ARAMARK (ARMK) Stock Fundamental Analysis
NYSE:ARMK - New York Stock Exchange, Inc. - US03852U1060 - Common Stock - Currency: USD
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. ARMK has an average financial health and profitability rating. ARMK is not valued too expensively and it also shows a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: ARMK reported negative net income in multiple years.
ARMK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARMK has a Return On Assets of 2.58%. This is comparable to the rest of the industry: ARMK outperforms 53.38% of its industry peers.
ARMK has a better Return On Equity (11.52%) than 72.18% of its industry peers.
The Return On Invested Capital of ARMK (5.66%) is comparable to the rest of the 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 13.81%.
The last Return On Invested Capital (5.66%) for ARMK is above the 3 year average (4.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 11.52% | ||
| ROIC | 5.66% |
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 has a Profit Margin of 1.97%. This is comparable to the rest of the industry: ARMK outperforms 45.86% of its industry peers.
In the last couple of years the Profit Margin of ARMK has declined.
The Operating Margin of ARMK (4.38%) is worse than 65.41% 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 (8.47%) than 90.98% of its industry peers.
ARMK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 1.97% | ||
| GM | 8.47% |
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.
The number of shares outstanding for ARMK has been increased compared to 1 year ago.
The number of shares outstanding for ARMK has been increased compared to 5 years ago.
ARMK has a better debt/assets ratio than last year.
2.2 Solvency
ARMK has an Altman-Z score of 2.23. 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 (2.23) is better than 63.91% of its industry peers.
ARMK has a debt to FCF ratio of 17.61. This is a negative value and a sign of low solvency as ARMK would need 17.61 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.61, ARMK is in line with its industry, outperforming 46.62% of the companies in the same industry.
ARMK has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
ARMK has a Debt to Equity ratio (2.02) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 17.61 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.01
WACC5.59%
2.3 Liquidity
ARMK has a Current Ratio of 1.21. 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 1.21, ARMK is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK's Quick ratio of 1.08 is fine compared to the rest of the industry. ARMK outperforms 60.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% over the past year.
Measured over the past years, ARMK shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.10% on average per year.
Looking at the last year, ARMK shows a small growth in Revenue. The Revenue has grown by 0.35% in the last year.
ARMK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.41% yearly.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%17.24%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%1.89%
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 15.91% on average per year.
Based on estimates for the next years, ARMK will show a small growth in Revenue. The Revenue will grow by 6.45% on average per year.
EPS Next Y27.4%
EPS Next 2Y22.4%
EPS Next 3Y20.44%
EPS Next 5Y15.91%
Revenue Next Year6.78%
Revenue Next 2Y6.01%
Revenue Next 3Y5.89%
Revenue Next 5Y6.45%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.17, ARMK can be considered very expensive at the moment.
62.41% of the companies in the same industry are more expensive than ARMK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ARMK to the average of the S&P500 Index (27.45), we can say ARMK is valued inline with the index average.
A Price/Forward Earnings ratio of 18.43 indicates a rather expensive valuation of ARMK.
65.41% of the companies in the same industry are more expensive than ARMK, based on the Price/Forward Earnings ratio.
ARMK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
ARMK's Enterprise Value to EBITDA is on the same level as the industry average.
62.41% of the companies in the same industry are more expensive than ARMK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.22 | ||
| EV/EBITDA | 13.76 |
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 20.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y22.4%
EPS Next 3Y20.44%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.00%.
Compared to an average industry Dividend Yield of 3.70, ARMK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, ARMK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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
30.38% of the earnings are spent on dividend by ARMK. This is a low number and sustainable payout ratio.
DP30.38%
EPS Next 2Y22.4%
EPS Next 3Y20.44%
42.79
-0.19 (-0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.67%
Inst Owner Change3.92%
Ins Owners0.53%
Ins Owner Change0.07%
Market Cap11.21B
Analysts83
Price Target45.42 (6.15%)
Short Float %3.4%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.38
Dividend Growth(5Y)-2.79%
DP30.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.05%
Min EPS beat(2)1.94%
Max EPS beat(2)4.17%
EPS beat(4)3
Avg EPS beat(4)1.47%
Min EPS beat(4)-0.77%
Max EPS beat(4)4.17%
EPS beat(8)6
Avg EPS beat(8)3.04%
EPS beat(12)8
Avg EPS beat(12)2.15%
EPS beat(16)10
Avg EPS beat(16)8.41%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-3.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)6
Avg Revenue beat(12)-1.04%
Revenue beat(16)9
Avg Revenue beat(16)-0.58%
PT rev (1m)1.55%
PT rev (3m)-0.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.89%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 18.43 | ||
| P/S | 0.64 | ||
| P/FCF | 30.22 | ||
| P/OCF | 13.49 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.76 |
EPS(TTM)1.7
EY3.97%
EPS(NY)2.32
Fwd EY5.43%
FCF(TTM)1.42
FCFY3.31%
OCF(TTM)3.17
OCFY7.41%
SpS67.25
BVpS11.52
TBVpS-14.08
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 11.52% | ||
| ROCE | 7.49% | ||
| ROIC | 5.66% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 21.8% | ||
| OM | 4.38% | ||
| PM (TTM) | 1.97% | ||
| GM | 8.47% | ||
| FCFM | 2.11% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 17.61 | ||
| Debt/EBITDA | 4.99 | ||
| Cap/Depr | 101.98% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | -22.67 | ||
| Cash Conversion | 67.95% | ||
| Profit Quality | 106.62% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.23 |
F-Score5
WACC5.59%
ROIC/WACC1.01
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)0%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%17.24%
EPS Next Y27.4%
EPS Next 2Y22.4%
EPS Next 3Y20.44%
EPS Next 5Y15.91%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%1.89%
Revenue Next Year6.78%
Revenue Next 2Y6.01%
Revenue Next 3Y5.89%
Revenue Next 5Y6.45%
EBIT growth 1Y4.81%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year60.84%
EBIT Next 3Y24.32%
EBIT Next 5Y17.11%
FCF growth 1Y157.47%
FCF growth 3Y6.26%
FCF growth 5Y-9.07%
OCF growth 1Y56.8%
OCF growth 3Y3.4%
OCF growth 5Y-5.89%