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Aramark

NYSE:ARMK
Snowflake Description

Acceptable track record and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARMK
NYSE
$9B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company 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. The last earnings update was 44 days ago. More info.


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ARMK Share Price and Events
7 Day Returns
1%
NYSE:ARMK
0.9%
US Hospitality
1.2%
US Market
1 Year Returns
-8%
NYSE:ARMK
-9.1%
US Hospitality
2.3%
US Market
ARMK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aramark (ARMK) 1% 8.1% 20.6% -8% 2.8% 36.7%
US Hospitality 0.9% 1.2% 2.4% -9.1% 41.6% 21.5%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • ARMK outperformed the Hospitality industry which returned -9.1% over the past year.
  • ARMK underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
ARMK
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aramark.

NYSE:ARMK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.8%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:ARMK
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 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.926 (1 + (1- 21%) (83.72%))
1.361
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.36
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.361 * 5.96%)
10.84%

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.

NYSE:ARMK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.84%)
2019 525.36 Analyst x6 473.98
2020 622.29 Analyst x7 506.52
2021 662.27 Analyst x3 486.34
2022 739.00 Analyst x1 489.62
2023 799.00 Analyst x1 477.60
2024 849.21 Est @ 6.28% 457.97
2025 893.52 Est @ 5.22% 434.74
2026 933.48 Est @ 4.47% 409.76
2027 970.34 Est @ 3.95% 384.29
2028 1,005.11 Est @ 3.58% 359.13
Present value of next 10 years cash flows $4,479.94
NYSE:ARMK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,005.11 × (1 + 2.73%) ÷ (10.84% – 2.73%)
$12,731.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $12,731.76 ÷ (1 + 10.84%)10
$4,549.05
NYSE:ARMK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,479.94 + $4,549.05
$9,028.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,028.99 / 246.43
$36.64
NYSE:ARMK Discount to Share Price
Calculation Result
Value per share (USD) From above. $36.64
Current discount Discount to share price of $34.86
= -1 x ($34.86 - $36.64) / $36.64
4.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Aramark is available for.
Intrinsic value
5%
Share price is $34.86 vs Future cash flow value of $36.64
Current Discount Checks
For Aramark to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
NYSE:ARMK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-29) in USD $2.14
NYSE:ARMK Share Price ** NYSE (2019-06-19) in USD $34.86
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 22.6x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aramark.

NYSE:ARMK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ARMK Share Price ÷ EPS (both in USD)

= 34.86 ÷ 2.14

16.26x

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?
Raw Data
NYSE:ARMK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
7.5%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 55 Publicly-Listed Hospitality Companies 1.98x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:ARMK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.26x ÷ 7.5%

2.17x

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?
Raw Data
NYSE:ARMK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-29) in USD $13.13
NYSE:ARMK Share Price * NYSE (2019-06-19) in USD $34.86
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.22x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NYSE:ARMK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ARMK Share Price ÷ Book Value per Share (both in USD)

= 34.86 ÷ 13.13

2.65x

* 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.
X
Value checks
We assess Aramark's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. 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 12 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!
Annual Growth Rate
7.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aramark expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:ARMK Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ARMK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 7.5%
NYSE:ARMK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 3.1%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.7%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
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
Raw Data
NYSE:ARMK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ARMK Future Estimates Data
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 17,095 1,242 601 6
2020-09-30 16,635 1,170 542 12
2019-09-30 16,213 1,006 511 12
NYSE:ARMK Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Aramark's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
  • Aramark's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ARMK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Aramark Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ARMK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 2.16 2.53 1.79 2.00
2020-09-30 1.99 2.40 1.45 8.00
2019-09-30 1.95 2.11 1.60 7.00
NYSE:ARMK Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aramark is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Aramark's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Aramark's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 1%).
Earnings and Revenue History
Aramark's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aramark Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ARMK Past Revenue, Cash Flow and Net Income Data
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
2012-06-29 13,396.16 82.38 201.48

*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).
X
Past performance checks
We assess Aramark's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Aramark's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Aramark Company Filings, last reported 2 months ago.

