Aramark

Valuation Analysis

About the Company

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. The company operates in two segments, Food and Support Services United States, and Food and Support Services International. It 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. The company also provides on-site restaurants, catering, convenience st

Aramark Stock at a Glance

Aramark (ARMK) is currently trading at $54.27 with a market capitalization of $14.3B. The trailing P/E ratio stands at 40.5x, with a forward P/E of 20.22x. The 52-week range spans from $35.07 to $54.93; the current price is 1.2% below the yearly high. Year-over-year revenue growth stands at +14.7%. The net profit margin stands at 1.84%.

💰 Dividend

Aramark pays an annual dividend of $0.48 per share, representing a yield of 0.88%. The payout ratio stands at 33.58%.

📊 Analyst Rating

16 analysts rate Aramark (ARMK) on consensus: Strong Buy. The average price target is $56.62, implying +4.34% from the current price. Analyst price targets range from $40.00 to $63.00.

Aramark: The Investment Case in Detail

Aramark (ARMK) operates in the Industrials — specifically Specialty Business Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 14.7% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 65.2% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base.

The Bear Case

With a net margin of just 1.84%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.94, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 20.22x is meaningfully below the trailing 40.5x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 96.7% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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