ARAMARK (ARMK) Stock Fundamental Analysis
NYSE:ARMK - New York Stock Exchange, Inc. - US03852U1060 - Common Stock - Currency: USD
Overall ARMK gets a fundamental rating of 4 out of 10. We evaluated ARMK against 503 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has an average financial health and profitability rating. 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.
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 (2.58%) which is comparable to the rest of the industry.
The Return On Equity of ARMK (11.52%) is better than 72.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.66%, ARMK is in line with its industry, outperforming 51.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARMK is significantly below the industry average of 13.68%.
The 3 year average ROIC (4.93%) for ARMK is below the current ROIC(5.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 11.52% | ||
| ROIC | 5.66% |
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
With a Profit Margin value of 1.97%, ARMK perfoms like the industry average, outperforming 45.86% of the companies in the same industry.
In the last couple of years the Profit Margin of ARMK has declined.
ARMK has a worse Operating Margin (4.38%) than 65.41% of its industry peers.
In the last couple of years the Operating Margin of ARMK has remained more or less at the same level.
ARMK's Gross Margin of 8.47% is on the low side compared to the rest of the industry. ARMK is outperformed by 90.98% of its industry peers.
In the last couple of years the Gross Margin of ARMK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 1.97% | ||
| GM | 8.47% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARMK is creating some value.
ARMK has more shares outstanding than it did 1 year ago.
ARMK has more shares outstanding than it did 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 2.23. 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 2.23 is fine compared to the rest of the industry. ARMK outperforms 63.16% of its industry peers.
ARMK has a debt to FCF ratio of 17.61. This is a negative value and a sign of low solvency as ARMK would need 17.61 years to pay back of all of its debts.
ARMK has a Debt to FCF ratio (17.61) which is in line with its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that ARMK has dependencies on debt financing.
ARMK has a Debt to Equity ratio (2.02) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 17.61 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.01
WACC5.59%
2.3 Liquidity
ARMK has a Current Ratio of 1.21. This is a normal value and indicates that ARMK is financially healthy and should not expect problems in meeting its short term obligations.
ARMK has a Current ratio of 1.21. This is in the better half of the industry: ARMK outperforms 63.16% of its industry peers.
A Quick Ratio of 1.08 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK's Quick ratio of 1.08 is fine compared to the rest of the industry. ARMK outperforms 60.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
ARMK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
The Earnings Per Share has been decreasing by -7.10% on average over the past years.
Looking at the last year, ARMK shows a small growth in Revenue. The Revenue has grown by 0.35% in the last year.
The Revenue has been growing slightly by 1.41% on average over the past years.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%17.24%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%1.89%
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 15.91% on average per year.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y27.4%
EPS Next 2Y22.4%
EPS Next 3Y20.44%
EPS Next 5Y15.91%
Revenue Next Year6.78%
Revenue Next 2Y6.01%
Revenue Next 3Y5.89%
Revenue Next 5Y6.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 25.28, the valuation of ARMK can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 62.41% of the companies listed in the same industry.
ARMK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.51, the valuation of ARMK can be described as rather expensive.
ARMK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARMK is cheaper than 64.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ARMK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.28 | ||
| Fwd PE | 18.51 |
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 62.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.36 | ||
| EV/EBITDA | 13.68 |
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 20.44% in the coming years.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y22.4%
EPS Next 3Y20.44%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.00%.
Compared to an average industry Dividend Yield of 2.42, ARMK pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.00, ARMK pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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
30.38% of the earnings are spent on dividend by ARMK. This is a low number and sustainable payout ratio.
DP30.38%
EPS Next 2Y22.4%
EPS Next 3Y20.44%
42.98
+0.57 (+1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.67%
Inst Owner Change3.92%
Ins Owners0.53%
Ins Owner Change0.07%
Market Cap11.26B
Analysts83
Price Target45.42 (5.68%)
Short Float %3.4%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.38
Dividend Growth(5Y)-2.79%
DP30.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.05%
Min EPS beat(2)1.94%
Max EPS beat(2)4.17%
EPS beat(4)3
Avg EPS beat(4)1.47%
Min EPS beat(4)-0.77%
Max EPS beat(4)4.17%
EPS beat(8)6
Avg EPS beat(8)3.04%
EPS beat(12)8
Avg EPS beat(12)2.15%
EPS beat(16)10
Avg EPS beat(16)8.41%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-3.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)6
Avg Revenue beat(12)-1.04%
Revenue beat(16)9
Avg Revenue beat(16)-0.58%
PT rev (1m)1.55%
PT rev (3m)-0.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.28 | ||
| Fwd PE | 18.51 | ||
| P/S | 0.64 | ||
| P/FCF | 30.36 | ||
| P/OCF | 13.55 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.68 |
EPS(TTM)1.7
EY3.96%
EPS(NY)2.32
Fwd EY5.4%
FCF(TTM)1.42
FCFY3.29%
OCF(TTM)3.17
OCFY7.38%
SpS67.25
BVpS11.52
TBVpS-14.08
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 11.52% | ||
| ROCE | 7.49% | ||
| ROIC | 5.66% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 21.8% | ||
| OM | 4.38% | ||
| PM (TTM) | 1.97% | ||
| GM | 8.47% | ||
| FCFM | 2.11% |
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
ROICexcg growth 3Y122.06%
ROICexcg 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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 17.61 | ||
| Debt/EBITDA | 4.99 | ||
| Cap/Depr | 101.98% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | -22.67 | ||
| Cash Conversion | 67.95% | ||
| Profit Quality | 106.62% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.23 |
F-Score5
WACC5.59%
ROIC/WACC1.01
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)0%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%17.24%
EPS Next Y27.4%
EPS Next 2Y22.4%
EPS Next 3Y20.44%
EPS Next 5Y15.91%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%1.89%
Revenue Next Year6.78%
Revenue Next 2Y6.01%
Revenue Next 3Y5.89%
Revenue Next 5Y6.45%
EBIT growth 1Y4.81%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year60.84%
EBIT Next 3Y24.32%
EBIT Next 5Y17.11%
FCF growth 1Y157.47%
FCF growth 3Y6.26%
FCF growth 5Y-9.07%
OCF growth 1Y56.8%
OCF growth 3Y3.4%
OCF growth 5Y-5.89%