ARAMARK Holdings (ARMK) AI Stock Analysis

• Market Cap: $10.77B
• Dividend Yield: 1.14%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.67
• Revenue Growth: 6.35%
• EPS Growth: 24.07%
• Country: US
• Employees: 266,680
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.51
• Shares Outstanding: 262,836,000
• 10 Day Avg. Volume: 3,900,582
• 30 Day Avg. Volume: 3,654,768
• PEG Ratio: 1.31
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 22.64
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 13.09
• Enterprise Value/Ebitda: 13.53
• 1Y Price Target: $47.42
• Price Target Upside: 15.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 2.22
• Revenue Forecast (FY): $19.77B

• Rating: 68 Neutral
• Price Target: $44.00 ▲(7.34% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by stable-to-improving fundamentals (strong revenue momentum and positive cash generation) and supportive technical uptrend. Offsetting factors are compressed margins and softer cash conversion, plus a relatively expensive valuation (high P/E with only a modest dividend). Earnings-call tone and reiterated FY26 guidance provide additional support.

Positive Factors

Recurring revenue & strong client retention

High client retention plus material new strategic wins create durable contracted revenue and reduce renewal risk. Recurring food, facilities and uniform contracts lock in cash flow, support predictable backlog, and amplify scale benefits across procurement and operations for multi-year revenue stability.

Sustained international outperformance

Consistent, double-digit international growth diversifies revenue and reduces U.S.-centric cycle risk. Broad country contributions and repeat account wins indicate scalable operating processes and local competitive strength, supporting longer-term margin expansion as scale and mobilization costs normalize.

Improving liquidity and proactive debt management

Meaningful cash buffer and successful loan repricing lower interest expense and increase financial flexibility. Proactive refinancing reduces refinancing risk, supports guidance targets (leverage <3x), and gives the company room to fund mobilizations, shareholder returns, or opportunistic investments without immediate liquidity strain.

Negative Factors

Thin and compressed profitability

Very low operating and net margins limit earnings resilience to cost inflation or revenue mix shifts. Small margin buffers mean modest cost increases or contract mix changes can erase profits, constraining reinvestment, FCF conversion, and long-term returns unless structural margin recovery occurs.

Weak cash conversion and declining free cash flow

Declining FCF and ~50% conversion of net income reduce internal funding capacity for debt paydown, capex normalization, or dividends. Persistent weak cash conversion raises sensitivity to working capital swings and increases reliance on external financing for growth or shareholder actions over the medium term.

Elevated mobilization CapEx and seasonal working capital needs

Large new-account mobilizations drive higher near-term capex and working capital that weigh on margins and cash flow. If wins continue, cumulative mobilization costs can depress medium-term returns and make meeting margin/FCF targets more dependent on efficient rollout and contract economics.

ARAMARK Holdings Business Overview & Revenue Model

Company Description

Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States 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 food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; 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 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.

How the Company Makes Money

ARAMARK generates revenue primarily through its three main business segments: Food and Support Services, Uniform and Career Apparel, and Facilities Management. The Food and Support Services segment, which includes services such as catering, dining, and food retail, constitutes the largest portion of revenue, driven by contracts with educational institutions, healthcare facilities, and businesses. The Uniform and Career Apparel segment generates income from the rental and sale of uniforms and related products to various industries. Additionally, the Facilities Management segment offers services like maintenance, cleaning, and security, contributing to the company’s diversified income streams. ARAMARK also benefits from long-term contracts with clients, which provide stable and recurring revenue. Partnerships with various organizations in sectors such as education and healthcare further enhance its earnings potential by expanding service offerings and client reach.

ARAMARK Holdings Financial Statement Overview

Summary

Strong TTM revenue growth and positive operating/free cash flow support the score, but profitability is thin (net margin ~1.7%, EBIT margin ~3.0%) with clear margin compression versus 2023–2024. Free cash flow is down TTM and cash conversion is weak (FCF ~0.52x net income). Balance sheet metrics look improved in the TTM snapshot (low debt-to-equity), but the sharp discrepancy versus prior-year leverage figures is a notable risk to monitor.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (+151%), extending a multi-year recovery after the 2021 decline. Profitability is positive but thin: TTM net margin is ~1.7% and EBIT margin is ~3.0%, both well below 2023 levels (when margins were materially higher). Gross margin has also compressed versus 2023–2024, indicating cost pressure and/or pricing mix headwinds, even as earnings remain positive.

Balance Sheet

Leverage appears manageable with solid equity support: TTM debt-to-equity is low (~0.11) and return on equity is ~10.6%, broadly steady versus recent years (outside of the 2023 spike). That said, annual filings (2022–2025) show materially higher leverage (debt-to-equity ~1.8–2.9), suggesting either a meaningful recent debt reduction or a potential reporting/classification shift; this discrepancy is a key item to monitor. Asset base is stable, and equity has been relatively steady over time.

