ARAMARK (ARMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARMK - US03852U1060 - Common Stock
37.62 USD
+0.2 (+0.53%)
37.62 USD
0 (0%)
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. There are concerns on the financial health of ARMK while its profitability can be described as average. ARMK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ARMK had positive earnings in the past year.
ARMK had a positive operating cash flow in the past year.
ARMK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARMK had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ARMK (2.45%) is comparable to the rest of the industry.
ARMK has a better Return On Equity (10.37%) than 69.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.99%, ARMK is in line with its industry, outperforming 55.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARMK is below the industry average of 10.42%.
The last Return On Invested Capital (5.99%) for ARMK is above the 3 year average (5.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.37% | ||
| ROIC | 5.99% |
ROA(3y)2.84%
ROA(5y)1.83%
ROE(3y)12.39%
ROE(5y)8.04%
ROIC(3y)5.54%
ROIC(5y)4.33%
1.3 Margins
Looking at the Profit Margin, with a value of 1.76%, ARMK is in line with its industry, outperforming 43.94% of the companies in the same industry.
ARMK's Profit Margin has improved in the last couple of years.
ARMK has a Operating Margin of 4.28%. This is in the lower half of the industry: ARMK underperforms 64.39% of its industry peers.
ARMK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 8.36%, ARMK is doing worse than 90.91% of the companies in the same industry.
ARMK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.28% | ||
| PM (TTM) | 1.76% | ||
| GM | 8.36% |
OM growth 3Y4.57%
OM growth 5YN/A
PM growth 3Y14.07%
PM growth 5YN/A
GM growth 3Y-0.09%
GM growth 5Y6.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARMK is destroying value.
Compared to 1 year ago, ARMK has less shares outstanding
The number of shares outstanding for ARMK has been increased compared to 5 years ago.
Compared to 1 year ago, ARMK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 indicates that ARMK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.21, ARMK is doing good in the industry, outperforming 60.61% of the companies in the same industry.
The Debt to FCF ratio of ARMK is 12.52, which is on the high side as it means it would take ARMK, 12.52 years of fcf income to pay off all of its debts.
ARMK has a Debt to FCF ratio (12.52) which is in line with its industry peers.
ARMK has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ARMK (1.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.52 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.91
WACC6.56%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ARMK may have some problems paying its short term obligations.
ARMK's Current ratio of 0.99 is in line compared to the rest of the industry. ARMK outperforms 53.03% of its industry peers.
A Quick Ratio of 0.88 indicates that ARMK may have some problems paying its short term obligations.
ARMK's Quick ratio of 0.88 is in line compared to the rest of the industry. ARMK outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
ARMK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.42%, which is quite good.
The Earnings Per Share has been growing by 15.54% on average over the past years. This is quite good.
ARMK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
ARMK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.60% yearly.
EPS 1Y (TTM)17.42%
EPS 3Y15.54%
EPS 5YN/A
EPS Q2Q%5.56%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
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 14.10% yearly.
ARMK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y23.56%
EPS Next 2Y20.51%
EPS Next 3Y18.45%
EPS Next 5Y14.1%
Revenue Next Year5.67%
Revenue Next 2Y5.82%
Revenue Next 3Y5.91%
Revenue Next 5Y6.74%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
ARMK is valuated rather expensively with a Price/Earnings ratio of 20.67.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than 66.67% of the companies in the same industry.
ARMK is valuated rather cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.73 indicates a correct valuation of ARMK.
69.70% of the companies in the same industry are more expensive than ARMK, based on the Price/Forward Earnings ratio.
ARMK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 16.73 |
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.
67.42% of the companies in the same industry are more expensive than ARMK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.91 | ||
| EV/EBITDA | 11.52 |
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.
ARMK's earnings are expected to grow with 18.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y20.51%
EPS Next 3Y18.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, ARMK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.48, ARMK pays a bit more dividend than its industry peers.
ARMK's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of ARMK decreases each year by -1.01%.
ARMK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-1.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARMK pays out 33.95% of its income as dividend. This is a sustainable payout ratio.
