ARAMARK (ARMK) Stock Fundamental Analysis
USA - NYSE:ARMK - US03852U1060 - Common Stock
36.68 USD
+0.64 (+1.78%)
36.68 USD
0 (0%)
ARMK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has an average financial health and profitability rating. ARMK has a correct valuation and a medium 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.
Of the past 5 years ARMK 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ARMK (2.72%) is comparable to the rest of the industry.
ARMK has a Return On Equity of 11.73%. This is in the better half of the industry: ARMK outperforms 70.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.68%, ARMK is in line with its industry, outperforming 54.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARMK is significantly below the industry average of 10.59%.
The last Return On Invested Capital (5.68%) for ARMK is above the 3 year average (4.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROIC | 5.68% |
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 2.02%, ARMK perfoms like the industry average, outperforming 43.94% 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 (4.44%) than 65.91% of its industry peers.
ARMK's Operating Margin has been stable in the last couple of years.
The Gross Margin of ARMK (8.55%) is worse than 90.91% of its industry peers.
ARMK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% |
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) below the Cost of Capital (WACC), ARMK is destroying value.
ARMK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.22 indicates that ARMK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.22, ARMK is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Debt to FCF ratio of ARMK is 22.42, which is on the high side as it means it would take ARMK, 22.42 years of fcf income to pay off all of its debts.
ARMK has a Debt to FCF ratio of 22.42. This is comparable to the rest of the industry: ARMK outperforms 43.94% of its industry peers.
ARMK has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
ARMK's Debt to Equity ratio of 2.03 is in line compared to the rest of the industry. ARMK outperforms 52.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.97
WACC5.85%
2.3 Liquidity
ARMK has a Current Ratio of 1.29. 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 Current ratio, with a value of 1.29, ARMK is in the better half of the industry, outperforming 62.88% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that ARMK should not have too much problems paying its short term obligations.
The Quick ratio of ARMK (1.14) is better than 62.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.94% over the past year.
ARMK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.00% yearly.
EPS 1Y (TTM)21.94%
EPS 3Y17%
EPS 5YN/A
EPS Q2Q%18.52%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 13.24% on average per year.
ARMK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y23.39%
EPS Next 2Y19.96%
EPS Next 3Y15.57%
EPS Next 5Y13.24%
Revenue Next Year5.82%
Revenue Next 2Y5.84%
Revenue Next 3Y6.33%
Revenue Next 5Y6.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.41, ARMK is valued on the expensive side.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.51. ARMK is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.73, ARMK is valued correctly.
Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than 68.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARMK to the average of the S&P500 Index (34.98), we can say ARMK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 15.73 |
4.2 Price Multiples
ARMK's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ARMK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.34 | ||
| EV/EBITDA | 12.27 |
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 15.57% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y19.96%
EPS Next 3Y15.57%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.33%.
Compared to an average industry Dividend Yield of 4.58, ARMK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ARMK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of ARMK decreases each year by -2.79%.
ARMK has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARMK pays out 29.94% of its income as dividend. This is a sustainable payout ratio.
DP29.94%
EPS Next 2Y19.96%
EPS Next 3Y15.57%
36.68
+0.64 (+1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change-4.62%
Ins Owners0.54%
Ins Owner Change10.43%
Market Cap9.64B
Revenue(TTM)N/A
Net Income(TTM)361.67M
Analysts83.81
Price Target46.44 (26.61%)
Short Float %3.74%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend0.38
Dividend Growth(5Y)-2.79%
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)-0.31%
PT rev (3m)0.79%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-1.77%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 15.73 | ||
| P/S | 0.54 | ||
| P/FCF | 34.34 | ||
| P/OCF | 12.57 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.27 |
EPS(TTM)1.89
EY5.15%
EPS(NY)2.33
Fwd EY6.36%
FCF(TTM)1.07
FCFY2.91%
OCF(TTM)2.92
OCFY7.96%
SpS68
BVpS11.73
TBVpS-13.96
PEG (NY)0.83
PEG (5Y)N/A
Graham Number22.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROCE | 7.52% | ||
| ROIC | 5.68% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 18.2% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% | ||
| FCFM | 1.57% |
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
ROICexgc growth 3Y122.06%
ROICexgc 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 Turnover1.35
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 | 2.22 |
F-Score5
WACC5.85%
ROIC/WACC0.97
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)21.94%
EPS 3Y17%
EPS 5YN/A
EPS Q2Q%18.52%
EPS Next Y23.39%
EPS Next 2Y19.96%
EPS Next 3Y15.57%
EPS Next 5Y13.24%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.3%
Revenue Next Year5.82%
Revenue Next 2Y5.84%
Revenue Next 3Y6.33%
Revenue Next 5Y6.74%
EBIT growth 1Y3.55%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year62.05%
EBIT Next 3Y24.61%
EBIT Next 5Y16.94%
FCF growth 1Y56.37%
FCF growth 3Y6.26%
FCF growth 5Y-9.07%
OCF growth 1Y35.43%
OCF growth 3Y3.4%
OCF growth 5Y-5.89%
ARAMARK / ARMK FAQ
What is the fundamental rating for ARMK stock?
ChartMill assigns a fundamental rating of 4 / 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 4 / 10.
Can you provide the expected EPS growth for ARMK stock?
The Earnings per Share (EPS) of ARAMARK (ARMK) is expected to grow by 23.39% 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%.