ARAMARK (ARMK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARMK - US03852U1060 - Common Stock
37.68 USD
-0.15 (-0.4%)
37.68 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ARMK. ARMK was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. ARMK has only an average score on both its financial health and profitability. ARMK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARMK was profitable.
ARMK had a positive operating cash flow in the past year.
ARMK had positive earnings in 4 of the past 5 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 2.72%, ARMK perfoms like the industry average, outperforming 50.76% 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 70.45% of its industry peers.
ARMK's Return On Invested Capital of 5.55% is in line compared to the rest of the industry. ARMK outperforms 53.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARMK is below the industry average of 10.41%.
The 3 year average ROIC (5.54%) for ARMK is below the current ROIC(5.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROIC | 5.55% |
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 2.02%, ARMK is in line with its industry, outperforming 44.70% of the companies in the same industry.
ARMK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.44%, ARMK is doing worse than 64.39% of the companies in the same industry.
ARMK's Operating Margin has improved in the last couple of years.
ARMK's Gross Margin of 8.55% is on the low side compared to the rest of the industry. ARMK is outperformed by 90.15% of its industry peers.
ARMK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% |
OM growth 3Y4.57%
OM growth 5YN/A
PM growth 3Y14.07%
PM growth 5YN/A
GM growth 3Y-18.39%
GM growth 5Y-5.33%
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.
The number of shares outstanding for ARMK has been reduced compared to 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 2.24 indicates that ARMK is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARMK has a Altman-Z score of 2.24. This is in the better half of the industry: ARMK outperforms 62.88% 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.
ARMK's Debt to FCF ratio of 22.42 is in line compared to the rest of the industry. ARMK outperforms 44.70% 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.
The Debt to Equity ratio of ARMK (2.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 22.42 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.74
WACC7.47%
2.3 Liquidity
ARMK has a Current Ratio of 1.29. 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 Current ratio, with a value of 1.29, ARMK is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that ARMK should not have too much problems paying its short term obligations.
The Quick ratio of ARMK (1.14) is better than 63.64% 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 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.
Looking at the last year, ARMK shows a small growth in Revenue. The Revenue has grown by 6.35% in the last year.
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
Based on estimates for the next years, ARMK will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.10% on average per year.
The Revenue is expected to grow by 6.74% on average over the next years.
EPS Next Y28.14%
EPS Next 2Y22.24%
EPS Next 3Y18.4%
EPS Next 5Y14.1%
Revenue Next Year5.82%
Revenue Next 2Y5.84%
Revenue Next 3Y5.96%
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
Based on the Price/Earnings ratio of 20.70, the valuation of ARMK can be described as rather expensive.
Based on the Price/Earnings ratio, ARMK is valued a bit cheaper than the industry average as 65.91% of the companies are valued more expensively.
ARMK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.16, which indicates a correct valuation of ARMK.
Based on the Price/Forward Earnings ratio, ARMK is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
ARMK is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 16.16 |
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.
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 | 35.28 | ||
| EV/EBITDA | 12.48 |
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 18.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y22.24%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, ARMK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.40, ARMK pays a bit more dividend than its industry peers.
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 | 1.27% |
5.2 History
The dividend of ARMK decreases each year by -1.01%.
ARMK has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.01%
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 2Y22.24%
EPS Next 3Y18.4%
37.68
-0.15 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change-4.61%
Ins Owners0.54%
Ins Owner Change0.3%
Market Cap9.90B
Revenue(TTM)18.51B
Net Income(TTM)361.67M
Analysts83.81
Price Target46.44 (23.25%)
Short Float %3.74%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.42
Dividend Growth(5Y)-1.01%
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)-0.23%
PT rev (3m)-0.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 16.16 | ||
| P/S | 0.55 | ||
| P/FCF | 35.28 | ||
| P/OCF | 12.91 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.48 |
EPS(TTM)1.82
EY4.83%
EPS(NY)2.33
Fwd EY6.19%
FCF(TTM)1.07
FCFY2.83%
OCF(TTM)2.92
OCFY7.75%
SpS68
BVpS11.73
TBVpS-13.96
PEG (NY)0.74
PEG (5Y)N/A
Graham Number21.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 11.73% | ||
| ROCE | 7.52% | ||
| ROIC | 5.55% | ||
| ROICexc | 5.83% | ||
| ROICexgc | 17.79% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.55% | ||
| FCFM | 1.57% |
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-18.39%
GM growth 5Y-5.33%
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 | 2.24 |
F-Score5
WACC7.47%
ROIC/WACC0.74
Cap/Depr(3y)96.55%
Cap/Depr(5y)87.34%
Cap/Sales(3y)2.45%
Cap/Sales(5y)2.62%
Profit Quality(3y)103.32%
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 Y28.14%
EPS Next 2Y22.24%
EPS Next 3Y18.4%
EPS Next 5Y14.1%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y4.26%
Revenue growth 5Y7.6%
Sales Q2Q%14.3%
Revenue Next Year5.82%
Revenue Next 2Y5.84%
Revenue Next 3Y5.96%
Revenue Next 5Y6.74%
EBIT growth 1Y3.55%
EBIT growth 3Y9.03%
EBIT growth 5YN/A
EBIT Next Year53.9%
EBIT Next 3Y20.81%
EBIT Next 5Y15.07%
FCF growth 1Y12.1%
FCF growth 3Y14.08%
FCF growth 5YN/A
OCF growth 1Y3.46%
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 5 / 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 28.14% 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 29.94%.