A Business at a Glance
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Aramark
ARMK
$15.3B
Mkt Cap
$57.18
+0.32%
Aramark (ARMK) has a current P/E ratio of 48.1, 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 $15.0B. It is classified as a large-cap stock.
Yes, Aramark (ARMK) pays a dividend with a trailing twelve-month yield of 0.73%. The company also returns capital through share buybacks, with a buyback yield of 1.13%.
Based on historical P/E analysis, Aramark (ARMK) appears expensive. The current P/E of 48.1 is 76% above its historical median of 27.4. The estimated fair value CAGR (P/E method) is 6.0%.
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 is a leading global provider of food and facilities services operating across education, healthcare, business & industry, and sports, leisure & corrections sectors in 16 countries, with the United States representing its largest market and a top 2 position in North America in food and facilities services. The company operates through two reportable segments—Food and Support Services United States (FSS United States) and Food and Support Services International (FSS International)—serving thousands of clients including school districts, colleges and universities, healthcare facilities, businesses, sports venues, and correctional institutions. Aramark's business model centers on providing comprehensive on-site services including food preparation and beverage service, procurement, plant operations, maintenance, custodial services, energy management, and capital project management, with the company functioning as the exclusive provider at most locations and maintaining a captive customer base through on-site employees, students, and patients. The company generates revenue through long-term service contracts with clients across diverse sectors, employing approximately 278,390 people and serving millions of end-users globally; no single client represents more than 2% of total revenue except for collectively held U.S. government agencies. Aramark's competitive positioning is reinforced by its scale, integrated service capabilities spanning food and facilities, global supply chain network (Avendra International), and high client retention rates exceeding 95%, enabling the company to capture pricing power aligned with inflation while maintaining disciplined cost management and operational leverage across its portfolio.
【Strong momentum and margin expansion】 Management expects continued acceleration in fiscal 2026 driven by record levels of new business openings and unprecedented client retention rates exceeding 98%, with organic revenue growth tracking toward the high end of the 7%-9% guidance range and adjusted operating income expected to grow 12%-17%. The company is capitalizing on multiple operating levers including supply chain efficiencies, AI-driven productivity improvements in food and labor optimization, and disciplined cost management to deliver 30-40 basis points of margin expansion consistent with historical performance. A significant new multi-year engagement with a top global hyperscaler to provide hospitality and facility services across