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ARMK

AramarkNYSE:ARMK Stock Report

Last Price

US$34.09

Market Cap

US$8.7b

7D

-6.8%

1Y

-3.9%

Updated

23 Jan, 2022

Data

Company Financials +
ARMK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends1/6

ARMK Stock Overview

Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally.

Aramark Competitors

Amazon.com

NasdaqGS:AMZN

US$1.4t

Walmart

NYSE:WMT

US$388.9b

Accenture

NYSE:ACN

US$212.1b

Johnson Controls International

NYSE:JCI

US$51.1b

Price History & Performance

Summary of all time highs, changes and price drops for Aramark
Historical stock prices
Current Share PriceUS$34.09
52 Week HighUS$43.12
52 Week LowUS$31.22
Beta1.97
1 Month Change-5.44%
3 Month Change-7.21%
1 Year Change-3.86%
3 Year Change4.86%
5 Year Change1.16%
Change since IPO50.18%

Recent News & Updates

Jan 23

Aramark: Updated Financial Framework Highlights The Path Toward Unlocking Medium-Term Upside

Aramark recently hosted an upbeat investor day event, outlining compelling new medium-term financial targets and a clear path toward realizing value. With the company also set to benefit from a stronger balance sheet, there remains plenty of capital return optionality ahead. Assuming the valuation multiple holds, successful execution from here should drive considerable upside to the shares.

Jan 19
Is Aramark (NYSE:ARMK) Potentially Undervalued?

Is Aramark (NYSE:ARMK) Potentially Undervalued?

Aramark ( NYSE:ARMK ), is not the largest company out there, but it saw a double-digit share price rise of over 10% in...

Dec 21
We Think Aramark (NYSE:ARMK) Is Taking Some Risk With Its Debt

We Think Aramark (NYSE:ARMK) Is Taking Some Risk With Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Nov 19
Aramark (NYSE:ARMK) Has Announced A Dividend Of US$0.11

Aramark (NYSE:ARMK) Has Announced A Dividend Of US$0.11

Aramark's ( NYSE:ARMK ) investors are due to receive a payment of US$0.11 per share on 7th of December. This means the...

Shareholder Returns

ARMKUS HospitalityUS Market
7D-6.8%-5.6%-6.1%
1Y-3.9%-7.2%4.2%

Return vs Industry: ARMK exceeded the US Hospitality industry which returned -7.2% over the past year.

Return vs Market: ARMK underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is ARMK's price volatile compared to industry and market?
ARMK volatility
ARMK Average Weekly Movement4.3%
Hospitality Industry Average Movement8.0%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: ARMK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ARMK's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1959248,300John Zillmerhttps://www.aramark.com

Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical support services, such as patient food and nutrition, retail food, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services.

Aramark Fundamentals Summary

How do Aramark's earnings and revenue compare to its market cap?
ARMK fundamental statistics
Market CapUS$8.74b
Earnings (TTM)-US$90.83m
Revenue (TTM)US$12.10b

0.7x

P/S Ratio

-96.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARMK income statement (TTM)
RevenueUS$12.10b
Cost of RevenueUS$10.50b
Gross ProfitUS$1.60b
ExpensesUS$1.69b
Earnings-US$90.83m

Last Reported Earnings

Oct 01, 2021

Next Earnings Date

Feb 08, 2022

Earnings per share (EPS)-0.35
Gross Margin13.21%
Net Profit Margin-0.75%
Debt/Equity Ratio269.8%

How did ARMK perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

-123%

Payout Ratio

Valuation

Is Aramark undervalued compared to its fair value and its price relative to the market?

15.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARMK ($34.09) is trading below our estimate of fair value ($40.37)

Significantly Below Fair Value: ARMK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ARMK is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.

PE vs Market: ARMK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARMK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARMK is overvalued based on its PB Ratio (3.2x) compared to the US Hospitality industry average (2.9x).


Future Growth

How is Aramark forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

53.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARMK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: ARMK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ARMK's is expected to become profitable in the next 3 years.

Revenue vs Market: ARMK's revenue (10.1% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: ARMK's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARMK's Return on Equity is forecast to be low in 3 years time (18.1%).


Past Performance

How has Aramark performed over the past 5 years?

-44.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARMK is currently unprofitable.

Growing Profit Margin: ARMK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARMK is unprofitable, and losses have increased over the past 5 years at a rate of 44.1% per year.

Accelerating Growth: Unable to compare ARMK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARMK is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (79.7%).


Return on Equity

High ROE: ARMK has a negative Return on Equity (-3.38%), as it is currently unprofitable.


Financial Health

How is Aramark's financial position?


Financial Position Analysis

Short Term Liabilities: ARMK's short term assets ($2.9B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: ARMK's short term assets ($2.9B) do not cover its long term liabilities ($8.8B).


Debt to Equity History and Analysis

Debt Level: ARMK's net debt to equity ratio (250.3%) is considered high.

Reducing Debt: ARMK's debt to equity ratio has increased from 241.7% to 269.8% over the past 5 years.

Debt Coverage: ARMK's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: ARMK's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet


Dividend

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

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARMK's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: ARMK's dividend (1.29%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ARMK has been paying a dividend for less than 10 years.

Growing Dividend: ARMK's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: ARMK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ARMK's dividends in 3 years are forecast to be well covered by earnings (19% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

John Zillmer (66 yo)

2.25yrs

Tenure

US$5,051,719

Compensation

Mr. John J. Zillmer serves as an Industrial Advisor at CVC Capital Partners Limited. Mr. Zillmer served as an Advisor at CVC Capital Partners since 2014. He specializes in Chemical Distribution, Waste Mana...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD5.05M) is about average for companies of similar size in the US market ($USD6.49M).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Leadership Team

Experienced Management: ARMK's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: ARMK's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aramark's employee growth, exchange listings and data sources


Key Information

  • Name: Aramark
  • Ticker: ARMK
  • Exchange: NYSE
  • Founded: 1959
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$8.743b
  • Shares outstanding: 256.46m
  • Website: https://www.aramark.com

Number of Employees


Location

  • Aramark
  • 2400 Market Street
  • Philadelphia
  • Pennsylvania
  • 19103
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 23:02
End of Day Share Price2022/01/21 00:00
Earnings2021/10/01
Annual Earnings2021/10/01


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.