Aramark (ARMK) Stock Analysis
Verdict: WATCH (do not buy)
High debt leverage and razor-thin net margins (1.9%) leave ARMK vulnerable to execution slips, making its 37.6x P/E hard to justify.
Investment score: 46/100
Analysis as of
Is Aramark stock worth reviewing? The TradeMates thesis
High debt leverage and razor-thin net margins (1.9%) leave ARMK vulnerable to execution slips, making its 37.6x P/E hard to justify.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 50/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Aramark opportunities and risks
What speaks for ARMK
- Expansion into data-center workforce hospitality
What speaks against ARMK
- Heavy debt overhang with Net Debt/EBITDA of 4.34x
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ARMK | 37.6x | 0.7x | 14.8x | 6.6% | 1.9% | 3.2% |
| DASH | 99.7x | 5.3x | 44.5x | 51.4% | 5.3% | 2.8% |
| YUM | 17.3x | 4.4x | 17.3x | 45.8% | 25.4% | 4.4% |
| CMG | 28.7x | 3.2x | 20.0x | 24.1% | 11.4% | 3.9% |
| QSR | 17.5x | 2.6x | 14.1x | 44.8% | 13.1% | 6.3% |
| DRI | 19.4x | 1.7x | 13.4x | 69.4% | 8.8% | 5.4% |
| Peer median | 19.4x | 3.2x | 17.3x | 45.8% | 11.4% | 4.4% |
Frequently asked questions about Aramark (ARMK)
Is ARMK stock a good investment?
The TradeMates model rates Aramark as WATCH (do not buy) with an investment score of 46/100. High debt leverage and razor-thin net margins (1.9%) leave ARMK vulnerable to execution slips, making its 37.6x P/E hard to justify. This is algorithmic model output, not personal investment advice.
Is ARMK stock a buy?
The TradeMates model verdict for ARMK is WATCH (do not buy) with an investment score of 46/100. Treat this as a model signal to review, not a personal buy recommendation.