ARAMARK (ARMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARMK - US03852U1060 - Common Stock
38.75 USD
-0.18 (-0.46%)
Taking everything into account, ARMK scores 4 out of 10 in our fundamental rating. ARMK was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While ARMK is still in line with the averages on profitability rating, there are concerns on its financial 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.
ARMK had positive earnings in 4 of the past 5 years.
ARMK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.45%, ARMK perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
ARMK's Return On Equity of 10.37% is fine compared to the rest of the industry. ARMK outperforms 70.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.99%, ARMK is in line with its industry, outperforming 56.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARMK is below the industry average of 10.34%.
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
ARMK has a Profit Margin of 1.76%. This is comparable to the rest of the industry: ARMK outperforms 46.62% of its industry peers.
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 63.16% 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 89.47% 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) | 1.76% | ||
| 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
ARMK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, ARMK has an improved debt to assets ratio.
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.
With a decent Altman-Z score value of 2.24, ARMK is doing good in the industry, outperforming 61.65% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 12.52, ARMK is in line with its industry, outperforming 55.64% of the companies in the same industry.
ARMK has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
ARMK's Debt to Equity ratio of 1.71 is in line compared to the rest of the industry. ARMK outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.52 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.95
WACC6.31%
2.3 Liquidity
ARMK has a Current 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 Current ratio (0.99) which is in line with its industry peers.
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 of 0.88. This is comparable to the rest of the industry: ARMK outperforms 49.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 |
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.
Measured over the past years, ARMK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.54% on average per year.
ARMK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
ARMK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.60% yearly.
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 14.36% on average per year.
ARMK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.89% yearly.
EPS Next Y23.65%
EPS Next 2Y20.3%
EPS Next 3Y18.36%
EPS Next 5Y14.36%
Revenue Next Year5.83%
Revenue Next 2Y5.88%
Revenue Next 3Y5.96%
Revenue Next 5Y5.89%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.29 indicates a rather expensive valuation of ARMK.
69.17% 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 (27.19), we can say ARMK is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.22, 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 70.68% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ARMK to the average of the S&P500 Index (23.92), we can say ARMK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 17.22 |
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 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.6 | ||
| EV/EBITDA | 11.83 |
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.
A more expensive valuation may be justified as ARMK's earnings are expected to grow with 18.36% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y20.3%
EPS Next 3Y18.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, ARMK has a reasonable but not impressive dividend return.
ARMK's Dividend Yield is a higher than the industry average which is at 6.32.
ARMK's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
33.95% of the earnings are spent on dividend by ARMK. This is a low number and sustainable payout ratio.
DP33.95%
EPS Next 2Y20.3%
EPS Next 3Y18.36%
NYSE:ARMK (1/12/2026, 11:22:43 AM)
38.75
-0.18 (-0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners100.66%
Inst Owner Change0.06%
Ins Owners0.51%
Ins Owner Change0.39%
Market Cap10.19B
Revenue(TTM)18.51B
Net Income(TTM)326.39M
Analysts83.81
Price Target46.17 (19.15%)
Short Float %3.74%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.42
Dividend Growth(5Y)-1.01%
DP33.95%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.22%
PT rev (3m)-0.82%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-13.97%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-4.13%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 17.22 | ||
| P/S | 0.55 | ||
| P/FCF | 23.6 | ||
| P/OCF | 11.06 | ||
| P/B | 3.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)1.82
EY4.7%
EPS(NY)2.25
Fwd EY5.81%
FCF(TTM)1.64
FCFY4.24%
OCF(TTM)3.5
OCFY9.04%
SpS70.38
BVpS11.97
TBVpS-13.69
PEG (NY)0.9
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 | 2.24 |
F-Score8
WACC6.31%
ROIC/WACC0.95
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 Y23.65%
EPS Next 2Y20.3%
EPS Next 3Y18.36%
EPS Next 5Y14.36%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
Revenue Next Year5.83%
Revenue Next 2Y5.88%
Revenue Next 3Y5.96%
Revenue Next 5Y5.89%
EBIT growth 1Y12.08%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year52.19%
EBIT Next 3Y21.92%
EBIT Next 5Y14.43%
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.
Can you provide the valuation status for ARAMARK?
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.
What is the valuation of ARAMARK based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARAMARK (ARMK) is 21.29 and the Price/Book (PB) ratio is 3.24.
What is the earnings growth outlook for ARAMARK?
The Earnings per Share (EPS) of ARAMARK (ARMK) is expected to grow by 23.65% in the next year.