ARAMARK (ARMK) Stock Fundamental Analysis
USA - NYSE:ARMK - US03852U1060 - Common Stock
38.415 USD
-1.37 (-3.46%)
Overall ARMK gets a fundamental rating of 4 out of 10. We evaluated ARMK against 135 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has only an average score on both its financial health and profitability. ARMK has a correct valuation and a medium growth rate.
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.
The reported net income has been mixed in the past 5 years: ARMK reported negative net income in multiple years.
Each year in the past 5 years ARMK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.72%, ARMK is in line with its industry, outperforming 51.85% of the companies in the same industry.
ARMK has a Return On Equity of 11.73%. This is in the better half of the industry: ARMK outperforms 70.37% of its industry peers.
ARMK's Return On Invested Capital of 5.68% is in line compared to the rest of the industry. ARMK outperforms 54.07% of its industry peers.
ARMK had an Average Return On Invested Capital over the past 3 years of 4.93%. This is significantly below the industry average of 10.67%.
The last Return On Invested Capital (5.68%) for ARMK is above the 3 year average (4.93%), which is a sign of increasing profitability.
| 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
The Profit Margin of ARMK (2.02%) is comparable to the rest of the industry.
ARMK's Profit Margin has declined in the last couple of years.
ARMK has a worse Operating Margin (4.44%) than 65.19% of its industry peers.
In the last couple of years the Operating Margin of ARMK has remained more or less at the same level.
With a Gross Margin value of 8.55%, ARMK is not doing good in the industry: 90.37% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ARMK has grown nicely.
| 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
ARMK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARMK has more shares outstanding
ARMK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARMK has been reduced compared to a year ago.
2.2 Solvency
ARMK has an Altman-Z score of 2.27. 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 2.27. This is comparable to the rest of the industry: ARMK outperforms 60.00% of its industry peers.
The Debt to FCF ratio of ARMK is 22.42, which is on the high side as it means it would take ARMK, 22.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.42, ARMK is in line with its industry, outperforming 44.44% of the companies in the same industry.
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 of 2.03. This is comparable to the rest of the industry: ARMK outperforms 51.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.95
WACC5.95%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK's Current ratio of 1.29 is fine compared to the rest of the industry. ARMK outperforms 63.70% of its industry peers.
A Quick Ratio of 1.14 indicates that ARMK should not have too much problems paying its short term obligations.
ARMK has a better Quick ratio (1.14) than 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.48% over the past year.
The Earnings Per Share has been decreasing by -7.10% on average over the past years.
The Revenue has decreased by -0.06% in the past year.
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
The Earnings Per Share is expected to grow by 15.62% on average over the next years. This is quite good.
ARMK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.12% yearly.
EPS Next Y27.22%
EPS Next 2Y23.06%
EPS Next 3Y21.05%
EPS Next 5Y15.62%
Revenue Next Year6.8%
Revenue Next 2Y6.28%
Revenue Next 3Y6.16%
Revenue Next 5Y6.12%
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
ARMK is valuated rather expensively with a Price/Earnings ratio of 21.46.
65.19% of the companies in the same industry are more expensive than ARMK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.53, ARMK is valued a bit cheaper.
ARMK is valuated correctly with a Price/Forward Earnings ratio of 16.37.
Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than 67.41% of the companies in the same industry.
ARMK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 16.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARMK.
ARMK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.96 | ||
| EV/EBITDA | 12.92 |
4.3 Compensation for Growth
ARMK's 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 21.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y23.06%
EPS Next 3Y21.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, ARMK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.99, ARMK pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.05, ARMK pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of ARMK decreases each year by -2.79%.
ARMK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-2.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARMK pays out 29.94% of its income as dividend. This is a sustainable payout ratio.
DP29.94%
EPS Next 2Y23.06%
EPS Next 3Y21.05%
NYSE:ARMK (10/16/2025, 3:44:03 PM)
38.415
-1.37 (-3.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change-0.01%
Ins Owners0.54%
Ins Owner Change0.03%
Market Cap10.10B
Analysts83.81
Price Target46.55 (21.18%)
Short Float %2.37%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)0%
PT rev (3m)2.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 16.37 | ||
| P/S | 0.56 | ||
| P/FCF | 35.96 | ||
| P/OCF | 13.16 | ||
| P/B | 3.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.92 |
EPS(TTM)1.79
EY4.66%
EPS(NY)2.35
Fwd EY6.11%
FCF(TTM)1.07
FCFY2.78%
OCF(TTM)2.92
OCFY7.6%
SpS68
BVpS11.73
TBVpS-13.96
PEG (NY)0.79
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 | 2.27 |
F-Score5
WACC5.95%
ROIC/WACC0.95
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 Y27.22%
EPS Next 2Y23.06%
EPS Next 3Y21.05%
EPS Next 5Y15.62%
Revenue 1Y (TTM)-0.06%
Revenue growth 3Y12.89%
Revenue growth 5Y1.41%
Sales Q2Q%5.72%
Revenue Next Year6.8%
Revenue Next 2Y6.28%
Revenue Next 3Y6.16%
Revenue Next 5Y6.12%
EBIT growth 1Y3.55%
EBIT growth 3Y58.57%
EBIT growth 5Y0.18%
EBIT Next Year62.05%
EBIT Next 3Y24.61%
EBIT Next 5Y16.87%
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%