multiple AI data center locations is expected to become the largest client in the portfolio and generate above-company-average margins, though this opportunity is not yet reflected in fiscal 2026 guidance pending further scale-up. Management remains focused on disciplined execution of growth strategies while maintaining resilience amid geopolitical uncertainty and inflation tracking in line with expectations at approximately 3.5%, with confidence in the ability to maintain strong business momentum into fiscal 2027 and beyond.
| Metric | Target | Period |
|---|---|---|
| Organic revenue growth | 7%-9%, with updated guidance to high end of range | FY2026 |
| Adjusted Operating Income (AOI) growth | 12%-17% | FY2026 |
| Adjusted EPS growth | 20%-25% | FY2026 |
| Organic revenue | $19.45 billion-$19.85 billion | FY2026 |
| Adjusted Operating Income (AOI) | $1.1 billion-$1.15 billion | FY2026 |
Organic revenue growth (FY2026): “we have updated our fiscal 2026 outlook for organic revenue growth to the high end of our 7%-9% range”
Adjusted Operating Income (AOI) growth (FY2026): “we are reaffirming our expectations for AOI growth to be up 12%-17%”
Adjusted EPS growth (FY2026): “adjusted EPS growth between 20% and 25%”
Organic revenue (FY2026): “organic revenue of $19.45 billion-$19.85 billion, representing growth of 7%-9%”
Adjusted Operating Income (AOI) (FY2026): “AOI of $1.1 billion-$1.15 billion, an increase of 12%-17%”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| 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 |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 14.8B | 14.3B | 14.4B | 14.6B | 15.8B | 16.2B | 12.8B | 12.1B | 16.3B | 16.1B | 17.4B | 18.5B | 0 |
| Gross Margin | 9.9% | 10.1% | 10.6% | 11.0% | 11.3% | 10.4% | 6.5% | 9.0% | 11.8% | 10.9% | 10.3% | 10.2% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 383M | 317M | 283M | 299M | 377M | 367M | 307M | 347M | 398M | 274M | 284M | 278M | 278M |
| EBIT | 565M | 628M | 746M | 802M | 818M | 891M | -265M | 191M | 628M | 625M | 707M | 792M | 0 |
| Op. Margin | 3.8% | 4.4% | 5.2% | 5.5% | 5.2% | 5.5% | -2.1% | 1.6% | 3.8% | 3.9% | 4.1% | 4.3% | 0.0% |
| Net Income | 149M | 236M | 288M | 374M | 568M | 449M | -462M | -91M | 194M | 674M | 263M | 326M | 0 |
| Net Margin | 1.0% | 1.6% | 2.0% | 2.6% | 3.6% | 2.8% | -3.6% | -0.8% | 1.2% | 4.2% | 1.5% | 1.8% | 0.0% |
| Non-Recurring | 21M | 29M | 0 | 0 | 0 | 156M | 199M | 9.0M | 0 | 38M | 38M | 45M | 45M |
| Returns on Capital | |||||||||||||
| ROIC | 5.4% | 6.2% | 7.0% | 7.8% | 8.3% | 7.5% | -3.9% | 2.1% | 4.8% | 6.2% | 6.4% | 7.9% | N/A |
| ROE | 11.4% | 13.1% | 14.2% | 16.2% | 18.7% | 13.5% | -16.9% | -3.3% | 6.4% | 18.2% | 8.6% | 10.6% | 0.0% |
| ROA | 1.4% | 2.3% | 2.8% | 3.5% | 4.1% | 3.3% | -2.9% | -0.6% | 1.3% | 4.0% | 2.1% | 2.5% | 0.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 398M | 802M | 867M | 1.1B | 1.1B | 984M | 177M | 657M | 694M | 512M | 727M | 921M | 0 |
| Free Cash Flow | -147M | 278M | 355M | 500M | 423M | 481M | -242M | 249M | 306M | 128M | 299M | 432M | 0 |
| Owner Earnings | -220M | 232M | 315M | 479M | 367M | 336M | -449M | 35M | 67M | 25M | 228M | 386M | -535M |
