(ARMK) Aramark Holdings - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: NYSE (USA) | Market Cap: 14.031m USD | Total Return: 36.4% in 12m
Avg Turnover: 161M
EPS Trend: 76.8%
Qual. Beats: -1
Rev. Trend: 91.9%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Supp Ema20, Idiosyncratic Leader, Confidence
Aramark (ARMK) is a global provider of managed food and facilities services across diverse sectors, including education, healthcare, business, sports, and corrections. The company operates through two primary segments: Food and Support Services United States and Food and Support Services International. Its service portfolio encompasses dining, catering, retail, custodial maintenance, energy management, and specialized facility consulting.
The company utilizes a contract-based business model, often characterized by high retention rates and long-term service agreements that provide steady cash flow. Within the GICS Restaurants sub-industry, Aramark functions as a business-to-business (B2B) operator, distinguishing itself from consumer-facing retail chains by managing complex supply chains and large-scale labor forces for institutional clients.
Investors can evaluate the companys historical performance and valuation metrics on ValueRay to inform their decision-making. Headquartered in Philadelphia and founded in 1959, Aramark maintains a significant global footprint, providing essential support services ranging from hospital nutrition programs to stadium concessions and correctional facility management.
- New contract wins and retention rates drive organic revenue growth
- Labor cost inflation and food price volatility pressure operating margins
- Return to office trends dictate business and industry segment recovery
- Higher interest rates impact debt service costs on significant leverage
- Expansion of international facility services diversifies revenue away from domestic markets
| Net Income: 357.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 1.87 > 1.0 |
| NWC/Revenue: 3.38% < 20% (prev 3.72%; Δ -0.34% < -1%) |
| CFO/TA 0.06 > 3% & CFO 870.3m > Net Income 357.0m |
| Net Debt (6.28b) to EBITDA (1.33b): 4.72 < 3 |
| Current Ratio: 1.21 > 1.5 & < 3 |
| Outstanding Shares: last quarter (266.4m) vs 12m ago -0.39% < -2% |
| Gross Margin: 6.42% > 18% (prev 8.47%; Δ -2.05% > 0.5%) |
| Asset Turnover: 142.1% > 50% (prev 130.7%; Δ 11.42% > 0%) |
| Interest Coverage Ratio: 2.37 > 6 (EBIT TTM 825.2m / Interest Expense TTM 347.6m) |
| A: 0.05 (Total Current Assets 3.75b - Total Current Liabilities 3.09b) / Total Assets 13.8b |
| B: 0.04 (Retained Earnings 586.3m / Total Assets 13.8b) |
| C: 0.06 (EBIT TTM 825.2m / Avg Total Assets 13.7b) |
| D: 0.31 (Book Value of Equity 3.28b / Total Liabilities 10.5b) |
| Altman-Z'' = 1.18 = BB |
| DSRI: 1.01 (Receivables 2.48b/2.23b, Revenue 19.4b/17.6b) |
| GMI: 1.32 (GM 8.47% / 6.42%) |
| AQI: 1.11 (AQ_t 0.60 / AQ_t-1 0.54) |
| SGI: 1.10 (Revenue 19.4b / 17.6b) |
| TATA: -0.04 (NI 357.0m - CFO 870.3m) / TA 13.8b) |
| Beneish M = -2.60 (Cap -4..+1) = A |
As of June 03, 2026, the stock is trading at USD 54.16 with a total of 3,122,984 shares traded.
Over the past week, the price has changed by +3.60%,
over one month by +21.23%,
over three months by +31.57% and
over the past year by +36.39%.
Aramark Holdings has received a consensus analysts rating of 4.43. Therefore, it is recommended to buy ARMK.
- StrongBuy: 8
- Buy: 4
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 55.3 | 2% |
P/E Trailing = 39.8209
P/E Forward = 23.4192
P/S = 0.7227
P/B = 4.1908
P/EG = 1.0282
Revenue TTM = 19.4b USD
EBIT TTM = 825.2m USD
EBITDA TTM = 1.33b USD
Long Term Debt = 6.06b USD (from longTermDebt, last quarter)
Short Term Debt = 99.2m USD (from shortTermDebt, last quarter)
Debt = 6.75b USD (from shortLongTermDebtTotal, last quarter) + Leases 332.1m
Net Debt = 6.28b USD (calculated: Debt 6.75b - CCE 475.7m)
Enterprise Value = 20.3b USD (14.0b + Debt 6.75b - CCE 475.7m)
Interest Coverage Ratio = 2.37 (Ebit TTM 825.2m / Interest Expense TTM 347.6m)
EV/FCF = 31.77x (Enterprise Value 20.3b / FCF TTM 639.4m)
FCF Yield = 3.15% (FCF TTM 639.4m / Enterprise Value 20.3b)
FCF Margin = 3.29% (FCF TTM 639.4m / Revenue TTM 19.4b)
Net Margin = 1.84% (Net Income TTM 357.0m / Revenue TTM 19.4b)
Gross Margin = 6.42% ((Revenue TTM 19.4b - Cost of Revenue TTM 18.2b) / Revenue TTM)
Gross Margin QoQ = 6.00% (prev 6.01%)
Tobins Q-Ratio = 1.47 (Enterprise Value 20.3b / Total Assets 13.8b)
Interest Expense / Debt = 5.15% (Interest Expense 347.6m / Debt 6.75b)
Taxrate = 25.09% (119.8m / 477.7m)
NOPAT = 618.2m (EBIT 825.2m * (1 - 25.09%))
Current Ratio = 1.21 (Total Current Assets 3.75b / Total Current Liabilities 3.09b)
Debt / Equity = 2.06 (Debt 6.75b / totalStockholderEquity, last quarter 3.28b)
Debt / EBITDA = 4.72 (Net Debt 6.28b / EBITDA 1.33b)
Debt / FCF = 9.82 (Net Debt 6.28b / FCF TTM 639.4m)
Total Stockholder Equity = 3.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.61% (Net Income 357.0m / Total Assets 13.8b)
RoE = 11.23% (Net Income TTM 357.0m / Total Stockholder Equity 3.18b)
RoCE = 8.93% (EBIT 825.2m / Capital Employed (Equity 3.18b + L.T.Debt 6.06b))
RoIC = 5.96% (NOPAT 618.2m / Invested Capital 10.4b)
WACC = 7.03% (E(14.0b)/V(20.8b) * Re(8.56%) + D(6.75b)/V(20.8b) * Rd(5.15%) * (1-Tc(0.25)))
Discount Rate = 8.56% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 6.67 | Cagr: 0.35%
[DCF] Terminal Value 77.97% ; FCFF base≈532.0m ; Y1≈609.9m ; Y5≈897.6m
[DCF] Fair Price = 27.49 (EV 13.5b - Net Debt 6.28b = Equity 7.23b / Shares 263.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 76.81 | EPS CAGR: 5.38% | SUE: -1.22 | # QB: -1
Revenue Correlation: 91.93 | Revenue CAGR: 5.00% | SUE: 2.21 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.49 | Chg30d=+1.80% | Revisions=+38% | Analysts=12
EPS current Year (2026-09-30): EPS=2.25 | Chg30d=+1.11% | Revisions=+67% | GrowthEPS=+23.6% | GrowthRev=+7.9%
EPS next Year (2027-09-30): EPS=2.69 | Chg30d=+2.59% | Revisions=+78% | GrowthEPS=+19.4% | GrowthRev=+7.0%
[Analyst] Revisions Ratio: +78%