(ARMK) Aramark Holdings - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: NYSE (USA) | Market Cap: 13.858m USD | Total Return: 30.7% in 12m
Industry Rotation: +1.8
Avg Turnover: 129M
EPS Trend: 33.6%
Qual. Beats: -1
Rev. Trend: 71.9%
Qual. Beats: 1
Warnings
Altman Z'' 0.90 < 1.0 - financial distress zone
Tailwinds
Supp Ema20
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 (5.95b) to EBITDA (1.33b): 4.47 < 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 0.08%; Δ 633.5% > 0.5%) |
| Asset Turnover: 142.1% > 50% (prev 130.7%; Δ 11.42% > 0%) |
| Interest Coverage Ratio: 2.37 > 6 (EBITDA TTM 1.33b / Interest Expense TTM 347.6m) |
| A: 0.05 (Total Current Assets 3.75b - Total Current Liabilities 3.09b) / Total Assets 13.84b |
| B: 0.04 (Retained Earnings 586.3m / Total Assets 13.84b) |
| C: 0.06 (EBIT TTM 825.2m / Avg Total Assets 13.67b) |
| D: 0.04 (Book Value of Equity 431.7m / Total Liabilities 10.50b) |
| Altman-Z'' Score: 0.90 = B |
| DSRI: 1.01 (Receivables 2.48b/2.23b, Revenue 19.41b/17.62b) |
| GMI: 1.32 (GM 6.42% / 8.47%) |
| AQI: 1.11 (AQ_t 0.60 / AQ_t-1 0.54) |
| SGI: 1.10 (Revenue 19.41b / 17.62b) |
| TATA: -0.04 (NI 357.0m - CFO 870.3m) / TA 13.84b) |
| Beneish M-Score: -2.63 (Cap -4..+1) = A |
Over the past week, the price has changed by +6.47%, over one month by +13.03%, over three months by +27.17% and over the past year by +30.66%.
- StrongBuy: 8
- Buy: 4
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 51.4 | -0.2% |
P/E Forward = 20.202
P/S = 0.7138
P/B = 3.6933
P/EG = 0.9909
Revenue TTM = 19.41b USD
EBIT TTM = 825.2m USD
EBITDA TTM = 1.33b USD
Long Term Debt = 5.37b USD (from longTermDebt, last fiscal year)
Short Term Debt = 99.2m USD (from shortTermDebt, last quarter)
Debt = 6.42b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.95b USD (from netDebt column, last quarter)
Enterprise Value = 19.80b USD (13.86b + Debt 6.42b - CCE 475.7m)
Interest Coverage Ratio = 2.37 (Ebit TTM 825.2m / Interest Expense TTM 347.6m)
EV/FCF = 30.97x (Enterprise Value 19.80b / FCF TTM 639.4m)
FCF Yield = 3.23% (FCF TTM 639.4m / Enterprise Value 19.80b)
FCF Margin = 3.29% (FCF TTM 639.4m / Revenue TTM 19.41b)
Net Margin = 1.84% (Net Income TTM 357.0m / Revenue TTM 19.41b)
Gross Margin = 6.42% ((Revenue TTM 19.41b - Cost of Revenue TTM 18.17b) / Revenue TTM)
Gross Margin QoQ = 6.00% (prev 6.01%)
Tobins Q-Ratio = 1.43 (Enterprise Value 19.80b / Total Assets 13.84b)
Interest Expense / Debt = 1.28% (Interest Expense 82.2m / Debt 6.42b)
Taxrate = 25.72% (35.4m / 137.5m)
NOPAT = 613.0m (EBIT 825.2m * (1 - 25.72%))
Current Ratio = 1.21 (Total Current Assets 3.75b / Total Current Liabilities 3.09b)
Debt / Equity = 1.96 (Debt 6.42b / totalStockholderEquity, last quarter 3.28b)
Debt / EBITDA = 4.47 (Net Debt 5.95b / EBITDA 1.33b)
Debt / FCF = 9.30 (Net Debt 5.95b / FCF TTM 639.4m)
Total Stockholder Equity = 3.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.61% (Net Income 357.0m / Total Assets 13.84b)
RoE = 11.23% (Net Income TTM 357.0m / Total Stockholder Equity 3.18b)
RoCE = 9.65% (EBIT 825.2m / Capital Employed (Equity 3.18b + L.T.Debt 5.37b))
RoIC = 6.71% (NOPAT 613.0m / Invested Capital 9.13b)
WACC = 6.15% (E(13.86b)/V(20.28b) * Re(8.56%) + D(6.42b)/V(20.28b) * Rd(1.28%) * (1-Tc(0.26)))
Discount Rate = 8.56% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 6.67 | Cagr: 0.35%
[DCF] Terminal Value 87.90% ; FCFF base≈532.0m ; Y1≈656.4m ; Y5≈1.12b
[DCF] Fair Price = 94.92 (EV 30.91b - Net Debt 5.95b = Equity 24.96b / Shares 263.0m; r=6.15% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 33.61 | EPS CAGR: 11.81% | SUE: -1.22 | # QB: -1
Revenue Correlation: 71.91 | Revenue CAGR: 4.72% | SUE: 2.21 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.48 | Chg30d=+0.88% | Revisions=+20% | Analysts=12
EPS current Year (2026-09-30): EPS=2.25 | Chg30d=+1.00% | Revisions=+20% | GrowthEPS=+23.4% | GrowthRev=+7.7%
EPS next Year (2027-09-30): EPS=2.67 | Chg30d=+2.07% | Revisions=+20% | GrowthEPS=+18.9% | GrowthRev=+6.6%
[Analyst] Revisions Ratio: +20%