Aramark

Consumer Discretionary
Restaurants
www.aramark.com

Earnings Score
Moat Score
Safety Score

Market Cap $9.92B
PE 29
Debt $6.86B
Cash $538.36M
EV $16.24B
FCF $364.77M

Earnings

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Sales & Net Margins

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Earnings	$339.00M
EBIT	$756.82M
ROE	11%
ROA	6%
FCF	$364.77M
Equity	$3.08B
Growth Stability	-100%
PE	29.26
PEG	0.63
PB	3.22
P/FCF	27.19
P/S	0.57
Price/Cash	0.05
Debt/Equity	2.23
Debt/FCF	18.81
Net Margins	2%
Gross Margins	8%
Op. Margins	4%
Earnings CAGR	-2%
Sales Growth YoY	3%
Sales Growth QoQ	3%
Sales CAGR	2%
FCF CAGR	-4%
Equity CAGR	5%
Earnings Stability	0.01
Earnings Growth YoY	270%
Earnings Growth QoQ	-14%
Earnings CAGR 5Y	46%

Sales CAGR 5Y	10%
FCF CAGR 5Y	5%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	30%
Equity CAGR 3Y	0%
Market Cap	$9.92B
Revenue	$17.55B
Dividend Yield	1%
Payout Ratio	31%
Assets	$12.71B
Total Debt	$6.86B
Cash	$538.36M
Shares Outstanding	264.88M
EV	16.24B
Earnings Score	6%
Moat Score	76%
Safety Score	37%
Final Score	39%
Working Capital	-202.04M
Current Ratio	0.94
Gross Profit	$1.46B
Shares Growth 3y	1%
Equity Growth QoQ	1%
Equity Growth YoY	8%

Assets & ROA

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Stockholders Equity & ROE

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Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.

SEC Filings

Direct access to Aramark (ARMK) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 27
- 10-K Sep 27
- 10-Q Jun 28
- 10-Q Mar 29
2023
- 10-Q Dec 29
- 10-K Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 30
- 10-K Sep 30
- 10-Q Jul 01
- 10-Q Apr 01

Sector Comparison

How does Aramark compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Aramark compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability 1%

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Aramark Discounted Cash Flow

Fully customizable DCF calculator online for Aramark.

Years

Calculation mode

= $2.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$365M	$352M	$339M	$327M	$316M	$305M	$294M	$284M	$274M	$264M	$255M	$2.5B
DCF		$320M	$281M	$246M	$216M	$189M	$166M	$146M	$128M	$112M	$98M	$981M
Value	$2.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	09/2021	09/2022	09/2023	09/2024	TTM
Net Margins	2%	2%	3%	4%	3%	-4%	-1%	1%	4%	2%	2%
ROA	-	7%	7%	6%	6%	-2%	1%	4%	5%	6%	6%
ROE	-	13%	15%	19%	14%	-17%	-3%	6%	18%	9%	11%

Bad Net Margins (2.32%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	09/2021	09/2022	09/2023	09/2024	TTM
Debt over FCF	-	17.92	10.52	17.3	14.03	-38.78	30.13	24.42	27.09	20.85	18.81
Debt over Equity	2.81	2.44	2.14	2.39	2.03	3.43	2.76	2.47	2.23	2.05	2.23
Growth Stability	-	-	-	100%	100%	-100%	-50%	-	-	100%	-100%

Bad Debt/FCF ratio (18.81)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (2.23)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-100%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	1%	1%	8%	3%	-21%	-6%	35%	15%	-8%	10%
Earnings YoY growth	-	22%	30%	52%	-21%	-203%	-80%	-311%	247%	-61%	46%
Equity YoY growth	-	15%	14%	23%	10%	-18%	-0%	11%	23%	-18%	3%
FCF YoY growth	-	85%	70%	-16%	15%	-150%	-203%	23%	-0%	-2%	5%