ARAMARK (ARMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARMK - US03852U1060 - Common Stock
39.0502 USD
+0.48 (+1.25%)
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 has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years ARMK always reported a positive cash flow from operatings.
1.2 Ratios
- ARMK has a Return On Assets of 2.45%. This is comparable to the rest of the industry: ARMK outperforms 52.63% of its industry peers.
- The Return On Equity of ARMK (10.37%) is better than 70.68% of its industry peers.
- With a Return On Invested Capital value of 5.99%, ARMK perfoms like the industry average, outperforming 56.39% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ARMK is below the industry average of 10.34%.
- 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
- Looking at the Profit Margin, with a value of 1.76%, ARMK is in line with its industry, outperforming 46.62% of the companies in the same 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 worse Gross Margin (8.36%) than 89.47% of its industry peers.
- In the last couple of years the Gross Margin of ARMK has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARMK is destroying value.
- The number of shares outstanding for ARMK has been reduced compared to 1 year ago.
- ARMK has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ARMK has been reduced compared to a year ago.
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 better than 60.90% 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.
- 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 | 2.23 |
ROIC/WACC0.95
WACC6.3%
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 has a Current ratio (0.99) which is in line with its industry peers.
- A Quick Ratio of 0.88 indicates that ARMK may have some problems paying its short term obligations.
- ARMK has a Quick ratio of 0.88. This is comparable to the rest of the industry: ARMK outperforms 49.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- ARMK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.42%, which is quite good.
- The Earnings Per Share has been growing by 15.54% on average over the past years. This is quite good.
- Looking at the last year, ARMK shows a small growth in Revenue. The Revenue has grown by 6.35% in the last 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 14.36% yearly.
- Based on estimates for the next years, ARMK will show a small growth in Revenue. The Revenue will grow by 5.89% on average per year.
EPS Next Y23.65%
EPS Next 2Y20.3%
EPS Next 3Y18.36%
EPS Next 5Y14.36%
Revenue Next Year5.83%
Revenue Next 2Y5.88%
Revenue Next 3Y5.96%
Revenue Next 5Y5.89%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.46, which indicates a rather expensive current valuation of ARMK.
- ARMK's Price/Earnings ratio is a bit cheaper when compared to the industry. ARMK is cheaper than 69.17% of the companies in the same industry.
- ARMK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- ARMK is valuated rather expensively with a Price/Forward Earnings ratio of 17.35.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 69.17% of the companies listed in the same industry.
- ARMK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
- ARMK's Enterprise Value to EBITDA ratio is in line with the industry average.
- 68.42% 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 | 23.78 | ||
| EV/EBITDA | 11.76 |
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)0.91
PEG (5Y)N/A
EPS Next 2Y20.3%
EPS Next 3Y18.36%
5. Dividend
5.1 Amount
- ARMK has a Yearly Dividend Yield of 1.24%.
- Compared to an average industry Dividend Yield of 6.32, ARMK pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.91, ARMK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
- ARMK pays out 33.95% of its income as dividend. This is a sustainable payout ratio.
DP33.95%
EPS Next 2Y20.3%
EPS Next 3Y18.36%
NYSE:ARMK (1/15/2026, 12:20:04 PM)
39.0502
+0.48 (+1.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-17 2025-11-17/bmo
Earnings (Next)02-02 2026-02-02/bmo
Inst Owners100.66%
Inst Owner Change0.06%
Ins Owners0.51%
Ins Owner Change0.39%
Market Cap10.27B
Revenue(TTM)18.51B
Net Income(TTM)326.39M
Analysts83.81
Price Target46.17 (18.23%)
Short Float %3.74%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.42
Dividend Growth(5Y)-1.01%
DP33.95%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.22%
PT rev (3m)-0.82%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-13.97%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-4.13%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 17.35 | ||
| P/S | 0.55 | ||
| P/FCF | 23.78 | ||
| P/OCF | 11.15 | ||
| P/B | 3.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.76 |
EPS(TTM)1.82
EY4.66%
EPS(NY)2.25
Fwd EY5.76%
FCF(TTM)1.64
FCFY4.21%
OCF(TTM)3.5
OCFY8.97%
SpS70.38
BVpS11.97
TBVpS-13.69
PEG (NY)0.91
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 | 2.23 |
F-Score8
WACC6.3%
ROIC/WACC0.95
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 5Y14.36%
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 5Y5.89%
EBIT growth 1Y12.08%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year52.19%
EBIT Next 3Y21.92%
EBIT Next 5Y14.43%
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.
Can you provide the valuation status for ARAMARK?
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.
What is the valuation of ARAMARK based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARAMARK (ARMK) is 21.46 and the Price/Book (PB) ratio is 3.26.
What is the earnings growth outlook for ARAMARK?
The Earnings per Share (EPS) of ARAMARK (ARMK) is expected to grow by 23.65% in the next year.