of the industry. ARMK is outperformed by 90.84% of its industry peers.
In the last couple of years the Gross Margin of ARMK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.28% | ||
| PM (TTM) | 1.76% | ||
| GM | 8.36% |
OM growth 3Y4.57%
OM growth 5YN/A
PM growth 3Y14.07%
PM growth 5YN/A
GM growth 3Y-0.09%
GM growth 5Y6.89%
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 less shares outstanding
The number of shares outstanding for ARMK has been increased compared to 5 years ago.
The debt/assets ratio for ARMK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.21 indicates that ARMK is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARMK has a better Altman-Z score (2.21) than 61.07% of its industry peers.
The Debt to FCF ratio of ARMK is 12.52, which is on the high side as it means it would take ARMK, 12.52 years of fcf income to pay off all of its debts.
ARMK's Debt to FCF ratio of 12.52 is in line compared to the rest of the industry. ARMK outperforms 54.20% of its industry peers.
A Debt/Equity ratio of 1.71 is on the high side and indicates that ARMK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.71, ARMK perfoms like the industry average, outperforming 53.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.52 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.92
WACC6.49%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ARMK may have some problems paying its short term obligations.
The Current ratio of ARMK (0.99) is comparable to the rest of the industry.
ARMK has a Quick Ratio of 0.99. This is a bad value and indicates that ARMK is not financially healthy enough and could expect problems in meeting its short term obligations.
ARMK has a Quick ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.42% over the past year.
ARMK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.54% yearly.
ARMK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
The Revenue has been growing slightly by 7.60% on average over the past years.
EPS 1Y (TTM)17.42%
EPS 3Y15.54%
EPS 5YN/A
EPS Q2Q%5.56%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
3.2 Future
Based on estimates for the next years, ARMK will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.10% on average per year.
Based on estimates for the next years, ARMK will show a small growth in Revenue. The Revenue will grow by 6.74% on average per year.
EPS Next Y23.56%
EPS Next 2Y20.51%
EPS Next 3Y18.45%
EPS Next 5Y14.1%
Revenue Next Year5.67%
Revenue Next 2Y5.82%
Revenue Next 3Y5.91%
Revenue Next 5Y6.74%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.37 indicates a rather expensive valuation of ARMK.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than 66.41% of the companies in the same industry.
ARMK is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.48, the valuation of ARMK can be described as correct.
68.70% of the companies in the same industry are more expensive than ARMK, based on the Price/Forward Earnings ratio.
ARMK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
ARMK's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ARMK is valued a bit cheaper than the industry average as 65.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.57 | ||
| EV/EBITDA | 11.41 |
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 18.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y20.51%
EPS Next 3Y18.45%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.28%.
ARMK's Dividend Yield is a higher than the industry average which is at 3.84.
With a Dividend Yield of 1.28, ARMK pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of ARMK decreases each year by -1.01%.
ARMK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-1.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARMK pays out 33.95% of its income as dividend. This is a sustainable payout ratio.
DP33.95%
EPS Next 2Y20.51%
EPS Next 3Y18.45%
NYSE:ARMK (12/9/2025, 11:56:49 AM)
37.07
+0.15 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.38%
Inst Owner Change-4.6%
Ins Owners0.62%
Ins Owner Change0.39%
Market Cap9.75B
Revenue(TTM)18.51B
Net Income(TTM)326.39M
Analysts83.81
Price Target46.07 (24.28%)
Short Float %3.4%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend0.42
Dividend Growth(5Y)-1.01%
DP33.95%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.1%
Min EPS beat(2)-14.44%
Max EPS beat(2)-1.76%
EPS beat(4)2
Avg EPS beat(4)-2.52%
Min EPS beat(4)-14.44%
Max EPS beat(4)4.17%
EPS beat(8)5
Avg EPS beat(8)0.93%
EPS beat(12)7
Avg EPS beat(12)0.61%
EPS beat(16)8
Avg EPS beat(16)0.5%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-4.15%
Max Revenue beat(2)-2.56%
Revenue beat(4)0
Avg Revenue beat(4)-3.43%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)-2.56%
Revenue beat(8)1
Avg Revenue beat(8)-2.41%
Revenue beat(12)4
Avg Revenue beat(12)-2.52%
Revenue beat(16)8
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.73%
PT rev (3m)-1.04%
EPS NQ rev (1m)-12.52%
EPS NQ rev (3m)-12.82%
EPS NY rev (1m)-3.57%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)-3%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.37 | ||
| Fwd PE | 16.48 | ||
| P/S | 0.53 | ||
| P/FCF | 22.57 | ||
| P/OCF | 10.58 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.41 |
EPS(TTM)1.82
EY4.91%
EPS(NY)2.25
Fwd EY6.07%
FCF(TTM)1.64
FCFY4.43%
OCF(TTM)3.5
OCFY9.45%
SpS70.38
BVpS11.97
TBVpS-13.69
PEG (NY)0.86
PEG (5Y)N/A
Graham Number22.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.37% | ||
| ROCE | 8.11% | ||
| ROIC | 5.99% | ||
| ROICexc | 6.41% | ||
| ROICexgc | 24.68% | ||
| OM | 4.28% | ||
| PM (TTM) | 1.76% | ||
| GM | 8.36% | ||
| FCFM | 2.33% |
ROA(3y)2.84%
ROA(5y)1.83%
ROE(3y)12.39%
ROE(5y)8.04%
ROIC(3y)5.54%
ROIC(5y)4.33%
ROICexc(3y)6.18%
ROICexc(5y)4.75%
ROICexgc(3y)30.33%
ROICexgc(5y)21.39%
ROCE(3y)7.5%
ROCE(5y)5.86%
ROICexgc growth 3Y27.16%
ROICexgc growth 5YN/A
ROICexc growth 3Y17.41%
ROICexc growth 5YN/A
OM growth 3Y4.57%
OM growth 5YN/A
PM growth 3Y14.07%
PM growth 5YN/A
GM growth 3Y-0.09%
GM growth 5Y6.89%
F-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.52 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 102.71% | ||
| Cap/Sales | 2.64% | ||
| Interest Coverage | 2407.56 | ||
| Cash Conversion | 72.63% | ||
| Profit Quality | 132.29% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.21 |
F-Score8
WACC6.49%
ROIC/WACC0.92
Cap/Depr(3y)98.14%
Cap/Depr(5y)88.29%
Cap/Sales(3y)2.49%
Cap/Sales(5y)2.65%
Profit Quality(3y)101.01%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.42%
EPS 3Y15.54%
EPS 5YN/A
EPS Q2Q%5.56%
EPS Next Y23.56%
EPS Next 2Y20.51%
EPS Next 3Y18.45%
EPS Next 5Y14.1%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
Revenue Next Year5.67%
Revenue Next 2Y5.82%
Revenue Next 3Y5.91%
Revenue Next 5Y6.74%
EBIT growth 1Y12.08%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year51.6%
EBIT Next 3Y22.18%
EBIT Next 5Y15.29%
FCF growth 1Y44.37%
FCF growth 3Y12.15%
FCF growth 5YN/A
OCF growth 1Y26.77%
OCF growth 3Y9.87%
OCF growth 5Y39.13%
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 5 / 10 to ARAMARK (ARMK). This can be considered as Fairly Valued.
How profitable is ARAMARK (ARMK) stock?
ARAMARK (ARMK) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for ARMK stock?
The Earnings per Share (EPS) of ARAMARK (ARMK) is expected to grow by 23.56% 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 33.95%.