ARAMARK (ARMK) Fundamental Analysis & Valuation

NYSE:ARMK • US03852U1060

Current stock price

45.6 USD
-0.68 (-1.47%)
At close:
45.6 USD
0 (0%)
After Hours:

This ARMK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. ARMK Profitability Analysis

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.
ARMK Yearly Net Income VS EBIT VS OCF VS FCFARMK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

1.2 Ratios

  • With a Return On Assets value of 2.34%, ARMK perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
  • With a decent Return On Equity value of 9.88%, ARMK is doing good in the industry, outperforming 69.05% of the companies in the same industry.
  • With a Return On Invested Capital value of 5.47%, ARMK perfoms like the industry average, outperforming 51.59% 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 10.55%.
Industry RankSector Rank
ROA 2.34%
ROE 9.88%
ROIC 5.47%
ROA(3y)2.84%
ROA(5y)1.83%
ROE(3y)12.39%
ROE(5y)8.04%
ROIC(3y)5.54%
ROIC(5y)4.33%
ARMK Yearly ROA, ROE, ROICARMK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

1.3 Margins

  • ARMK has a Profit Margin (1.69%) which is in line with its industry peers.
  • ARMK's Profit Margin has improved in the last couple of years.
  • ARMK has a worse Operating Margin (4.22%) than 69.84% of its industry peers.
  • ARMK's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 8.31%, ARMK is doing worse than 92.06% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ARMK has grown nicely.
Industry RankSector Rank
OM 4.22%
PM (TTM) 1.69%
GM 8.31%
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%
ARMK Yearly Profit, Operating, Gross MarginsARMK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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4

2. ARMK Health Analysis

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.
ARMK Yearly Shares OutstandingARMK Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
ARMK Yearly Total Debt VS Total AssetsARMK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • ARMK has an Altman-Z score of 2.41. 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 2.41 is fine compared to the rest of the industry. ARMK outperforms 62.70% of its industry peers.
  • The Debt to FCF ratio of ARMK is 26.65, which is on the high side as it means it would take ARMK, 26.65 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 26.65, ARMK is not doing good in the industry: 60.32% of the companies in the same industry are doing better.
  • ARMK has a Debt/Equity ratio of 1.94. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.94, ARMK perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.94
Debt/FCF 26.65
Altman-Z 2.41
ROIC/WACC0.88
WACC6.19%
ARMK Yearly LT Debt VS Equity VS FCFARMK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.27 indicates that ARMK should not have too much problems paying its short term obligations.
  • ARMK has a Current ratio of 1.27. This is in the better half of the industry: ARMK outperforms 64.29% of its industry peers.
  • A Quick Ratio of 1.13 indicates that ARMK should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.13, ARMK is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 1.13
ARMK Yearly Current Assets VS Current LiabilitesARMK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ARMK Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.30% 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 7.07% 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)10.3%
EPS 3Y15.54%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%6.14%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.36% on average over the next years. This is quite good.
  • Based on estimates for the next years, ARMK will show a small growth in Revenue. The Revenue will grow by 5.97% on average per year.
EPS Next Y24.09%
EPS Next 2Y20.67%
EPS Next 3Y17.65%
EPS Next 5Y14.36%
Revenue Next Year5.91%
Revenue Next 2Y6.24%
Revenue Next 3Y6.03%
Revenue Next 5Y5.97%

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.
ARMK Yearly Revenue VS EstimatesARMK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5B 10B 15B 20B 25B
ARMK Yearly EPS VS EstimatesARMK Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 2 3

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3

4. ARMK Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.05, which means the current valuation is very expensive for ARMK.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARMK is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 27.35. ARMK is around the same levels.
  • With a Price/Forward Earnings ratio of 17.21, ARMK is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than 67.46% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ARMK to the average of the S&P500 Index (22.23), we can say ARMK is valued slightly cheaper.
Industry RankSector Rank
PE 25.05
Fwd PE 17.21
ARMK Price Earnings VS Forward Price EarningsARMK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 51.12
EV/EBITDA 14.03
ARMK Per share dataARMK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • ARMK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as ARMK's earnings are expected to grow with 17.65% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y20.67%
EPS Next 3Y17.65%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. ARMK Dividend Analysis

5.1 Amount

  • ARMK has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
  • ARMK's Dividend Yield is a higher than the industry average which is at 1.04.
  • Compared to an average S&P500 Dividend Yield of 1.82, ARMK's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.04%

