Aramark
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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 73 days ago. More info.
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ARMK Share Price and Events
7 Day Returns
1 Year Returns
ARMK Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Aramark (ARMK) | -0.7% | 3.8% | 14.3% | -8.6% | 0.1% | 32.6% |
| US Hospitality | 0.6% | 1.9% | -1.6% | -5.1% | 44% | 23.4% |
| US Market | -0.3% | 2.9% | 2.1% | 3.4% | 36.2% | 41.3% |
1 Year Return vs Industry and Market
- ARMK underperformed the Hospitality industry which returned -5.1% over the past year.
- ARMK underperformed the Market in United States of America which returned 3.4% over the past year.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Aramark.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 11 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.7% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Hospitality Unlevered Beta | Simply Wall St/ S&P Global | 0.92 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.923 (1 + (1- 21%) (80.64%)) |
1.343 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.34 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.343 * 5.96%) |
10.73% |
Discounted Cash Flow Calculation for NYSE:ARMK 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.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 10.73%) |
|
|---|---|---|---|
| 2020 | 633.84 | Analyst x6 | 572.40 |
| 2021 | 659.90 | Analyst x2 | 538.18 |
| 2022 | 739.00 | Analyst x1 | 544.27 |
| 2023 | 799.00 | Analyst x1 | 531.42 |
| 2024 | 849.21 | Est @ 6.28% | 510.07 |
| 2025 | 893.52 | Est @ 5.22% | 484.67 |
| 2026 | 933.48 | Est @ 4.47% | 457.27 |
| 2027 | 970.34 | Est @ 3.95% | 429.25 |
| 2028 | 1,005.11 | Est @ 3.58% | 401.54 |
| 2029 | 1,038.56 | Est @ 3.33% | 374.68 |
| Present value of next 10 years cash flows | $4,843.76 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= $1,038.56 × (1 + 2.73%) ÷ (10.73% – 2.73%) |
$13,331.63 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $13,331.63 ÷ (1 + 10.73%)10 |
$4,809.71 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $4,843.76 + $4,809.71 |
$9,653.47 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $9,653.47 / 246.43 |
$39.17 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $39.17 |
| Current discount | Discount to share price of
$36.19
= -1 x ($36.19 - $39.17) / $39.17 |
7.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-29) in USD | $2.14 |
| NYSE:ARMK Share Price ** | NYSE (2019-07-18) in USD | $36.19 |
| United States of America Hospitality Industry PE Ratio | Median Figure of 74 Publicly-Listed Hospitality Companies | 22.45x |
| United States of America Market PE Ratio | Median Figure of 3,083 Publicly-Listed Companies | 17.88x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Aramark.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:ARMK Share Price ÷ EPS (both in USD) = 36.19 ÷ 2.14 |
16.88x |
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 US Hospitality industry average.
- Aramark is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Aramark's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 16.88x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts |
7.5%per year |
| United States of America Hospitality Industry PEG Ratio | Median Figure of 56 Publicly-Listed Hospitality Companies | 1.85x |
| United States of America Market PEG Ratio | Median Figure of 2,124 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 16.88x ÷ 7.5% |
2.25x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-29) in USD | $13.13 |
| NYSE:ARMK Share Price * | NYSE (2019-07-18) in USD | $36.19 |
| United States of America Hospitality Industry PB Ratio | Median Figure of 112 Publicly-Listed Hospitality Companies | 2.17x |
| United States of America Market PB Ratio | Median Figure of 5,245 Publicly-Listed Companies | 1.8x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:ARMK Share Price ÷ Book Value per Share (both in USD) = 36.19 ÷ 13.13 |
2.76x |
* 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 US Hospitality industry average.
Value checks
We assess Aramark's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check) 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 11 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!
Earnings growth vs Low Risk Savings
- Aramark's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Aramark's earnings growth is positive but not above the United States of America market average.
