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How to buy Aramark stock | 28.17

Own Aramark stock in just a few minutes.

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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.

How to buy shares in Aramark

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Aramark Find the stock by name or ticker symbol: ARMK. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Aramark reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$28.17, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Aramark, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Aramark. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Aramark's share price?

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.

Aramark share price

Use our graph to track the performance of ARMK stocks over time.

Aramark shares at a glance

Information last updated 2020-10-14.
Latest market closeUSD$28.17
52-week rangeUSD$9.65 - USD$47.22
50-day moving average USD$27.458
200-day moving average USD$24.6549
Wall St. target priceUSD$30.23
PE ratio 48
Dividend yield USD$0.44 (1.61%)
Earnings per share (TTM) USD$0.445

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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.

Is it a good time to buy Aramark stock?

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.

Aramark price performance over time

Historical closes compared with the close of $28.17 from 2020-10-16

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%

Is Aramark under- or over-valued?

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 P/E ratio

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 PEG ratio

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

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.

Aramark financials

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%
Profit margin -1.61%
Book value $11.447
Market capitalisation USD$7 billion

TTM: trailing 12 months

Shorting Aramark shares

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)

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.

Aramark's environmental, social and governance track record

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.

Aramark's total ESG risk score

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.).

Aramark's environmental score

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.

Aramark's social score

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.

Aramark's governance score

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.

Aramark's controversy score

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.

Environmental, social, and governance (ESG) summary

Aramark was last rated for ESG on: 2020-10-01.

Total ESG score 26.83
Total ESG percentile 41
Environmental score 6
Environmental score percentile 3
Social score 14.75
Social score percentile 3
Governance score 4.57
Governance score percentile 3
Level of controversy 2

Aramark share dividends

51%

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").

Aramark share price volatility

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".

ARMK.US volatility(beta: 1.75)Avg. volatility(beta: 1.00)LowHigh

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 overview

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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