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Aramark

LSE:0HHB
Snowflake Description

Slightly overvalued with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0HHB
LSE
$8B
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Aramark provides food, facilities management, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. The last earnings update was 16 days ago. More info.


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0HHB Share Price and Events
7 Day Returns
0%
LSE:0HHB
0.3%
GB Hospitality
0.5%
GB Market
1 Year Returns
-20.9%
LSE:0HHB
-8.7%
GB Hospitality
-5.4%
GB Market
0HHB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aramark (0HHB) 0% 0% - -20.9% - -
GB Hospitality 0.3% -0.1% -2.9% -8.7% 9.7% 28.7%
GB Market 0.5% -1.7% 2.1% -5.4% 13.8% 1.8%
1 Year Return vs Industry and Market
  • 0HHB underperformed the Hospitality industry which returned -8.7% over the past year.
  • 0HHB underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.4% over the past year.
Price Volatility
0HHB
Industry
5yr Volatility vs Market

Value

 Is Aramark undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aramark to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aramark.

LSE:0HHB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0HHB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.927 (1 + (1- 21%) (93.51%))
1.41
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.41
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.41 * 5.96%)
9.63%

Discounted Cash Flow Calculation for LSE:0HHB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Aramark is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:0HHB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.63%)
2019 529.18 Analyst x7 482.69
2020 632.34 Analyst x8 526.12
2021 661.60 Analyst x3 502.11
2022 730.00 Analyst x1 505.35
2023 784.00 Analyst x1 495.06
2024 826.06 Est @ 5.36% 475.80
2025 860.12 Est @ 4.12% 451.89
2026 888.12 Est @ 3.25% 425.61
2027 911.62 Est @ 2.65% 398.50
2028 931.86 Est @ 2.22% 371.56
Present value of next 10 years cash flows $4,634.70
LSE:0HHB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $931.86 × (1 + 1.23%) ÷ (9.63% – 1.23%)
$11,224.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,224.82 ÷ (1 + 9.63%)10
$4,475.69
LSE:0HHB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,634.70 + $4,475.69
$9,110.38
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,110.38 / 246.43
$36.97
LSE:0HHB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0HHB represents 0.97886x of NYSE:ARMK
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.97886x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 36.97 x 0.97886
$36.19
Value per share (USD) From above. $36.19
Current discount Discount to share price of $30.55
= -1 x ($30.55 - $36.19) / $36.19
15.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Aramark is available for.
Intrinsic value
16%
Share price is $30.55 vs Future cash flow value of $36.19
Current Discount Checks
For Aramark to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Aramark's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Aramark's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aramark's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aramark's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0HHB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-29) in USD $2.14
NYSE:ARMK Share Price ** NYSE (2019-04-08) in USD $31.21
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 18.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aramark.

LSE:0HHB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ARMK Share Price ÷ EPS (both in USD)

= 31.21 ÷ 2.14

14.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aramark is good value based on earnings compared to the GB Hospitality industry average.
  • Aramark is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Aramark's expected growth come at a high price?
Raw Data
LSE:0HHB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
7.5%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.05x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

LSE:0HHB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.56x ÷ 7.5%

1.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aramark is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Aramark's assets?
Raw Data
LSE:0HHB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-29) in USD $13.13
NYSE:ARMK Share Price * NYSE (2019-04-08) in USD $31.21
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.38x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.5x
LSE:0HHB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ARMK Share Price ÷ Book Value per Share (both in USD)

= 31.21 ÷ 13.13

2.38x

* Primary Listing of Aramark.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aramark is overvalued based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Aramark's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Aramark has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Aramark expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aramark expected to grow at an attractive rate?
  • Aramark's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Aramark's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Aramark's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0HHB Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0HHB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 7.5%
LSE:0HHB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 3.1%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 12%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0HHB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0HHB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 18,824 693 1
2022-09-30 17,742 651 2
2021-09-30 17,095 1,242 602 6
2020-09-30 16,635 1,188 543 12
2019-09-30 16,213 1,006 511 12
LSE:0HHB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-29 16,151 1,115 528
2018-12-28 16,090 1,151 526
2018-09-28 15,790 1,047 568
2018-06-29 15,530 743 506
2018-03-30 15,152 647 498
2017-12-29 14,834 768 541
2017-09-29 14,604 1,053 374
2017-06-30 14,494 906 344
2017-03-31 14,488 1,044 324
2016-12-30 14,441 1,010 320
2016-09-30 14,416 867 288
2016-07-01 14,418 936 261
2016-04-01 14,317 856 250