- Aramark's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:ARMK Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts | 7.5% |
| NYSE:ARMK Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts | 3.1% |
| United States of America Hospitality Industry Earnings Growth Rate | Market Cap Weighted Average | 16.6% |
| United States of America Hospitality Industry Revenue Growth Rate | Market Cap Weighted Average | 7.5% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.1% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | 18,824 | 695 | 1 | |
| 2022-09-30 | 17,742 | 651 | 2 | |
| 2021-09-30 | 17,079 | 1,238 | 601 | 5 |
| 2020-09-30 | 16,630 | 1,180 | 542 | 11 |
| 2019-09-30 | 16,212 | 1,006 | 511 | 11 |
| 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
All data from Aramark Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | ||||
| 2022-09-30 | ||||
| 2021-09-30 | 1.79 | 1.79 | 1.79 | 1.00 |
| 2020-09-30 | 1.97 | 2.40 | 1.45 | 7.00 |
| 2019-09-30 | 1.95 | 2.11 | 1.60 | 7.00 |
| 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.
Future performance checks
We assess Aramark's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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 exceeded the US Hospitality industry average in the past year (5.9% vs -0.5%).
Earnings and Revenue History
All data from Aramark Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 |
*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 US 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).
Past performance checks
We assess Aramark's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Aramark has a total score of 3/6, 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.
- 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
Assets
Liabilities and shares
- 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.
All data from Aramark Company Filings, last reported 3 months ago.
| 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 | 7,100.60 | 216.48 |
| 2018-06-29 | 2,855.82 | 7,733.24 | 167.76 |
| 2018-03-30 | 2,805.59 | 7,682.01 | 185.53 |
| 2017-12-29 | 2,732.28 | 6,937.17 | 185.66 |
| 2017-09-29 | 2,468.86 | 5,277.80 | 238.80 |
| 2017-06-30 | 2,332.61 | 5,449.41 | 154.67 |
| 2017-03-31 | 2,250.55 | 5,239.04 | 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 | 5,426.91 | 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 | 5,619.93 | 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 | 6,217.91 | 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 |
- 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).
Financial health checks
We assess Aramark's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Aramark has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
Aramark
shares you are expected to receive
$24
in your first year as a dividend.
Dividend Amount
- Aramark's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
- Aramark's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
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.
| 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 11 Analyst Estimates (S&P Global) | See Below |
| United States of America Hospitality Industry Average Dividend Yield | Market Cap Weighted Average of 47 Stocks | 2.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2017 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| 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 | 0.51 | 5.00 |
| 2020-09-30 | 0.47 | 9.00 |
| 2019-09-30 | 0.43 | 9.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-01 | 0.440 | 1.303 |
| 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.
Income/ dividend checks
We assess Aramark's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| COMPENSATION | $15,958,908 |
| AGE | 61 |
| TENURE AS CEO | 7.2 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 States of America.
Management Team Tenure
Average tenure and age of the Aramark management team in years:
- 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
Chairman
$16M
61
7.2 yrs
Steve Bramlage
Executive VP
$3M
49
4.3 yrs
Lynn McKee
Executive Vice President of Human Resources
$3M
64
15.2 yrs
Felise Kissell
Vice President of Investor Relations & Corporate Affairs
Lauren Harrington
Senior VP & General Counsel
43
0.3 yrs
Danna Vetter
Chief Marketer
Joe Munnelly
Chief Accounting Officer (Leave of Absence)
$2M
55
11.8 yrs
David Ballarini
Senior Vice President
10.8 yrs
Brent Franks
Chief Operating Officer of International
6.8 yrs
Marc Bruno
Chief Operating Officer of Sports
47
4.5 yrs
Board of Directors Tenure
Average tenure and age of the Aramark board of directors in years:
- The tenure for the Aramark board of directors is about average.
Board of Directors
Eric Foss
Chairman
$16M
61
4.4 yrs
Sanjeev Mehra
Lead Director
$333K
60
4.4 yrs
Dan Heinrich
Independent Director
$301K
63
5.7 yrs
Steve Sadove
Lead Director
$301K
67
0.5 yrs
Irene Esteves
Independent Director
$290K
60
4.4 yrs
Baron Beckers-Vieujant
Independent Director
$261K
59
4.5 yrs
Lisa Bisaccia
Independent Director
$275K
63
3.4 yrs
John Quelch
Independent Director
$270K
68
3.4 yrs
Rick Dreiling
Independent Director
$260K
66
3.4 yrs
Patty Morrison
Independent Director
$270K
60
2.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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 | ||
Management checks
We assess Aramark's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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
Aramark (NYSE:ARMK) Insiders Increased Their Holdings
But insiders sold 15000 shares worth US$620k. … NYSE:ARMK Recent Insider Trading, July 15th 2019 Insider Ownership of Aramark For a common shareholder, it is worth checking how many shares are held by company insiders. … Aramark insiders own about US$85m worth of shares.
