Aramark (ARMK) Stock Price, News & Analysis

Company Overview

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, 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, capital program management, payment services, 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, it offers correctional food; and operates commissaries, laundry facilities, and property rooms. It primarily serves business and industry, sports, leisure and corrections, education, healthcare, public institutions, manufacturing, transportation, service, and other industries. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.

Key Stats

• Today's Range: $37.57 to $38.96
• 50-Day Range: $36.95 to $39.67
• 52-Week Range: $26.58 to $42.04
• Volume: 2.23 million shs
• Average Volume: 2.22 million shs
• Market Capitalization: $10.26 billion
• P/E Ratio: 39.35
• Dividend Yield: 0.98%
• Price Target: $42.23
• Consensus Rating: Moderate Buy

Aramark Stock Analysis - MarketRank™

Aramark scored higher than 92% of companies evaluated by MarketBeat, and ranked 6th out of 138 stocks in the consumer staples sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Aramark has received a consensus rating of Moderate Buy. The company's average rating score is 2.82, and is based on 9 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Aramark has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 19.27%

Earnings Growth

Earnings for Aramark are expected to grow by 19.27% in the coming year, from $1.92 to $2.29 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Aramark is 39.35, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 136.48.

Price to Earnings Ratio vs. Sector

The P/E ratio of Aramark is 39.35, which means that it is trading at a more expensive P/E ratio than the Consumer Staples sector average P/E ratio of about 23.97.

Price to Book Value per Share Ratio

Aramark has a P/B Ratio of 3.38. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.21% of the outstanding shares of Aramark have been sold short.

Short Interest Ratio / Days to Cover

Aramark has a short interest ratio ("days to cover") of 3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Aramark has recently decreased by 2.35%, indicating that investor sentiment is improving.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Aramark pays a meaningful dividend of 1.02%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Aramark does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Aramark is 38.38%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Aramark will have a dividend payout ratio of 16.59% next year. This indicates that Aramark will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 4.0 / 5
• Environmental Score: -1.90

Percentage of Shares Shorted

2.21% of the outstanding shares of Aramark have been sold short.

Short Interest Ratio / Days to Cover

Aramark has a short interest ratio ("days to cover") of 3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Aramark has recently decreased by 2.35%, indicating that investor sentiment is improving.

News and Social Media

• Score: 3.2 / 5
• News Sentiment: 0.71

News Sentiment

Aramark has a news sentiment score of 0.71. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Consumer Staples companies.

News Coverage This Week

MarketBeat has tracked 9 news articles for Aramark this week, compared to 6 articles on an average week.

Search Interest

5 people have searched for ARMK on MarketBeat in the last 30 days. This is an increase of 400% compared to the previous 30 days.

MarketBeat Follows

52 people have added Aramark to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Aramark insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 1.92% of the stock of Aramark is held by insiders.

ARMK Stock Analysis - Frequently Asked Questions

How have ARMK shares performed this year?

Aramark's stock was trading at $28.10 at the beginning of 2024. Since then, ARMK stock has increased by 38.6% and is now trading at $38.9550.
View the best growth stocks for 2024 here.

How were Aramark's earnings last quarter?

Aramark (NYSE:ARMK) announced its quarterly earnings data on Monday, November, 11th. The company reported $0.54 EPS for the quarter, hitting analysts' consensus estimates of $0.54. The company's quarterly revenue was up 5.2% on a year-over-year basis.

Does Aramark have any subsidiaries?

Aramark subsidiaries include Good Uncle Services, AmeriPride Services, Avendra, Avoca, Lotus Facilities Management, Filterfresh Coffee Service, Masterplan, and more.

Who are Aramark's major shareholders?

Top institutional shareholders of Aramark include Janus Henderson Group PLC (5.96%), Massachusetts Financial Services Co. MA (3.16%), State Street Corp (2.99%) and FMR LLC (2.52%). Insiders that own company stock include Lynn Mckee, Marc A Bruno and Lauren A Harrington.
View institutional ownership trends.

How do I buy shares of Aramark?

Shares of ARMK stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Aramark own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Aramark investors own include Humana (HUM), American Water Works (AWK), Waste Connections (WCN), Voyager Therapeutics (VYGR), The RMR Group (RMR), DiamondRock Hospitality (DRH) and AUO (AUOTY).

Company Calendar

• Ex-Dividend for 9/3 Dividend: 8/19/2024
• Dividend Payable: 9/03/2024
• Last Earnings: 11/11/2024
• Today: 11/20/2024
• Ex-Dividend for 12/12 Dividend: 12/02/2024
• Dividend Payable: 12/12/2024
• Next Earnings (Estimated): 2/04/2025
• Fiscal Year End: 9/30/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Consumer Staples
• Industry: Eating places
• Sub-Industry: Restaurants, Hotels, Motels
• Current Symbol: NYSE:ARMK
• CUSIP: N/A
• CIK: 1584509
• Web: www.aramark.com
• Phone: (215) 238-3000
• Fax: 215-238-3333
• Employees: 262,550
• Year Founded: 1939

Price Target and Rating

• Average Stock Price Target: $42.23
• High Stock Price Target: $46.00
• Low Stock Price Target: $39.00
• Potential Upside/Downside: +8.4%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.82
• Research Coverage: 11 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.99
• Trailing P/E Ratio: 39.35
• Forward P/E Ratio: 20.29
• P/E Growth: N/A
• Net Income: $262.52 million
• Net Margins: 1.51%
• Pretax Margin: 2.10%
• Return on Equity: 14.06%
• Return on Assets: 3.28%

Debt

• Debt-to-Equity Ratio: 1.42
• Current Ratio: 0.81
• Quick Ratio: 0.72

Sales & Book Value

• Annual Sales: $17.40 billion
• Price / Sales: 0.59
• Cash Flow: $3.36 per share
• Price / Cash Flow: 11.61
• Book Value: $11.53 per share
• Price / Book: 3.38

Miscellaneous

• Outstanding Shares: 263,450,000
• Free Float: 258,391,000
• Market Cap: $10.26 billion
• Optionable: Optionable
• Beta: 1.62