ARAMARK (ARMK)
US03852U1060 - Common Stock
Taking everything into account, ARMK scores 4 out of 10 in our fundamental rating. ARMK was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has a medium profitability rating, but doesn't score so well on its financial health evaluation. ARMK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ARMK had positive earnings in the past year.
In the past year ARMK had a positive cash flow from operations.
In multiple years ARMK reported negative net income over the last 5 years.
In the past 5 years ARMK always reported a positive cash flow from operatings.
1.2 Ratios
ARMK has a Return On Assets (2.75%) which is comparable to the rest of the industry.
ARMK has a better Return On Equity (11.74%) than 70.90% of its industry peers.
The Return On Invested Capital of ARMK (6.54%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARMK is significantly below the industry average of 10.69%.
The last Return On Invested Capital (6.54%) for ARMK is above the 3 year average (3.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 11.74% | ||
| ROIC | 6.54% |
ROA(3y)1.55%
ROA(5y)1%
ROE(3y)7.07%
ROE(5y)3.57%
ROIC(3y)3.74%
ROIC(5y)N/A
1.3 Margins
ARMK has a Profit Margin of 1.93%. This is comparable to the rest of the industry: ARMK outperforms 44.78% of its industry peers.
In the last couple of years the Profit Margin of ARMK has remained more or less at the same level.
ARMK has a worse Operating Margin (4.28%) than 64.18% of its industry peers.
In the last couple of years the Operating Margin of ARMK has declined.
ARMK has a Gross Margin of 8.66%. This is amonst the worse of the industry: ARMK underperforms 91.79% of its industry peers.
ARMK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.28% | ||
| PM (TTM) | 1.93% | ||
| GM | 8.66% |
OM growth 3YN/A
OM growth 5Y-1.71%
PM growth 3YN/A
PM growth 5Y-0.12%
GM growth 3Y13.27%
GM growth 5Y6.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARMK is destroying value.
ARMK has more shares outstanding than it did 1 year ago.
ARMK has more shares outstanding than it did 5 years ago.
ARMK has a better debt/assets ratio than last year.
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.
ARMK's Altman-Z score of 2.27 is fine compared to the rest of the industry. ARMK outperforms 64.93% of its industry peers.
ARMK has a debt to FCF ratio of 19.72. This is a negative value and a sign of low solvency as ARMK would need 19.72 years to pay back of all of its debts.
ARMK has a Debt to FCF ratio (19.72) which is in line with its industry peers.
ARMK has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.71, ARMK is in line with its industry, outperforming 55.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 19.72 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.83
WACC7.84%
2.3 Liquidity
ARMK has a Current Ratio of 0.96. This is a bad value and indicates that ARMK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ARMK (0.96) is comparable to the rest of the industry.
ARMK has a Quick Ratio of 0.96. 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 (0.86) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.14% over the past year.
ARMK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.56% yearly.
The Revenue has decreased by -2.49% in the past year.
The Revenue has been growing slightly by 3.61% on average over the past years.
EPS 1Y (TTM)7.14%
EPS 3YN/A
EPS 5Y-5.56%
EPS Q2Q%-13.89%
Revenue 1Y (TTM)-2.49%
Revenue growth 3Y13.69%
Revenue growth 5Y3.61%
Sales Q2Q%-7.86%
3.2 Future
The Earnings Per Share is expected to grow by 11.46% 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 3.44% yearly.
EPS Next Y-6.81%
EPS Next 2Y7.8%
EPS Next 3Y11.35%
EPS Next 5Y11.46%
Revenue Next Year-7.07%
Revenue Next 2Y-0.64%
Revenue Next 3Y1.5%
Revenue Next 5Y3.44%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ARMK is valuated rather expensively with a Price/Earnings ratio of 23.44.
Compared to the rest of the industry, the Price/Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 67.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.38, ARMK is valued a bit cheaper.
ARMK is valuated rather expensively with a Price/Forward Earnings ratio of 19.69.
Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than 64.93% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. ARMK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 19.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARMK.
The rest of the industry has a similar Price/Free Cash Flow ratio as ARMK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.62 | ||
| EV/EBITDA | 12.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.8%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
ARMK has a yearly dividend return of 0.98%, which is pretty low.
ARMK's Dividend Yield is a higher than the industry average which is at 2.78.
With a Dividend Yield of 0.98, ARMK pays less dividend than the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of ARMK has a limited annual growth rate of 1.04%.
ARMK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARMK pays out 29.97% of its income as dividend. This is a sustainable payout ratio.
ARMK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.97%
EPS Next 2Y7.8%
EPS Next 3Y11.35%
ARAMARK
NYSE:ARMK (11/11/2024, 8:21:11 PM)
After market: 38.1384 -0.54 (-1.4%)38.68
-0.43 (-1.1%)
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 Cap10.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 23.44 | ||
| Fwd PE | 19.69 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 11.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.28% | ||
| PM (TTM) | 1.93% | ||
| GM | 8.66% | ||
| 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 Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.86 | ||
| 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)7.14%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-6.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.49%
Revenue growth 3Y13.69%
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