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aramark's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
  • Aramark's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0HHB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Aramark Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0HHB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 2.16 2.53 1.79 2.00
2020-09-30 2.06 2.40 1.45 8.00
2019-09-30 1.98 2.11 1.67 7.00
LSE:0HHB Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-29 2.14
2018-12-28 2.14
2018-09-28 2.31
2018-06-29 2.06
2018-03-30 2.04
2017-12-29 2.21
2017-09-29 1.53
2017-06-30 1.41
2017-03-31 1.33
2016-12-30 1.31
2016-09-30 1.19
2016-07-01 1.08
2016-04-01 1.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aramark is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Aramark's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aramark has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Aramark performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aramark's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aramark has delivered over 20% year on year earnings growth in the past 5 years.
  • Aramark's 1-year earnings growth is less than its 5-year average (5.9% vs 27.4%)
  • Aramark's earnings growth has not exceeded the GB Hospitality industry average in the past year (5.9% vs 12.8%).
Earnings and Revenue History
Aramark's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aramark Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0HHB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-29 16,150.54 528.07 361.03
2018-12-28 16,089.86 526.28 367.09
2018-09-28 15,789.63 567.89 352.93
2018-06-29 15,530.16 505.57 361.21
2018-03-30 15,151.83 498.29 339.29
2017-12-29 14,834.15 540.87 323.67
2017-09-29 14,604.41 373.92 299.17
2017-06-30 14,494.11 344.13 299.16
2017-03-31 14,487.74 323.60 280.69
2016-12-30 14,440.94 319.80 274.67
2016-09-30 14,415.83 287.81 283.34
2016-07-01 14,417.96 261.33 282.31
2016-04-01 14,317.25 250.32 300.28
2016-01-01 14,337.06 243.79 303.00
2015-10-02 14,329.14 235.95 316.74
2015-07-03 14,730.95 223.49 336.71
2015-04-03 14,864.81 236.60 335.86
2015-01-02 14,772.19 189.69 356.52
2014-10-03 14,832.91 148.96 382.85
2014-06-27 14,401.12 144.48 352.46
2014-03-28 14,271.09 125.35 326.55
2013-12-27 14,172.82 72.33 286.46
2013-09-27 13,945.66 70.39 227.90
2013-06-28 13,830.84 88.67 215.56
2013-03-29 13,676.91 74.83 215.03
2012-12-28 13,618.73 107.69 210.51
2012-09-28 13,505.43 103.25 203.02
2012-06-29 13,396.16 82.38 201.48

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Aramark has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Aramark used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Aramark's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Aramark's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aramark has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Aramark's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aramark's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aramark is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aramark's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Aramark's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aramark Company Filings, last reported 1 month ago.

LSE:0HHB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-29 3,243.67 7,191.92 195.39
2018-12-28 3,227.94 7,377.35 249.88
2018-09-28 3,039.65 7,243.98 216.48
2018-06-29 2,855.82 7,870.31 167.76
2018-03-30 2,805.59 7,822.69 185.53
2017-12-29 2,732.28 7,051.65 185.66
2017-09-29 2,468.86 5,277.80 238.80
2017-06-30 2,332.61 5,527.86 154.67
2017-03-31 2,250.55 5,311.26 145.48
2016-12-30 2,248.37 5,435.53 146.95
2016-09-30 2,170.80 5,310.88 152.58
2016-07-01 2,099.30 5,484.05 196.51
2016-04-01 2,059.32 5,458.84 147.72
2016-01-01 1,979.76 5,579.68 115.36
2015-10-02 1,893.46 5,323.87 122.42
2015-07-03 1,876.31 5,661.57 117.84
2015-04-03 1,822.65 5,622.44 134.75
2015-01-02 1,764.82 5,850.64 120.81
2014-10-03 1,727.91 5,480.08 111.69
2014-06-27 1,729.73 5,741.54 122.42
2014-03-28 1,709.32 5,673.95 139.18
2013-12-27 1,683.33 5,691.33 115.60
2013-09-27 913.91 5,886.94 111.00
2013-06-28 839.62 6,272.16 97.82
2013-03-29
2012-12-28 966.86 6,100.66 136.75
2012-09-28 977.26 6,100.66 136.75
2012-06-29 1,519.33 5,866.33 100.97
  • Aramark's level of debt (221.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (331.9% vs 221.7% today).
  • Debt is not well covered by operating cash flow (15.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Aramark's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aramark has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Aramark's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.41%
Current annual income from Aramark dividends. Estimated to be 1.52% next year.
If you bought $2,000 of Aramark shares you are expected to receive $28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Aramark's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.98%).
  • Aramark's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.3%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0HHB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0HHB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 0.67 1.00
2022-09-30 0.56 2.00
2021-09-30 0.50 6.00
2020-09-30 0.46 10.00
2019-09-30 0.43 10.00
LSE:0HHB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 0.440 1.408
2019-01-30 0.440 1.423
2018-11-13 0.440 1.357
2018-08-01 0.420 1.060
2018-05-02 0.420 1.087
2018-01-31 0.420 1.047
2017-11-14 0.420 0.976
2017-08-02 0.412 1.002
2017-05-03 0.412 1.052
2017-02-01 0.412 1.140
2016-11-23 0.412 1.181
2016-11-15 0.412 1.205
2016-08-03 0.380 1.024
2016-05-04 0.380 1.122
2016-02-02 0.380 1.173
2015-12-01 0.380 1.176
2015-11-18 0.380 1.158
2015-08-04 0.345 1.108
2015-05-06 0.345 1.094
2015-02-03 0.345 1.095
2014-11-12 0.345 1.138
2014-08-06 0.300 1.123
2014-05-08 0.300 1.128
2014-02-05 0.300 1.071

