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ARMK

Aramark NYSE:ARMK Stock Report

Last Price

US$32.27

Market Cap

US$8.3b

7D

-4.1%

1Y

-13.1%

Updated

21 May, 2022

Data

Company Financials +
ARMK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance1/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Aramark
Historical stock prices
Current Share PriceUS$32.27
52 Week HighUS$39.95
52 Week LowUS$31.22
Beta1.78
1 Month Change-15.44%
3 Month Change-14.56%
1 Year Change-13.14%
3 Year Change2.25%
5 Year Change-12.85%
Change since IPO42.16%

Recent News & Updates

Shareholder Returns

ARMKUS HospitalityUS Market
7D-4.1%-3.6%-2.7%
1Y-13.1%-24.5%-12.9%

Return vs Industry: ARMK exceeded the US Hospitality industry which returned -25% over the past year.

Return vs Market: ARMK matched the US Market which returned -12.7% over the past year.

Price Volatility

Is ARMK's price volatile compared to industry and market?
ARMK volatility
ARMK Average Weekly Movement5.4%
Hospitality Industry Average Movement9.2%
Market Average Movement7.9%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.0%

Stable Share Price: ARMK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ARMK's weekly volatility (5%) 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$8.30b
Earnings (TTM)US$146.35m
Revenue (TTM)US$14.34b

56.7x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARMK income statement (TTM)
RevenueUS$14.34b
Cost of RevenueUS$12.39b
Gross ProfitUS$1.95b
Other ExpensesUS$1.80b
EarningsUS$146.35m

Last Reported Earnings

Apr 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.57
Gross Margin13.60%
Net Profit Margin1.02%
Debt/Equity Ratio262.7%

How did ARMK perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

77%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


13.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ARMK ($32.27) is trading below our estimate of fair value ($37.49)

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 poor value based on its PE Ratio (56.7x) compared to the US Hospitality industry average (17.2x).

PE vs Market: ARMK is poor value based on its PE Ratio (56.7x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: ARMK is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ARMK is overvalued based on its PB Ratio (2.9x) compared to the US Hospitality industry average (2.5x).


Future Growth

How is Aramark forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


31.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARMK's forecast earnings growth (31.4% per year) is above the savings rate (1.9%).

Earnings vs Market: ARMK's earnings (31.4% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARMK's revenue (7.1% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: ARMK's revenue (7.1% 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 (17.9%).


Past Performance

How has Aramark performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-45.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARMK has a large one-off gain of $33.6M impacting its April 1 2022 financial results.

Growing Profit Margin: ARMK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ARMK's earnings have declined by 45.3% per year over the past 5 years.

Accelerating Growth: ARMK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ARMK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (157.9%).


Return on Equity

High ROE: ARMK's Return on Equity (5%) is considered low.


Financial Health

How is Aramark's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ARMK's short term assets ($3.1B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: ARMK's short term assets ($3.1B) do not cover its long term liabilities ($9.0B).


Debt to Equity History and Analysis

Debt Level: ARMK's net debt to equity ratio (248%) is considered high.

Reducing Debt: ARMK's debt to equity ratio has increased from 232.8% to 262.7% over the past 5 years.

Debt Coverage: ARMK's debt is not well covered by operating cash flow (4%).

Interest Coverage: ARMK's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.36%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ARMK's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: ARMK's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (4.09%).


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (77%), ARMK's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: ARMK is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure


CEO

John Zillmer (66 yo)

2.58yrs

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 ($USD5.05M) is below average for companies of similar size in the US market ($USD8.23M).

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


Leadership Team

Experienced Management: ARMK's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: ARMK's board of directors are not considered experienced ( 2.6 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$8.303b
  • Shares outstanding: 257.30m
  • 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 Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/04/01
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.