ARAMARK (ARMK)
US03852U1060 - Common Stock
ARMK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has only an average score on both its financial health and profitability. ARMK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARMK was profitable.
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
ARMK has a better Return On Assets (5.06%) than 67.16% of its industry peers.
ARMK's Return On Equity of 22.08% is fine compared to the rest of the industry. ARMK outperforms 76.12% of its industry peers.
With a Return On Invested Capital value of 6.49%, ARMK perfoms like the industry average, outperforming 55.22% of the companies in the same industry.
ARMK had an Average Return On Invested Capital over the past 3 years of 3.74%. This is significantly below the industry average of 10.33%.
The last Return On Invested Capital (6.49%) for ARMK is above the 3 year average (3.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 22.08% | ||
| ROIC | 6.49% |
ROA(3y)1.55%
ROA(5y)1%
ROE(3y)7.07%
ROE(5y)3.57%
ROIC(3y)3.74%
ROIC(5y)N/A
1.3 Margins
ARMK has a Profit Margin of 3.37%. This is comparable to the rest of the industry: ARMK outperforms 47.76% of its industry peers.
ARMK's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 4.45%, ARMK is not doing good in the industry: 64.93% of the companies in the same industry are doing better.
ARMK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 9.32%, ARMK is not doing good in the industry: 91.79% 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 | 4.45% | ||
| PM (TTM) | 3.37% | ||
| GM | 9.32% |
OM growth 3YN/A
OM growth 5Y-1.71%
PM growth 3YN/A
PM growth 5Y-0.12%
GM growth 3Y13.27%
GM growth 5Y6.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARMK is destroying value.
ARMK has more shares outstanding than it did 1 year ago.
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 2.33 indicates that ARMK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.33, ARMK is in the better half of the industry, outperforming 70.90% of the companies in the same industry.
The Debt to FCF ratio of ARMK is 24.66, which is on the high side as it means it would take ARMK, 24.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.66, ARMK is in line with its industry, outperforming 44.78% of the companies in the same industry.
A Debt/Equity ratio of 2.08 is on the high side and indicates that ARMK has dependencies on debt financing.
ARMK has a Debt to Equity ratio of 2.08. This is comparable to the rest of the industry: ARMK outperforms 52.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 24.66 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.8
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.27 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK's Current ratio of 1.27 is fine compared to the rest of the industry. ARMK outperforms 63.43% of its industry peers.
ARMK has a Quick Ratio of 1.12. This is a normal value and indicates that ARMK is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.12, ARMK perfoms like the industry average, outperforming 58.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.36% over the past year.
The Earnings Per Share has been decreasing by -5.56% on average over the past years.
ARMK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.90%.
ARMK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.61% yearly.
EPS 1Y (TTM)23.36%
EPS 3YN/A
EPS 5Y-5.56%
EPS growth Q2Q0%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y13.69%
Revenue growth 5Y3.61%
Revenue growth Q2Q-4.2%
3.2 Future
The Earnings Per Share is expected to grow by 11.46% on average over the next years. This is quite good.
Based on estimates for the next years, ARMK will show a small growth in Revenue. The Revenue will grow by 3.44% on average per year.
EPS Next Y-5.75%
EPS Next 2Y8.37%
EPS Next 3Y11.8%
EPS Next 5Y11.46%
Revenue Next Year-7.1%
Revenue Next 2Y-0.95%
Revenue Next 3Y1.02%
Revenue Next 5Y3.44%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.14 indicates a rather expensive valuation of ARMK.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than 70.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.92. ARMK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.30 indicates a correct valuation of ARMK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARMK indicates a somewhat cheap valuation: ARMK is cheaper than 71.64% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. ARMK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 16.3 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.07 | ||
| EV/EBITDA | 10.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.37%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
ARMK has a Yearly Dividend Yield of 1.18%.
ARMK's Dividend Yield is a higher than the industry average which is at 2.58.
Compared to an average S&P500 Dividend Yield of 2.41, ARMK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of ARMK has a limited annual growth rate of 1.04%.
ARMK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
17.65% of the earnings are spent on dividend by ARMK. This is a low number and sustainable payout ratio.
ARMK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.65%
EPS Next 2Y8.37%
EPS Next 3Y11.8%
ARAMARK
NYSE:ARMK (4/26/2024, 7:04:00 PM)
After market: 32.35 0 (0%)32.35
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 16.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 22.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.45% | ||
| PM (TTM) | 3.37% | ||
| GM | 9.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)23.36%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.9%
Revenue growth 3Y13.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y