Market Cap
US$11.7b
Last Updated
2020/01/23 00:57 UTC
Data Sources
Company Financials +
Executive Summary
Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Unattractive dividend payer with concerning outlook.
Similar Companies
Share Price & News
How has Aramark's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARMK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.4%
ARMK
-0.6%
US Hospitality
0.8%
US Market
1 Year Return
46.2%
ARMK
16.7%
US Hospitality
25.1%
US Market
Return vs Industry: ARMK exceeded the US Hospitality industry which returned 20.1% over the past year.
Return vs Market: ARMK exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| ARMK | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | -0.6% | 0.8% |
| 30 Day | 7.1% | 1.1% | 3.1% |
| 90 Day | 5.8% | 11.3% | 10.9% |
| 1 Year | 48.1%46.2% | 19.8%16.7% | 27.7%25.1% |
| 3 Year | 44.1%39.2% | 40.1%30.7% | 51.3%41.6% |
| 5 Year | 54.0%45.5% | 50.4%34.3% | 77.2%57.6% |
Price Volatility Vs. Market
How volatile is Aramark's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
What Makes Aramark (NYSE:ARMK) A Great Dividend Stock?1 week ago | Simply Wall St
How Did Aramark's (NYSE:ARMK) 13% ROE Fare Against The Industry?3 weeks ago | Simply Wall St
Are Aramark's (NYSE:ARMK) Statutory Earnings A Good Guide To Its Underlying Profitability?Valuation
Is Aramark undervalued compared to its fair value and its price relative to the market?
25.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ARMK ($45.73) is trading above our estimate of fair value ($44.36)
Significantly Below Fair Value: ARMK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ARMK is poor value based on its PE Ratio (25.2x) compared to the Hospitality industry average (25.1x).
PE vs Market: ARMK is poor value based on its PE Ratio (25.2x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: ARMK is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: ARMK is overvalued based on its PB Ratio (3.4x) compared to the US Hospitality industry average (2.4x).
Next Steps
Future Growth
How is Aramark forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARMK's forecast earnings growth (10.1% per year) is above the savings rate (1.7%).
Earnings vs Market: ARMK's earnings (10.1% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: ARMK's earnings are forecast to grow, but not significantly.
Revenue vs Market: ARMK's revenue (3.5% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: ARMK's revenue (3.5% 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 (15.9%).
Next Steps
Past Performance
How has Aramark performed over the past 5 years?
22.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARMK has a large one-off gain of $135.3M impacting its September 27 2019 financial results.
Growing Profit Margin: ARMK's current net profit margins (2.8%) are lower than last year (3.6%).
Past Earnings Growth Analysis
Earnings Trend: ARMK's earnings have grown significantly by 22.9% per year over the past 5 years.
Accelerating Growth: ARMK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ARMK had negative earnings growth (-20.9%) over the past year, making it difficult to compare to the Hospitality industry average (-18.9%).
Return on Equity
High ROE: ARMK's Return on Equity (13.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Aramark's financial position?
Financial Position Analysis
Short Term Liabilities: ARMK's short term assets ($2.7B) do not cover its short term liabilities ($2.7B).
Long Term Liabilities: ARMK's short term assets ($2.7B) do not cover its long term liabilities ($7.7B).
Debt to Equity History and Analysis
Debt Level: ARMK's debt to equity ratio (197.5%) is considered high.
Reducing Debt: ARMK's debt to equity ratio has reduced from 314.7% to 197.5% over the past 5 years.
Debt Coverage: ARMK's debt is not well covered by operating cash flow (15%).
Interest Coverage: ARMK's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Balance Sheet
Inventory Level: ARMK has a low level of unsold assets or inventory.
Debt Coverage by Assets: ARMK's debt is not covered by short term assets (assets are 0.4x debt).
Next Steps
Dividend
What is Aramark's current dividend yield, its reliability and sustainability?
0.94%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ARMK's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: ARMK's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24.2%), ARMK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARMK's dividends in 3 years are forecast to be well covered by earnings (17.7% payout ratio).
