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Aramark (ARMK) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Industrials•Specialty Business Services
C
AverageMetricSide Score: 59/100
ProfitabilityProfit11/30
GrowthGrowth20/25
Balance SheetBalance16/25
Cash QualityCash12/20
Price & Volume
Market Cap $14.81B

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 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, it 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, the company offers correctional food; and operates commissaries, laundry facilities, and property rooms. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.

Moat Signals

Competitive analysis based on 49 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~4.3% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE is positive at ~10.7% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Moderate Moat

5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (6 of 7 quarters up), with ~8.5% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 49 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~4.3% — no sign of cost or pricing stress.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

D/E ratio is 1.8 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of April 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$19.41B
10.2%
Q. Revenue
$4.91B
TTM EBITDA
$1.58B
9.8%
TTM Op. Income
$837.71M
8.5%
Q. Op. Income
$219.75M
TTM Net Income
$357.03M
2.6%
Q. Net Income
$101.95M
EPS
$0.39
Shares Out.
$263.16M
0.6%
$19.41B in TTM revenue grew 10.2% YoY, reaching $4.91B last quarter. TTM EBITDA of $1.58B and TTM operating income of $837.71M shows growth is flowing through. Net income of $357.03M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
8.7%
3.4%
EBITDA Margin
7.2%
Op. Margin
4.5%
10.0%
Net Margin
2.1%
43.7%
Op. margin of 4.5% is up 0.4% YoY — cost efficiency is improving. Net margin at 2.1% and gross margin of 8.7% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
41.5x
P/S Ratio
0.8x
P/B Ratio
4.5x
At 41.5x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 0.8x and P/B of 4.5x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$13.84B
Cash
$475.72M
Long-Term Debt
$6.06B
Book Value
$3.28B
D/E Ratio
1.8
Debt/EBITDA
17.2
With $13.84B in assets and $6.06B in long-term debt, the D/E of 1.8and book value of $3.28B — reflects moderate leverage — debt is manageable but worth monitoring.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$400.25M
Free Cash Flow
$298.98M
113.3%
FCF Margin
1.5%
FCF / Net Income
2.9
FCF of $298.98M on $400.25M in operating cash flow. The FCF / Net Income ratio of 0.8x means earnings are well backed by actual cash — high-quality earnings.

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