Simply Wall St - – Full articleWith A Return On Equity Of 16%, Has Aramark's (NYSE:ARMK) Management Done Well?
The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Aramark: 16% = US$528m ÷ US$3.2b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Aramark's Debt And Its 16% Return On Equity Aramark does use a significant amount of debt to increase returns. … Companies that can achieve high returns on equity without too much debt are generally of good quality.
Simply Wall St - – Full articleHow Much Did Aramark's (NYSE:ARMK) CEO Pocket Last Year?
See our latest analysis for Aramark How Does Eric Foss's Compensation Compare With Similar Sized Companies? … When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m. … Thus we can conclude that Eric Foss receives more in total compensation than the median of a group of companies in the same market, and of similar size to Aramark.
Simply Wall St - – Full articleCalculating The Intrinsic Value Of Aramark (NYSE:ARMK)
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $529.18 $631.97 $662.27 $739.00 $799.00 $849.21 $893.52 $933.48 $970.34 $1.01k Growth Rate Estimate Source Analyst x7 Analyst x8 Analyst x3 Analyst x1 Analyst x1 Est @ 6.28% Est @ 5.22% Est @ 4.47% Est @ 3.95% Est @ 3.58% Present Value ($, Millions) Discounted @ 10.73% $477.91 $515.44 $487.82 $491.60 $480.01 $460.75 $437.82 $413.08 $387.79 $362.77 Present Value of 10-year Cash Flow (PVCF)= $4.51b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10.7%. … NYSE:ARMK Intrinsic value, June 3rd 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.
Simply Wall St - – Full articleWhat Do Investors Need To Know About Aramark's (NYSE:ARMK) Growth?
Generally, it seems that analyst forecasts are fairly pessimistic, with earnings expected to decline by 0.3% in the upcoming year relative to the past 5-year average growth rate of 27%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … NYSE:ARMK Past and Future Earnings, May 24th 2019 This results in an annual growth rate of 7.5% based on the most recent earnings level of US$568m to the final forecast of US$673m by 2022.
Simply Wall St - – Full articleWhy We’re Not Keen On Aramark’s (NYSE:ARMK) 7.4% Return On Capital
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Aramark: 0.074 = US$842m ÷ (US$14b - US$2.3b) (Based on the trailing twelve months to March 2019.) Therefore, Aramark has an ROCE of 7.4%. … Aramark's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months.
Simply Wall St - – Full articleDo You Like Aramark (NYSE:ARMK) At This P/E Ratio?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Aramark's (NYSE:ARMK) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleShareholders Are Loving Aramark's (NYSE:ARMK) 1.4% Yield
Could Aramark (NYSE:ARMK) be an attractive dividend share to own for the long haul? Investors are often drawn to a company for its dividend.. … If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.. … Investors might not know much about Aramark's dividend prospects, even though it has been paying dividends for the last five years and offers a 1.4% yield.
Simply Wall St - – Full articleNeed To Know: Aramark (NYSE:ARMK) Insiders Have Been Buying Shares
As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months, the biggest single purchase by an insider was when Chairman Eric Foss bought US$3.0m worth of shares at a price of US$32.46 per share. … As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Simply Wall St - – Full articleThe Aramark Share Price Is Down 23% So Some Shareholders Are Getting Worried
That downside risk was realized by Aramark (NYSE:ARMK) shareholders over the last year, as the share price declined 23%. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … The share price decline of 23% is actually more than the EPS drop.
Simply Wall St - – Full articleCompany 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 |
| ARMK | |
| Exchange: | NYSE |
| Founded: | 1959 |
| $8,918,301,374 | |
| 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
Industry
| Restaurants | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/19 00:43 |
| End of day share price update: | 2019/07/18 00:00 |
| Last estimates confirmation: | 2019/07/16 |
| 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.