5.2 History

  • The dividend of ARMK decreases each year by -1.01%.
  • ARMK has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ARMK has decreased its dividend recently.
Dividend Growth(5Y)-1.01%
Div Incr Years1
Div Non Decr Years1
ARMK Yearly Dividends per shareARMK Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 36.13% of the earnings are spent on dividend by ARMK. This is a low number and sustainable payout ratio.
DP36.13%
EPS Next 2Y20.67%
EPS Next 3Y17.65%
ARMK Yearly Income VS Free CF VS DividendARMK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M 600M
ARMK Dividend Payout.ARMK Dividend Payout, showing the Payout Ratio.ARMK Dividend Payout.PayoutRetained Earnings

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ARMK Fundamentals: All Metrics, Ratios and Statistics

ARAMARK

NYSE:ARMK (4/27/2026, 7:28:05 PM)

After market: 45.6 0 (0%)

45.6

-0.68 (-1.47%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-10
Earnings (Next)05-12
Inst Owners99.36%
Inst Owner Change-0.23%
Ins Owners0.55%
Ins Owner Change0.75%
Market Cap11.99B
Revenue(TTM)18.79B
Net Income(TTM)316.94M
Analysts84.55
Price Target48.03 (5.33%)
Short Float %4.43%
Short Ratio3.72
Dividend
Industry RankSector Rank
Dividend Yield 1.04%
Yearly Dividend0.42
Dividend Growth(5Y)-1.01%
DP36.13%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-18
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.52%
Min EPS beat(2)-14.44%
Max EPS beat(2)-0.61%
EPS beat(4)1
Avg EPS beat(4)-3.72%
Min EPS beat(4)-14.44%
Max EPS beat(4)1.94%
EPS beat(8)4
Avg EPS beat(8)-0.62%
EPS beat(12)7
Avg EPS beat(12)1.05%
EPS beat(16)8
Avg EPS beat(16)0.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-4.15%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-2.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.22%
Revenue beat(16)7
Avg Revenue beat(16)-1.2%
PT rev (1m)1.24%
PT rev (3m)5.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE 25.05
Fwd PE 17.21
P/S 0.64
P/FCF 51.12
P/OCF 16.51
P/B 3.74
P/tB N/A
EV/EBITDA 14.03
EPS(TTM)1.82
EY3.99%
EPS(NY)2.65
Fwd EY5.81%
FCF(TTM)0.89
FCFY1.96%
OCF(TTM)2.76
OCFY6.06%
SpS71.47
BVpS12.21
TBVpS-13.55
PEG (NY)1.04
PEG (5Y)N/A
Graham Number22.3566 (-50.97%)
Profitability
Industry RankSector Rank
ROA 2.34%
ROE 9.88%
ROCE 7.41%
ROIC 5.47%
ROICexc 5.71%
ROICexgc 16.82%
OM 4.22%
PM (TTM) 1.69%
GM 8.31%
FCFM 1.25%
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-Score6
Asset Turnover1.39
Health
Industry RankSector Rank
Debt/Equity 1.94
Debt/FCF 26.65
Debt/EBITDA 4.85
Cap/Depr 100.5%
Cap/Sales 2.62%
Interest Coverage 155.23
Cash Conversion 56.66%
Profit Quality 73.97%
Current Ratio 1.27
Quick Ratio 1.13
Altman-Z 2.41
F-Score6
WACC6.19%
ROIC/WACC0.88
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)10.3%
EPS 3Y15.54%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y24.09%
EPS Next 2Y20.67%
EPS Next 3Y17.65%
EPS Next 5Y14.36%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%6.14%
Revenue Next Year5.91%
Revenue Next 2Y6.24%
Revenue Next 3Y6.03%
Revenue Next 5Y5.97%
EBIT growth 1Y4.67%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year53.16%
EBIT Next 3Y21.88%
EBIT Next 5Y14.71%
FCF growth 1Y2.63%
FCF growth 3Y12.15%
FCF growth 5YN/A
OCF growth 1Y1.32%
OCF growth 3Y9.87%
OCF growth 5Y39.13%

ARAMARK / ARMK Fundamental Analysis FAQ

What is the fundamental rating for ARMK stock?

ChartMill assigns a fundamental rating of 4 / 10 to ARMK.


What is the valuation status of ARAMARK (ARMK) stock?

ChartMill assigns a valuation rating of 3 / 10 to ARAMARK (ARMK). This can be considered as Overvalued.


Can you provide the profitability details for ARAMARK?

ARAMARK (ARMK) has a profitability rating of 5 / 10.


What is the earnings growth outlook for ARAMARK?

The Earnings per Share (EPS) of ARAMARK (ARMK) is expected to grow by 24.09% in the next year.


Is the dividend of ARAMARK sustainable?

The dividend rating of ARAMARK (ARMK) is 4 / 10 and the dividend payout ratio is 36.13%.