Aramark (ARMK) AI Stock Analysis

Aramark provides food, facilities, and uniform services to clients in education, healthcare, business and industry, sports, leisure, and corrections worldwide. The company operates through three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. Services include managed dining, catering, non-clinical patient nutrition, plant operations, custodial services, energy management, and capital project oversight. Its uniform division designs, sources, manufactures, and maintains work apparel and accessories, while also providing managed restroom services, mats, towels, linens, and first aid supplies.

Aramark increased revenue from $12.10B in FY2021 to $18.51B in FY2025, delivering a 5-year revenue CAGR of 7.6%. Operating margin expanded from 1.6% in FY2021 to 4.3% in FY2025, while net income shifted from -$90.8M to $326.4M over the same timeframe. However, gross margin contracted from 9.0% in FY2021 to 5.8% in FY2025. In the trailing twelve months ended June 30, 2026, revenue totaled $19.85B, with a profit margin of 1.9% and EPS of $1.43. In the latest quarter, quarterly revenue grew 9.3% year-over-year, and quarterly earnings grew 33.3% year-over-year.

As of June 30, 2026, Aramark held $499.4M in cash and short-term investments against total debt of $6.47B, leaving net debt at $5.97B. Shareholders' equity was $3.39B, yielding a debt-to-equity ratio of 1.91 and a current ratio of 1.28. In FY2025, operating cash flow reached $921.0M. Aramark funded capital expenditures of $466.6M, yielding $454.5M in free cash flow, while directing $140.2M to share buybacks and $110.8M to dividends paid.

Aramark trades at a trailing P/E of 38.7x and a forward P/E of 21.5x, both above the median of its US-listed Industrials peers at 24.8x and 17.2x, respectively. Its enterprise value of $20.67B represents an EV/EBITDA multiple of 14.8x compared to the peer median of 13.9x, while its price-to-sales multiple of 0.7x sits below the peer median of 1.5x. Aramark shares gained 45.1% over the past year, outperforming the S&P 500 (SPY) return of 16.8%, and advanced 123.0% over five years against 83.0% for the index.

Aramark pays a quarterly dividend with a forward annual payout of $0.48 per share, representing a dividend yield of 0.87%. The company has paid dividends for 13 consecutive years and posted a 5-year annualized dividend growth rate of 6.5%. The payout ratio stands at 23.0%, and its last ex-dividend date was August 19, 2026.

Wall Street analyst coverage consists of 11 Strong Buy, 3 Buy, 1 Hold, and 1 Sell ratings. The mean price target is $68.59, representing 24.1% upside from the last closing price of $55.28 on October 16, 2026. For the fiscal year ending September 30, 2026, analysts estimate revenue of $20.11B and EPS of $2.28, reflecting 25.1% EPS growth. Aramark beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 16, 2026.

This page is an AI-written research summary of Aramark (ARMK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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