ARMK Stock Analysis: Aramark Holdings | NYSE
Specialty Business Services | NYSE, USA | Market Cap: 14.405m USD | 12M Return: 37.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 131M
EPS Trend: 78.2%
Qual. Beats: 0
Rev. Trend: 91.9%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Aramark is a major provider of food and facilities management services, serving clients across education, healthcare, business and industry, sports, leisure, and corrections markets in the U.S. and internationally. The company is structured into two reportable segments: Food and Support Services United States, and Food and Support Services International, reflecting its global scale and diversified client base.
Its core offering centers on food-related managed services such as dining, catering, food service management, and convenience-oriented retail, alongside non-clinical support services for healthcare clients including patient food and nutrition, retail food, environmental services, and procurement. Aramark also delivers facility operations including plant maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management, illustrating the bundled, outsourced nature of the contracts that drive recurring revenue in this sector.
The company further extends into hospitality and venue services, providing on-site restaurants, catering, concessions, beverage and vending, retail merchandise, recreational, and lodging services at sports, entertainment, and recreational facilities. For the corrections market, it supplies correctional food and operates commissaries, laundry facilities, and property rooms, highlighting its ability to serve highly regulated, specialized end markets.
Aramark, formerly known as ARAMARK Holdings Corporation, was founded in 1959 and is headquartered in Philadelphia, Pennsylvania. As a large-cap member of the Consumer Discretionary sector classified within the Restaurants sub-industry, it competes within the broader contract foodservice and integrated facility services industry alongside peers that similarly rely on long-term, multi-service contracts for stable, repeat business.
- Labor and food inflation pressure contract margins
- Sports and entertainment concessions drive post-pandemic revenue recovery
- Education dining segment weakens on college enrollment decline
| Net Income: 357.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.25 > 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 July 01, 2026, the stock is trading at USD 56.90 with a total of 3,531,543 shares traded. Over the past week, the price has changed by +5.84%, over one month by +4.61%, over three months by +40.68% and over the past year by +37.43%.
Current recommended Stop Loss: 55.40 (which is 2.6% or 1.3 ATR below the current price).
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 | 57.1 | 0.3% |
P/E Trailing = 40.8806
P/E Forward = 21.322
P/S = 0.742
P/B = 4.3231
P/EG = 0.9349
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 = 20.7b USD (14.4b + Debt 6.75b - CCE 475.7m)
Interest Coverage Ratio = 2.37 (Ebit TTM 825.2m / Interest Expense TTM 347.6m)
EV/FCF = 49.73x (Enterprise Value 20.7b / FCF TTM 415.9m)
FCF Yield = 2.01% (FCF TTM 415.9m / Enterprise Value 20.7b)
FCF Margin = 2.14% (FCF TTM 415.9m / 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 = 1.49 (Enterprise Value 20.7b / 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 = 15.09 (Net Debt 6.28b / FCF TTM 415.9m)
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 = 7.00% (E(14.4b)/V(21.2b) * Re(8.47%) + D(6.75b)/V(21.2b) * Rd(5.15%) * (1-Tc(0.25)))
Discount Rate = 8.47% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 6.67 | Cagr: 0.35%
[DCF] Terminal Value 76.89% ; FCFF base≈398.0m ; Y1≈439.5m ; Y5≈563.2m
[DCF] Fair Price = 8.81 (EV 8.59b - Net Debt 6.28b = Equity 2.32b / Shares 263.0m; r=8.35% [WACC [floored]]; 5y FCF grow 12.10% → 2.50% )
EPS Correlation: 78.15 | EPS CAGR: 6.31% | SUE: 0.31 | # QB: 0
Revenue Correlation: 91.93 | Revenue CAGR: 5.00% | SUE: 2.21 | # QB: 2
EPS current Year (2026-09-30): EPS=2.25 | Chg30d=-0.06% | Revisions=+67% | GrowthEPS=+23.5% | GrowthRev=+7.9%
EPS next Year (2027-09-30): EPS=2.69 | Chg30d=+0.22% | Revisions=+78% | GrowthEPS=+19.7% | GrowthRev=+7.1%
[Analyst] Revisions Ratio: +78%