Market Cap
US$9.0b
Last Updated
2021/01/23 23:07 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 the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential with worrying balance sheet.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: ARMK's weekly volatility has decreased from 12% to 7% over the past year.
Market Performance
7 Day Return
-3.0%
ARMK
2.6%
US Hospitality
2.3%
US Market
1 Year Return
-23.1%
ARMK
-5.5%
US Hospitality
23.8%
US Market
Return vs Industry: ARMK underperformed the US Hospitality industry which returned -5.5% over the past year.
Return vs Market: ARMK underperformed the US Market which returned 23.7% over the past year.
Shareholder returns
| ARMK | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.0% | 2.6% | 2.3% |
| 30 Day | -5.8% | 4.3% | 4.8% |
| 90 Day | 17.1% | 19.6% | 14.5% |
| 1 Year | -21.9%-23.1% | -4.4%-5.5% | 26.6%23.8% |
| 3 Year | -19.9%-22.9% | -5.4%-11.1% | 45.0%35.4% |
| 5 Year | 17.9%11.0% | 58.2%42.2% | 126.2%101.0% |
Long-Term 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
Is Aramark (NYSE:ARMK) A Risky Investment?3 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine Aramark (NYSE:ARMK)?1 month ago | Simply Wall St
The Aramark (NYSE:ARMK) Share Price Has Gained 17% And Shareholders Are Hoping For MoreValuation
Is Aramark undervalued compared to its fair value and its price relative to the market?
3.28x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: ARMK ($35.46) is trading above our estimate of fair value ($26.05)
Significantly Below Fair Value: ARMK is trading above our estimate of fair value.
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's PB Ratio (3.3x) is in line with the US Hospitality industry average.
Next Steps
Future Growth
How is Aramark forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
60.3%
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 (8.3% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: ARMK's revenue (8.3% 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%).
Next Steps
Past Performance
How has Aramark performed over the past 5 years?
-11.1%
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 11.1% 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 (-56.1%).
Return on Equity
High ROE: ARMK has a negative Return on Equity (-16.8%), as it is currently unprofitable.
Next Steps
Financial Health
How is Aramark's financial position?
Financial Position Analysis
Short Term Liabilities: ARMK's short term assets ($4.7B) exceed its short term liabilities ($2.3B).
Long Term Liabilities: ARMK's short term assets ($4.7B) do not cover its long term liabilities ($10.6B).
Debt to Equity History and Analysis
Debt Level: ARMK's debt to equity ratio (337%) is considered high.
Reducing Debt: ARMK's debt to equity ratio has increased from 278.2% to 337% over the past 5 years.
Debt Coverage: ARMK's debt is not well covered by operating cash flow (1.9%).
Interest Coverage: Insufficient data to determine if ARMK's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Aramark current dividend yield, its reliability and sustainability?
1.24%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARMK's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: ARMK's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.85%).
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 7 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 (22% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
John Zillmer (65 yo)
1.25yrs
Tenure
US$27,106,334
Compensation
Mr. John J. Zillmer serves as an Industrial Advisor at CVC Capital Partners Limited. He served as an Advisor at CVC Capital Partners since 2014. He specializes in Chemical Distribution, Waste Management an...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD27.11M) is above average for companies of similar size in the US market ($USD6.22M).
Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.25yrs | US$27.11m | 0.094% $ 8.4m | |
| Executive VP & CFO | 1yr | US$6.99m | 0.0069% $ 625.8k | |
| Senior VP & General Counsel | 1.83yrs | US$5.18m | 0.0060% $ 543.9k | |
| Executive Vice President of Human Resources | 17yrs | US$5.69m | 0.14% $ 12.8m | |
| Chief Operating Officer of U.S. Food & Facilities | 6yrs | US$6.49m | 0.049% $ 4.4m | |
| Chief Operating Officer of International | 0.92yr | no data | no data | |
| Investor Relations & Corporate Affairs Executive | no data | no data | no data | |
| Chief Marketer | no data | no data | no data | |
| Chief Accounting Officer (Leave of Absence) | 13.33yrs | US$2.00m | no data | |
| Senior Vice President | 12.33yrs | no data | no data | |
| Chief Operating Officer of Uniform & Refreshment Services | 6yrs | no data | no data | |
| Chief Diversity & Sustainability Officer | 0.50yr | no data | no data |
3.9yrs
Average Tenure
56yo
Average Age
Experienced Management: ARMK's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.25yrs | US$27.11m | 0.094% $ 8.4m | |
| Non-Executive Independent Chairman | 1.42yrs | US$513.42k | 0.0073% $ 656.4k | |
| Independent Director | 4.92yrs | US$248.13k | 0.015% $ 1.3m | |
| Independent Director | 3yrs | US$248.39k | no data | |
| Independent Director | 7.17yrs | US$280.89k | 0.0015% $ 133.3k | |
| Independent Director | 1.25yrs | US$303.31k | no data | |
| Independent Director | 1.25yrs | US$303.31k | 0% $ 0 | |
| Independent Director | 5.92yrs | US$278.13k | 0.017% $ 1.6m | |
| Independent Director | 1yr | US$214.34k | 0.0049% $ 442.1k | |
| Independent Director | 1.25yrs | US$283.81k | 0.0020% $ 181.0k | |
| Independent Vice Chairman of the Board | 1.25yrs | no data | no data |
1.3yrs
Average Tenure
64yo
Average Age
Experienced Board: ARMK's board of directors are not considered experienced ( 1.3 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$9.004b
- Shares outstanding: 253.93m
- 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 |
| ARMK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 2013 |
Biography
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 throu...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/23 23:07 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/10/02 |
| Annual Earnings | 2020/10/02 |
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.