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Aramark has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Aramark only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Aramark's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.4x coverage).
X
Income/ dividend checks
We assess Aramark's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aramark afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aramark has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Aramark's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Eric Foss
COMPENSATION $15,958,908
AGE 60
TENURE AS CEO 7 years
CEO Bio

Mr. Eric J. Foss has been the Chairman of the Board at Aramark since February 3, 2015 and as President and Chief Executive Officer since May 2012. He serves as the Chief Executive Officer and President of Aramark Canada Ltd. Mr. Foss has been the Chief Executive Officer and President of ARAMARK Holdings Corporation. He has been Chief Executive Officer and President of Aramark Services, Inc. since May 2012. He serves as Executive Director of ARAMARK Corporation. He served as an Executive Director of The Pepsi Bottling Group, Inc. since July 20, 2006. Mr. Foss served as the Chief Executive Officer of Bottling Group, LLC (also known as Pepsi Beverages Company) from February 26, 2010 to December 2011 and Pepsico Group Inc. since July 20, 2006. He served as the Principal Executive Officer of Bottling Group LLC, principal operating subsidiary of Pepsi Bottling Group Inc. since July 19, 2006 and also served as its President. He served as the Managing Director of Bottling Group LLC until December 15, 2006. He served as the Chief Executive Officer of PepsiCo Bottling North America at Pepsico, Inc. since October 2009. Mr. Foss served as the President of Pepsi Bottling Group Inc. from July 2006 to October 2008. He served as the Chief Executive Officer of The Pepsi Bottling Group, Inc. from 2008 to February 2010 and also from 2006 to 2007. He served as the Chief Operating Officer of Pepsi Bottling Group Inc., from September 5, 2005 to July 20, 2006. Mr. Foss served as the President of Pepsi Bottling Group, North America of The Pepsi Bottling Group, Inc. from September 2001 to September 2005. Previously, Mr. Foss served as Executive Vice President and General Manager of PBG North America of Pepsi Bottling Group Inc. from August 2000 to September 2001. From October 1999 to August 2000, he served as Senior Vice President, U.S. Sales and Field Operations of Pepsi Bottling Group. Prior to that, he served as Senior Vice President of Sales and Field Marketing for the North America division of Pepsi Bottling Group since March 1999. He joined Pepsi Bottling Group in March 1999. Mr. Foss joined Pepsi-Cola Company in 1982 and has held a variety of other field and headquarters-based sales, marketing and general management positions, both in the U.S. and Europe. From 1994 to 1996, he served as General Manager of Great West Business Unit of Pepsi-Cola North America. Mr. Foss served as General Manager for the Central Europe Region for Pepsi-Cola International from December 1996 to March 1999. Since 1990, Mr. Foss served as Vice President of Retail Strategy for Pepsi-Cola North America (PCNA). He served as Chairman of The Pepsi Bottling Group, Inc. from October 2008 to 2010. He served as the Chairman of the Board at Bottling Group, LLC. He has been an Independent Director of Cigna Corporation since July 26, 2011. He has been a Director of ARAMARK Holdings Corporation since May 7, 2012. He serves as a Director of Aramark Services, Inc. He serves as a Director at Catalyst Inc. He serves as a Director of The American Beverage Association. He served as Director of UDR, Inc. since June 6, 2017 until July 4, 2017 and previously served as its Director from August 27, 2003 to May 21, 2015. He serves on the Industry Affairs Council of the Grocery Manufacturers of America. He served as a Member of Special Advisory Board at Pepsico, Inc. His passion for sports led to an ownership position he holds as a principal investor in the Omaha Stormchasers, the AAA affiliate of Major League Baseball’s (MLB) Kansas City Royals and winners of the AAA National Championship in 2013. He holds Bachelor of Science degree in Marketing from Ball State University and as an active alumnae was honored with the Miller College of Business Award of Distinction.

