ARMK

Aramark

Fundamental data last updated:September 5, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Industrials

industry

Specialty Business Services

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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 food-related 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.

 


VALUATION

P/E

39.61

Market Cap ($M USD)

$14.13B

Forward P/E

13.67

PEG

0.07

PRICE TO SALES

0.73

PRICE TO BOOK

4.31

EV / EBITDA

15.10

5-Year Average P/E

Free Cash Flow Yield

4.52%

DCF Value

$51.65

Graham Number

$19.51

Price to FCF

22.10

EV to FCF

31.40

Earnings Yield

2.52%

FCF Yield

4.52%

DIVIDEND

Yield

0.87%

Annual Payout

$0.47

Payout Ratio

33.11%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.36

Next Year EPS Growth Estimate

$3.93

Next Year Revenue Growth Estimate

$27.28B

Return on Equity (ROE)

11.23%

FREE CASH FLOW

Operating Margin

4.31%

Debt-to-Equity

1.82

Piotroski F-Score

8

Altman Z-Score

2.50

Return on Invested Capital (ROIC)

7.79%

Current Ratio

1.21

Quick Ratio

1.07

Net Debt to EBITDA

4.47

Interest Coverage

2.41

Gross Profit margin

6.42%

FCF PER SHARE

$2.43

REVENUE PER SHARE

$73.77

Gainseekers Quantitative Analysis

Summary

The market seems to be underestimating Aramark’s potential. Recent pricing indicated it traded below its DCF value, suggesting a possible undervaluation. The Forward P/E of 12.84 is attractive, especially when juxtaposed with a robust Earnings Yield of 2.67%. However, the Altman Z-score of 2.39 hints at moderate financial distress, urging caution. Overall, the stock’s valuation metrics reveal a complex picture of potential growth tempered by financial risk.

AI Exposure / Tech Reliance

Operating in the Specialty Business Services industry, Aramark is strategically positioned to leverage AI and tech advancements. Its focus on efficiency and service optimization can enhance operational scalability. As industries increasingly adopt AI, Aramark's adaptability could bolster its competitive edge.

The Bull Case

For the discerning GARP investor, Aramark offers compelling reasons to buy. A Piotroski F-Score of 7 indicates strong financial health, while a ROIC of 7.41% underscores efficient capital use. Despite a modest FCF Yield of 2.17%, the company's operating margin of 4.22% suggests solid pricing power. These metrics collectively paint a picture of a company capable of generating consistent returns.

The Bear Case

Yet, Aramark is not without its pitfalls. The Price/Book ratio of 3.70 and Price/Sales of 0.63 suggest a premium valuation that may not be justified by its current cash flow performance. With a Net Debt to EBITDA ratio of 5.04, the company is heavily leveraged, raising concerns about its ability to manage debt. Additionally, trading close to its 52-week high, the stock appears technically overextended, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$54.57

Institutional Ownership %

1-Year Beta

1.16

Insider Buying % (6 Mo)

Distance to 52-Week High

0.63%

Distance to 52-Week Low

34.74%

EARNINGS SURPRISE %

4.26%

50-DAY SMA

$45.38

200-DAY SMA

$40.42

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.