NYSE · ARMK

Aramark

Industrials · Specialty Business Services

$56.58▲ 0.18% ($0.10)today

As of 11:57 AM ET

52-week

$35.07$62.65

Market cap

$14.88B

P/E

What the market price implies · Reverse DCF

To support a price of $56.58, this model requires Stage 1 FCFF to grow by 107.91%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 6.31%/yr over the past 10 years. The required annual growth rate is 101.60 percentage points higher.

Selected forecast · Base scenario

6.31%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

107.91%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$56.58

Estimated value / share

Unavailable

Base scenario

USD · TTM ending 2026-07-03

Enterprise value of $857.05M does not cover net debt of $5.63B, so equity value is negative and no fair value per share can be shown. The projected cash flows are positive; the shortfall is in the equity bridge, not the forecast.

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Reported total debt includes capitalised leases (~5% of the total). They are excluded from net debt and from the WACC weights because rent is already charged inside operating income. The Net Debt shown here is therefore lower than the balance-sheet figure elsewhere on this page.

Stage 1 6.31% · Stage 2 3.5% · Discount rate 9.4%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 22, 2026, 3:57 PM UTC
Financial statement period: TTM ending 2026-07-03
Data refreshed: Sep 22, 2026, 3:57 PM UTC · cache

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 5 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 34.6%.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 49.36%Revenue (TTM): 11.02%FCF (TTM): 66.65%P/FCF: 60th pct

What changed

The stock rose 49.36% over the last year. Revenue grew 11.02% over the trailing twelve months. Operating margin moved from 4.44% to 4.39%. Free cash flow grew 66.65% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (60th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Operating margin is at 4.39% — continued expansion would be needed to justify the premium. Revenue growth of 11.02% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.

Performance

Return analysis

Company profile

Based in Philadelphia, Pennsylvania, Aramark, established in 1959, provides a comprehensive array of services encompassing food management, facility solutions, and uniform provision.

CEOJohn J. Zillmer

SectorIndustrials

IndustrySpecialty Business Services

Employees278,390

IPO dateDec 12, 2013

https://www.aramark.com

Market multiples

Forward P/E—

EV/EBITDA12.31

Enterprise value$15.37B

Stock splits

Oct 2, 2023↑ Forward

Every 200 shares became 277

+39%

Profitability & growth

Revenue growth9.33%

Gross margin (FY2025)5.78%▼2.4ppvs FY2024

Operating margin (FY2025)4.28%▲0.2ppvs FY2024

ROE11.82%▲1.3ppvs FY2025

Analyst consensus

RatingBuy

Target price$69.20▲22.30%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 16, 2026

Q4 FY26 · EPS est $0.74 · Revenue est $5.3B

View

Dividends

$0.48/shareQuarterlyDividend Achiever · 11yrSafe

ARMK pays a dividend with a 0.85% dividend yield, 11 consecutive years of growth, growing at 8.6% annually, covered 4.1× by free cash flow.

Dividend Yield

0.85%

Annual Div / Share

$0.48

5yr CAGR

+8.6%

Doubles every ~8.4yr

Payout Ratio

31.93%

Safe

Dividend Growth Rate

3yr CAGR

+14.75%

5yr CAGR

+8.6%

10yr CAGR

+5.75%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.48+14.3%

2025$0.42+10.5%

2024$0.38+19.6%

2023$0.32+0.0%

2022$0.32+0.0%

2021$0.32+0.0%

2020$0.32+0.0%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$8/yr

$1/mo

In 5 yrs

$13/yr+51%

$1/mo

In 10 yrs

$19/yr+128%

$2/mo

Today	In 5 yrs	In 10 yrs
$8/yr $1/mo	$13/yr+51% $1/mo	$19/yr+128% $2/mo

Yield-on-cost grows from 0.85% → 1.94% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

ARMK has raised its dividend for 11 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 4.1× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 8.6% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NYSE · ARMK

Aramark

Industrials · Specialty Business Services

$56.58▲ 0.18% ($0.10)today

As of 11:57 AM ET

52-week

$35.07$62.65

Market cap

$14.88B

P/E

What the market price implies · Reverse DCF

To support a price of $56.58, this model requires Stage 1 FCFF to grow by 107.91%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 6.31%/yr over the past 10 years. The required annual growth rate is 101.60 percentage points higher.

Selected forecast · Base scenario

6.31%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

107.91%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$56.58

Estimated value / share

Unavailable

Base scenario

USD · TTM ending 2026-07-03

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Stage 1 6.31% · Stage 2 3.5% · Discount rate 9.4%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 22, 2026, 3:57 PM UTC
Financial statement period: TTM ending 2026-07-03
Data refreshed: Sep 22, 2026, 3:57 PM UTC · cache

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 5 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 34.6%.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inHigh confidence

1Y Price: 49.36%Revenue (TTM): 11.02%FCF (TTM): 66.65%P/FCF: 60th pct

What changed

The stock rose 49.36% over the last year. Revenue grew 11.02% over the trailing twelve months. Operating margin moved from 4.44% to 4.39%. Free cash flow grew 66.65% over the trailing twelve months.

What the market seems to be pricing

The stock is trading toward the richer end of its historical P/FCF range (60th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Performance

Return analysis

Company profile

Based in Philadelphia, Pennsylvania, Aramark, established in 1959, provides a comprehensive array of services encompassing food management, facility solutions, and uniform provision.

CEOJohn J. Zillmer

SectorIndustrials

IndustrySpecialty Business Services

Employees278,390

IPO dateDec 12, 2013

https://www.aramark.com

Market multiples

Forward P/E—

EV/EBITDA12.31

Enterprise value$15.37B

Stock splits

Oct 2, 2023↑ Forward

Every 200 shares became 277

+39%

Profitability & growth

Revenue growth9.33%

Gross margin (FY2025)5.78%▼2.4ppvs FY2024

Operating margin (FY2025)4.28%▲0.2ppvs FY2024

ROE11.82%▲1.3ppvs FY2025

Analyst consensus

RatingBuy

Target price$69.20▲22.30%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 16, 2026

Q4 FY26 · EPS est $0.74 · Revenue est $5.3B

View

Dividends

$0.48/shareQuarterlyDividend Achiever · 11yrSafe

ARMK pays a dividend with a 0.85% dividend yield, 11 consecutive years of growth, growing at 8.6% annually, covered 4.1× by free cash flow.

Dividend Yield

0.85%

Annual Div / Share

$0.48

5yr CAGR

+8.6%

Doubles every ~8.4yr

Payout Ratio

31.93%

Safe

Dividend Growth Rate

3yr CAGR

+14.75%

5yr CAGR

+8.6%

10yr CAGR

+5.75%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.48+14.3%

2025$0.42+10.5%

2024$0.38+19.6%

2023$0.32+0.0%

2022$0.32+0.0%

2021$0.32+0.0%

2020$0.32+0.0%

Income Projection

Invest

USD

Growth rate:

Reinvest dividends

Today

$8/yr

$1/mo

In 5 yrs

$13/yr+51%

$1/mo

In 10 yrs

$19/yr+128%

$2/mo

Today	In 5 yrs	In 10 yrs
$8/yr $1/mo	$13/yr+51% $1/mo	$19/yr+128% $2/mo

Yield-on-cost grows from 0.85% → 1.94% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

ARMK has raised its dividend for 11 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 4.1× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 8.6% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.