ARAMARK (ARMK) Stock Fundamental Analysis
NYSE:ARMK - New York Stock Exchange, Inc. - US03852U1060 - Common Stock - Currency: USD
Overall ARMK gets a fundamental rating of 4 out of 10. We evaluated ARMK against 132 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.
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.
Each year in the past 5 years ARMK had a positive operating cash flow.
1.2 Ratios
ARMK has a Return On Assets of 2.58%. This is comparable to the rest of the industry: ARMK outperforms 53.03% of its industry peers.
Looking at the Return On Equity, with a value of 11.52%, ARMK is in the better half of the industry, outperforming 71.97% of the companies in the same industry.
ARMK's Return On Invested Capital of 5.66% is in line compared to the rest of the industry. ARMK outperforms 52.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARMK is significantly below the industry average of 13.91%.
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
The Profit Margin of ARMK (1.97%) is comparable to the rest of the industry.
ARMK's Profit Margin has declined in the last couple of years.
ARMK's Operating Margin of 4.38% is on the low side compared to the rest of the industry. ARMK is outperformed by 64.39% 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 90.91% 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) below the Cost of Capital (WACC), ARMK is destroying value.
The number of shares outstanding for ARMK has been increased compared to 1 year ago.
Compared to 5 years ago, ARMK has more shares outstanding
Compared to 1 year ago, ARMK has an improved debt to assets ratio.
2.2 Solvency
ARMK has an Altman-Z score of 2.24. 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 has a Altman-Z score of 2.24. This is in the better half of the industry: ARMK outperforms 60.61% 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.
ARMK's Debt to FCF ratio of 17.61 is in line compared to the rest of the industry. ARMK outperforms 46.97% of its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that ARMK has dependencies on debt 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 | 2.24 |
ROIC/WACC0.79
WACC7.2%
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.
ARMK's Current ratio of 1.21 is fine compared to the rest of the industry. ARMK outperforms 63.64% of its industry peers.
A Quick Ratio of 1.08 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK has a Quick ratio of 1.08. This is in the better half of the industry: ARMK outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
ARMK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
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.
ARMK shows a small growth in Revenue. In the last year, the Revenue has grown by 0.35%.
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 Y27.46%
EPS Next 2Y22.52%
EPS Next 3Y20.39%
EPS Next 5Y15.91%
Revenue Next Year6.89%
Revenue Next 2Y6.13%
Revenue Next 3Y6.07%
Revenue Next 5Y6.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.47, the valuation of ARMK can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 63.64% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. ARMK is around the same levels.
Based on the Price/Forward Earnings ratio of 18.61, the valuation of ARMK can be described as rather expensive.
65.91% of the companies in the same industry are more expensive than ARMK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARMK to the average of the S&P500 Index (36.44), we can say ARMK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 18.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARMK.
63.64% 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 | 30.58 | ||
| EV/EBITDA | 13.86 |
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 20.39% in the coming years.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y22.52%
EPS Next 3Y20.39%
5. Dividend
5.1 Amount
ARMK has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 3.47, ARMK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.96, ARMK pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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 2Y22.52%
EPS Next 3Y20.39%
43.3
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.67%
Inst Owner Change-0.01%
Ins Owners0.53%
Ins Owner Change0.07%
Market Cap11.35B
Analysts81.9
Price Target45.42 (4.9%)
Short Float %3.21%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)0%
PT rev (3m)-0.24%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 18.61 | ||
| P/S | 0.64 | ||
| P/FCF | 30.58 | ||
| P/OCF | 13.65 | ||
| P/B | 3.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.86 |
EPS(TTM)1.7
EY3.93%
EPS(NY)2.33
Fwd EY5.37%
FCF(TTM)1.42
FCFY3.27%
OCF(TTM)3.17
OCFY7.32%
SpS67.25
BVpS11.52
TBVpS-14.08
PEG (NY)0.93
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 | 2.24 |
F-Score5
WACC7.2%
ROIC/WACC0.79
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 Y27.46%
EPS Next 2Y22.52%
EPS Next 3Y20.39%
EPS Next 5Y15.91%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%1.89%
Revenue Next Year6.89%
Revenue Next 2Y6.13%
Revenue Next 3Y6.07%
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%