DP33.95%
EPS Next 2Y20.51%
EPS Next 3Y18.45%
37.62
+0.2 (+0.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners101.38%
Inst Owner Change-4.6%
Ins Owners0.62%
Ins Owner Change0.39%
Market Cap9.89B
Revenue(TTM)18.51B
Net Income(TTM)326.39M
Analysts83.81
Price Target46.07 (22.46%)
Short Float %3.4%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend0.42
Dividend Growth(5Y)-1.01%
DP33.95%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.1%
Min EPS beat(2)-14.44%
Max EPS beat(2)-1.76%
EPS beat(4)2
Avg EPS beat(4)-2.52%
Min EPS beat(4)-14.44%
Max EPS beat(4)4.17%
EPS beat(8)5
Avg EPS beat(8)0.93%
EPS beat(12)7
Avg EPS beat(12)0.61%
EPS beat(16)8
Avg EPS beat(16)0.5%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-4.15%
Max Revenue beat(2)-2.56%
Revenue beat(4)0
Avg Revenue beat(4)-3.43%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)-2.56%
Revenue beat(8)1
Avg Revenue beat(8)-2.41%
Revenue beat(12)4
Avg Revenue beat(12)-2.52%
Revenue beat(16)8
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.73%
PT rev (3m)-1.04%
EPS NQ rev (1m)-12.52%
EPS NQ rev (3m)-12.82%
EPS NY rev (1m)-3.57%
EPS NY rev (3m)-3.5%
Revenue NQ rev (1m)-3%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 16.73 | ||
| P/S | 0.53 | ||
| P/FCF | 22.91 | ||
| P/OCF | 10.74 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.52 |
EPS(TTM)1.82
EY4.84%
EPS(NY)2.25
Fwd EY5.98%
FCF(TTM)1.64
FCFY4.37%
OCF(TTM)3.5
OCFY9.31%
SpS70.38
BVpS11.97
TBVpS-13.69
PEG (NY)0.88
PEG (5Y)N/A
Graham Number22.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.37% | ||
| ROCE | 8.11% | ||
| ROIC | 5.99% | ||
| ROICexc | 6.41% | ||
| ROICexgc | 24.68% | ||
| OM | 4.28% | ||
| PM (TTM) | 1.76% | ||
| GM | 8.36% | ||
| FCFM | 2.33% |
ROA(3y)2.84%
ROA(5y)1.83%
ROE(3y)12.39%
ROE(5y)8.04%
ROIC(3y)5.54%
ROIC(5y)4.33%
ROICexc(3y)6.18%
ROICexc(5y)4.75%
ROICexgc(3y)30.33%
ROICexgc(5y)21.39%
ROCE(3y)7.5%
ROCE(5y)5.86%
ROICexgc growth 3Y27.16%
ROICexgc growth 5YN/A
ROICexc growth 3Y17.41%
ROICexc growth 5YN/A
OM growth 3Y4.57%
OM growth 5YN/A
PM growth 3Y14.07%
PM growth 5YN/A
GM growth 3Y-0.09%
GM growth 5Y6.89%
F-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.52 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 102.71% | ||
| Cap/Sales | 2.64% | ||
| Interest Coverage | 2407.56 | ||
| Cash Conversion | 72.63% | ||
| Profit Quality | 132.29% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.21 |
F-Score8
WACC6.56%
ROIC/WACC0.91
Cap/Depr(3y)98.14%
Cap/Depr(5y)88.29%
Cap/Sales(3y)2.49%
Cap/Sales(5y)2.65%
Profit Quality(3y)101.01%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.42%
EPS 3Y15.54%
EPS 5YN/A
EPS Q2Q%5.56%
EPS Next Y23.56%
EPS Next 2Y20.51%
EPS Next 3Y18.45%
EPS Next 5Y14.1%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
Revenue Next Year5.67%
Revenue Next 2Y5.82%
Revenue Next 3Y5.91%
Revenue Next 5Y6.74%
EBIT growth 1Y12.08%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year51.6%
EBIT Next 3Y22.18%
EBIT Next 5Y15.29%
FCF growth 1Y44.37%
FCF growth 3Y12.15%
FCF growth 5YN/A
OCF growth 1Y26.77%
OCF growth 3Y9.87%
OCF growth 5Y39.13%
ARAMARK / ARMK FAQ
What is the fundamental rating for ARMK stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARMK.
What is the valuation status for ARMK stock?
ChartMill assigns a valuation rating of 5 / 10 to ARAMARK (ARMK). This can be considered as Fairly Valued.
How profitable is ARAMARK (ARMK) stock?
ARAMARK (ARMK) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for ARMK stock?
The Earnings per Share (EPS) of ARAMARK (ARMK) is expected to grow by 23.56% in the next year.
Can you provide the dividend sustainability for ARMK stock?
The dividend rating of ARAMARK (ARMK) is 4 / 10 and the dividend payout ratio is 33.95%.