ARAMARK Holdings (ARMK) AI Stock Analysis

• Market Cap: $10.00B
• Dividend Yield: 1.14%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.65
• Revenue Growth: 6.35%
• EPS Growth: 24.07%
• Country: US
• Employees: 266,680
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.57
• Shares Outstanding: 262,934,100
• 10 Day Avg. Volume: 2,074,872
• 30 Day Avg. Volume: 2,768,374
• 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: 1.54
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 10.86
• Enterprise Value/Ebitda: 12.36
• 1Y Price Target: $45.33
• Price Target Upside: 19.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.22
• Revenue Forecast (FY): $19.70B

• Rating: 68 Neutral
• Price Target: $41.00 ▲(7.84% Upside)

ARAMARK Holdings shows strong financial performance and positive corporate events, but technical indicators and valuation suggest caution. The company's strategic growth and debt management are promising, yet cost pressures and valuation concerns temper the outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective business strategies, supporting long-term expansion and market presence.

Debt Management

Improved leverage ratio enhances financial stability, reducing risk and increasing flexibility for future investments and growth.

Client Retention

High client retention and new business wins demonstrate strong customer satisfaction and competitive positioning, ensuring recurring revenue.

Negative Factors

Cost Pressures

Decreasing margins suggest rising costs, which could pressure profitability if not managed, impacting long-term financial health.

Delayed Revenue

Delays in revenue recognition from new accounts can disrupt cash flow and financial planning, affecting short-term performance.

Healthcare Costs

Rising healthcare costs can erode margins and increase operational expenses, challenging cost management and profitability.

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

ARAMARK Holdings shows positive financial momentum with strong revenue growth and improved profitability metrics. The significant reduction in leverage and robust cash flow generation are key strengths, positioning the company well for future growth. However, maintaining cost efficiency and managing historical leverage levels remain critical for sustained financial health.

Income Statement

ARAMARK Holdings has shown consistent revenue growth with a TTM growth rate of 3.53%, building on previous years' positive trends. The gross profit margin has decreased slightly to 6.11% in TTM from 8.19% in 2024, indicating potential cost pressures. However, the net profit margin improved to 1.76% in TTM, suggesting better cost management. The EBIT and EBITDA margins have remained stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.11 in TTM from 1.83 in 2024, indicating a substantial reduction in leverage. Return on equity has increased to 10.59% in TTM, showing enhanced profitability. The equity ratio is stable, reflecting a balanced asset structure. However, historical high leverage remains a concern.

Cash Flow

ARAMARK Holdings has demonstrated strong cash flow performance with a free cash flow growth rate of 61.87% in TTM. The operating cash flow to net income ratio is healthy at 0.22, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.37 suggests good cash conversion, supporting future investments and debt reduction.

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

ARAMARK Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 38.02 is above the 20-day moving average (MA) of 37.53, above the 50-day MA of 37.96, and below the 200-day MA of 38.14, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 72.82 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	79 Outperform	$76.62B	41.25	43.29%	0.88%	8.60%	11.45%
UNF	72 Outperform	$3.46B	24.94	6.93%	0.71%	0.20%	2.72%
ABM	69 Neutral	$2.51B	16.12	9.10%	2.20%	4.62%	102.72%
ARMK	68 Neutral	$10.00B	31.14	10.55%	1.14%	6.35%	24.07%
RTO	66 Neutral	$15.00B	45.16	5.86%	2.20%	1.56%	-32.50%
CBZ	66 Neutral	$2.84B	34.39	7.44%	―	59.19%	-35.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ARAMARK Holdings Corporate Events

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.