ARAMARK (ARMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARMK - US03852U1060 - Common Stock
37.97 USD
-0.02 (-0.05%)
37.97 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ARMK. ARMK was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of ARMK while its profitability can be described as average. ARMK has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years ARMK 4 years were profitable.
In the past 5 years ARMK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ARMK (2.45%) is comparable to the rest of the industry.
With a decent Return On Equity value of 10.37%, ARMK is doing good in the industry, outperforming 69.92% of the companies in the same industry.
ARMK's Return On Invested Capital of 5.99% is in line compared to the rest of the industry. ARMK outperforms 55.64% of its industry peers.
ARMK had an Average Return On Invested Capital over the past 3 years of 5.54%. This is below the industry average of 10.40%.
The 3 year average ROIC (5.54%) for ARMK is below the current ROIC(5.99%), indicating increased profibility in the last year.
| 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's Profit Margin of 1.76% is in line compared to the rest of the industry. ARMK outperforms 44.36% of its industry peers.
ARMK's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 4.28%, ARMK is not doing good in the industry: 63.91% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ARMK has grown nicely.
The Gross Margin of ARMK (8.36%) is worse than 90.23% 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
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
Compared to 5 years ago, ARMK has more shares outstanding
ARMK has a better debt/assets ratio than last year.
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.
ARMK has a better Altman-Z score (2.22) than 61.65% of its industry peers.
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 has a Debt to Equity ratio (1.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.52 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.92
WACC6.54%
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.
The Current ratio of ARMK (0.99) is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that ARMK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, ARMK is in line with its industry, outperforming 48.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.42% over the past year.
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.
The Revenue has been growing slightly by 6.35% in the past year.
Measured over the past years, ARMK shows a small growth in Revenue. The Revenue has been growing by 7.60% on average per year.
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
ARMK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.10% yearly.
ARMK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y23.56%
EPS Next 2Y20.51%
EPS Next 3Y18.45%
EPS Next 5Y14.1%
Revenue Next Year5.67%
Revenue Next 2Y5.82%
Revenue Next 3Y5.91%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.86 indicates a rather expensive valuation of ARMK.
66.92% of the companies in the same industry are more expensive than ARMK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.39. ARMK is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.88, ARMK is valued correctly.
Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than 69.92% of the companies in the same industry.
ARMK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
ARMK's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ARMK is valued a bit cheaper than 67.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.12 | ||
| EV/EBITDA | 11.63 |
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.
ARMK's earnings are expected to grow with 18.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y20.51%
EPS Next 3Y18.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, ARMK has a reasonable but not impressive dividend return.
ARMK's Dividend Yield is a higher than the industry average which is at 1.54.
ARMK's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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 2Y20.51%
EPS Next 3Y18.45%
37.97
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.38%
Inst Owner Change-4.6%
Ins Owners0.62%
Ins Owner Change0.39%
Market Cap9.98B
Revenue(TTM)18.51B
Net Income(TTM)326.39M
Analysts83.81
Price Target46.07 (21.33%)
Short Float %3.91%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.42
Dividend Growth(5Y)-1.01%
DP33.95%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-0.82%
PT rev (3m)-1.04%
EPS NQ rev (1m)-13.68%
EPS NQ rev (3m)-13.97%
EPS NY rev (1m)-3.57%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 16.88 | ||
| P/S | 0.54 | ||
| P/FCF | 23.12 | ||
| P/OCF | 10.84 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.63 |
EPS(TTM)1.82
EY4.79%
EPS(NY)2.25
Fwd EY5.92%
FCF(TTM)1.64
FCFY4.33%
OCF(TTM)3.5
OCFY9.23%
SpS70.38
BVpS11.97
TBVpS-13.69
PEG (NY)0.89
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 | 2.22 |
F-Score8
WACC6.54%
ROIC/WACC0.92
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 Y23.56%
EPS Next 2Y20.51%
EPS Next 3Y18.45%
EPS Next 5Y14.1%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
Revenue Next Year5.67%
Revenue Next 2Y5.82%
Revenue Next 3Y5.91%
Revenue Next 5Y6.74%
EBIT growth 1Y12.08%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year51.6%
EBIT Next 3Y22.18%
EBIT Next 5Y15.29%
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.
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 23.56% 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 33.95%.