ARMK Stock Analysis — Aramark
Sector: Industrials
AI Verdict
You're paying a fair price for huge growth expectations, but if Aramark's contract moat delivers on the 111.8% EPS jump, the forward multiple looks cheap for the sector.
Competitive Moat
Aramark operates large-scale food, facilities, and uniform services contracts for institutions like hospitals, schools, and stadiums, locking in multi-year relationships with high switching costs. Its moat comes from operational scale and entrenched client contracts that make it difficult for rivals to displace them once embedded.
Summary
Aramark's forward P/E of 22.0x with 111.8% expected EPS growth makes it a standout for earnings acceleration.
Where It Stands
Shares trade at 22.0x next year's earnings, a discount to the 20x industrials median only if the 111.8% EPS growth materializes after a year at 46.5x trailing P/E.
Key Metrics
- Trailing P/E: 46.5x
- Forward P/E: 22.0x
- PEG Ratio: 0.42
- Earnings Growth: +1.1%
- Revenue Growth: +0.1%
- Dividend Yield: 0.01%
- 52-Week High: $62.65
- 52-Week Low: $35.07
Analyst Consensus
19 Buy · 3 Hold · 0 Sell (22 analysts)
Bull Case
With analyst consensus calling for 111.8% EPS growth, the 22.0x forward P/E is cheap for the growth on offer if Aramark delivers.
Bear Case
If the 111.8% EPS jump fails to materialize, a return to the 46.5x trailing P/E would mean a sharp de-rating and likely double-digit downside.
Catalyst to Watch
Watch quarterly earnings for evidence that the forecasted 111.8% EPS growth is on track, as any miss could trigger a rapid P/E reset.