ARAMARK (ARMK) Stock Fundamental Analysis
USA - NYSE:ARMK - US03852U1060 - Common Stock
37.8 USD
+0.42 (+1.12%)
37.8 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ARMK. ARMK was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has only an average score on both its financial health and profitability. ARMK has a decent growth rate and is not valued too expensively.
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.
In multiple years ARMK reported negative net income over the last 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 (2.72%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 11.73%, ARMK is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
With a Return On Invested Capital value of 5.68%, ARMK perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARMK is significantly below the industry average of 10.78%.
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
The Profit Margin of ARMK (2.02%) is comparable to the rest of the industry.
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 66.67% of its industry peers.
ARMK's Operating Margin has been stable in the last couple of years.
ARMK has a worse Gross Margin (8.55%) than 90.15% 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.
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 2.23. 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.
With a decent Altman-Z score value of 2.23, ARMK is doing good in the industry, outperforming 63.64% of the companies in the same industry.
The Debt to FCF ratio of ARMK is 22.42, which is on the high side as it means it would take ARMK, 22.42 years of fcf income to pay off all of its debts.
ARMK has a Debt to FCF ratio (22.42) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.03 is on the high side and indicates that ARMK has dependencies on debt financing.
With a Debt to Equity ratio value of 2.03, ARMK perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.98
WACC5.81%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK's Current ratio of 1.29 is fine compared to the rest of the industry. ARMK outperforms 62.88% of its industry peers.
ARMK has a Quick Ratio of 1.14. This is a normal value and indicates that ARMK is financially healthy and should not expect problems in meeting its short term obligations.
ARMK has a better Quick ratio (1.14) than 61.36% 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.
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 decrease in Revenue. The Revenue has decreased by -0.06% 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)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
ARMK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.62% yearly.
Based on estimates for the next years, ARMK will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y24.99%
EPS Next 2Y22.66%
EPS Next 3Y20.61%
EPS Next 5Y15.62%
Revenue Next Year6.78%
Revenue Next 2Y6.3%
Revenue Next 3Y6.15%
Revenue Next 5Y6.12%
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
The Price/Earnings ratio is 21.12, which indicates a rather expensive current valuation of ARMK.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than 64.39% of the companies in the same industry.
ARMK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
ARMK is valuated correctly with a Price/Forward Earnings ratio of 16.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 67.42% of the companies listed in the same industry.
ARMK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 16.21 |
4.2 Price Multiples
ARMK's Enterprise Value to EBITDA is on the same level as the industry average.
ARMK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.39 | ||
| EV/EBITDA | 12.42 |
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 20.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y22.66%
EPS Next 3Y20.61%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
ARMK's Dividend Yield is a higher than the industry average which is at 4.33.
Compared to an average S&P500 Dividend Yield of 2.39, ARMK's dividend is way lower than the S&P500 average.
| 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
29.94% of the earnings are spent on dividend by ARMK. This is a low number and sustainable payout ratio.
DP29.94%
EPS Next 2Y22.66%
EPS Next 3Y20.61%
37.8
+0.42 (+1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change-0.02%
Ins Owners0.54%
Ins Owner Change0.04%
Market Cap9.94B
Revenue(TTM)17.87B
Net Income(TTM)361.67M
Analysts83.81
Price Target46.4 (22.75%)
Short Float %3.7%
Short Ratio4.51
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)-0.31%
PT rev (3m)0.79%
EPS NQ rev (1m)-3.49%
EPS NQ rev (3m)-4.33%
EPS NY rev (1m)-1.75%
EPS NY rev (3m)-1.94%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 16.21 | ||
| P/S | 0.56 | ||
| P/FCF | 35.39 | ||
| P/OCF | 12.95 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.42 |
EPS(TTM)1.79
EY4.74%
EPS(NY)2.33
Fwd EY6.17%
FCF(TTM)1.07
FCFY2.83%
OCF(TTM)2.92
OCFY7.72%
SpS68
BVpS11.73
TBVpS-13.96
PEG (NY)0.84
PEG (5Y)N/A
Graham Number21.74
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
ROICexgc growth 3Y122.06%
ROICexgc 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
WACC5.81%
ROIC/WACC0.98
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 Y24.99%
EPS Next 2Y22.66%
EPS Next 3Y20.61%
EPS Next 5Y15.62%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%5.72%
Revenue Next Year6.78%
Revenue Next 2Y6.3%
Revenue Next 3Y6.15%
Revenue Next 5Y6.12%
EBIT growth 1Y3.55%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year62.05%
EBIT Next 3Y24.61%
EBIT Next 5Y16.87%
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%
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 4 / 10.
Can you provide the expected EPS growth for ARMK stock?
The Earnings per Share (EPS) of ARAMARK (ARMK) is expected to grow by 24.99% 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 29.94%.