ARMK:NYE-Aramark

COMMON STOCK | Restaurants | NYE

Last Closing Price

USD 44.24

Change

-0.17 (-0.38)%

Market Cap

USD 11.00B

Volume

1.61M

Average Target Price

USD 37.78 (-14.61%)
Average Analyst Rating

Verdict

STA Verdict

Verdict

About

Aramark provides food, facilities management, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. It operates in 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, clinical equipment maintenance, grounds keeping, and capital project management services. It also provides on-site restaurants, 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. Additionally, the company offers correctional food, and food and facilities management services for parks; and operates commissaries, laundry facilities, and property rooms. It also 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.

Market Stats

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2019-10-22 )

Largest Industry Peers for Restaurants

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

-10.58 (-5.04%)

USD 158.34B 27.38 19.69
YUM YUM! Brands, Inc

-2.21 (-1.97%)

USD 34.17B 26.72 22.57
CMG Chipotle Mexican Grill, Inc

-20.47 (-2.40%)

USD 23.33B 94.91 40.69
QSR Restaurant Brands Internationa..

-1.84 (-2.65%)

USD 17.68B 30.82 15.16
YUMC Yum China Holdings, Inc

-0.64 (-1.45%)

USD 16.51B 25.26 13.48
DRI Darden Restaurants, Inc

-1.34 (-1.22%)

USD 13.54B 19.24 15.88
DPZ Domino's Pizza, Inc

+1.42 (+0.55%)

USD 10.46B 28.16 21.79
SHAK Shake Shack Inc

-4.40 (-4.74%)

USD 3.71B 178.48 45.55
EAT Brinker International, Inc

+0.85 (+2.07%)

USD 1.50B 10.15 7.21
ARCO Arcos Dorados Holdings Inc

+0.06 (+0.78%)

USD 1.47B 25.55 10.17

ETFs Containing ARMK

Symbol Name Weight Mer Price(Change) Market Cap
SIZE iShares Edge MSCI USA Siz.. 0.00 % 0.15 %

-0.16 (-0.18%)

USD 0.38B

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 52.71% 88% B+ 94% A
Dividend Return 1.14% 40% F 25% F
Total Return 53.85% 88% B+ 94% A
Trailing 12 Months  
Capital Gain 17.97% 50% F 82% B-
Dividend Return 1.17% 20% F 19% F
Total Return 19.15% 50% F 79% C+
Trailing 5 Years  
Capital Gain 70.88% 73% C 84% B
Dividend Return 7.71% 25% F 26% F
Total Return 78.59% 73% C 83% B
Average Annual (5 Year Horizon)  
Capital Gain 3.77% 38% F 62% D-
Dividend Return 1.13% 30% F 26% F
Total Return 4.90% 38% F 52% F
Risk Return Profile  
Volatility (Standard Deviation) 14.14% 88% B+ 55% F
Risk Adjusted Return 34.67% 56% F 48% F
Market Capitalization 11.00B 65% D 86% 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 21.01 63% D 36% F
Price/Book Ratio 3.35 41% F 26% F
Price / Cash Flow Ratio 10.50 65% D 41% F
EV/EBITDA 12.65 71% C- 37% F
Management Effectiveness  
Return on Equity 17.51% 75% C 82% B-
Return on Invested Capital 10.60% 35% F 73% C
Return on Assets 3.86% 35% F 65% D
Debt to Equity Ratio 234.30% 14% F 12% F
Technical Ratios  
Short Ratio 4.82 35% F 26% F
Short Percent 5.11% 41% F 61% D-
Beta 1.14 31% F 33% 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

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:
Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

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.

What to not like:
Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

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.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector