ARMK
Aramark
$55.84
▼ 0.8%Updated Today 12:11 PM ET
ARMK at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 36/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 30.4% over the last 12 months
Market Cap
$14.80B
P/E
41.46x
Forward P/E (est.)
40.18x
ROE
11.2%
Revenue Growth
10.2%
EPS Growth
3.2%
Profit Margin
1.8%
FCF Yield
8.3%
Debt / Equity
1.72x
ROIC
19.0%
Interest Coverage
1.79x
Current Ratio
1.21x
Dividend Yield
0.9%
Implied Growth (rev. DCF)
5.9%
Rating Score
36/100
Aramark (ARMK) is a large-cap company in the Hotels, Restaurants & Leisure industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $14.80B.
In its latest reported year it generated about $18.51B in revenue and $326.39M in net profit.
Our model rates ARMK Weak (36/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ARMK's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ARMK trades near $55.84, above its 50-day average ($51.44) and 200-day average ($42.33). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 62 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ARMK's is $1.06 (~1.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ARMK found buyers near $52.79 (support) and sellers near $57.13 (resistance); its 52-week range is $35.07–$57.13. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
11.2%
Revenue moved from $14.42B in 2016 to $18.51B in 2025, a 2.8% compound annual growth rate. The most recent year grew a steady 10.2% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
8.5%
Operating Margin
4.3%
Net Margin
1.8%
ROE
11.2%
Aramark keeps about 1.8% of each sales dollar as net profit, with a 8.5% gross margin and 4.3% operating margin. Return on equity is 11.2% and return on invested capital about 19.0%. Thin margins leave less cushion if costs rise.
Total Debt
$0.00
Net Debt
-$475.72M
Net cash position
Net Debt / EBITDA
-0.6x
Debt / Equity
1.72x
Leverage: debt-to-equity is 1.7x, and operating profit covers interest about 1.8x, with a current ratio of 1.2x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $0.00 of total debt against $475.72M of cash.
Operating CF
$921.03M
Free Cash Flow
$431.80M
FCF Margin
2.3%
In the latest year Aramark produced about $921.03M of operating cash flow and $431.80M of free cash flow after capital spending. That is a free-cash-flow yield of about 8.3% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
41.46x
P/S
0.8x
P/B
3.26x
EV / EBITDA
11.3x
ARMK trades at 41.5x trailing earnings (about 40.2x on estimated forward earnings), 0.8x sales, and 3.3x book value. Reverse-engineering today's price implies the market expects roughly 5.9% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$39.79
Current price
$55.84
Starting FCF (latest 10-K)
$431.80M
Growth, years 1–5
10.2%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where ARMK sits versus its Consumer Discretionary sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 50 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ARMK stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (92 S&P 500 companies), ARMK ranks #39 of 92 by our overall rating. It trades at a premium versus the sector on earnings (41.5x P/E vs. 25.4x median) with a lower return on equity (11.2% vs. 24.8%) and faster revenue growth (10.2% vs. 6.2%).
P/E vs sector
41.5x
median 25.4x
ROE vs sector
11.2%
median 24.8%
Growth vs sector
10.2%
median 6.2%
Sector rank
#39
of 92 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 92 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $55.84 today · expected CAGR 9% – 20%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $20.36B | $22.39B | $24.63B | $27.10B | $29.80B |
| Net income | $610.71M | $671.78M | $738.96M | $812.85M | $894.14M |
| EPS | $2.32 | $2.55 | $2.81 | $3.09 | $3.40 |
| Share price (low) | $58.06 | $63.87 | $70.26 | $77.28 | $85.01 |
| Share price (high) | $95.22 | $104.74 | $115.22 | $126.74 | $139.41 |
| CAGR (low–high) | 4% / 71% | 7% / 37% | 8% / 27% | 8% / 23% | 9% / 20% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ARMK:
- Revenue is growing 10.2% a year, a sign of real demand.
- Healthy free-cash-flow yield (~8.3%) funds buybacks and dividends.
The case against ARMK:
- Thin net margins (1.8%) leave little room for error.
- Elevated leverage (debt/equity 1.7x) adds financial risk.
- Interest coverage is thin (1.8x), so debt costs bite.
- A rich 41.5x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (36/100).
Valuation risk — at 41.5x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 1.7x magnifies the impact of higher rates or weaker earnings.
Margin risk — thin profitability (1.8%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Aramark is a large-cap consumer discretionary business still growing nicely, with modest profitability, and a heavier debt load to watch. It trades at 41.5x earnings, which our model scores Weak (36/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
ARMK — frequently asked questions
Is ARMK a good stock to buy?
We don't give buy or sell advice. Our model rates Aramark Weak (36/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ARMK's rating on The Stocks School?
Aramark currently scores 36/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ARMK's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Aramark's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ARMK calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ARMK analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ARMK. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.