CEO Compensation
  • Eric's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Eric's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Aramark management team in years:

6.8
Average Tenure
51
Average Age
  • The average tenure for the Aramark management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Eric Foss

TITLE
Chairman
COMPENSATION
$16M
AGE
60
TENURE
7 yrs

Steve Bramlage

TITLE
Executive VP
COMPENSATION
$3M
AGE
48
TENURE
4.1 yrs

Lynn McKee

TITLE
Executive Vice President of Human Resources
COMPENSATION
$3M
AGE
63
TENURE
15 yrs

Felise Kissell

TITLE
Vice President of Investor Relations & Corporate Affairs

Lauren Harrington

TITLE
Senior VP & General Counsel
AGE
42
TENURE
0.2 yrs

Danna Vetter

TITLE
Chief Marketer

Joe Munnelly

TITLE
Chief Accounting Officer (Leave of Absence)
COMPENSATION
$2M
AGE
54
TENURE
11.7 yrs

David Ballarini

TITLE
Senior Vice President
TENURE
10.7 yrs

Brent Franks

TITLE
Chief Operating Officer of International
TENURE
6.7 yrs

Marc Bruno

TITLE
Chief Operating Officer of Sports
AGE
46
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the Aramark board of directors in years:

3.8
Average Tenure
61
Average Age
  • The tenure for the Aramark board of directors is about average.
Board of Directors

Eric Foss

TITLE
Chairman
COMPENSATION
$16M
AGE
60
TENURE
4.3 yrs

Sanjeev Mehra

TITLE
Lead Director
COMPENSATION
$333K
AGE
59
TENURE
4.3 yrs

Dan Heinrich

TITLE
Independent Director
COMPENSATION
$301K
AGE
62
TENURE
5.5 yrs

Steve Sadove

TITLE
Lead Director
COMPENSATION
$301K
AGE
66
TENURE
0.3 yrs

Irene Esteves

TITLE
Independent Director
COMPENSATION
$290K
AGE
59
TENURE
4.3 yrs

Baron Beckers-Vieujant

TITLE
Independent Director
COMPENSATION
$261K
AGE
58
TENURE
4.3 yrs

Lisa Bisaccia

TITLE
Independent Director
COMPENSATION
$275K
AGE
62
TENURE
3.3 yrs

John Quelch

TITLE
Independent Director
COMPENSATION
$270K
AGE
67
TENURE
3.3 yrs

Rick Dreiling

TITLE
Independent Director
COMPENSATION
$260K
AGE
65
TENURE
3.3 yrs

Patty Morrison

TITLE
Independent Director
COMPENSATION
$270K
AGE
59
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Feb 19 Buy Stephen Bramlage Individual 14. Feb 19 14. Feb 19 3,195 $31.26 $99,865
14. Dec 18 Buy Stephen Sadove Individual 13. Dec 18 13. Dec 18 6,000 $32.72 $196,320
13. Dec 18 Buy Eric Foss Individual 12. Dec 18 12. Dec 18 92,564 $32.46 $3,004,183
01. Sep 18 Sell Stephen Reynolds Individual 29. Aug 18 29. Aug 18 -15,000 $41.33 $-619,961
X
Management checks
We assess Aramark's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aramark has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Aramark provides food, facilities management, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. It operates in three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. The company offers managed services, including dining, catering, food service management, and convenience-oriented retail operations; non-clinical support services, such as patient food and nutrition, retail food, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, clinical equipment maintenance, grounds keeping, and capital project management services. It also provides on-site restaurants, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, payment, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Additionally, the company offers correctional food, and food and facilities management services for parks; and operates commissaries, laundry facilities, and property rooms. It also provides design, sourcing and manufacturing, delivery, cleaning, maintenance, and marketing services for uniforms and accessories; provides managed restroom services; and rents uniforms, work clothing, outerwear, particulate-free garments, and non-garment items and related services that include mats, shop towels, and first aid supplies. The company was formerly known as ARAMARK Holdings Corporation and changed its name to Aramark in May 2014. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.

Details
Name: Aramark
0HHB
Exchange: LSE
Founded: 1959
$7,691,080,019
246,429,991
Website: http://www.aramark.com
Address: Aramark
Aramark Tower,
1101 Market Street,
Philadelphia,
Pennsylvania, 19107,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ARMK Common Stock New York Stock Exchange US USD 12. Dec 2013
DB 0AK Common Stock Deutsche Boerse AG DE EUR 12. Dec 2013
LSE 0HHB Common Stock London Stock Exchange GB USD 12. Dec 2013
Number of employees
Current staff
Staff numbers
227,200
Aramark employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 22:44
End of day share price update: 2019/04/08 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/29
Last annual earnings reported: 2018/09/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.