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 134 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 has a decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of ARMK (2.07%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.64%, ARMK is in the better half of the industry, outperforming 67.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.31%, ARMK is in line with its industry, outperforming 55.73% of the companies in the same industry.
ARMK had an Average Return On Invested Capital over the past 3 years of 4.93%. This is significantly below the industry average of 10.55%.
The last Return On Invested Capital (6.31%) for ARMK is above the 3 year average (4.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 8.64% | ||
| ROIC | 6.31% |
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
ARMK's Profit Margin of 1.51% is in line compared to the rest of the industry. ARMK outperforms 42.75% of its industry peers.
ARMK's Profit Margin has declined in the last couple of years.
ARMK has a worse Operating Margin (4.06%) than 66.41% 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 has a worse Gross Margin (8.19%) than 92.37% of its industry peers.
In the last couple of years the Gross Margin of ARMK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.06% | ||
| PM (TTM) | 1.51% | ||
| GM | 8.19% |
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.
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
ARMK has an Altman-Z score of 2.16. 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 (2.16) is comparable to the rest of the industry.
The Debt to FCF ratio of ARMK is 17.63, which is on the high side as it means it would take ARMK, 17.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.63, ARMK is in line with its industry, outperforming 48.09% of the companies in the same industry.
A Debt/Equity ratio of 1.42 is on the high side and indicates that ARMK has dependencies on debt financing.
ARMK's Debt to Equity ratio of 1.42 is in line compared to the rest of the industry. ARMK outperforms 58.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 17.63 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.03
WACC6.1%
2.3 Liquidity
A Current Ratio of 0.81 indicates that ARMK may have some problems paying its short term obligations.
ARMK has a Current ratio (0.81) which is in line with its industry peers.
A Quick Ratio of 0.72 indicates that ARMK may have some problems paying its short term obligations.
The Quick ratio of ARMK (0.72) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
ARMK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.28%.
The Earnings Per Share has been decreasing by -7.10% on average over the past years.
ARMK shows a small growth in Revenue. In the last year, the Revenue has grown by 3.67%.
ARMK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.41% yearly.
EPS 1Y (TTM)-8.28%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%-15.62%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%-9.89%
3.2 Future
ARMK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.89% yearly.
The Revenue is expected to grow by 6.47% on average over the next years.
EPS Next Y27.2%
EPS Next 2Y22.79%
EPS Next 3Y20.91%
EPS Next 5Y23.89%
Revenue Next Year7.4%
Revenue Next 2Y6.15%
Revenue Next 3Y6.15%
Revenue Next 5Y6.47%
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
With a Price/Earnings ratio of 25.38, ARMK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 61.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.42, ARMK is valued at the same level.
With a Price/Forward Earnings ratio of 19.96, ARMK is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than 65.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.39. ARMK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 19.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARMK.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARMK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.84 | ||
| EV/EBITDA | 13.16 |
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 20.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y22.79%
EPS Next 3Y20.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, ARMK has a reasonable but not impressive dividend return.
ARMK's Dividend Yield is a higher than the industry average which is at 2.89.
With a Dividend Yield of 1.09, ARMK pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
ARMK pays out 38.05% of its income as dividend. This is a sustainable payout ratio.
DP38.05%
EPS Next 2Y22.79%
EPS Next 3Y20.91%
ARAMARK
NYSE:ARMK (1/29/2025, 1:33:59 PM)
39.345
-0.04 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.21%
Inst Owner Change-0.24%
Ins Owners0.52%
Ins Owner Change0.21%
Market Cap10.42B
Analysts81
Price Target45.24 (14.98%)
Short Float %1.96%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.38
Dividend Growth(5Y)-2.79%
DP38.05%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.1%
Min EPS beat(2)-0.77%
Max EPS beat(2)0.56%
EPS beat(4)3
Avg EPS beat(4)4.38%
Min EPS beat(4)-0.77%
Max EPS beat(4)11.79%
EPS beat(8)5
Avg EPS beat(8)2.17%
EPS beat(12)6
Avg EPS beat(12)1.51%
EPS beat(16)10
Avg EPS beat(16)11.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-2.99%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.99%
Max Revenue beat(4)0.79%
Revenue beat(8)4
Avg Revenue beat(8)-2.06%
Revenue beat(12)8
Avg Revenue beat(12)-0.29%
Revenue beat(16)10
Avg Revenue beat(16)-0.22%
PT rev (1m)1.8%
PT rev (3m)9.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 19.96 | ||
| P/S | 0.6 | ||
| P/FCF | 34.84 | ||
| P/OCF | 14.34 | ||
| P/B | 3.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.16 |
EPS(TTM)1.55
EY3.94%
EPS(NY)1.97
Fwd EY5.01%
FCF(TTM)1.13
FCFY2.87%
OCF(TTM)2.74
OCFY6.97%
SpS65.69
BVpS11.47
TBVpS-13
PEG (NY)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 8.64% | ||
| ROCE | 8.35% | ||
| ROIC | 6.31% | ||
| ROICexc | 6.85% | ||
| ROICexgc | 40.88% | ||
| OM | 4.06% | ||
| PM (TTM) | 1.51% | ||
| GM | 8.19% | ||
| FCFM | 1.72% |
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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 17.63 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 98.14% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 2118.47 | ||
| Cash Conversion | 63.61% | ||
| Profit Quality | 113.93% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.16 |
F-Score5
WACC6.1%
ROIC/WACC1.03
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)-8.28%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%-15.62%
EPS Next Y27.2%
EPS Next 2Y22.79%
EPS Next 3Y20.91%
EPS Next 5Y23.89%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%-9.89%
Revenue Next Year7.4%
Revenue Next 2Y6.15%
Revenue Next 3Y6.15%
Revenue Next 5Y6.47%
EBIT growth 1Y2.77%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year61.39%
EBIT Next 3Y24.61%
EBIT Next 5Y16.55%
FCF growth 1Y-21.89%
FCF growth 3Y6.26%
FCF growth 5Y-9.07%
OCF growth 1Y-5.21%
OCF growth 3Y3.4%
OCF growth 5Y-5.89%