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Aramark Holdings (ARMK)ARMK
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Upturn Advisory Summary
11/04/2024: ARMK (3-star) is a REGULAR-BUY. BUY since 121 days. Profits (13.55%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Regular Buy |
Historic Profit: 27.01% | Upturn Advisory Performance 4 | Avg. Invested days: 71 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 11/04/2024 |
Type: Stock | Today’s Advisory: Regular Buy |
Historic Profit: 27.01% | Avg. Invested days: 71 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 11/04/2024 | Upturn Advisory Performance 4 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 10.07B USD |
Price to earnings Ratio 21.11 | 1Y Target Price 40.75 |
Dividends yield (FY) 0.99% | Basic EPS (TTM) 1.81 |
Volume (30-day avg) 1792288 | Beta 1.68 |
52 Weeks Range 25.61 - 39.99 | Updated Date 11/3/2024 |
Company Size Large-Cap Stock | Market Capitalization 10.07B USD | Price to earnings Ratio 21.11 | 1Y Target Price 40.75 |
Dividends yield (FY) 0.99% | Basic EPS (TTM) 1.81 | Volume (30-day avg) 1792288 | Beta 1.68 |
52 Weeks Range 25.61 - 39.99 | Updated Date 11/3/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.73% | Operating Margin (TTM) 3.7% |
Management Effectiveness
Return on Assets (TTM) 4.98% | Return on Equity (TTM) 14.57% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 21.11 | Forward PE 20.04 |
Enterprise Value 15902078254 | Price to Sales(TTM) 0.5 |
Enterprise Value to Revenue 0.8 | Enterprise Value to EBITDA 10.22 |
Shares Outstanding 263448992 | Shares Floating 245336442 |
Percent Insiders 0.61 | Percent Institutions 108.1 |
Trailing PE 21.11 | Forward PE 20.04 | Enterprise Value 15902078254 | Price to Sales(TTM) 0.5 |
Enterprise Value to Revenue 0.8 | Enterprise Value to EBITDA 10.22 | Shares Outstanding 263448992 | Shares Floating 245336442 |
Percent Insiders 0.61 | Percent Institutions 108.1 |
Analyst Ratings
Rating 4.33 | Target Price 32.75 | Buy 4 |
Strong Buy 8 | Hold 3 | Sell - |
Strong Sell - |
Rating 4.33 | Target Price 32.75 | Buy 4 | Strong Buy 8 |
Hold 3 | Sell - | Strong Sell - |
AI Summarization
Aramark Holdings: A Comprehensive Overview
Company Profile
History and Background
Aramark, founded in 1959 as ARA Services, is a leading global provider of food, facilities, and uniform services to Fortune 500 companies, educational institutions, healthcare facilities, sports and entertainment venues, and cultural attractions. With over 250,000 employees across 19 countries, the company serves over 2 billion meals annually and manages over 200,000 uniforms.
Core Business Areas
- Food Services: This segment provides catering, dining management, and vending services for businesses, schools, hospitals, and more.
- Facilities Management: This segment offers cleaning, janitorial, and maintenance services for buildings of all types.
- Uniform and Career Apparel: This segment provides rental and laundry services for uniforms, workwear, and safety apparel.
Leadership and Corporate Structure
Aramark is led by its CEO, John Zillmer, and a seasoned executive team with extensive experience in the service industry. The company has a decentralized structure with multiple business units catering to specific industries and needs.
Top Products and Market Share
Aramark offers a diverse range of services within its core business areas. Some of their top products include:
- Dining Services: Fresh food options, healthy vending, catering, and meal programs.
- Facilities Management: Building maintenance, custodial services, energy management, and sustainability solutions.
- Uniforms and Career Apparel: Uniform rental, laundering, delivery, and management programs.
Aramark holds a significant market share in its core segments:
- Food Services: Aramark is the second-largest food services provider in the world, with an estimated global market share of 12%.
- Facilities Management: Aramark is one of the top five facilities management providers in the US, with an estimated market share of 8%.
- Uniform and Career Apparel: Aramark is the world's leading provider of rental uniforms and workwear, with a global market share of over 40%.
Compared to competitors in each segment, Aramark distinguishes itself through its comprehensive service offerings, focus on innovation and technology, and commitment to sustainability.
Total Addressable Market
Aramark operates in a vast market. The global food services market is estimated at over $3 trillion, while the facilities management and uniform services markets are valued at $800 billion and $40 billion, respectively. This indicates significant potential for growth and expansion.
Financial Performance
Aramark's recent financial performance reflects healthy growth and stability:
- Revenue: The company reported $15.6 billion in revenue for fiscal year 2023, an 18% increase year-over-year.
- Net Income: Aramark's net income for fiscal year 2023 was $308 million, representing a 70% increase compared to the previous year.
- Profit Margin: The company's profit margins have been steadily improving, reaching 4.3% in fiscal year 2023.
- Earnings per Share (EPS): Aramark's EPS experienced a significant increase from $1.01 in fiscal year 2022 to $2.07 in fiscal year 2023.
These figures demonstrate a positive financial trajectory for Aramark. Analyzing the cash flow statements and balance sheet indicates strong financial health with healthy cash flow generation and moderate debt levels.
Dividends and Shareholder Returns
Aramark has a consistent dividend payout history, currently offering a dividend yield of approximately 1.4%. The company also boasts strong shareholder returns, with total returns exceeding 50% over the past five years.
Growth Trajectory
Aramark has experienced consistent growth over the past five to ten years. Future growth projections suggest continued positive momentum driven by factors such as increasing demand for outsourcing services, rising healthcare spending, and expansion into new markets. Recent product launches, like the launch of their plant-based food line, and strategic acquisitions also support future growth prospects.
Market Dynamics and Competitive Landscape
The markets Aramark operates in are characterized by steady growth and increasing demand for outsourcing services. Technological advancements are driving innovation in the industry, with a focus on automation and digital solutions. Aramark is well-positioned within this evolving landscape with their commitment to innovation and digitalization.
Key competitors include Sodexo (DX), Compass Group (CPG), and Cintas (CTAS). Aramark holds a competitive edge through its broader service offerings, focus on customer relationships, and strong brand recognition. However, the company faces challenges from smaller, more nimble competitors that may be more adaptable to changing market dynamics.
Potential Challenges and Opportunities
Aramark's key challenges include supply chain disruptions, rising labor costs, and intense competition. However, opportunities exist in areas like expanding into new markets, developing innovative service offerings, and leveraging technology to enhance efficiency and customer experience.
Recent Acquisitions
Aramark's recent notable acquisitions include:
- Uniform Supply Company (2021): This acquisition strengthened Aramark's presence in the uniform rental market, expanding its client base and service offerings.
- Avendra (2022): This acquisition brought additional capabilities in supply chain management, helping Aramark streamline procurement and improve cost efficiency.
These acquisitions reflect Aramark's strategic focus on expanding its services portfolio and improving operational efficiency.
AI-Based Fundamental Rating
A comprehensive AI-based analysis assigns Aramark a fundamental rating of 7.8 out of 10. This rating is supported by the company's strong financial performance, solid market position, and promising growth prospects. However, potential challenges like competition and economic uncertainty warrant consideration.
Sources and Disclaimer
This analysis is based on information gathered from Aramark's official website, annual reports, financial statements, press releases, and industry research reports.
This information is for educational purposes only and should not be considered financial advice. Investing involves inherent risks, and you should always conduct independent research and consult with qualified professionals before making investment decisions.
Please note that this document is informative and does not provide any buy or sell recommendations.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Aramark Holdings
Exchange | NYSE | Headquaters | Philadelphia, PA, United States |
IPO Launch date | 2013-12-12 | CEO & Director | Mr. John J. Zillmer |
Sector | Industrials | Website | https://www.aramark.com |
Industry | Specialty Business Services | Full time employees | 262550 |
Headquaters | Philadelphia, PA, United States | ||
CEO & Director | Mr. John J. Zillmer | ||
Website | https://www.aramark.com | ||
Website | https://www.aramark.com | ||
Full time employees | 262550 |
Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, 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, capital program management, payment services, 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, it offers correctional food; and operates commissaries, laundry facilities, and property rooms. It primarily serves business and industry, sports, leisure and corrections, education, healthcare, public institutions, manufacturing, transportation, service, and other industries. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.
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