Cash Flow

Cash generation is positive, with TTM operating cash flow of ~$726M and free cash flow of ~$379M. However, free cash flow has declined TTM (about -16.5%), and free cash flow is only about half of net income (~0.52x), pointing to weaker cash conversion. Operating cash flow relative to revenue is modest (coverage around ~0.25), suggesting cash generation is adequate but not especially strong for the level of sales.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	18.79B	18.51B	17.40B	16.08B	13.69B	12.10B
Gross Profit	1.31B	1.07B	1.43B	1.31B	1.07B	1.09B
EBITDA	1.27B	1.25B	1.19B	1.44B	830.05M	831.55M
Net Income	316.94M	326.39M	262.52M	674.11M	194.48M	-90.83M
Balance Sheet
Total Assets	13.54B	13.30B	12.67B	16.87B	15.08B	14.38B
Cash, Cash Equivalents and Short-Term Investments	439.63M	639.10M	714.83M	2.04B	329.45M	532.59M
Total Debt	6.84B	5.72B	5.57B	6.94B	7.79B	7.83B
Total Liabilities	10.31B	10.14B	9.63B	13.15B	12.04B	11.64B
Stockholders Equity	3.21B	3.15B	3.04B	3.71B	3.03B	2.72B
Cash Flow
Free Cash Flow	257.12M	454.46M	299.09M	305.02M	329.74M	281.74M
Operating Cash Flow	725.99M	921.03M	726.51M	766.43M	694.50M	657.08M
Investing Cash Flow	-645.30M	-722.42M	-415.86M	208.91M	-831.29M	-634.39M
Financing Cash Flow	-141.63M	-234.63M	-1.56B	653.65M	-37.69M	-2.01B

ARAMARK Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARMK, the sentiment is Positive. The current price of 40.99 is above the 20-day moving average (MA) of 39.49, above the 50-day MA of 38.67, and above the 200-day MA of 39.15, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 56.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARMK.

ARAMARK Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	77 Outperform	$4.05B	30.83	6.50%	0.71%	0.20%	2.72%
CTAS	75 Outperform	$79.40B	42.91	43.25%	0.88%	8.60%	11.45%
ABM	73 Outperform	$2.58B	16.97	9.10%	2.20%	4.62%	102.72%
ARMK	68 Neutral	$10.77B	34.47	10.08%	1.14%	6.35%	24.07%
RTO	66 Neutral	$15.20B	46.40	5.86%	2.20%	1.56%	-32.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CBZ	61 Neutral	$1.51B	17.96	7.44%	―	59.19%	-35.47%

ARAMARK Holdings Corporate Events

Aramark Grants Special RSUs to Key Operating Executives

On February 17, 2026, Aramark’s board-level Compensation and Human Resources Committee approved a special grant of $3 million in Restricted Stock Units to Marc Bruno, Chief Operating Officer, U.S. Food and Facilities. The award, effective February 19, 2026, is structured to vest over three years or around a future CEO succession date, tying Bruno’s compensation to leadership continuity and long-term service.

The committee on the same date approved an identical $3 million RSU grant and vesting structure for Carl Mittleman, Chief Operating Officer, International. These parallel awards underscore the company’s intent to retain and incentivize its top operating executives through a period of anticipated leadership transition, with potential accelerated vesting in certain non-retirement termination scenarios.

The most recent analyst rating on (ARMK) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on ARAMARK Holdings stock, see the ARMK Stock Forecast page.

Aramark Shareholders Reaffirm Board, Auditor and Pay Plan

At its February 3, 2026 annual meeting, Aramark shareholders re-elected all 11 director nominees, overwhelmingly ratified Deloitte & Touche as auditor for fiscal 2026, and approved executive compensation in a non-binding vote, signaling strong investor endorsement of the company’s leadership and governance framework.

The most recent analyst rating on (ARMK) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on ARAMARK Holdings stock, see the ARMK Stock Forecast page.

Aramark Holdings Reprices and Refinances U.S. Loans

On December 11, 2025, Aramark Services, Inc., a subsidiary of Aramark Holdings, entered into an amendment to its Credit Agreement, resulting in the repricing and refinancing of its U.S. Term B-8 Loans with new U.S. Term B-10 Loans amounting to approximately $2.38 billion due in June 2030. This financial restructuring aims to optimize the company’s debt profile and maintain favorable terms, potentially impacting its financial stability and stakeholder interests positively.

The most recent analyst rating on (ARMK) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on ARAMARK Holdings stock, see the ARMK Stock Forecast page.