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.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$31.75|
|52 Week High||US$39.95|
|52 Week Low||US$31.22|
|1 Month Change||-16.99%|
|3 Month Change||-13.01%|
|1 Year Change||-14.40%|
|3 Year Change||0.063%|
|5 Year Change||-14.26%|
|Change since IPO||39.87%|
Recent News & Updates
|ARMK||US Hospitality||US Market|
Return vs Industry: ARMK exceeded the US Hospitality industry which returned -25.7% over the past year.
Return vs Market: ARMK underperformed the US Market which returned -12.3% over the past year.
|ARMK Average Weekly Movement||5.4%|
|Hospitality Industry Average Movement||9.2%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
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
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|
Is ARMK overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ARMK income statement (TTM)|
|Cost of Revenue||US$12.39b|
Last Reported Earnings
Apr 01, 2022
Next Earnings Date
|Earnings per share (EPS)||0.57|
|Net Profit Margin||1.02%|
How did ARMK perform over the long term?See historical performance and comparison
1.4%Current Dividend Yield
Is Aramark undervalued compared to its fair value and its price relative to the market?
Valuation Score 1/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARMK ($31.75) is trading below our estimate of fair value ($37.24)
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 Price-To-Earnings Ratio (55.8x) compared to the US Hospitality industry average (17.4x).
PE vs Market: ARMK is poor value based on its Price-To-Earnings Ratio (55.8x) compared to the US market (15.1x).
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 Price-To-Book Ratio (2.8x) compared to the US Hospitality industry average (2.6x).
How is Aramark forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (12.3% 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%).
How has Aramark performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
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.
How is Aramark's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
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 ($9.0B).
Debt to Equity History and Analysis
Debt Level: ARMK's net debt to equity ratio (248%) is considered high.
Reducing Debt: ARMK's debt to equity ratio has increased from 232.8% to 262.7% over the past 5 years.
Debt Coverage: ARMK's debt is not well covered by operating cash flow (4%).
Interest Coverage: ARMK's interest payments on its debt are not well covered by EBIT (1.4x coverage).
What is Aramark current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARMK's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: ARMK's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, ARMK has been paying a dividend for less than 10 years.
Growing Dividend: ARMK's dividend payments have increased, but the company has only paid a dividend for 8 years.
Earnings Payout to Shareholders
Earnings Coverage: At its current payout ratio (77%), ARMK's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: ARMK is paying a dividend but the company has no free cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Zillmer (66 yo)
Mr. John J. Zillmer serves as an Industrial Advisor at CVC Capital Partners Limited. Mr. Zillmer served as an Advisor at CVC Capital Partners since 2014. He specializes in Chemical Distribution, Waste Mana...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($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.
Experienced Management: ARMK's management team is considered experienced (2.6 years average tenure).
Experienced Board: ARMK's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Aramark's employee growth, exchange listings and data sources
- Name: Aramark
- Ticker: ARMK
- Exchange: NYSE
- Founded: 1959
- Industry: Restaurants
- Sector: Consumer Services
- Implied Market Cap: US$8.169b
- Shares outstanding: 257.30m
- Website: https://www.aramark.com
Number of Employees
- 2400 Market Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/24 00:00|
|End of Day Share Price||2022/05/24 00:00|
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.