| CapEx | 545M | 524M | 513M | 553M | 629M | 503M | 419M | 408M | 388M | 384M | 427M | 489M | 0 |
| Maint. CapEx | 522M | 504M | 496M | 508M | 596M | 593M | 595M | 551M | 532M | 410M | 436M | 476M | 476M |
| Growth CapEx | 24M | 20M | 17M | 45M | 32M | 0 | 0 | 0 | 0 | 0 | 0 | 13M | 0 |
| D&A | 522M | 504M | 496M | 508M | 596M | 593M | 595M | 551M | 532M | 410M | 436M | 476M | 476M |
| CapEx/OCF | 136.9% | 76.8% | 59.1% | 52.5% | 59.8% | 51.1% | 236.9% | 62.1% | 55.9% | 75.0% | 58.8% | 53.1% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 52M | 82M | 92M | 101M | 103M | 108M | 111M | 112M | 113M | 115M | 100M | 111M | 0 |
| Dividend Yield | 1.3% | 1.7% | 1.7% | 1.6% | 1.1% | 1.3% | 1.5% | 1.3% | 1.3% | 1.2% | 1.2% | 1.1% | N/A |
| Share Buybacks | 4.7M | 50M | 749K | 100M | 24M | 50M | 6.5M | 0 | 0 | 31M | 14M | 170M | 170M |
| Buyback Yield | 0.1% | 0.7% | 0.0% | 1.0% | 0.3% | 0.5% | 0.1% | N/A | N/A | N/A | 0.1% | 1.6% | 1.1% |
| Stock-Based Comp | 96M | 66M | 57M | 65M | 88M | 55M | 30M | 71M | 95M | 76M | 63M | 59M | 59M |
| Debt Repayment | 2.0B | 210M | 1.4B | 3.9B | 974M | 655M | 1.0B | 2.5B | 152M | 1.9B | 2.0B | 1.9B | 1.9B |
| Balance Sheet | |||||||||||||
| Net Debt | 5.3B | 5.1B | 5.1B | 5.0B | 6.8B | 6.3B | 4.4B | 6.4B | 6.8B | 4.3B | 4.9B | 4.2B | 0 |
| Cash & Equiv. | 112M | 122M | 153M | 239M | 215M | 247M | 2.5B | 533M | 329M | 1.9B | 672M | 639M | N/A |
| Long-Term Debt | 5.4B | 5.2B | 5.2B | 5.2B | 7.2B | 6.6B | 9.2B | 7.4B | 7.3B | 5.1B | 4.3B | 5.4B | 5.4B |
| Debt/Equity | 3.17 | 2.80 | 2.44 | 2.14 | 2.40 | 2.03 | 3.43 | 2.76 | 2.47 | 2.20 | 2.05 | 1.73 | 0.00 |
| Interest Coverage | 1.7 | 2.2 | 2.4 | 2.8 | 2.4 | 2.7 | -0.7 | 0.5 | 1.7 | 1.4 | 1.9 | 2.3 | 2.3 |
| Equity | 1.7B | 1.9B | 2.2B | 2.5B | 3.0B | 3.3B | 2.7B | 2.7B | 3.0B | 3.7B | 3.0B | 3.1B | 0 |
| Total Assets | 10.5B | 10.2B | 10.6B | 11.0B | 13.7B | 13.7B | 15.7B | 14.4B | 15.1B | 16.9B | 12.7B | 13.3B | 0 |
| Total Liabilities | 8.7B | 8.3B | 8.4B | 8.5B | 7.7B | 7.1B | 10.2B | 8.9B | 12.0B | 13.2B | 9.6B | 10.1B | 10.1B |
| Intangibles | 1.3B | 1.1B | 1.1B | 1.1B | 2.1B | 2.0B | 1.9B | 2.0B | 2.1B | 1.8B | 1.8B | 1.9B | 1.9B |
| Retained Earnings | -382M | -229M | -34M | 247M | 711M | 1.1B | 532M | 328M | 407M | 964M | 240M | 453M | 453M |
| Working Capital | 86M | 198M | 308M | 285M | 411M | -47M | 2.3B | 41M | 6.1M | 190M | -808M | -24M | -24M |
| Current Assets | 2.5B | 2.4B | 2.5B | 2.7B | 2.9B | 2.7B | 4.7B | 2.9B | 3.3B | 5.2B | 3.4B | 3.5B | 3.5B |
| Current Liabilities | 2.4B | 2.2B | 2.2B | 2.4B | 2.5B | 2.7B | 2.3B | 2.9B | 3.3B | 5.0B | 4.2B | 3.5B | 3.5B |
| Per Share Data | |||||||||||||
| EPS | 0.63 | 0.96 | 1.16 | 1.49 | 1.62 | 1.29 | -1.32 | -0.26 | 0.54 | 1.86 | 0.99 | 1.22 | 0.00 |
| Owner EPS | -0.93 | 0.94 | 1.27 | 1.91 | 1.05 | 0.96 | -1.29 | 0.10 | 0.19 | 0.07 | 0.86 | 1.44 | -2.03 |
| Book Value | 7.27 | 7.66 | 8.71 | 9.80 | 8.63 | 9.51 | 7.83 | 7.79 | 8.44 | 10.22 | 11.46 | 11.77 | 0.00 |
| Cash Flow/Share | 1.68 | 3.26 | 3.50 | 4.20 | 3.00 | 2.82 | 0.51 | 1.88 | 1.93 | 1.41 | 2.74 | 3.44 | 1.81 |
| Dividends/Share | 0.22 | 0.33 | 0.37 | 0.40 | 0.29 | 0.31 | 0.32 | 0.32 | 0.32 | 0.32 | 0.38 | 0.42 | 0.00 |
