ARAMARK (ARMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARMK - US03852U1060 - Common Stock
37.42 USD
-0.32 (-0.85%)
37.42 USD
0 (0%)
Overall ARMK gets a fundamental rating of 4 out of 10. We evaluated ARMK against 133 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has a medium profitability rating, but doesn't score so well on its financial health evaluation. ARMK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARMK was profitable.
ARMK had a positive operating cash flow in the past year.
ARMK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARMK had a positive operating cash flow.
1.2 Ratios
ARMK has a Return On Assets (2.45%) which is comparable to the rest of the industry.
The Return On Equity of ARMK (10.37%) is better than 69.92% of its industry peers.
ARMK has a Return On Invested Capital (5.99%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARMK is below the industry average of 10.39%.
The last Return On Invested Capital (5.99%) for ARMK is above the 3 year average (5.54%), which is a sign of increasing profitability.
| 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
The Profit Margin of ARMK (1.76%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ARMK has grown nicely.
ARMK has a worse Operating Margin (4.28%) than 63.16% of its industry peers.
ARMK's Operating Margin has improved in the last couple of years.
ARMK has a Gross Margin of 8.36%. This is amonst the worse of the industry: ARMK underperforms 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
ARMK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ARMK has less shares outstanding than it did 1 year ago.
ARMK has more shares outstanding than it did 5 years ago.
ARMK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.21 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 (2.21) than 60.15% 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.
ARMK has a Debt to FCF ratio of 12.52. This is comparable to the rest of the industry: ARMK outperforms 55.64% of its industry peers.
A Debt/Equity ratio of 1.71 is on the high side and indicates that ARMK has dependencies on debt financing.
ARMK's Debt to Equity ratio of 1.71 is in line compared to the rest of the industry. ARMK outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.52 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.9
WACC6.65%
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.
ARMK's Current ratio of 0.99 is in line compared to the rest of the industry. ARMK outperforms 53.38% of its industry peers.
A Quick Ratio of 0.88 indicates that ARMK may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, ARMK perfoms like the industry average, 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.
ARMK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
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
The Earnings Per Share is expected to grow by 14.10% 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 6.74% on average per year.
EPS Next Y23.65%
EPS Next 2Y20.3%
EPS Next 3Y18.36%
EPS Next 5Y14.1%
Revenue Next Year5.83%
Revenue Next 2Y5.88%
Revenue Next 3Y5.96%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ARMK is valuated rather expensively with a Price/Earnings ratio of 20.56.
68.42% of the companies in the same industry are more expensive than ARMK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.92, ARMK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.63, ARMK is valued correctly.
72.18% of the companies in the same industry are more expensive than ARMK, based on the Price/Forward Earnings ratio.
ARMK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARMK is on the same level as its industry peers.
ARMK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARMK is cheaper than 67.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.79 | ||
| EV/EBITDA | 11.52 |
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 18.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y20.3%
EPS Next 3Y18.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, ARMK has a reasonable but not impressive dividend return.
ARMK's Dividend Yield is a higher than the industry average which is at 1.66.
ARMK's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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.
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 2Y20.3%
EPS Next 3Y18.36%
37.42
-0.32 (-0.85%)
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 Cap9.84B
Revenue(TTM)18.51B
Net Income(TTM)326.39M
Analysts83.81
Price Target46.17 (23.38%)
Short Float %3.91%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)-0.6%
PT rev (3m)-0.82%
EPS NQ rev (1m)-2.53%
EPS NQ rev (3m)-13.97%
EPS NY rev (1m)-3.5%
EPS NY rev (3m)-4.13%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 16.63 | ||
| P/S | 0.53 | ||
| P/FCF | 22.79 | ||
| P/OCF | 10.68 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.52 |
EPS(TTM)1.82
EY4.86%
EPS(NY)2.25
Fwd EY6.01%
FCF(TTM)1.64
FCFY4.39%
OCF(TTM)3.5
OCFY9.36%
SpS70.38
BVpS11.97
TBVpS-13.69
PEG (NY)0.87
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 | 2.21 |
F-Score8
WACC6.65%
ROIC/WACC0.9
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 Y23.65%
EPS Next 2Y20.3%
EPS Next 3Y18.36%
EPS Next 5Y14.1%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
Revenue Next Year5.83%
Revenue Next 2Y5.88%
Revenue Next 3Y5.96%
Revenue Next 5Y6.74%
EBIT growth 1Y12.08%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year52.19%
EBIT Next 3Y21.92%
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 23.65% 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%.