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Aramark is a restaurants business based in the US. Aramark shares (ARMK) are listed on the NYSE and all prices are listed in US Dollars. Aramark employs 183,300 staff and has a trailing 12-month revenue of around USD$14.1 billion.
Since the stock market crash in March caused by coronavirus, Aramark's share price has had significant negative movement.
Its last market close was USD$28.17, which is 33.66% down on its pre-crash value of USD$42.46 and 191.92% up on the lowest point reached during the March crash when the shares fell as low as USD$9.65.
If you had bought USD$1,000 worth of Aramark shares at the start of February 2020, those shares would have been worth USD$387.77 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$642.56.
|Latest market close||USD$28.17|
|52-week range||USD$9.65 - USD$47.22|
|50-day moving average||USD$27.458|
|200-day moving average||USD$24.6549|
|Wall St. target price||USD$30.23|
|Dividend yield||USD$0.44 (1.61%)|
|Earnings per share (TTM)||USD$0.445|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2020-10-13)||3.00%|
|1 month (2020-09-18)||3.83%|
|3 months (2020-07-20)||25.09%|
|6 months (2020-04-20)||37.41%|
|1 year (2019-10-18)||-36.78%|
|2 years (2018-10-19)||-26.35%|
|3 years (2017-10-20)||-34.93%|
|5 years (2015-10-20)||-9.39%|
Valuing Aramark stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Aramark's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Aramark's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 48x. In other words, Aramark shares trade at around 48x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Aramark's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.57. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Aramark's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Aramark's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$793.9 million.
The EBITDA is a measure of a Aramark's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$14.1 billion|
|Operating margin TTM||1.69%|
|Gross profit TTM||USD$1.7 billion|
|Return on assets TTM||1.02%|
|Return on equity TTM||-7.32%|
|Market capitalisation||USD$7 billion|
TTM: trailing 12 months
There are currently 14.8 million Aramark shares held short by investors – that's known as Aramark's "short interest". This figure is 10.3% up from 13.4 million last month.
There are a few different ways that this level of interest in shorting Aramark shares can be evaluated.
Aramark's "short interest ratio" (SIR) is the quantity of Aramark shares currently shorted divided by the average quantity of Aramark shares traded daily (recently around 2.7 million). Aramark's SIR currently stands at 5.39. In other words for every 100,000 Aramark shares traded daily on the market, roughly 5390 shares are currently held short.
However Aramark's short interest can also be evaluated against the total number of Aramark shares, or, against the total number of tradable Aramark shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Aramark's short interest could be expressed as 0.06% of the outstanding shares (for every 100,000 Aramark shares in existence, roughly 60 shares are currently held short) or 0.0729% of the tradable shares (for every 100,000 tradable Aramark shares, roughly 73 shares are currently held short).
A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Aramark.
Find out more about how you can short Aramark stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Aramark.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 26.83
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Aramark's overall score of 26.83 (as at 10/01/2020) is nothing to write home about – landing it in it in the 41st percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Aramark is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 6/100
Aramark's environmental score of 6 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Aramark is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 14.75/100
Aramark's social score of 14.75 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Aramark is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 4.57/100
Aramark's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Aramark is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Aramark scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Aramark has, for the most part, managed to keep its nose clean.
|Total ESG score||26.83|
|Total ESG percentile||41|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||2|
Dividend payout ratio: 51.16% of net profits
Recently Aramark has paid out, on average, around 51.16% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.61% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Aramark shareholders could enjoy a 1.61% return on their shares, in the form of dividend payments. In Aramark's case, that would currently equate to about $0.44 per share.
Aramark's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Aramark's most recent dividend payout was on 2 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 18 August 2020 (the "ex-dividend date").
Over the last 12 months, Aramark's shares have ranged in value from as little as $9.65 up to $47.22. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Aramark's is 1.7485. This would suggest that Aramark's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. It operates through three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. The company offers managed services, including dining, catering, food service management, and convenience-oriented retail operations; non-clinical support services, such as patient food and nutrition, retail food, 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, payment, 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, the company offers correctional food, and food and facilities management services for parks; and operates commissaries, laundry facilities, and property rooms. Additionally, it provides design, sourcing and manufacturing, delivery, cleaning, maintenance, and marketing services for uniforms and accessories; provides managed restroom services; and rents uniforms, work clothing, outerwear, particulate-free garments, and non-garment items and related services that include mats, shop towels, and first aid supplies. The company was formerly known as ARAMARK Holdings Corporation and changed its name to Aramark in May 2014. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.
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