NYSE:ARMK Past Debt and Equity Data
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 7,243.98 216.48
2018-06-29 2,855.82 7,870.31 167.76
2018-03-30 2,805.59 7,822.69 185.53
2017-12-29 2,732.28 7,051.65 185.66
2017-09-29 2,468.86 5,277.80 238.80
2017-06-30 2,332.61 5,527.86 154.67
2017-03-31 2,250.55 5,311.26 145.48
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 5,484.05 196.51
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 5,673.95 139.18
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 6,272.16 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
2012-06-29 1,519.33 5,866.33 100.97
  • 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).
X
Financial health checks
We assess Aramark's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aramark has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.26%
Current annual income from Aramark dividends. Estimated to be 1.36% next year.
If you bought $2,000 of Aramark shares you are expected to receive $25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Aramark's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Aramark's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
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.
Raw Data
NYSE:ARMK Annualized Past and Future Dividends
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 12 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 2011 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 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ARMK Future Dividends Estimate Data
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 0.50 6.00
2020-09-30 0.46 10.00
2019-09-30 0.43 10.00
NYSE:ARMK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 0.440 1.342
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.
Current Payout to shareholders
What portion of Aramark's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.4x coverage).
X
Income/ dividend checks
We assess Aramark's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Aramark's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Eric Foss
COMPENSATION $15,958,908
AGE 60
TENURE AS CEO 7.1 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:

6.9
Average Tenure
51
Average Age
  • 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

TITLE
Chairman
COMPENSATION
$16M
AGE
60
TENURE
7.1 yrs

Steve Bramlage

TITLE
Executive VP
COMPENSATION
$3M
AGE
48
TENURE
4.2 yrs

Lynn McKee

TITLE
Executive Vice President of Human Resources
COMPENSATION
$3M
AGE
63
TENURE
15.1 yrs

Felise Kissell

TITLE
Vice President of Investor Relations & Corporate Affairs

Lauren Harrington

TITLE
Senior VP & General Counsel
AGE
42
TENURE
0.3 yrs

Danna Vetter

TITLE
Chief Marketer

Joe Munnelly

TITLE
Chief Accounting Officer (Leave of Absence)
COMPENSATION
$2M
AGE
54
TENURE
11.8 yrs

David Ballarini

TITLE
Senior Vice President
TENURE
10.8 yrs

Brent Franks

TITLE
Chief Operating Officer of International
TENURE
6.8 yrs

Marc Bruno

TITLE
Chief Operating Officer of Sports
AGE
46
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the Aramark board of directors in years:

3.8
Average Tenure
61
Average Age
  • The tenure for the Aramark board of directors is about average.
Board of Directors

Eric Foss

TITLE
Chairman
COMPENSATION
$16M
AGE
60
TENURE
4.3 yrs

Sanjeev Mehra

TITLE
Lead Director
COMPENSATION
$333K
AGE
59
TENURE
4.3 yrs

Dan Heinrich

TITLE
Independent Director
COMPENSATION
$301K
AGE
62
TENURE
5.6 yrs

Steve Sadove

TITLE
Lead Director
COMPENSATION
$301K
AGE
66
TENURE
0.4 yrs

Irene Esteves

TITLE
Independent Director
COMPENSATION
$290K
AGE
59
TENURE
4.3 yrs

Baron Beckers-Vieujant

TITLE
Independent Director
COMPENSATION
$261K
AGE
58
TENURE
4.4 yrs

Lisa Bisaccia

TITLE
Independent Director
COMPENSATION
$275K
AGE
62
TENURE
3.3 yrs

John Quelch

TITLE
Independent Director
COMPENSATION
$270K
AGE
67
TENURE
3.3 yrs

Rick Dreiling

TITLE
Independent Director
COMPENSATION
$260K
AGE
65
TENURE
3.3 yrs

Patty Morrison

TITLE
Independent Director
COMPENSATION
$270K
AGE
59
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess Aramark's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

How 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 -

Calculating 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 -

What 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 -

Why 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 -

Do 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 -

Shareholders 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 -

Need 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 -

The 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 -

Aramark (NYSE:ARMK): What Are The Future Prospects?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … As Aramark (NYSE:ARMK) released its earnings announcement on 28 December 2018,

Simply Wall St -

At US$32.04, Is Aramark (NYSE:ARMK) Worth Looking At Closely?

As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, what if the stock is still a bargain. … Let’s examine Aramark’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Company 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
$8,590,549,486
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
Staff numbers
227,200
Aramark employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/20 00:48
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/17
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.