ARAMARK (ARMK) Stock Fundamental Analysis
USA - NYSE:ARMK - US03852U1060 - Common Stock
37.46 USD
-0.1 (-0.27%)
37.46 USD
0 (0%)
ARMK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has an average financial health and profitability rating. ARMK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ARMK was profitable.
In the past year ARMK had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ARMK reported negative net income in multiple years.
Each year in the past 5 years ARMK had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.72%, ARMK perfoms like the industry average, outperforming 51.13% of the companies in the same industry.
ARMK has a Return On Equity of 11.73%. This is in the better half of the industry: ARMK outperforms 69.17% of its industry peers.
With a Return On Invested Capital value of 5.68%, ARMK perfoms like the industry average, outperforming 53.38% of the companies in the same 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 15.68%.
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
ARMK's Profit Margin of 2.02% is in line compared to the rest of the industry. ARMK outperforms 41.35% of its industry peers.
In the last couple of years the Profit Margin of ARMK has declined.
ARMK has a Operating Margin of 4.44%. This is in the lower half of the industry: ARMK underperforms 66.17% of its industry peers.
ARMK's Operating Margin has been stable in the last couple of years.
ARMK's Gross Margin of 8.55% is on the low side compared to the rest of the industry. ARMK is outperformed by 91.73% of its industry peers.
In the last couple of years the Gross Margin of ARMK has grown nicely.
| 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.
Compared to 1 year ago, ARMK has more 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 2.23 indicates that ARMK is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ARMK (2.23) is comparable to the rest of the industry.
ARMK has a debt to FCF ratio of 22.42. This is a negative value and a sign of low solvency as ARMK would need 22.42 years to pay back of 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 44.36% 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.
The Debt to Equity ratio of ARMK (2.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.84
WACC6.74%
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 63.91% 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.
ARMK's Quick ratio of 1.14 is fine compared to the rest of the industry. ARMK outperforms 62.41% 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 nice 8.48% over the past year.
ARMK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.10% yearly.
The Revenue has decreased by -0.06% in the past year.
The Revenue has been growing slightly by 1.41% on average over the past years.
EPS 1Y (TTM)8.48%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%29.03%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%5.72%
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 15.55% on average per year.
Based on estimates for the next years, ARMK will show a small growth in Revenue. The Revenue will grow by 6.67% on average per year.
EPS Next Y26.95%
EPS Next 2Y22.62%
EPS Next 3Y21.08%
EPS Next 5Y15.55%
Revenue Next Year6.79%
Revenue Next 2Y6.23%
Revenue Next 3Y6.11%
Revenue Next 5Y6.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.93, which indicates a rather expensive current valuation of ARMK.
Compared to the rest of the industry, the Price/Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 68.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. ARMK is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.07, ARMK is valued correctly.
69.92% of the companies in the same industry are more expensive than ARMK, based on the Price/Forward Earnings ratio.
ARMK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 16.07 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.07 | ||
| EV/EBITDA | 12.44 |
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.
A more expensive valuation may be justified as ARMK's earnings are expected to grow with 21.08% in the coming years.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y22.62%
EPS Next 3Y21.08%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.08%.
ARMK's Dividend Yield is a higher than the industry average which is at 3.93.
With a Dividend Yield of 1.08, ARMK pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of ARMK decreases each year by -2.79%.
ARMK has been paying a dividend for at least 10 years, so it has 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 2Y22.62%
EPS Next 3Y21.08%
37.46
-0.1 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners108.97%
Inst Owner Change-1.44%
Ins Owners0.53%
Ins Owner Change0.04%
Market Cap9.85B
Analysts83.81
Price Target46.55 (24.27%)
Short Float %2.51%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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)1.11%
PT rev (3m)2.49%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 16.07 | ||
| P/S | 0.55 | ||
| P/FCF | 35.07 | ||
| P/OCF | 12.84 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.44 |
EPS(TTM)1.79
EY4.78%
EPS(NY)2.33
Fwd EY6.22%
FCF(TTM)1.07
FCFY2.85%
OCF(TTM)2.92
OCFY7.79%
SpS68
BVpS11.73
TBVpS-13.96
PEG (NY)0.78
PEG (5Y)N/A
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
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 Turnover1.35
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 | 2.23 |
F-Score5
WACC6.74%
ROIC/WACC0.84
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)8.48%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%29.03%
EPS Next Y26.95%
EPS Next 2Y22.62%
EPS Next 3Y21.08%
EPS Next 5Y15.55%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%5.72%
Revenue Next Year6.79%
Revenue Next 2Y6.23%
Revenue Next 3Y6.11%
Revenue Next 5Y6.67%
EBIT growth 1Y3.55%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year62.05%
EBIT Next 3Y24.65%
EBIT Next 5Y16.92%
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%