ARAMARK (ARMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARMK - US03852U1060 - Common Stock
37.975 USD
+0.3 (+0.78%)
We assign a fundamental rating of 5 out of 10 to ARMK. ARMK was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of ARMK get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year ARMK had a positive cash flow from operations.
Of the past 5 years ARMK 4 years were profitable.
ARMK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.72%, ARMK is in line with its industry, outperforming 50.76% of the companies in the same industry.
With a decent Return On Equity value of 11.73%, ARMK is doing good in the industry, outperforming 70.45% of the companies in the same industry.
ARMK's Return On Invested Capital of 5.55% is in line compared to the rest of the industry. ARMK outperforms 53.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARMK is below the industry average of 10.41%.
The last Return On Invested Capital (5.55%) for ARMK is above the 3 year average (5.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROIC | 5.55% |
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
ARMK has a Profit Margin (2.02%) which is comparable to the rest of the industry.
ARMK's Profit Margin has improved in the last couple of years.
ARMK has a Operating Margin of 4.44%. This is in the lower half of the industry: ARMK underperforms 64.39% of its industry peers.
ARMK's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 8.55%, ARMK is not doing good in the industry: 90.15% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ARMK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% |
OM growth 3Y4.57%
OM growth 5YN/A
PM growth 3Y14.07%
PM growth 5YN/A
GM growth 3Y-18.39%
GM growth 5Y-5.33%
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 less shares outstanding
The number of shares outstanding for ARMK has been increased compared to 5 years ago.
ARMK has a better debt/assets ratio than last year.
2.2 Solvency
ARMK has an Altman-Z score of 2.24. 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 (2.24) is better than 62.88% of its industry peers.
ARMK has a debt to FCF ratio of 22.42. This is a negative value and a sign of low solvency as ARMK would need 22.42 years to pay back of all of its debts.
The Debt to FCF ratio of ARMK (22.42) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.03 is on the high side and indicates that ARMK has dependencies on debt financing.
With a Debt to Equity ratio value of 2.03, ARMK perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.74
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK has a better Current ratio (1.29) than 63.64% of its industry peers.
ARMK has a Quick Ratio of 1.14. This is a normal value and indicates that ARMK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.14, ARMK is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ARMK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.42%, which is quite good.
The Earnings Per Share has been growing by 15.54% on average over the past years. This is quite good.
Looking at the last year, ARMK shows a small growth in Revenue. The Revenue has grown by 6.35% in the last year.
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 Y28.14%
EPS Next 2Y22.24%
EPS Next 3Y18.4%
EPS Next 5Y14.1%
Revenue Next Year5.82%
Revenue Next 2Y5.84%
Revenue Next 3Y5.96%
Revenue Next 5Y6.74%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
ARMK is valuated rather expensively with a Price/Earnings ratio of 20.87.
65.91% of the companies in the same industry are more expensive than ARMK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ARMK to the average of the S&P500 Index (25.65), we can say ARMK is valued inline with the index average.
The Price/Forward Earnings ratio is 16.28, which indicates a correct valuation of ARMK.
66.67% of the companies in the same industry are more expensive than ARMK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, ARMK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
ARMK's Enterprise Value to EBITDA ratio is in line with the industry average.
ARMK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.55 | ||
| EV/EBITDA | 12.48 |
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.
A more expensive valuation may be justified as ARMK's earnings are expected to grow with 18.40% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y22.24%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.40, ARMK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, ARMK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of ARMK decreases each year by -1.01%.
ARMK has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.01%
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 2Y22.24%
EPS Next 3Y18.4%
NYSE:ARMK (11/25/2025, 2:45:06 PM)
37.975
+0.3 (+0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change-4.61%
Ins Owners0.54%
Ins Owner Change0.3%
Market Cap9.98B
Revenue(TTM)18.51B
Net Income(TTM)361.67M
Analysts83.81
Price Target46.44 (22.29%)
Short Float %3.74%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.42
Dividend Growth(5Y)-1.01%
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)-0.23%
PT rev (3m)-0.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 16.28 | ||
| P/S | 0.56 | ||
| P/FCF | 35.55 | ||
| P/OCF | 13.01 | ||
| P/B | 3.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.48 |
EPS(TTM)1.82
EY4.79%
EPS(NY)2.33
Fwd EY6.14%
FCF(TTM)1.07
FCFY2.81%
OCF(TTM)2.92
OCFY7.68%
SpS68
BVpS11.73
TBVpS-13.96
PEG (NY)0.74
PEG (5Y)N/A
Graham Number21.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROCE | 7.52% | ||
| ROIC | 5.55% | ||
| ROICexc | 5.83% | ||
| ROICexgc | 17.79% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% | ||
| FCFM | 1.57% |
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-18.39%
GM growth 5Y-5.33%
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 | 2.24 |
F-Score5
WACC7.47%
ROIC/WACC0.74
Cap/Depr(3y)96.55%
Cap/Depr(5y)87.34%
Cap/Sales(3y)2.45%
Cap/Sales(5y)2.62%
Profit Quality(3y)103.32%
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 Y28.14%
EPS Next 2Y22.24%
EPS Next 3Y18.4%
EPS Next 5Y14.1%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
Revenue Next Year5.82%
Revenue Next 2Y5.84%
Revenue Next 3Y5.96%
Revenue Next 5Y6.74%
EBIT growth 1Y3.55%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year53.9%
EBIT Next 3Y20.81%
EBIT Next 5Y15.07%
FCF growth 1Y12.1%
FCF growth 3Y14.08%
FCF growth 5YN/A
OCF growth 1Y3.46%
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 5 / 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 28.14% 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%.