ARMK:NYE-Aramark (USD)

COMMON STOCK | Restaurants | NYE

Last Closing Price

USD 26.45

Change

+0.03 (+0.11)%

Market Cap

USD 6.73B

Volume

2.55M

Average Target Price

USD 28.71 (+8.56%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. It operates through three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. The company offers managed services, including dining, catering, food service management, and convenience-oriented retail operations; non-clinical support services, such as patient food and nutrition, retail food, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, payment, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, the company offers correctional food, and food and facilities management services for parks; and operates commissaries, laundry facilities, and property rooms. Additionally, it provides design, sourcing and manufacturing, delivery, cleaning, maintenance, and marketing services for uniforms and accessories; provides managed restroom services; and rents uniforms, work clothing, outerwear, particulate-free garments, and non-garment items and related services that include mats, shop towels, and first aid supplies. The company was formerly known as ARAMARK Holdings Corporation and changed its name to Aramark in May 2014. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-09-30 )

Largest Industry Peers for Restaurants

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
MCD McDonald's Corporation

+0.81 (+0.37%)

USD162.72B 34.25 22.97
CMG Chipotle Mexican Grill, Inc

-17.90 (-1.42%)

USD35.28B 136.28 51.62
YUM Yum! Brands, Inc

+0.59 (+0.65%)

USD27.32B 27.44 22.85
YUMC Yum China Holdings, Inc

+1.39 (+2.70%)

USD21.61B 39.23 15.92
QSR Restaurant Brands Internationa..

+0.14 (+0.24%)

USD17.40B 26.28 15.67
DPZ Domino's Pizza, Inc

+1.82 (+0.43%)

USD16.71B 39.63 28.92
DRI Darden Restaurants, Inc

-0.06 (-0.06%)

USD13.11B 17.38 154.37
CNNE Cannae Holdings, Inc

+1.17 (+3.24%)

USD3.31B 2.23 1.43
SHAK Shake Shack Inc

-0.97 (-1.48%)

USD2.71B 101.44 91.40
EAT Brinker International, Inc

-0.85 (-1.95%)

USD2.00B 73.21 19.55

ETFs Containing ARMK

Symbol Name Weight Mer Price(Change) Market Cap
DWSH AdvisorShares Dorsey Wrig.. 0.00 % 3.07 %

-0.02 (-0.10%)

USD0.11B

Market Performance

  Market Performance vs.
Industry/Classification (Restaurants)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -39.06% 17% F 17% F
Dividend Return 0.76% 20% F 21% F
Total Return -38.29% 17% F 16% F
Trailing 12 Months  
Capital Gain -37.40% 11% F 16% F
Dividend Return 1.04% 20% F 21% F
Total Return -36.36% 11% F 15% F
Trailing 5 Years  
Capital Gain -14.21% 43% F 33% F
Dividend Return 6.79% 11% F 18% F
Total Return -7.42% 36% F 28% F
Average Annual (5 Year Horizon)  
Capital Gain 0.91% N/A N/A 50% F
Dividend Return 1.16% N/A N/A 36% F
Total Return 2.07% N/A N/A 42% F
Risk Return Profile  
Volatility (Standard Deviation) 20.87% N/A N/A 37% F
Risk Adjusted Return 9.92% N/A N/A 34% F
Market Capitalization 6.73B 61% D- 81% B-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Restaurants)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 48.00 29% F 12% F
Price/Book Ratio 2.26 54% F 32% F
Price / Cash Flow Ratio 6.84 56% F 45% F
EV/EBITDA 21.49 50% F 21% F
Management Effectiveness  
Return on Equity -7.32% 46% F 25% F
Return on Invested Capital 6.19% 33% F 54% F
Return on Assets 1.02% 33% F 35% F
Debt to Equity Ratio 199.16% 13% F 15% F
Technical Ratios  
Short Ratio 5.34 17% F 20% F
Short Percent 6.50% 28% F 44% F
Beta 1.77 28% F 16% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.