ARAMARK Holdings (ARMK) AI Stock Analysis

• Market Cap: $10.10B
• Dividend Yield: 1.09%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.67
• Revenue Growth: -0.06%
• EPS Growth: 3.83%
• Country: US
• Employees: 266,680
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.40
• Shares Outstanding: 262,850,920
• 10 Day Avg. Volume: 2,434,842
• 30 Day Avg. Volume: 2,089,791
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 11.26
• Enterprise Value/Ebitda: 13.18
• 1Y Price Target: $45.86
• Price Target Upside: 19.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $42.00 ▲(9.32% Upside)

ARAMARK Holdings shows strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. However, technical indicators suggest a lack of momentum, and the valuation indicates the stock is not undervalued. These mixed signals result in an overall stock score of 68.

Positive Factors

Strong Revenue Growth

ARAMARK's consistent revenue growth, driven by new client acquisitions and base business expansion, indicates a robust market position and effective business strategy, supporting long-term financial health.

High Client Retention

High client retention rates reflect strong customer satisfaction and loyalty, which are critical for sustaining revenue streams and ensuring business stability over the long term.

International Expansion

Significant international growth demonstrates ARAMARK's successful global strategy, diversifying revenue sources and reducing dependency on any single market, which enhances resilience.

Negative Factors

Decline in Gross Profit Margin

A declining gross profit margin suggests potential cost management challenges, which could impact profitability if not addressed, affecting long-term financial performance.

Increased Medical Expenses

Rising medical expenses can strain operating income, reducing profitability and potentially necessitating cost-cutting measures or price adjustments to maintain margins.

Arena and Concert Activity Decline

Reduced activity in arenas and concerts can limit revenue opportunities in the sports and entertainment segment, impacting overall growth potential if trends persist.

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 various service contracts in food services, facilities management, and uniform services. Key revenue streams include sales from food and beverage services in educational institutions and healthcare facilities, alongside management fees and service contracts for facility management. The company also earns income through uniform rental and sales, as well as through partnerships and contracts with corporations, government agencies, and non-profit organizations. Significant factors contributing to its earnings include long-term contracts with clients, a broad customer base across multiple sectors, and the ability to adapt services to meet specific client needs, which enhances customer retention and drives revenue growth.

ARAMARK Holdings Financial Statement Overview

Summary

ARAMARK Holdings is showing signs of financial improvement with increased revenue growth, reduced leverage, and strong cash flow generation. However, the decline in gross profit margin indicates potential challenges in cost management. The company is on a positive trajectory with improved profitability and cash flow metrics, positioning it well for future growth.

Income Statement

ARAMARK Holdings has shown a positive trend in revenue growth with a TTM increase of 1.42% compared to a decline in the previous year. The gross profit margin has decreased significantly in the TTM period to 2.22% from 8.19% in the previous year, indicating potential cost management issues. However, the net profit margin has improved to 2.02% in the TTM, reflecting better profitability. The EBIT and EBITDA margins have remained relatively stable, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.12 in the TTM from 1.83 in the previous year, indicating reduced leverage and a stronger equity position. Return on equity has increased to 11.83%, showing enhanced profitability for shareholders. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

ARAMARK Holdings has demonstrated strong free cash flow growth of 69.20% in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio has improved, suggesting better cash conversion efficiency. The free cash flow to net income ratio is healthy at 81.84%, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.87B	17.40B	16.08B	13.69B	12.10B	12.83B
Gross Profit	1.53B	1.43B	1.31B	1.07B	1.09B	835.89M
EBITDA	1.31B	1.19B	1.44B	830.05M	831.55M	336.91M
Net Income	361.67M	262.52M	674.11M	194.48M	-90.83M	-461.44M
Balance Sheet
Total Assets	13.28B	12.67B	16.87B	15.08B	14.38B	15.71B
Cash, Cash Equivalents and Short-Term Investments	501.49M	714.83M	2.04B	329.45M	532.59M	2.51B
Total Debt	6.62B	5.57B	6.94B	7.79B	7.83B	9.69B
Total Liabilities	10.19B	9.63B	13.15B	12.04B	11.64B	12.97B
Stockholders Equity	3.08B	3.04B	3.71B	3.03B	2.72B	2.74B
Cash Flow
Free Cash Flow	280.76M	299.09M	305.02M	329.74M	281.74M	-187.75M
Operating Cash Flow	767.09M	726.51M	766.43M	694.50M	657.08M	176.68M
Investing Cash Flow	-650.64M	-415.86M	208.91M	-831.29M	-634.39M	-361.12M
Financing Cash Flow	-81.25M	-1.56B	653.65M	-37.69M	-2.01B	2.44B

ARAMARK Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.42
• 50DMA: Negative
• 100DMA: Negative
• 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 38.42 is above the 20-day moving average (MA) of 38.23, below the 50-day MA of 39.90, and above the 200-day MA of 38.06, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 48.86 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
CTAS	74 Outperform	82.30B	44.86	38.93%	0.79%	8.21%	13.66%
UNF	74 Outperform	3.01B	20.30	6.98%	0.83%	4.18%	18.93%
ABM	70 Outperform	2.80B	24.48	6.33%	2.23%	4.27%	-24.06%
RTO	69 Neutral	12.45B	36.48	7.26%	2.66%	1.56%	-32.50%
ARMK	68 Neutral	$10.10B	27.86	12.00%	1.09%	-0.06%	3.83%
CBZ	65 Neutral	2.84B	30.33	5.77%	―	46.49%	-25.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ARAMARK Holdings Corporate Events

Aramark Holdings Refinances Loans with New Agreement

On August 15, 2025, Aramark Services, Inc., a subsidiary of Aramark Holdings, entered into Amendment No. 18 to its Credit Agreement with JPMorgan Chase Bank and other financial institutions. This amendment involved refinancing the U.S. Term B-7 Loans with new U.S. Term B-9 Loans amounting to $730,458,023.44, due in April 2028. The new loans, funded in full on the closing date, carry interest based on either a forward-looking term rate or a base rate, and do not require quarterly principal repayments. The terms are similar to those of the previous loans, impacting the company’s financial structure and potentially affecting stakeholders.