Next Steps
Management
What is the CEO of Aramark's salary, the management and board of directors tenure and is there insider trading?
7.3yrs
Average management tenure
CEO
John Zillmer (64yo)
0.3yrs
Tenure
Mr. John J. Zillmer serves as Chief Executive Officer and Director at Aramark since October 6, 2019. He serves as an Adviser of CVC Capital Partners Limited. Mr. Zillmer served as the Executive Chairman of ...
Management Age and Tenure
7.3yrs
Average Tenure
55yo
Average Age
Experienced Management: ARMK's management team is seasoned and experienced (7.3 years average tenure).
Board Age and Tenure
0.3yrs
Average Tenure
63yo
Average Age
Experienced Board: ARMK's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: ARMK insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer CEO & Director |
| Shares | 35,000 |
| Max Price | US$42.68 |
| Entity | Individual |
| Role | Senior Key Executive Chief Growth Officer |
| Shares | 7,500 |
| Max Price | US$37.40 |
| Entity | Individual |
| Role | Senior Key Executive Executive Advisor |
| Shares | 3,195 |
| Max Price | US$31.26 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
John Zillmer (64yo)
CEO & Director
- Tenure: 0.3yrs
Felise Kissell
Vice President of Investor Relations & Corporate Affairs
Lynn McKee (64yo)
Executive Vice President of Human Resources
- Tenure: 15.7yrs
- Compensation: US$2.92m
Tom Ondrof (55yo)
Executive VP & CFO
Joe Munnelly (55yo)
Chief Accounting Officer (Leave of Absence)
- Tenure: 12.3yrs
- Compensation: US$2.00m
Brent Franks
Chief Operating Officer of International
- Tenure: 7.3yrs
Steve Bramlage (49yo)
Executive Advisor
- Compensation: US$4.51m
Danna Vetter
Chief Marketer
Keith Bethel (52yo)
Chief Growth Officer
- Compensation: US$2.41m
Lauren Harrington (44yo)
Senior VP & General Counsel
- Tenure: 0.8yrs
- Compensation: US$2.08m
Board Members
Steve Sadove (67yo)
Non-Executive Independent Chairman & Lead Independent Director
- Tenure: 0.4yrs
- Compensation: US$328.64k
Rick Dreiling (66yo)
Independent Director
- Tenure: 3.9yrs
- Compensation: US$260.00k
Calvin Darden (69yo)
Independent Director
- Tenure: 2yrs
- Compensation: US$260.15k
Dan Heinrich (63yo)
Independent Director
- Tenure: 6.2yrs
- Compensation: US$292.73k
Ivey Cameron (60yo)
Independent Director
- Tenure: 0.3yrs
John Zillmer (64yo)
CEO & Director
- Tenure: 0.3yrs
Art Winkleblack (62yo)
Independent Director
- Tenure: 0.3yrs
Irene Esteves (60yo)
Independent Director
- Tenure: 4.9yrs
- Compensation: US$280.00k
Karen King (63yo)
Independent Director
- Tenure: 0.3yrs
Paul Hilal (52yo)
Independent Vice Chairman of the Board
- Tenure: 0.3yrs
Company Information
Aramark's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Aramark
- Ticker: ARMK
- Exchange: NYSE
- Founded: 1959
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$11.690b
- Shares outstanding: 249.88m
- Website: https://www.aramark.com
Number of Employees
Location
- Aramark
- 2400 Market Street
- Philadelphia
- Pennsylvania
- 19103
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARMK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2013 |
| 0AK | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2013 |
| 0HHB | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 2013 |
Biography
Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America 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 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, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, 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. Further, the company offers correctional food, and food and facilities management services for parks; and operates commissaries, laundry facilities, and property rooms. Additionally, it 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 00:57 |
| End of Day Share Price | 2020/01/22 00:00 |
| Earnings | 2019/09/27 |
| Annual Earnings | 2019/09/27 |
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.