ARAMARK (ARMK) Stock Fundamental Analysis
NYSE:ARMK - US03852U1060 - Common Stock
38.95 USD
+0.18 (+0.46%)
38.7 USD
-0.25 (-0.64%)
Overall ARMK gets a fundamental rating of 4 out of 10. We evaluated ARMK against 134 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has an average financial health and profitability rating. ARMK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ARMK had positive earnings in the past year.
In the past year ARMK had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ARMK reported negative net income in multiple years.
In the past 5 years ARMK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.72%, ARMK is in line with its industry, outperforming 51.49% of the companies in the same industry.
ARMK has a better Return On Equity (11.73%) than 69.40% of its industry peers.
ARMK has a Return On Invested Capital (5.68%) which is comparable to the rest of the industry.
ARMK had an Average Return On Invested Capital over the past 3 years of 4.93%. This is significantly below the industry average of 16.00%.
The 3 year average ROIC (4.93%) for ARMK is below the current ROIC(5.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROIC | 5.68% |
ROA(3y)2.45%
ROA(5y)0.76%
ROE(3y)11.07%
ROE(5y)2.59%
ROIC(3y)4.93%
ROIC(5y)N/A
1.3 Margins
ARMK has a Profit Margin (2.02%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ARMK has declined.
ARMK's Operating Margin of 4.44% is on the low side compared to the rest of the industry. ARMK is outperformed by 65.67% of its industry peers.
ARMK's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 8.55%, ARMK is not doing good in the industry: 91.04% of the companies in the same industry are doing better.
ARMK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% |
OM growth 3Y40.47%
OM growth 5Y-1.21%
PM growth 3YN/A
PM growth 5Y-11.42%
GM growth 3Y5.79%
GM growth 5Y8.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARMK is destroying value.
The number of shares outstanding for ARMK has been increased compared to 1 year ago.
The number of shares outstanding for ARMK has been increased compared to 5 years ago.
ARMK has a better debt/assets ratio than last year.
2.2 Solvency
ARMK has an Altman-Z score of 2.25. This is not the best score and indicates that ARMK is in the grey zone with still only limited risk for bankruptcy at the moment.
ARMK has a Altman-Z score of 2.25. This is comparable to the rest of the industry: ARMK outperforms 57.46% of its industry peers.
ARMK has a debt to FCF ratio of 22.42. This is a negative value and a sign of low solvency as ARMK would need 22.42 years to pay back of all of its debts.
ARMK's Debt to FCF ratio of 22.42 is in line compared to the rest of the industry. ARMK outperforms 44.03% of its industry peers.
A Debt/Equity ratio of 2.03 is on the high side and indicates that ARMK has dependencies on debt financing.
ARMK has a Debt to Equity ratio (2.03) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.83
WACC6.87%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ARMK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.29, ARMK is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
ARMK has a Quick Ratio of 1.14. This is a normal value and indicates that ARMK is financially healthy and should not expect problems in meeting its short term obligations.
ARMK has a better Quick ratio (1.14) than 62.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ARMK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.48%, which is quite good.
ARMK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.10% yearly.
ARMK shows a decrease in Revenue. In the last year, the revenue decreased by -0.06%.
Measured over the past years, ARMK shows a small growth in Revenue. The Revenue has been growing by 1.41% on average per year.
EPS 1Y (TTM)8.48%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%29.03%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%5.72%
3.2 Future
ARMK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.55% yearly.
ARMK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.67% yearly.
EPS Next Y26.95%
EPS Next 2Y22.62%
EPS Next 3Y21.08%
EPS Next 5Y15.55%
Revenue Next Year6.78%
Revenue Next 2Y6.16%
Revenue Next 3Y6.09%
Revenue Next 5Y6.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.76, ARMK is valued on the expensive side.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than 67.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARMK to the average of the S&P500 Index (26.84), we can say ARMK is valued inline with the index average.
ARMK is valuated correctly with a Price/Forward Earnings ratio of 16.71.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 68.66% of the companies listed in the same industry.
ARMK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARMK is on the same level as its industry peers.
