Aramark ARMK
United StatesIndustrials · Specialty Business ServicesUSD
68.50 USD (+23.6%)
16 analysts
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Aramark is a global provider of food services, facility management, and uniforms, operating under contracts with educational institutions, hospitals, corporations, and stadiums.
Key points
from its scores- ✓Good share-price trend9.3
- ✓Strong growth7.5
- ✕Fragile balance sheet3.1
- ✕Little competitive advantage3.8
- ✕Demanding valuation4.4
AI analysis
bottom line, main risk, context and newsGrowth and momentum are attractive, but high leverage and sensitivity to interest rates warrant caution; wait for an improvement in financial health or a more favorable rate environment.
Aramark shows solid growth (revenue +9.3%, earnings +33.3%) and strong momentum (9.28), but its high leverage (Net Debt/EBITDA of 4.12) and thin operating margin (4.42%) make it vulnerable to the current rising interest rate environment, which weighs on its financial health (3.75) and valuation (P/E 38.76).
The main risk is its high leverage (Net Debt/EBITDA of 4.12) in a context of rising interest rates in the US, which could increase the cost of debt service and further compress its already thin margins (4.42%).
Context and risks
Aramark operates in the US and globally in food services and facility management, sectors with very thin operating margins (4.42%) and high sensitivity to labor and supply costs. Its high leverage (Net Debt/EBITDA of 4.12) exposes it to a rising interest rate environment in the US, increasing the cost of its debt and limiting its financial flexibility. The regulatory risk of the country of domicile (US) is moderate, with an impact of -0.6.
Is Aramark stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 25% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 38.8 | 25.4 | +52% |
| EV / EBITDA | 14.3 | 14.5 | −1% |
| Price / book | 4.3 | 4.1 | +6% |
| Price / sales | 0.7 | 2.1 | −64% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.4 out of 10 (median for Industrials: 5.0).
Average analyst target: 68.50 USD, +23.6% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.8 (sector 5.8), Growth 7.5 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 38.8
- Forward P/E
- 19.7
- EV / EBITDA
- 14.3
- Price / book
- 4.3
- Price / sales
- 0.7
- PEG
- 0.86
- Market cap
- 14.6B USD
- Enterprise value
- 20.6B USD
Profitability
- ROE
- 11.7%
- ROA
- 4.2%
- ROIC (approx.)
- 8.9%
- Gross margin
- 15.3%
- Operating margin
- 4.4%
- Net margin
- 1.9%
- Free cash flow
- 374.1M USD
- FCF yield
- 2.6%
- Cash conversion
- 26%
Solvency
- Total debt
- 6.5B USD
- Net debt
- 5.9B USD
- Cash
- 520.4M USD
- EBITDA
- 1.4B USD
- Net debt / EBITDA
- 4.12
- Debt / equity
- 186.72
- Current ratio
- 1.28
- Quick ratio
- 1.03
Growth
- Revenue growth
- +9.3%
- Earnings growth
- +33.3%
- EPS (TTM)
- 1.43 USD
- EPS (forward)
- 2.81 USD
Dividend
- Dividend yield
- 0.9%
- Payout
- 32.5%
Risk and market
- Beta
- 1.20
- Analyst consensus
- Strong buy (16)
- Target price
- 68.50 USD
- 52-week range
- 35.07 – 62.65
Recent news
All ARMK news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Aramark
Is Aramark stock cheap or expensive?
On P/E and EV / EBITDA, it trades 25% above the Industrials median on average. Valuation score: 4.4 out of 10 (median for Industrials: 5.0). Average analyst target: 68.50 USD, +23.6% versus the price. This is not investment advice.
What score does Aramark get on MeridIAn Screener?
It scores 4.9 out of 10, rank 1,723 of 2,130 (better than 17% of the companies analysed). Its strongest category is Momentum (9.3) and its weakest, Financial health (3.1). Analysis of 08/10/2026.
What is Aramark's P/E ratio?
Its P/E is 38.8: the share price equals 38.8 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 19.7.
How much is Aramark worth on the stock market?
Its market capitalisation is 14.6B USD and its enterprise value, debt included, is 20.6B USD.
How much debt does Aramark have?
Its net debt (debt minus cash) is 5.9B USD. That is 4.12 times its EBITDA; the Industrials median is 1.58.
Does Aramark pay a dividend?
Yes: its dividend yield is 0.87% and it pays out 33% of its earnings.
How has Aramark stock performed over the last year?
It has risen 42.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 35.07 and 62.65 USD. Past performance does not guarantee future results.
What do analysts think of Aramark?
16 analysts cover it; their average recommendation is “Strong buy” and their average target is 68.50 USD (+23.6% versus the price). It is an estimate, not market data.