Last Updated: 09 Nov 2024
Executive Summary
Aramark Holdings (ARMK) is a leading provider of food, facilities, and services to various sectors, including education, healthcare, business and industry, sports, recreation, and corrections. The company has a strong financial position with growing revenue and earnings. Analysts are generally positive on the stock, with a consensus target price of $40.84. The current stock price of $39.11 represents a potential upside of 4.4%.
Company Overview
Aramark Holdings is headquartered in Philadelphia, Pennsylvania. The company operates through three segments: Food and Support Services, Uniform and Career Apparel, and Healthcare Technologies. Aramark has a global presence with operations in over 19 countries.
Fundamental Analysis
Revenue: Aramark's revenue has grown steadily over the past several years. In fiscal 2023, the company reported revenue of $19.95 billion, an increase of 0.08% year-over-year.
Earnings: Aramark's earnings per share (EPS) have also increased in recent years. In fiscal 2023, the company reported EPS of $1.81, an increase of 1.7% year-over-year.
Profitability: Aramark's profit margins have been relatively stable in recent years. The company's gross profit margin was 15.5% in fiscal 2023, while its operating margin was 3.7%.
Balance Sheet: Aramark has a strong balance sheet with a low level of debt. The company's total debt-to-equity ratio was 0.37 as of June 30, 2023.
Valuation: Aramark's stock is currently trading at a trailing price-to-earnings (P/E) ratio of 21.61 and a forward P/E ratio of 20.62. These ratios are in line with the industry average.
Technical Analysis
Trend: Aramark's stock price has been in an uptrend since early 2023. The stock is currently trading above its 50-day and 200-day moving averages.
Support and Resistance: The stock has strong support at $35.00 and resistance at $40.00.
Momentum: The stock's momentum is currently positive. The relative strength index (RSI) is above 50, indicating that the stock is overbought.
Short Term Outlook
In the short term, Aramark's stock is likely to continue to trade in a range between $35.00 and $40.00. The stock could break out of this range if it can close above $40.00.
Long Term Outlook
In the long term, Aramark's stock is expected to continue to grow as the company benefits from the increasing demand for its services. The company's strong financial position and global presence give it a competitive advantage in the market.
Analyst Recommendations
Analysts are generally positive on Aramark's stock. Of the 15 analysts covering the stock, 4 have a strong buy rating, 9 have a buy rating, 2 have a hold rating, and 0 have a sell or strong sell rating. The consensus target price is $40.84.
