Aramark
NYSE:ARMK

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Aramark
NYSE:ARMK
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Price: 43.5 USD -0.3% Market Closed
Market Cap: 11.4B USD
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Intrinsic Value

The intrinsic value of one ARMK stock under the Base Case scenario is 57.47 USD. Compared to the current market price of 43.5 USD, Aramark is Undervalued by 24%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

ARMK Intrinsic Value
57.47 USD
Undervaluation 24%
Intrinsic Value
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Fundamental Analysis

Company Overview
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Business Segments
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Economic Moat
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Earnings Call
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Management
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Contacts
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Bear Theses

The ongoing inflationary environment could significantly inflate Aramark’s labor and raw material costs, risking narrow margins if the company cannot pass these costs on to clients in current contracts.

Aramark relies heavily on large institutional contracts—such as with universities and healthcare systems—that often span multiple years. If client retention falters or if budget cuts at these institutions intensify, the company’s contract pipeline and renewal prospects may sharply decline.

Smaller, specialized food service and facilities-management competitors are beginning to offer more customized and tech-driven solutions, eroding Aramark’s market share in key segments where it has historically enjoyed scale advantages.

Bull Theses

Aramark’s extensive network of multi-year contracts with educational institutions, healthcare facilities, and corporate campuses provides relatively stable, recession-resistant revenue, underpinning the company’s strong cash flow generation.

The firm’s commitment to modernization, demonstrated by investments in data-driven kitchen management and digital facilities solutions, could improve efficiency and lower operating costs, potentially translating into margin expansion and higher client satisfaction.

Aramark’s steady push into international markets, alongside tailored offerings such as plant-forward and healthier menu choices, is creating new growth opportunities and diversifying the revenue mix beyond its core U.S. business.

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Financials
Annual
Quarterly
TTM
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Quarterly
TTM

Balance Sheet Decomposition
Aramark

Current Assets 3.8B
Cash & Short-Term Investments 920.5m
Receivables 2.2B
Other Current Assets 687.8m
Non-Current Assets 9.6B
PP&E 2.3B
Intangibles 6.7B
Other Non-Current Assets 590.8m
Current Liabilities 3.2B
Accounts Payable 1.1B
Accrued Liabilities 1.6B
Other Current Liabilities 423.8m
Non-Current Liabilities 7.3B
Long-Term Debt 6.1B
Other Non-Current Liabilities 1.2B
Efficiency

Free Cash Flow Analysis
Aramark

Last Value
3-Years Average
FCF Margin
Conversion Rate

Earnings Waterfall
Aramark

Revenue
17.6B USD
Cost of Revenue
-16.1B USD
Gross Profit
1.5B USD
Operating Expenses
-720.8m USD
Operating Income
771.9m USD
Other Expenses
-423.9m USD
Net Income
348m USD
Fundamental Scores

ARMK Profitability Score
Profitability Due Diligence

Aramark's profitability score is 47/100. The higher the profitability score, the more profitable the company is.

ROE is Increasing
Positive 3Y Average ROE
ROIC is Increasing
Positive ROE
47/100
Profitability
Score

Aramark's profitability score is 47/100. The higher the profitability score, the more profitable the company is.

ARMK Solvency Score
Solvency Due Diligence

Aramark's solvency score is 30/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Average Altman Z-Score
High D/E
30/100
Solvency
Score

Aramark's solvency score is 30/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ARMK Price Targets Summary
Aramark

Wall Street analysts forecast ARMK stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ARMK is 45.42 USD with a low forecast of 38.81 USD and a high forecast of 51.45 USD.

Lowest
Price Target
38.81 USD
11% Downside
Average
Price Target
45.42 USD
4% Upside
Highest
Price Target
51.45 USD
18% Upside
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Dividends

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Shareholder Yield

Current shareholder yield for ARMK is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

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Competitive Landscape

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What is the Intrinsic Value of one ARMK stock?

The intrinsic value of one ARMK stock under the Base Case scenario is 57.47 USD.

Is ARMK stock undervalued or overvalued?

Compared to the current market price of 43.5 USD, Aramark is Undervalued by 24%.

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