| Shares Out. | 236.4M | 245.8M | 248.1M | 251.0M | 351.1M | 349.0M | 349.3M | 349.5M | 359.1M | 363.3M | 265.2M | 267.5M | 263.0M |
| Valuation | |||||||||||||
| P/E Ratio | 37.1 | 28.6 | 28.3 | 26.4 | 14.1 | 23.0 | N/A | N/A | 34.0 | 10.1 | 37.9 | 32.0 | N/A |
| P/FCF | N/A | 17.5 | 16.6 | 14.3 | 18.9 | 21.4 | N/A | 34.8 | 29.9 | 73.5 | 33.3 | 24.2 | N/A |
| EV/EBIT | 19.2 | 18.9 | 17.6 | 18.3 | 18.1 | 18.6 | N/A | 79.0 | 21.4 | 17.8 | 21.0 | 18.4 | N/A |
| Price/Book | 3.2 | 3.6 | 3.8 | 4.0 | 2.6 | 3.1 | 2.3 | 3.2 | 2.2 | 1.8 | 3.3 | 3.3 | N/A |
| Price/Sales | 0.4 | 0.5 | 0.5 | 0.6 | 0.6 | 0.5 | 0.6 | 0.7 | 0.4 | 0.4 | 0.5 | 0.5 | N/A |
| FCF Yield | -2.7% | 4.1% | 4.4% | 5.1% | 5.3% | 4.7% | -3.8% | 2.9% | 4.6% | 1.9% | 3.0% | 4.1% | N/A |
| Market Cap | 5.5B | 6.7B | 8.2B | 9.9B | 8.0B | 10.3B | 6.4B | 8.7B | 6.6B | 6.8B | 10.0B | 10.4B | 15.0B |
| Avg. Price | 16.72 | 19.70 | 21.71 | 24.53 | 26.64 | 23.19 | 20.81 | 24.82 | 24.21 | 26.97 | 31.58 | 38.02 | 57.18 |
| Year-End Price | 16.87 | 19.81 | 23.72 | 28.42 | 22.74 | 29.52 | 18.39 | 24.83 | 25.46 | 25.91 | 37.57 | 39.01 | 57.18 |
Aramark passes 2 of 9 quality checks, indicating weak fundamentals.
Aramark trades at 48.1x 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 64.1x 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 1.9%. At current prices, the estimated annualized return to fair value is +4.0%.
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.
Based on recent SEC filings and earnings disclosures, Management expects continued acceleration in fiscal 2026 driven by record levels of new business openings and unprecedented client retention rates exceeding 98%, with organic revenue growth tracking toward the high end of the 7%-9% guidance range and adjusted operating income expected to grow 12%-17%. The company is capitalizing on multiple operating levers including supply chain efficiencies, AI-driven productivity improvements in food and labor optimization, and disciplined cost management to deliver 30-40 basis points of margin expansion consistent with historical performance. A significant new multi-year engagement with a top global hyperscaler to provide hospitality and facility services across multiple AI data center locations is expected to become the largest client in the portfolio and generate above-company-average margins, though this opportunity is not yet reflected in fiscal 2026 guidance pending further scale-up. Management remains focused on disciplined execution of growth strategies while maintaining resilience amid geopolitical uncertainty and inflation tracking in line with expectations at approximately 3.5%, with confidence in the ability to maintain strong business momentum into fiscal 2027 and beyond.
Based on recent SEC filings and earnings calls, Aramark (ARMK) has provided the following forward guidance: Organic revenue growth: 7%-9%, with updated guidance to high end of range (FY2026); Adjusted Operating Income (AOI) growth: 12%-17% (FY2026); Adjusted EPS growth: 20%-25% (FY2026); Organic revenue: $19.45 billion-$19.85 billion (FY2026); Adjusted Operating Income (AOI): $1.1 billion-$1.15 billion (FY2026).