ARMK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.46 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ARMK's earnings are expected to grow with 21.08% in the coming years.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y22.62%
EPS Next 3Y21.08%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.09, ARMK pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.07, ARMK pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
The dividend of ARMK decreases each year by -2.79%.
ARMK has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
29.94% of the earnings are spent on dividend by ARMK. This is a low number and sustainable payout ratio.
DP29.94%
EPS Next 2Y22.62%
EPS Next 3Y21.08%
38.95
+0.18 (+0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners108.97%
Inst Owner Change-1.44%
Ins Owners0.53%
Ins Owner Change0.04%
Market Cap10.24B
Analysts81.9
Price Target46.55 (19.51%)
Short Float %2.12%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.38
Dividend Growth(5Y)-2.79%
DP29.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.09%
Min EPS beat(2)-1.76%
Max EPS beat(2)1.94%
EPS beat(4)2
Avg EPS beat(4)0.89%
Min EPS beat(4)-1.76%
Max EPS beat(4)4.17%
EPS beat(8)5
Avg EPS beat(8)2.51%
EPS beat(12)7
Avg EPS beat(12)1.72%
EPS beat(16)9
Avg EPS beat(16)1.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-2.56%
Revenue beat(4)0
Avg Revenue beat(4)-3.14%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-2.56%
Revenue beat(8)2
Avg Revenue beat(8)-1.84%
Revenue beat(12)5
Avg Revenue beat(12)-1.76%
Revenue beat(16)9
Avg Revenue beat(16)-0.45%
PT rev (1m)1.11%
PT rev (3m)4.07%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 16.71 | ||
| P/S | 0.57 | ||
| P/FCF | 36.46 | ||
| P/OCF | 13.35 | ||
| P/B | 3.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.71 |
EPS(TTM)1.79
EY4.6%
EPS(NY)2.33
Fwd EY5.98%
FCF(TTM)1.07
FCFY2.74%
OCF(TTM)2.92
OCFY7.49%
SpS68
BVpS11.73
TBVpS-13.96
PEG (NY)0.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROCE | 7.52% | ||
| ROIC | 5.68% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 18.2% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% | ||
| FCFM | 1.57% |
ROA(3y)2.45%
ROA(5y)0.76%
ROE(3y)11.07%
ROE(5y)2.59%
ROIC(3y)4.93%
ROIC(5y)N/A
ROICexc(3y)5.48%
ROICexc(5y)N/A
ROICexgc(3y)26.7%
ROICexgc(5y)N/A
ROCE(3y)6.53%
ROCE(5y)N/A
ROICexcg growth 3Y122.06%
ROICexcg growth 5Y20.87%
ROICexc growth 3Y78.16%
ROICexc growth 5Y7.03%
OM growth 3Y40.47%
OM growth 5Y-1.21%
PM growth 3YN/A
PM growth 5Y-11.42%
GM growth 3Y5.79%
GM growth 5Y8.33%
F-Score5
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Debt/EBITDA | 4.97 | ||
| Cap/Depr | 104.62% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 60.99% | ||
| Profit Quality | 77.63% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.25 |
F-Score5
WACC6.87%
ROIC/WACC0.83
Cap/Depr(3y)88.23%
Cap/Depr(5y)81.81%
Cap/Sales(3y)2.41%
Cap/Sales(5y)2.77%
Profit Quality(3y)109.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.48%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%29.03%
EPS Next Y26.95%
EPS Next 2Y22.62%
EPS Next 3Y21.08%
EPS Next 5Y15.55%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%5.72%
Revenue Next Year6.78%
Revenue Next 2Y6.16%
Revenue Next 3Y6.09%
Revenue Next 5Y6.67%
EBIT growth 1Y3.55%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year62.05%
EBIT Next 3Y24.65%
EBIT Next 5Y16.92%
FCF growth 1Y56.37%
FCF growth 3Y6.26%
FCF growth 5Y-9.07%
OCF growth 1Y35.43%
OCF growth 3Y3.4%
OCF growth 5Y-5.89%