ARAMARK (ARMK) Stock Fundamental Analysis
NYSE:ARMK - New York Stock Exchange, Inc. - US03852U1060 - Common Stock - Currency: USD
Taking everything into account, ARMK scores 4 out of 10 in our fundamental rating. ARMK was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of ARMK get a neutral evaluation. Nothing too spectacular is happening here. 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.
ARMK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.58%, ARMK perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
The Return On Equity of ARMK (11.52%) is better than 71.97% of its industry peers.
With a Return On Invested Capital value of 5.66%, ARMK perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARMK is significantly below the industry average of 13.91%.
The 3 year average ROIC (4.93%) for ARMK is below the current ROIC(5.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 11.52% | ||
| ROIC | 5.66% |
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
Looking at the Profit Margin, with a value of 1.97%, ARMK is in line with its industry, outperforming 46.21% of the companies in the same industry.
In the last couple of years the Profit Margin of ARMK has declined.
ARMK's Operating Margin of 4.38% is on the low side compared to the rest of the industry. ARMK is outperformed by 64.39% of its industry peers.
In the last couple of years the Operating Margin of ARMK has remained more or less at the same level.
ARMK has a Gross Margin of 8.47%. This is amonst the worse of the industry: ARMK underperforms 90.91% of its industry peers.
ARMK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 1.97% | ||
| GM | 8.47% |
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
ARMK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ARMK has more shares outstanding than it did 1 year ago.
ARMK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARMK has an improved debt to assets ratio.
2.2 Solvency
ARMK has an Altman-Z score of 2.23. 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 better Altman-Z score (2.23) than 60.61% of its industry peers.
The Debt to FCF ratio of ARMK is 17.61, which is on the high side as it means it would take ARMK, 17.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.61, ARMK is in line with its industry, outperforming 46.97% of the companies in the same industry.
ARMK has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
ARMK's Debt to Equity ratio of 2.02 is in line compared to the rest of the industry. ARMK outperforms 52.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 17.61 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.79
WACC7.18%
2.3 Liquidity
ARMK has a Current Ratio of 1.21. 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 Current ratio (1.21) than 63.64% of its industry peers.
ARMK has a Quick Ratio of 1.08. This is a normal value and indicates that ARMK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.08, ARMK is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% over the past year.
ARMK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.10% yearly.
Looking at the last year, ARMK shows a small growth in Revenue. The Revenue has grown by 0.35% in the last year.
ARMK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.41% yearly.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%17.24%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%1.89%
3.2 Future
Based on estimates for the next years, ARMK will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.91% on average per year.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y27.46%
EPS Next 2Y22.52%
EPS Next 3Y20.39%
EPS Next 5Y15.91%
Revenue Next Year6.89%
Revenue Next 2Y6.13%
Revenue Next 3Y6.07%
Revenue Next 5Y6.45%
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
A Price/Earnings ratio of 25.26 indicates a quite expensive valuation of ARMK.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than the industry average as 62.88% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ARMK to the average of the S&P500 Index (27.18), we can say ARMK is valued inline with the index average.
ARMK is valuated rather expensively with a Price/Forward Earnings ratio of 18.46.
Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than the industry average as 65.91% of the companies are valued more expensively.
ARMK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 18.46 |
4.2 Price Multiples
ARMK's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 64.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.33 | ||
| EV/EBITDA | 13.79 |
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 20.39% in the coming years.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y22.52%
EPS Next 3Y20.39%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, ARMK is not a good candidate for dividend investing.
ARMK's Dividend Yield is a higher than the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.34, ARMK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
ARMK pays out 30.38% of its income as dividend. This is a sustainable payout ratio.
DP30.38%
EPS Next 2Y22.52%
EPS Next 3Y20.39%
42.94
-0.7 (-1.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.67%
Inst Owner Change-0.01%
Ins Owners0.53%
Ins Owner Change0.07%
Market Cap11.25B
Analysts81.9
Price Target45.42 (5.78%)
Short Float %3.21%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend0.38
Dividend Growth(5Y)-2.79%
DP30.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.05%
Min EPS beat(2)1.94%
Max EPS beat(2)4.17%
EPS beat(4)3
Avg EPS beat(4)1.47%
Min EPS beat(4)-0.77%
Max EPS beat(4)4.17%
EPS beat(8)6
Avg EPS beat(8)3.04%
EPS beat(12)8
Avg EPS beat(12)2.15%
EPS beat(16)10
Avg EPS beat(16)8.41%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-3.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)6
Avg Revenue beat(12)-1.04%
Revenue beat(16)9
Avg Revenue beat(16)-0.58%
PT rev (1m)0%
PT rev (3m)-0.24%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 18.46 | ||
| P/S | 0.64 | ||
| P/FCF | 30.33 | ||
| P/OCF | 13.54 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.79 |
EPS(TTM)1.7
EY3.96%
EPS(NY)2.33
Fwd EY5.42%
FCF(TTM)1.42
FCFY3.3%
OCF(TTM)3.17
OCFY7.39%
SpS67.25
BVpS11.52
TBVpS-14.08
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 11.52% | ||
| ROCE | 7.49% | ||
| ROIC | 5.66% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 21.8% | ||
| OM | 4.38% | ||
| PM (TTM) | 1.97% | ||
| GM | 8.47% | ||
| FCFM | 2.11% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 17.61 | ||
| Debt/EBITDA | 4.99 | ||
| Cap/Depr | 101.98% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | -22.67 | ||
| Cash Conversion | 67.95% | ||
| Profit Quality | 106.62% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.23 |
F-Score5
WACC7.18%
ROIC/WACC0.79
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)0%
EPS 3YN/A
EPS 5Y-7.1%
EPS Q2Q%17.24%
EPS Next Y27.46%
EPS Next 2Y22.52%
EPS Next 3Y20.39%
EPS Next 5Y15.91%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%1.89%
Revenue Next Year6.89%
Revenue Next 2Y6.13%
Revenue Next 3Y6.07%
Revenue Next 5Y6.45%
EBIT growth 1Y4.81%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year60.84%
EBIT Next 3Y24.32%
EBIT Next 5Y17.11%
FCF growth 1Y157.47%
FCF growth 3Y6.26%
FCF growth 5Y-9.07%
OCF growth 1Y56.8%
OCF growth 3Y3.4%
OCF growth 5Y-5.89%