| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 1/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$34.09 |
| 52 Week High | US$43.12 |
| 52 Week Low | US$31.22 |
| Beta | 1.97 |
| 1 Month Change | -5.44% |
| 3 Month Change | -7.21% |
| 1 Year Change | -3.86% |
| 3 Year Change | 4.86% |
| 5 Year Change | 1.16% |
| Change since IPO | 50.18% |
Recent News & Updates
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.
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...
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...
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
| ARMK | US Hospitality | US 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
| ARMK volatility | |
|---|---|
| ARMK Average Weekly Movement | 4.3% |
| Hospitality Industry Average Movement | 8.0% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1959 | 248,300 | John Zillmer | https://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
| ARMK fundamental statistics | |
|---|---|
| Market Cap | US$8.74b |
| Earnings (TTM) | -US$90.83m |
| Revenue (TTM) | US$12.10b |
0.7x
P/S Ratio-96.3x
P/E RatioIs ARMK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ARMK income statement (TTM) | |
|---|---|
| Revenue | US$12.10b |
| Cost of Revenue | US$10.50b |
| Gross Profit | US$1.60b |
| Expenses | US$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 Margin | 13.21% |
| Net Profit Margin | -0.75% |
| Debt/Equity Ratio | 269.8% |
How did ARMK perform over the long term?
See historical performance and comparisonDividends
1.3%
Current Dividend Yield-123%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/23 23:02 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/10/01 |
| Annual Earnings | 2021/10/01 |
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.