A Business at a Glance
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Item 1. Business Aramark (the “Company”, “we” or “us”) is a leading global provider of food and facilities services to education, healthcare, business & industry, and sports, leisure & corrections clients. Our largest market is the United States, which is supplemented by an additional 15-country footprint. We also provide our services on a more limited basis in several additional countries and in offshore locations. Based on total revenue in fiscal 2025, we hold a top 2 position in North America in food and facilities services and a top 3 position in food and facilities services internationally in most countries in which we have significant operations. Our approximately 278,390 employees partner with thousands of education, healthcare, business and sports, leisure & corrections clients to serve millions of customers including students, patients, employees, sports fans and guests worldwide.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 18.5B | 17.4B | 16.1B | 16.3B | 12.1B |
| Net Income | 0 | 326M | 263M | 674M | 194M | -91M |
| EPS | $0.00 | $1.22 | $0.99 | $1.86 | $0.54 | $-0.26 |
| Free Cash Flow | 0 | 432M | 299M | 128M | 306M | 249M |
| ROIC | - | 7.9% | 6.4% | 6.2% | 4.8% | 2.1% |
| Gross Margin | - | 10.2% | 10.3% | 10.9% | 11.8% | 9.0% |
| Debt/Equity | 0.00 | 1.73 | 2.05 | 2.20 | 2.47 | 2.76 |
| Dividends/Share | $0.00 | $0.42 | $0.38 | $0.32 | $0.32 | $0.32 |
| Operating Income | 0 | 792M | 707M | 625M | 628M | 191M |
| Operating Margin | 0.0% | 4.3% | 4.1% | 3.9% | 3.8% | 1.6% |
| ROE | 0.0% | 10.6% | 8.6% | 18.2% | 6.4% | -3.3% |
| Shares Outstanding | 263M | 268M | 265M | 363M | 359M | 349M |
Aramark passes 3 of 9 quality checks, indicating weak fundamentals.
Aramark trades at 36.4x trailing earnings, compared to its 15-year median P/E of 27.4x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 48.6x vs a median of 24.2x. The company's 5-year average ROIC is 5.5% with a gross margin of 10.4%. Total shareholder yield (dividends + buybacks) is 2.5%. At current prices, the estimated annualized return to fair value is -0.7%.
Aramark (ARMK) has a current P/E ratio of 36.4, compared to its historical median P/E of 27.4. The stock is currently considered Expensive based on its historical valuation range.
Aramark (ARMK) has a 5-year average return on invested capital (ROIC) of 5.5%. This is below average and may indicate limited pricing power.
Aramark (ARMK) has a market capitalization of $11.4B. It is classified as a large-cap stock.
Yes, Aramark (ARMK) pays a dividend with a trailing twelve-month yield of 0.97%. The company also returns capital through share buybacks, with a buyback yield of 1.49%.
Based on historical P/E analysis, Aramark (ARMK) appears expensive. The current P/E of 36.4 is 33% above its historical median of 27.4. The estimated fair value CAGR (P/E method) is 5.4%.
Aramark (ARMK) operates in the Retail-Eating Places industry, within the Consumer Cyclical sector.
Aramark (ARMK) reported annual revenue of $18.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Aramark (ARMK) has a net profit margin of 1.8%. This is a modest margin.
Aramark (ARMK) generated $432 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Aramark (ARMK) has a debt-to-equity ratio of 1.73. This indicates higher leverage, which may increase financial risk.
Aramark (ARMK) reported earnings per share (EPS) of $1.22 in its most recent fiscal year.
Aramark (ARMK) has a return on equity (ROE) of 10.6%. This indicates moderate shareholder returns.
Aramark (ARMK) has a 5-year average gross margin of 10.4%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 14 years of financial data for Aramark (ARMK), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Aramark (ARMK) has a book value per share of $11.77, based on its most recent annual SEC filing.