Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients primarily in North America. The company was founded in 1959 and is based in Philadelphia, Pennsylvania.
ARMK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ARMK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Aramark ranked in the 58th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for ARMK, they are:
In the past 5.23 years, Aramark has a compound free cash flow growth rate of 0.66%; that's higher than 89.37% of free cash flow generating stocks in the Consumer Cyclical sector.
43% of the company's capital comes from equity, which is greater than merely 21.9% of stocks in our cash flow based forecasting set.
Aramark's effective tax rate, as measured by taxes paid relative to net income, is at 156 -- greater than 98.33% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LSYN, GME, TACO, IP, and MUSA can be thought of as valuation peers to ARMK, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Investment Thesis Aramark (ARMK) is largely a food and service company with a smaller uniform apparel division focused on serving the corporate, healthcare, and education end-markets. Given the impact of COVID-19 related shutdowns, the company has been hit hard as seen in their recent stock performance. Data by YCharts However,...
Captain Alpha on Seeking Alpha | September 28, 2020
PHILADELPHIA--(BUSINESS WIRE)---- $ARMK #aramarkvolunteer--Aramark’s global day of community service, Aramark Building Community (ABC) Day, is taking on a new look this year, due to the COVID pandemic. The global leader in food, facilities management and uniforms, is demonstrating its commitment to enrich and nourish lives in communities around the world, by donating back to school and health supplies to public schools, providing thousands of dollars in grants to dozens of ABC partners, and encouraging employees to get in
PHILADELPHIA--(BUSINESS WIRE)---- $ARMK #AramarkImpacto--Aramark (NYSE: ARMK) today announced the names of its Hispanic Heritage Month (HHM) 30/30 honorees, who have gone above and beyond in response to the pandemic. These team members are also being recognized for their commitment to fostering a diverse and inclusive work environment that encourages workforce engagement and creates memorable consumer experiences. The 2020 HHM 30/30 honorees are being recognized by Aramark’s Impacto employee resource group, whose missio
PHILADELPHIA--(BUSINESS WIRE)---- $ARMK #fortune500--Aramark (NYSE:ARMK), a global leader in food, facilities management and uniforms, announced that the Company’s Chief Executive Officer, John Zillmer, and Chief Financial Officer, Tom Ondrof, will participate in the virtual Citi Small/Mid-Cap & Growth European Conference on Friday, September 18th, 2020 with a featured Fireside Chat session beginning at 8:00 a.m. ET. A live webcast and replay of the Fireside Chat session will be available through the Investor Re
Aramark (NYSE: ARMK ) recorded lower-than-expected cash burn during the downturn and has greater sales opportunities on a COVID-19 recovery, according to Goldman Sachs. The Aramark Analyst: Stephen Grambling upgraded Aramark from Neutral to Buy, raising the price target from $23 to $36. The Aramark Thesis: All segments of Aramark could return to pre-COVID levels faster than what the consensus estimates reflect, Grambling said in the note. “Given non-discretionary nature of services offered by ARMK (e.g. Food service and uniform service), we … Full story available on Benzinga.com