ARMK:NYE-Aramark (USD)

COMMON STOCK | Restaurants | NYE

Last Closing Price

USD 39.64

Change

+0.37 (+0.94)%

Market Cap

USD 9.98B

Volume

1.31M

Average Target Price

USD 34.00 (-14.23%)
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 the United States 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 services; 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 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: 2021-04-16 )

Largest Industry Peers for Restaurants

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

+1.68 (+0.73%)

USD171.83B 36.65 24.23
CMG Chipotle Mexican Grill, Inc

-7.35 (-0.48%)

USD43.47B 123.19 60.99
YUM Yum! Brands, Inc

+0.45 (+0.38%)

USD35.12B 40.00 25.99
YUMC Yum China Holdings, Inc

+0.30 (+0.50%)

USD25.14B 30.67 19.72
QSR Restaurant Brands Internationa..

+0.75 (+1.14%)

USD20.02B 41.08 21.95
DRI Darden Restaurants, Inc

+3.16 (+2.21%)

USD18.73B 17.38 306.17
DPZ Domino's Pizza, Inc

+1.84 (+0.47%)

USD15.25B 31.72 24.41
SHAK Shake Shack Inc

-2.22 (-1.87%)

USD4.99B 101.44 914.25
CNNE Cannae Holdings, Inc

-0.23 (-0.55%)

USD3.86B 2.02 1.48
EAT Brinker International, Inc

+1.60 (+2.38%)

USD3.06B 665.54 27.33

ETFs Containing ARMK

Symbol Name Weight Mer Price(Change) Market Cap

N/A

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 3.01% 17% F 37% F
Dividend Return 0.29% 43% F 17% F
Total Return 3.30% 17% F 34% F
Trailing 12 Months  
Capital Gain 80.43% 44% F 74% C
Dividend Return 2.00% 50% F 28% F
Total Return 82.43% 44% F 73% C
Trailing 5 Years  
Capital Gain 17.42% 36% F 44% F
Dividend Return 6.29% 11% F 17% F
Total Return 23.70% 36% F 35% F
Average Annual (5 Year Horizon)  
Capital Gain -1.04% 33% F 30% F
Dividend Return 1.16% 45% F 27% F
Total Return 0.12% 33% F 24% F
Risk Return Profile  
Volatility (Standard Deviation) 26.81% 72% C- 35% F
Risk Adjusted Return 0.46% 33% F 23% F
Market Capitalization 9.98B 61% D- 82% B-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-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 16% F
Price/Book Ratio 3.74 54% F 29% F
Price / Cash Flow Ratio 3.98 83% B 68% D+
EV/EBITDA 330.81 17% F 2% F
Management Effectiveness  
Return on Equity -22.40% 21% F 16% F
Return on Invested Capital -0.71% 33% F 25% F
Return on Assets -1.71% 28% F 16% F
Debt to Equity Ratio 335.47% 23% F 9% F
Technical Ratios  
Short Ratio 3.86 33% F 18% F
Short Percent 4.31% 28% F 48% F
Beta 1.97 28% F 13% 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:
Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

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.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

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 earnings

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

Highly 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 Earnings Growth

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